"Romy Castel, daughter of the 99-year-old founder, and Alain Castel, his nephew, told Bloomberg News they deeply disagree with the way Chief Executive Officer Gregory Clerc is running thewine and beer conglomerate and the power they say he's amassed. Clerc "is attempting to take control," Romy Castel, 51, said in a telephone interview, referring to a move by the CEO earlier this month to remove Alain Castel from two company boards."
"As the first outsider to oversee operations within the secretive empire, the dispute highlights the risks of generational change within family-controlled companies. In a statement, the eponymous Castel Group said that Clerc rejects the family members' claims and added that he remains focused on his mandate to develop and grow the company "within a framework of demanding and responsible governance.""
An increasingly acrimonious dispute over the direction of Pierre Castel's drinks conglomerate erupted after heirs Romy and Alain demanded CEO Gregory Clerc resign and organized a vote to oust him. They accuse Clerc of attempting to take control after he removed Alain from two company boards and criticize his strategic vision and leadership. The closely held Castel Group has about €6.5 billion in sales and 43,000 employees and has been torn by internal strife. Clerc rejects the family members' claims and says he remains focused on growing the company within demanding governance. The board met in Luxembourg on Dec. 11 and backed Clerc. The founder's health has been faltering.
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