Oxford conversations on Ownership: Brice de La Morandière

Mary Johnstone-Louis (MJL): What is your personal and professional experience with family business?

Brice de La Morandière (BLM): For most of my professional life, I had a global career leading multinational corporations. Upon the sudden death of my aunt, who led the estate for 20 years, my family and I agreed that I would return to lead the vineyard. I was working in China when I received the news she had passed; this raised the question of who would be the best owner for the Domaine. Our business is more than a century old. Today we have around 40 shareholders. We became convinced there was more value in Domaine Leflaive being owned by the family, than, for example, seeing it become acquired. I made the choice to enter the family business as Gerant, or head, of the Domaine, including moving my own family back to France and to the village.

Our legacy is about the values we want to convey in our wine. For my family, this is about the fact that we are offering something handmade. When I sell a bottle of wine, I don’t feel I am simply offering a product; I sell a piece of our craft. We are a family vineyard, and we view ourselves as craftspeople.

MJL: In your view, why is the topic of responsibility important for business families today?

BLM: I feel strongly that it’s no longer sufficient for any business – or business family – to solely ensure the economic wellbeing of their employees and shareholders. We must exist for a reason that is higher than ourselves, for something noble. For us, it has to bring value to the community, for example. We thrive when we own something that brings something else to life; when we make a living from what we offer rather than what we take. You can bring shareholders value, but that is not enough to motivate employees or make your shareholders proud. For us, it has to bring value to the community in our small slice of the world, and in our case, also address climate change.

MJL: Why is responsible ownership important to you personally?

BLM: With age and maturity comes the chance to assess what we are passing on to the next generation. Sometimes, this simply means leading by example and taking responsible actions that might not be immediately required or profitable, but that will give us something to be proud of. Each of our shareholders could benefit economically if they sold their shares, but I need to bring them a purpose that keeps us together and that keeps the spirit and the legacy of who we are. Today, our family has future shareholders all over the world. This year, I brought them all together at the Domaine for a whole weekend. We planted vines together. I am making sure that my shareholders understand the Domaine and have something to be proud of.

MJL: What is the most important challenge families face when discussing the topic of responsibility?

BLM: The main challenge is the need to balance economic performance and responsible behaviour. The reality is that responsibility means personal and economic effort. It also often means investment and a change in behaviour. Take our shareholders: some make their living from the vineyard, and at the same time they expect there are yield issues and they accept this because the pride is there. When someone truly wants to sell their shares, you have to make it possible for them to do so. This way you keep family shareholders who are motivated by the economics but who also have pride in what we do.

I don’t think it’s wise to overplay the role of purpose. But in the world in which we live, it is more and more difficult to motivate people with money alone. Let’s not kid ourselves, responsibility can bring additional effort. But it also means more resources. For us, it has allowed us reinvestment into the business to significantly improve the cellars, for example. Because of how we reinvest and reassess our dividend, the Domaine has become stronger and, in fact, more successful than ever.

But there is one thing you must do: Make sure that the economics of your business are right first. Next, make sure the family ethos is clear: the business needs to be reinvested in.