The darling of the thriving English wine industry, Chapel Down is a British winemaking success story like few others. However, in order to grow further, there is an opportunity to leave this tale behind these beautiful islands.
Chapel Down announced today it is conducting a “strategic review” in a bid to boost growth. Within its previously outlined strategy, there are plans to invest in new vineyards and build a new winery in time for the 2026 harvest. To achieve this goal, it appears to be considering a sale.
“Given the timelines for these investments, the Board believes it is now appropriate to review the full range of long-term financing options supporting this plan,” a statement to the markets said today.
If selling is the goal, it won't be difficult to implement. British wine is increasingly big business, with more than 940 vineyards across Britain representing nearly 4,000 hectares in 2023 and producing in excess of 12.2 million bottles in 2022.
Is Chapel Down for sale?
Defra says wine in the UK was worth more than £10 billion in 2022, with off-trade sales of still, sparkling and fortified wines reaching £7.6 billion. It is a market ripe for capture and expansion.
Chapel Down is a giant in the sector, leasing and sourcing from 1,023 acres of vineyards in south-east England, making it the UK's largest wine producer with 1.41 million bottles sold in 2022.
If a sale does happen, Chapel Down CEO Andrew Carter, who took over in 2021, is likely to be the right person to make it happen. After all, he has precedent and has spent the last four years or so building the wine brand into “the most valuable player in the sector.”
This vision is not too far removed from his strategy for Chase. Carter headed up the artisanal gin brand in 2017 and, after leading it through an extraordinary period of growth, brokered a sale to Diageo for an undisclosed sum in 2021.
But until September, Carter denied any intention to sell Chapel Down. But that's hard to swallow now, because – just like with Chase – he has turned him into an even bigger player than he was when he joined. Not only this, Chapel Down is also one of the most marketable brands through relationships with the likes of Royal Ascot and England Cricket.
Who will buy Chapel Down?
Its brand became so strong that when it listed on AIM in December 2023, its shares rose more than 15%. In its latest accounts, pre-tax profits rose 87% to £2.3m and revenues rose 15% due to a strong wine crop. It is a very attractive offer for potential buyers.
So, if the sale goes through, who could be on your list of potential buyers?
Due to the growing success of the category, and the impact of rising global temperatures on traditional wine growing regions, English and UK wines are becoming an increasing target for foreign investment. American and continental wine houses, including Jackson Family Wines in the US, Taittinger and Pommery in France, and Freixenet in Spain, have acquired vineyards in recent years.
Therefore, the brand is unlikely to suffer from a lack of interest, if it decides to sell.
