Chapel Down at the crest of the English wine wave with 2016 results
Sales of English wine and beer are up at Chapel Down, where the company says it is poised to take advantage of the craft and English wine boom.
The Kent-based producer reported a growth in sales and gross profit of both its wine business and also craft beer subsidiary, Curious Drinks.
In the year to December 31, 2016, combined year on year sales of wine, beer and cider rose by 25% to £10.233m (2015: £8.179m), providing a strong starting point to enter H1 2017.
Chapel Down saw strong growth of its still and sparkling wine during the calendar year rising 22% to £6.791m in sales.
As one of the leading English wine producers alongside the likes of Nyetimber and Hush Heath, Camel Valley, Bolney and Ridgeview, sales figures of English wine are still a drop in the ocean compared to leading producers in English wine’s main rival, Champagne.
In its report released this morning, Chapel Down made clear that it is investing in putting itself at the crest of the wave as the industry grows.
“Demand is continuing to rise and we are developing a very strong brand to ensure we continue to maximize the potential that is being created through the consumer and trade excitement around cool climate wines,” said CEO Frazer Thompson.
“With distribution in Marks & Spencer, Waitrose, Sainsbury, Tesco and Majestic, as well as hundreds of bars and restaurants serviced by our merchant partners, Chapel Down is able to capitalize on the increased excitement.”
As well as establishing a strong brand domestically, Frazer also points to the US as a major area for potential growth, having seen predicted initial wines double since Chapel Down launched stateside in 2016. “The potential for export in sophisticated wine markets is exciting,” he added.
“The potential for export in sophisticated wine markets is exciting,” he added. The WSTA predicted this week that one million English vines are to be planted this year – and at least some of this will be at Chapel Down.
The producer revealed a focus on planting new vines to keep up with demand, but also to ensure that distribution doesn’t exceed its growth rate.
“We continue to manage our stock levels to enable consistency of supply over the longer term which is critical in the continued development of our brand,” the company said.
Investment from shareholders has been funelled into planting 40 additional acres, taking the total planted on the winery’s long-term leased land to 122 acres since 2015. The company also has a further 55 acres which are under long-term grower contracts.
Read more at Source: Harpers
