Castel Frères, a titan in the global wine and spirits trade, has announced it will shutter its bottling plant in Saint-Priest, near Lyon, France, by the end of 2025. The facility, home to nearly 100 workers, will see its operations moved to other company sites. In a statement issued last Friday, the firm cited challenges in a struggling wine industry, pointing to a steep drop in production volumes at Saint-Priest as a key driver.
For its 96 employees, Castel Frères has promised support, including geographic mobility aid and redeployment options. Roughly half can expect transfers to other facilities or newly created roles. The company, a heavyweight in wine distribution across France and Europe, admitted to grappling with excess production capacity over the past five years—a sign of deeper pressures reshaping the sector.
This closure mirrors a wine market facing tough times. Shifting consumer tastes, with younger drinkers turning away from wine, combined with economic headwinds, have softened demand worldwide. For Castel Frères, a leader among global wine traders, the decision marks a pragmatic step to realign its operations and stay competitive. As reported by Le Progrès, the Saint-Priest plant’s woes echo an industry-wide battle with overcapacity and declining sales.
Attention remains on the workers. While the company’s commitment to half its staff is firm, it leaves uncertainty over the future of the remaining employees. For the wine and spirits trade, this could foreshadow further consolidation. Producers globally are taking note, with some exploring cuts or shifts to premium labels and emerging markets. Castel Frères, deeply tied to France’s wine heritage, is making a calculated move to ensure long-term sustainability in a shifting market.
