A surge in vineyards and big investors herald a golden age for the British wine industry as it prepares to take on Europe's elite.
Increased investment and climate change benefits are steadily combining to boost the British wine industry – but could they pose a real threat to Europe’s big companies?
Data from wine industry association WineGB suggests that the number of hectares of land devoted to wine production in Britain has doubled over the past decade to around 4,000 hectares.
The number of wineries has increased by more than 50 percent to 200, and the number of vineyards has doubled to about 950.
Quality is more important than quantity
But size isn’t everything. Despite impressive growth, the UK wine industry is still dwarfed by its European heavyweights. The UK doesn’t have the capacity to compete with the best European companies yet, but it can compete with them in terms of quality.
When it comes to taste testing, British wines are a cut above the rest. Chapel Down, one of England’s largest wine producers, has racked up a remarkable number of wins at international wine competitions over the years.
Last year, the group achieved 28 competition successes, including gold medals at the International Wine Competition and the Decanter World Wine Awards, which judge more than 18,000 wines from 57 countries.
Chapel Down CEO Andrew Carter has his sights set on creating an internationally recognised wine region in the UK and is securing the investment needed to support his big ambitions.
cash injection
Investors in the City of London, not known for risking their money on speculative ventures, are putting their money into the British wine industry in an attempt to take it to the next level.
Nigel Rae, a well-known city investor, owns a 14 per cent stake in Chapel Down, while Lord Spencer of Alresford, whose investments include property, fintech, cyber technology and oil and gas exploration, owns a 26 per cent stake in Chapel Down.
Former UK Conservative Party Chairman, philanthropist, international businessman and billionaire Lord Ashcroft has acquired a controlling 66 per cent stake in Gosbourne, an award-winning producer with vineyards in southwest England (Kent and Sussex).
Financial support is helping the British wine industry expand. Gusbourne, which already has 93 hectares of mature vineyards, has acquired 55 hectares of land in Kent, ready for planting in the coming years.
Exports are going well.
Britain’s best wines are finding new markets around the world. Exports account for a fifth of Gosborne’s net revenues, with sales in 35 markets including Scandinavia, Japan and the US. Breaking into China would boost sales significantly, but geopolitical concerns are slowing investment decisions.
While traditional wine-growing regions in southern Europe struggle with rising temperatures, making some vineyards less viable, Britain is laying the groundwork for a concerted crackdown on the mega-organisms in wine production.
