Pommery in Exclusive Negotiations for Sale Amid €750 Million Debt
The third-largest French champagne merchant turns to a German sparkling wine giant to overcome a severe financial crisis. Unable to complete its bank refinancing and facing a bond repayment installment of €45 million, the family-owned group led by Paul-François Vranken enters exclusive negotiations for a sale.
A Net Debt of €750 Million Against a Depressed Champagne Market
Vranken-Pommery is experiencing an unprecedented debt crisis, with a net debt of €750 million at the end of 2025, more than 2.5 times its estimated revenue of €293 million. This situation has been exacerbated by rising interest rates and an accumulation of inventory, which are straining the group's cash flow. The champagne market is a worsening factor. In 2025, champagne shipments in France and internationally reached their second lowest level since 2008, excluding the Covid period. Vranken-Pommery is particularly vulnerable to this downturn due to its strong exposure to the French market. The situation crystallized during refinancing: the Champagne banking pool, which has supported the group for years, withdrew, leaving Vranken-Pommery without access to the bond markets. However, creditors agreed to postpone the repayment of the bond installment due on June 19 by one year, set at €45 million.
Mid-Range Brands and Compressed Margins
Beyond the debt, the group's commercial structure has shown its limitations. Unlike its major competitors, Vranken-Pommery has not followed the general trend of moving upmarket in Champagne. The flagship brands, Pommery and Heidsieck, remain positioned in the mid-range, which has made them highly dependent on commercial promotion and weighed on margins. This pricing fragility was evident during the sale of Heidsieck champagnes to Lanson-BCC last year, which allowed the group to recover €50 million. However, this injection of liquidity was not sufficient to rectify the situation in the face of increasing debt levels.
Henkell, a German Partner with Superior Financing Capabilities
Henkell, a German group with a turnover of €1.25 billion, primarily produces sparkling wines (brands like Mionetto, Freixenet) and has a presence in Champagne through the Alfred Gratien brands. This merger between a prestigious French champagne house and a foreign generalist wine group would be unprecedented in the vineyard. The exclusive negotiations have been set for two months and will conclude at the beginning of August. Paul-François Vranken, who handed over the presidency of the group to his wife Nathalie in April, also sold the Parisian restaurant Lucas Carton (acquired in 1998) two weeks ago, a sale that is expected to provide financial flexibility for the family holding, which owns 70% of Pommery & Associés. The publication of detailed accounts for 2025 and the annual general meeting originally scheduled for April 16 and June 4 have been postponed indefinitely.
