The UK wine industry has never shined brighter. Last year's crop was the country's largest ever, defying the global decline in wine production as a result of climate change.
Over the years, there has been tremendous growth in new vineyards and wineries in the UK, including Kent-based Chapel Down, the country's largest winemaker.
The company is now exploring options to help fund further expansion, including selling its business or raising investment from existing and new shareholders, it said Tuesday. No decision has been confirmed yet.
Chapel Down was listed on London's junior stock exchange, AIM, just six months ago.
The English sparkling wine maker said it plans to use the new funds on new vineyards and a new purpose-built winery which will be up and running by 2026.
“Given the timeline for these investments, the board believes it is now appropriate to review the full range of long-term financing options that support this plan,” Chapel Down said in a statement.
The company said it is on track to achieve double-digit sales growth in 2024 and aims to double its sales between 2021 and 2026.
Chapel Down declined to comment after its announcement.
The winemaking industry is not new in Britain, but it has never stood a real chance against its more famous rivals in France and Spain.
Founded 22 years ago, the Chapel Down region has seen the UK wine industry expand at a time when climate change has wreaked havoc on other traditional wine production centres.
Warmer conditions in the U.K. have spawned local businesses and increased wine exports, attracting £570 million ($723.5 million) in the past 10 years, according to property consultancy Strutt & Parker.
“Although the UK is still a very small producer of grapes globally – at less than a tenth of a percent – it has grown faster than any of the world’s major wine-producing countries in 2023,” said Nick Watson, head of cultivation. Chrome at Strutt. & Parker, in a June report.
Rising temperatures have proven particularly beneficial for growing varieties such as Chardonnay, Pinot Noir and Pinot Meunier – the three grapes used to make traditional Champagne – which are the most planted in Britain, according to data from industry body Wine GB.
Most of the UK's vineyards are located in the southeastern parts of the country, and Chapel Down holds 9% of the total, the Financial Times reported in September. In 2023, the winemaker generated revenues of £18 million ($23 million) due to strong demand for locally produced wine.
The company is the crown jewel of the UK's bustling wine industry and has a number of high-lucrative sponsorships under its belt, including events such as the Ascot Races and partnerships with the England and Wales Cricket Board.
Chris Ratcliffe – Bloomberg/Getty Images
When Chapel Down went public in December, chief executive Andrew Carter said the move was a step towards the company's “evolution” as it “has grown from a start-up to become the leading and largest wine company in England”.
Carter said in a statement at the time that AIM's listing would help it “attract new investors to participate in Chapel Down's growth as the leading producer in the world's newest global wine region.”
