The truth of the Alvarez family conflict

Apparently the ordinary Spaniard would love to live a Falcon Crest. The episode suffered the past days by Maria Jose Alvarez of the multinational Eulen, a company basically dedicated to security, has been approached by numerous journalists and commentators from Cuore as a hypothetical derivative of the corporate conflict that it maintains with its brothers. There is nothing more exciting than building stories of family intrigues with the world of wine as a backdrop. It is true that in recent years some family wars for control of some wineries, particularly with the family of Alejandro Fernández y Pesquera, or the most recent schism that has been created in the Emilio Moro Winery. Also in the most prestigious cellar of Ribera del Duero as is Vega Sicilia.

The facts known by police sources speak of the criminal act of a common nature, with a typical development of an assault and attempted robbery of a businesswoman in a wealthy area on the outskirts of Madrid, with an exclusive and high-end car as a possible object of criminal desire by some subjects who approached Ms. Alvarez. But surprisingly, in the police investigation, which had as striking elements the use of firearms both by the aggressors who could have exhibited them, and by the victim’s driver who was escorting to defend himself from the attack, the fact that the President of that company had a conflict of a corporate nature. As the heated imagination is free and as many commentators seek to stoke audiences with Sicilian conspiracies, a surreal snowball has been created over this clash between family rights over two commercial companies.

María José Alvarez, president of Eulen.

The reality is of course very different as regards the Spanish brand, perhaps the most reputable internationally. Vega Sicily Today it is more than a wine cellar due to its commitment to excellence, and thus it has become an icon of exclusivity and cultural category. Since the end of 2009 when the father of all the siblings, David Alvarez, decided to resume direct control of the two business groups founded by himself together with his first wife, there was a family fracture that led to five of his children they assumed effective control of the company called “El Enebro”, on which Vega Sicilia depends. These five brothers, who today maintain their position together, had majority ownership of the shares of said company by direct inheritance from their deceased mother in the early 1980s of the last 20th century. Since then, the attempts by David Alvarez first, and then together with his children Maria José and Jesús David to distort the political rights of the holders have not been successful. The position that the father held as usufructuary of the titles has collided with Justice to the extreme of supreme court which put an end to a long judicial process, by recognizing in May 2015 the existence of the usufruct which did not deprive the five brothers of the free exercise and therefore of the control of the company.

In the world of wine, the figure of Pablo Alvarez as the authentic ideologue of the rise of the emblematic wine company of Valbuena de Duero to its world oenological peak, acquires indisputable value. In parallel, according to sources consulted on the legal nature of the matter, the five brothers who control Vega Sicilia even sold the shares they owned in the Eulen business group, to the parent company “El Enebro”, making their shareholding position more vigorous. The reaction of the patriarch and the two sons who at that time sided with him, were the exercise of some criminal actions that had the same fate as the previous lawsuits, when they were filed. Apparently, the battle did not end before these frustrated actions, because after the death of David Alvarez, his daughter María José, at the time President of Eulen has continued to take action on that sale and challenge the different agreements with “El Enebro”, with claims of various kinds. Those also rejected stand out where the lack of distribution of large dividends was alleged, and ultimately all of an economic nature on the value of the shares.

The wine world today led by increasingly professionalized companies, has the midlife measles of commercial companies. But this event, which apparently has nothing to do with a winery as outstanding today as Vega Sicilia, now in full celebration of forty years of ownership by this family, should not affect its brilliant future. The lack of rigor with which hot information has been addressed, and without contrasting with the real positions of the interested parties and with the business development of the firms, should be an unusual jabbering without much of a journey. Falcon Crest in addition to being far from Ribera del Duero It didn’t stop being anything more than a pasty television series.

The truth of the Alvarez family conflict