Heirs to billionaire Castel’s empire lose bid to oust CEO

[SINGAPORE] Two heirs to one of Europe’s richest drinks families lost the first round in their battle to oust the top executive of their family’s eponymous firm, Castel Group.

Chief executive officer Gregory Clerc held on to his role as a director of a key corporate entity in Singapore after family members on Thursday (Jan 8) failed to push through a vote to remove him. Romy Castel, daughter of 99-year-old billionaire founder Pierre Castel, had convened the gathering with the backing of one of his nephews, Alain Castel.

They said in a statement that they were prevented from registering their votes due to “dilatory tactics” and would convene another meeting as soon as possible. 

Clerc said in a separate statement that he remains “fully engaged” in his role as CEO and deplored “false” information circulating that could harm the group’s reputation. The Singapore entity also condemned the shareholders’ actions.  

The outcome is the latest twist in a bitter power struggle at the closely held group that has pitted the tax lawyer-turned-CEO against the family members, who have criticised his strategic vision and what they say is his attempt to gain control. Clerc has rejected their claims and has said he has a broad mandate from the founder to run the firm independently from the clan.

Castel Group, which had sales of about US$7.6 billion in 2024 from its sprawling beer, wine and agricultural operations, is owned through a series of holding companies that culminate in a Singapore-based trust. Clerc had been vying to keep his seat at a key entity, Investment Beverage Business Management (IBBM), which is based in the city state. He also holds about 30 other mandates within the secretive empire alongside his role as CEO.

“Despite the fact that nearly 97 per cent of shareholders expressed their intention to remove Mr Gregory Clerc from his directorship, Pierre Baer, chairman of IBBM, employed various dilatory tactics to prevent shareholders from exercising their voting rights,” the family members said in a statement. “A new general meeting will be convened as soon as possible with an agenda including the removal of Pierre Baer and Gregory Clerc.”

The Castel family, which had expressed confidence prior to the vote on removing Clerc, “reaffirms its commitment to ending the seizure of power and establishing a new governance framework,” they said.

In a separate statement, IBBM said that it is “concerning that individuals aspiring to governance responsibilities at IBBM or within the group have disregarded these rules and have publicly mischaracterised their proper application as dilatory tactics or obstruction,” adding that the shareholders’ meeting complied with laws and regulations.

A recent filing for IBBM lists Romy Castel as a shareholder with a 24 per cent stake. Another of her father’s nephews, Michel Palu, holds a similar stake while the other shareholders on the list are from outside the family: Two former longstanding French executives, Guy de Clercq and Gilles Martignac, as well as Pierre Baer.

Baer couldn’t be reached for immediate comment. 

Pierre Castel, who started out as a vineyard worker in the Bordeaux region, built up the conglomerate over more than seven decades and was until a few years ago its public face. But his penchant for discretion and use of holding companies on different continents made operations difficult to track. It spans a wine business that started in France and includes chateaus, vineyards and the Nicolas brand of stores, and the much larger brewing and soda operation focused on Africa, with dozens of beer brands.

The extent of the Castel fortune and its labyrinthine corporate structure came to light through a tax dispute that the billionaire lost on appeal. A Swiss federal court ruled in a July 2023 decision that the businessman had evaded taxes as a longstanding resident in the country. Castel was fined more than €350 million (S$326.6 million).

“Consistent with the founder’s long-standing wishes, ultimate control of the Castel Group does not rest with IBBM or with any natural persons, but with professional, independent trustees who serve as guardians of the group’s sound governance,” IBBM said. “The individuals who have spoken to the press regarding the governance of IBBM and the group do not in any way represent these trustees.” BLOOMBERG