Demand for English wine soars as main producer considers promoting vineyard | UK | News | EUROtoday

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A British winemaker is mulling whether or not to place itself on sale in a bid to boost £30million to assist meet surging demand for English wines.

Chapel Down, which is part-owned by the billionaire Lord Michael Spencer, introduced a strategic evaluate on Tuesday (June 25) to fund enlargement at its base in Tenterden, Kent, and to construct a brand new vineyard close to Canterbury.

Britain’s largest wine producer, Chapel Down is contemplating choices together with funding from present or new shareholders in addition to the attainable sale of the corporate, which was based in 2002.

Chapel Down’s shares on the UK’s AIM market closed on Monday (June 24) at 65.5p, giving it a market worth of £112million.

While nonetheless comparatively small in scale, hotter temperatures attributable to local weather change have improved grape rising circumstances and attracted worldwide opponents, together with Champagne homes Taittinger and Pommery, which have each purchased land within the UK.

Last yr noticed the biggest yield ever recorded within the UK with between 20-22 million bottles produced, 30,000 tonnes harvested and a 60 p.c improve on the earlier document yield set in 2018, in response to trade physique, Wine GB.

With plans to double the dimensions of the enterprise over 5 years, Chapel Down anticipated to supply 3.4 million bottles of wine from final yr’s bumper harvest.

The firm posted a 14 p.c rise in gross sales final yr to £17.9m, whereas pre-tax earnings rose by 87 p.c to £2.3m, in response to figures revealed by the Telegraph.

Chapel Down stated in an announcement that there may be no certainty a transaction will likely be pursued by the agency or as to the phrases of any eventual sale.

Andrew Carter, Chapel Down’s Chief Executive, stated there’s a lengthy pathway for the corporate to proceed to take share from champagne, and customers more and more perceive wines within the UK are pretty much as good if not higher by way of high quality.

Rothschild & Co is performing because the lead monetary adviser for the strategic evaluate, in response to Chapel Down.

The firm leases and sources from 1,023 acres of vineyards in south east England, with 750 acres totally productive.

This makes Chapel Down the biggest wine producer within the UK, in response to the corporate.