- Kent winemaker could raise money from investors or opt for a sale
- Boss Andrew Carter wants to boost sales to £28m by 2026
Andrew Carter, head of Chapel Down
Britain’s biggest sparkling wine producer Chapel Down could be put up for sale just over six months after its shares were listed on London’s AIM market.
Chapel Down, which has capitalized on growing demand for domestically sourced wine, told shareholders on Tuesday it had launched a strategic review to consider options to fund profitable growth.
It said it was time to review long-term funding options to deliver its growth strategy, which includes investing in new vineyards, a new purpose-built winery that will be operational for the 2026 harvest and the development of the Chapel Down brand. in Tenterden.
The Kent-based company saw its revenue rise 15 per cent to just £18m last year, and profits before unpleasantness soared 87 per cent to £5.4m.
It went from a net cash position of £3.3m to net debts of £1.2m at December 31 after investing in a record harvest of 3,811 tonnes, increasing wine stocks by 44 per cent and planting 118 acres in Boxley Abbey vineyard.
Chapel Down Shares They have added around 11 per cent since they began trading on the AIM index in December and were trading at 62.9p on Tuesday morning.
The group said it was considering “all alternatives”, including investment by new and existing shareholders, or selling the company.
Chapel Down added that it is on track to achieve “double-digit” sales growth in 2024, while maintaining a strong balance sheet with “significant headroom for its existing debt facility,” which it has agreed in principle to expand and increase.
“There can be no certainty that the company will enter into a transaction, or the terms of any eventual transaction,” he added.
Drinks industry veteran Andrew Carter joined Chapel Down as chief executive in 2021 with a mission to double sales to £28 million by 2026.
Over the past three years, Carter and his team have worked to ensure Chapel Down is sold across the UK, in pubs and restaurants, supermarkets and off-license shops, as well as directly to consumers through a thriving online site .
Sponsorship of English cricket has raised awareness and global sales are increasing, with Americans and Scandinavians showing a particular fondness for English sparkling wine.
The latest government figures show that the UK now has almost 900 vineyards, and vineyard hectares have more than quadrupled since 2000.
WineGB reported that 2023 saw Britain’s largest ever grape harvest, with an estimated production of 20 to 22 million bottles, more than 50 percent above the previous record set in 2018.
Climate change is thought to be contributing to increasingly ideal winemaking conditions in the south of England. English sparkling wine has seen a surge in popularity in recent years with 8.3 million bottles produced in 2023.