“Should we continue to try and sell more wines in more countries? Is that still a valid business model in today and tomorrow’s Burgundy where the rules are changing? It’s something we need to look at,” says Thomas Seiter.
Thomas Seiter, London, July, 2023
It has certainly been an interesting and, at times, surprising four years in Burgundy for Thomas Seiter, the relatively new CEO of Louis Jadot. Not least because, this time last year, Seiter held the exact same position at Jadot’s neighbour and competitor, Bouchard Père et Fils.
Appointed in 2019, Seiter had a baptism of fire at Bouchard having to deal with the Covid pandemic and the severely frost-impacted 2021 vintage. In some respects though, those issues were the least of his problems.
Not long after he had joined Bouchard, clandestine negotiations began between Francois Pinault’s Artemis Domaines and Bouchard’s owners, the Henriot family. ‘It was a long negotiation process that was done very secretly,’ says Seiter.
When the deal was announced in 2022, Artemis was indisputably the major shareholder in the merger. This left Seiter in an exposed, uncertain and unenviable position. ‘By then I’d got to know Frédéric Engerer, Artemis Domaines’ President, quite well. And because Frédéric likes to work directly with his technical people, it was obvious to me that I wouldn’t have the same role going forward at Bouchard.’
Concurrently, Louis Jadot just happened to be looking for a replacement for its long-standing President and CEO Pierre-Henry Gagey. In fact, Gagey had been looking to retire in 2020, but had stayed on temporarily to manage the firm through the deepening Covid crisis. By 2022 Gagey was able to step down and Jadot’s owners, the American Kopf family (also proprietors of Kobrand Wines and Spirits), began to actively recruit his successor. Although Seiter was firmly on their shortlist, the Kopf family and Jadot didn’t think he could be persuaded to part company with Bouchard.
‘As they had no idea of the merger, they were a bit surprised that I was interested.’ says Seiter. ‘It turned out to be perfect timing both for them and for me.’
Without question, the experience Seiter had gained at Bouchard was a major bonus for Jadot. That followed his highly successful career first in finance and then in operations which led to senior management stints in Bordeaux, Cognac, Champagne and Asia working for the likes of Möet Hennessy, Jacques Lurton and Charles Heidsieck.
‘I’ve almost always worked with wine companies and brands that have genuine heritage and history’ he points out. ‘But as I got older, I also wanted to work for smaller, family owned fine wine businesses.’
Seiter was the first non-family member to take the reins at Bouchard. And there’s a similar sense of déjà vu at Jadot where Pierre Henry and his father André had been in charge since the early 1960s. ‘In that sense, I am the first outsider here as well.’
Pierre-Henry Gagey could finally step down as CEO in 2022
A new operating structure
Seiter has obviously settled in quickly and works closely with both Pierre-Henry and his son Thibault Gagey, who was simultaneously promoted to Jadot’s General Manager last year.
‘Having retired, Pierre Henry now has a purely consultative role’ Seiter explains. ‘We see each other a lot and I enjoy working with him. He has made an incredible contribution and it is vital for me to have access to his experience and knowledge. But Jadot cannot have two bosses. So we need to communicate that is me, Thibault and the team that are now running the daily operations.’
Seiter emphasises that Thibault’s role is key. ‘He has worked here for fifteen years and, in my mind, Thibault is critical to Jadot’s continuity and future. As my General Manager, he has responsibility for the estates (Résonance, Ch des Jacques and Domaine Ferret) as well as heading up the commercial team. It’s a big job for him and the business.’
Seiter sees his own role as bringing a fresh, outside perspective to add value to what is a very large, solid and successful company. Founded in 1859, Jadot sells wine from 150 Burgundy appellations from Chablis to the Beaujolais. It also owns 140ha of vineyards in the Côte d’Or, 17ha in the Maconnais and 88ha of Cru Beaujolais vineyards.
‘This is a very traditional region and sometimes we do things in a certain way because that’s the way it has always been done. Part of my brief is to challenge that traditional thinking and orthodoxy.’
‘I’m not here to change the DNA of Jadot though’ he quickly reassures. ‘Our job will always be to represent Burgundy as a whole and to produce the best wines possible in each category whether that’s a generic entry level wine or a Grand Cru. My focus will be on doing things in the best and most efficient way, which may mean some fresh ideas and approaches.
‘For instance, should we continue to try and sell more wines in more countries? Is that still a valid business model in today and tomorrow’s Burgundy where the rules are changing? It’s something we need to look at.’
The Louis Jadot cuverie at Beaune
Challenges ahead
Pricing is another complex issue that occupies much of Seiter’s time. ‘Most recently, supply costs have increased dramatically – especially on the entry level wines – and there’s no sign yet that these cost pressures are going down. This is something completely new in Burgundy.’
According to Seiter, it has put more pressure on the large negociants. ‘In difficult times, Jadot and others have always had an honourable history of being a buffer between the grower and the consumer. It’s just not feasible for us to double the price of our AC Bourgogne Pinot Noir. So we have absorbed a lot of the latest increases, rather than passing them on.’
Having been in Burgundy since 2019, Seiter has seen a run of ‘short’ vintages that has only exacerbated this situation. Both 2019 and 2020 were high quality vintages but were lacking in volume. Then came the disastrous 2021 due to the cataclysmic spring frosts. 2022 was good in quality but not as big as 2018. ‘So we need a large, good quality vintage in 2023 and then another in 2024. Otherwise, we are facing what is a potentially watershed moment in Burgundy.’
Meanwhile, Jadot is also facing stiffer competition from growers turned vignerons and a small number of new micro-negoces. Seiter regards the latter as more of a change than a threat. ‘Remember that we own a lot of our own vineyards. Being vignerons too is a big strength for us.’
Being nimble and innovative: Beaune Premier Cru Celebration is only made in special vintages
Technical resources and know-how
As a result, he is extremely keen to underline the message that there’s no compromise on the approach, quality and value coming out of Jadot – and not just for its entry level wines. ‘I want consumers to know that Frédéric Barnier, our head winemaker, and his team of oenologists are making our top wines such as Grands Crus Chevalier-Montrachet Les Demoiselles and Chambertin Clos de Bèze, in the same way as a small grower. And much of the time, we are doing it better because of our technical resources and know-how.’
‘Equally, we can never price it at the same level as a small, famous grower because of who we are. So we must price it correctly – within an acceptable gap,’ he adds. ‘I am 100% happy with that situation and our consumers should be too because they will always get a great wine for a very good price.’
With its vast resources, Jadot can also be nimble and innovative, says Seiter. A good example is the latest 2020 release of its Beaune Premier Cru Celebration. Made with grapes from Jadot’s 17 Beaune Premier Crus, Celebration is only made in top years such as 09, 12, 15, 18 and now 2020. Seiter acknowledges that blending across Premier Crus is slightly heretical in Burgundy.
‘Just occasionally though, it’s good for a traditional negociant like Jadot to shake things up a little to offer something modern, exciting and surprising.’ Can we expect more of the same under his tenure? Time will tell.
The wines of Louis Jadot are imported and sold in the UK by Hatch Mansfield which is a commercial partner of The Buyer. To learn more about Hatch Mansfield click here.
