England’s Chapel Down targets 1% of global champagne market

English winemaker Chapel Down has revealed a strategic shake-up designed to help the group capture a chunk of the lucrative global champagne market.

Kent-based Chapel Down told investors on Wednesday it has ‘redefined’ its medium-term strategic priorities under a new management team led by top shareholder and non-executive chair Michael Spencer.

Chief executive James Pennefather outlined efforts to boost brand value, grow Chapel Down’s international distribution footprint and ensure ‘disciplined capital management’.

Its international push will see the winemaker target the world’s top 10 champagne market, having a presence in only five countries at present, while agreeing deals with top travel retailers. 

The group says it wants to hold the equivalent of a 1 per cent share of the global Champagne market by 2035.

Analysts conducted by Grand View Research suggests the global champagne market was valued at $7.19billion (£5.34billion) in 2023 and is forecast to reach $9.83billion (£7.3billion) by 2030.

Chapel Down wants to capture 1% of the global champagne market 

Chapel Down is targeting a return to profitability in 2025 after English winemakers suffered the second-worst harvest on record last year, with wet weather and disease hitting yields.

The winemaker says its still on track, partly thanks to much better weather this year.

That’s despite adjusted earnings before nasties plunging 23 per cent to around £1.2million over the first half due to lower non-cash fair value adjustments.

Its net debt also almost doubled over the half to £11.3million, reflecting greater investment in maturing stock and cultivation.

Recent investments include vineyards planted at Boxley Abbey and Buckwell, which Chapel Down says underpin its medium-term growth forecasts.

Pennefather said: ‘With over 1,000 acres of vineyards already planted in some of Kent’s finest terroir, Chapel Down has laid the foundations for sustained profitable growth in the medium-term.

‘Chapel Down has made against this goal, ensuring that we have the winemaking capacity, strong brand and routes to market in place to deliver this.

‘We continue to see significant future potential both within the UK and in key export markets and believe that our leading brand remains well positioned to benefit from the positive consumer engagement we are seeing within the category.’

Chair Spencer added: ‘With a strong brand, established routes to market, major investments already made in assets including new vineyards, our Tenterden winery and maturing wine stocks, Chapel Down is well-positioned to benefit from the underlying momentum of the English sparkling wine category to deliver sustained profitable growth in the medium-term.’

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