Kent's Chapel Down posts positive results with strong harvest expected
Chapel Down has recorded strong half-year sales results citing positive growing conditions.
The Tenterden-based winemaker said sales revenue had grown 21 per cent to £8.37m from £6.94m the previous year, with wine volume increasing 6 per cent.
Off-trade sales were up a quarter, with market share up more than a third to 36%, and the brand driving 80% of English Sparkling Wine category value growth.
Meanwhile, on-trade sales grew 20% with distribution now across almost 2,000 outlets, which is up by 40% on the end of 2022.
The firm also said its ‘highly successful’ launch into duty free airports, including Heathrow and Gatwick in London, contributed 90% growth to its export business.
Operationally, the company said vines are “developing ahead of seasonal averages” with no damage from frost, and the weather during the key period of flowering was “favourable”.
The winemaker has complete its newest vineyard plantings at Boarley on the Kent Downs, it said, which has added 118 acres of Chardonnay and Pinot Noir. Planning is now underway to take its acreage under vine to more than 1,000 acres in 2024.
Last year, the company reported it was “on track” to double in size by 2026 amid a “very positive” harvest and traditional method sparkling wine sales rising 35% year-on-year in 2022.
Andrew Carter, CEO, said: “Our focus remains on delivering significant growth in sparkling wine sales, margins, profits and cash flow, so we are extremely pleased with the powerful momentum of the business in the first half of the year. We are continuing to deliver on our growth plans by building our leadership position in the fast-growing English Sparkling wine category to deliver long-term shareholder value.
“Consumers’ love for Chapel Down continues to grow as more people at home and abroad learn about our brand and our wines, and this is fueling strong and profitable growth across all our distribution channels. We have a world class team in place, are successfully executing our premiumisation strategy to support and grow our margins, and have a strong balance sheet to enable us to meet our target of doubling the size of our business by 2026.”
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