Castel Family Challenges CEO Over Leadership Control in High-Stakes Shareholder Vote

French billionaire Pierre Castel's drinks conglomerate is caught in a high-stakes corporate battle as Romy Castel, the founder's daughter, and Alain Castel, her father's nephew, have publicly demanded the resignation of CEO Gregory Clerc. The conflict has escalated with plans for an extraordinary shareholder meeting in Singapore on January 8 to vote on Clerc's removal according to reports. The Castel Group, known for its global wine, beer, and agricultural operations, has been plagued by internal strife since Clerc took over in 2023 according to data.

The dispute is part of a broader challenge for family-owned businesses navigating generational change and external leadership according to industry analysis. Romy Castel said she has the support of key shareholders to remove Clerc from his position and described the CEO's actions as an attempt to consolidate power according to internal statements. The closely held Castel Group reported sales of €6.5 billion in 2024, with significant operations in Africa under the Castel Afrique brand according to financial reports.

A recent shareholder meeting in Luxembourg reaffirmed Clerc's support, according to the Castel Afrique website according to official sources. However, Romy Castel claimed that she has a 24% stake in the fund management vehicle, Investment Beverage Business Management (IBBM), and with allies including former executives, she believes she holds the majority vote to remove the CEO according to claims. The brewing and soda business, which operates across 22 African countries, has also seen increased political tensions and economic challenges according to market analysis.

Why the Standoff Happened

The power struggle within the Castel Group surfaced earlier this month when Alain Castel, who leads the wine arm of the company, was removed from the board of two key entities: D.F. Holding and Cassiopee Pte. Ltd. according to corporate filings. Clerc holds seats on both boards and has taken a firm stance in defending his leadership. In a LinkedIn post, he claimed to have the board's "full support" to drive the company's growth and development according to company statements.

The conflict has intensified at a time when the aging founder, Pierre Castel, has stepped back from public life. His health has declined, and he is no longer the public face of the empire he built according to biographical records. The acrimony has also been exacerbated by the founder's recent legal troubles, including a Swiss federal court ruling in July 2023 that he had evaded taxes. The billionaire was fined more than €350 million as a result of the case according to legal documents.

Clerc, a Swiss national and former tax lawyer for Pierre Castel, has been under scrutiny for the corporate changes he has implemented since becoming CEO according to industry reports. Alain Castel criticized the CEO's strategic vision, citing a survey that he claims damaged ongoing projects according to internal claims. The nephew also described the situation as a "deep disagreement" that has been brewing since Clerc took over according to family sources.

Risks to the Outlook

The brewing and wine business has already faced headwinds, including declining wine consumption in France and political instability in parts of Africa according to market data. The Castel Group has also had to navigate the impact of the war in Ukraine and related economic disruptions. These challenges come at a time when the company is undergoing significant structural changes, including consolidating operations across its global portfolio according to industry reports.

Romy Castel and her allies, including former French executives Guy de Clercq and Gilles Martignac, have positioned themselves as a counterbalance to Clerc's leadership according to insider reports. With the extraordinary shareholder meeting set for January 8, the outcome could determine the future direction of the company. If Clerc is ousted, it would mark a significant shift in leadership and strategy.

The Castel Group's complex corporate structure, which includes entities in Luxembourg, Singapore, and other jurisdictions, has made it difficult for outsiders to track the full extent of the business according to legal analysis. This complexity has also contributed to the challenges of managing the transition from one generation of leadership to another according to industry experts.

What This Means for Investors

For investors, the unfolding conflict at the Castel Group raises concerns about corporate governance and the stability of the company's operations according to financial analysis. The brewing business, which is the larger of the two core segments, operates in politically sensitive regions and has been affected by economic fluctuations. A leadership change could lead to shifts in strategy, affecting both short- and long-term performance according to industry forecasts.

The Castel Group reported a significant increase in dividends for 2024, with payments rising from €43 million to €350 million according to financial statements. However, this growth is unlikely to offset the risks associated with internal conflict and strategic uncertainty. The company's ability to maintain its market position in Africa, where it has 61 beer brands, will depend on its leadership's capacity to navigate both external and internal challenges according to market intelligence.

As the January 8 shareholder meeting approaches, all eyes will be on the Castel Group to see whether the family can reclaim control or if Clerc will retain his position according to market watchers. The outcome will have implications not just for the company but for the broader industry, which has seen similar power struggles in other family-controlled enterprises according to industry analysis.