Meet the Wertheimers, the secretive French brothers worth $42 billion who control Chanel, own vineyards in France and Napa Valley, and breed racehorses
Alain, 70, and brother Gerard Wertheimer, 67, both have a net worth of $21 billion for a combined net worth of $42 billion.
Their wealth began with their grandfather's acquisition of Chanel, the French fashion house, which they both co-own today. They also own various vineyards across the world and racehorses.
Source: Bloomberg
Their grandfather, Frechman Pierre Wertheimer, and his brother Paul, struck a deal with Gabrielle "Coco" Chanel in 1924, founding Société des Parfums Chanel — a deal to sell and produce Chanel beauty products.
Source: The New York Times
Chanel, at the time, saw it as an opportunity to get her signature fragrance, Chanel No. 5, into the hands of more customers.
Source: The New York Times
Before 1924, the fragrance was only available to exclusive clientele at Chanel's Paris boutiques.
Source: The New York Times
In 1941, during World War II, Chanel tried to legally wrest control from Pierre Wertheimer, attempting to use the law banning Jews from owning businesses. However, she failed. During the time, the Wertheimers owned over 50 percent of the fashion house.
Pierre Wertheimer took full control of Chanel in 1954, and Coco Chanel died 17 years later.
Source: The Guardian
Brothers Alain and Gerard Wertheimer assumed the role as co-owners of the House of Chanel in 1996 after their father, Jacques Wertheimer, son of Pierre, died.
Alain serves as the chairman of Chanel.
Gerard heads the company's watch division from his home in Geneva. They are the third generation to run the nearly 110-year-old company.
Source: Forbes, The New York Times
In 1973, at 25 years old, Alain convinced the board of trustees to let him take over the company.
Source: The New York Times
The two are known as "fashion’s quietest billionaires," according to The New York Times. They hardly ever take interviews or speak publicly about France's most iconic fashion house, which they both helm.
''We're a very discreet family, we never talk,'' Gérard Wertheimer told The New York Times Magazine in 2002. ''It's about Coco Chanel. It's about Karl [Lagerfeld]. It's about everyone who works and creates at Chanel. It's not about the Wertheimers.''
In 1983, the Wertheimer brothers appointed Karl Lagerfeld as the artistic director of Chanel's fashion division.
Source: The New York Times Magazine
Lagerfeld would go on to revolutionize the iconic French fashion house for over 3 decades, saving it from a potential financial collapse, up until his death in February 2019.
Source: Business Insider
“When I took on Chanel, it was a sleeping beauty. Not even a beautiful one. She snored,” Lagerfeld said in a 2007 documentary called “Lagerfeld Confidential.”
“So I was to revive a dead woman,” he said.
Source: Business Insider
If the Wertheimer brothers do attend a Chanel fashion show, they drive themselves, and then sit in the third or fourth row. The two also never attend the opening of Chanel stores, nor do they publicly comment on the business.
Source: The New York Times Magazine
Before 2018, Chanel never announced sales numbers, leaving the industry to merely guess its worth. Numbers released last year, for the first time in 108 years, showed total sales for the 2017 calendar year were $9.62 billion.
Source: The New York Times
As both Alain and Gerard near their 70s, it still remains unknown who will succeed them in the Chanel business.
The brothers never speak about Chanel publicly. In a New York Times article from 2002, Alain told a reporter why he spoke with Wine Spectator and declined to comment for the paper:
"I spoke to the Wine Spectator because that's PR, that's how you sell wine. I will gladly speak to you, about the wine and the horses, because we sell the brand value. Horses are the brand value of 'Wertheimer Frères.' But I don't give interviews on Chanel because it is not useful for the Chanel business.''
Source: The New York Times
Grandfather Pierre Wertheimer had a love for racehorses and for breeding thoroughbreds.
It was at the races where Coco Chanel and Pierre Wertheimer met, according to The New York Times.
Source: The New York Times
The family's first racing winner was in 1911 — Pierre's first champion, Epinard, in the early 1920s. But Pierre's greatest victory was in 1956, when Lavandin won the Epsom Derby.
Source: The New York Times
Just like their grandfather, Alain and Gerard have both taken an interest in horse racing.
Source: Business Insider
And like Chanel, the two brothers inherited Wertheimer et Frere, the family's horse racing and breeding business.
Source: Business Insider
Gerard is the one who oversees the family's horse stock.
Source: The New York Times
In 1995, the latest estimation was that the family owned close to 200 horses across four of its ranches in Chantilly, California, Kentucky, and Normandy.
Source: The New York Times
In 2015, Solow, a Wertheimer horse, won the Queen Elizabeth II Stakes Race.
Many of their horses have also won races at the French Derby and the Breeders' Cup Turf.
Source: Thoroughbred Daily
Queen Elizabeth II presented the trophy to both Alain and Gerard Wertheimer after the race that bears her name in 2015.
Source: Thoroughbred Daily
In 1994, the brothers bought Bordeaux winery Chateau Rauzan-Segla.
Source: Bloomberg
In 2015, Chanel bought the St. Supery winery in California’s Napa Valley. The purchase cemented the brothers' vintner status in the wine industry.
Source: The Wall Street Journal
Also in 2015, the brothers finished the renovation of Chateau Canon. It has six bedrooms, but is not a hotel: Guests can only stay if they're invited.
Source: The Wall Street Journal
The Wall Street Journal reported that Wertheimer family and their guests can often be found in the château in the summer, according to chateau employees.
According to The Wall Street Journal, a "large but humble bamboo table greets guests in the entry hall" of the chateau, which also features modern furniture with shades of purple and pink, and down in the wine cellar, there are bottles dating back to the early 1800s.
Source: The Wall Street Journal
Alain Wertheimer reportedly owns a "grand apartment on Fifth Avenue," according to The New York Times, which he shares with his wife Brigitte and 3 children.
Chanel's executive offices are only a short distance from Alain's home, on 57th Street. Alain and his brother spend some of their time in New York despite the fact that the family owned, as of 2002, over eight homes across the world.
Source: The New York Times
Gerard is said to own a secluded, French-style mansion in the Vandœuvres region of Geneva, which is filled with antiques. He has been described as not taking part in any social activities or being seen in restaurants.
Source: The New York Times
It has also been reported that the Wertheimer family enjoys shooting game at their chateau in Loire Valley, France.
Source: The New York Times
The family also spends a lot of their time at their chalet in the Swiss Alps, skiing.
Source: The New York Times
The Wertheimers also collect a lot of important art, which decorates many of their homes. Some of their highly-priced pieces are by Picasso, Matisse, Rousseau — to name a few.
Source: The New York Times
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