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English sparkling winemaker Chapel Down is poised to double its business by 2026, benefiting from global warming and the improved conditions for UK wine growers.
“The bittersweet part of climate change is that we now have a maritime climate that allows us to grow wine grapes,” said Andrew Carter, CEO of Chapel Down.
The winemaker anticipates a record harvest this year due to the favorable spring and late summer, creating ideal conditions for both the quantity and quality of wine grapes. The warmer climate “supports our forecast to double the size of our business from 2021 to 2026,” Carter added.
Chapel Down, the largest winemaker in England, reported a 21% increase in sales revenues to £8.4mn in the first half of the year. Operating profit also grew by 27% to £685,000, driven by enhanced brand awareness.
Sparkling wine sales, which account for 70% of the business, surged by 45% compared to the same period last year.
UK wine producers have benefited from longer and warmer growing seasons. According to the Met Office, 2023 was the UK’s eighth warmest summer on record with an average temperature of 15.4°C, 0.8°C above the average.
A study by the University of East Anglia revealed that viticulture in the UK expanded nearly 400% from 761 to 3800 hectares between 2004 and 2021. The study’s climate models projected that significant areas of England and Wales could warm by up to 1.4°C during the growing season by 2040.
Chapel Down expects its 2023 vintage to be of “exceptional quality” with a record-breaking volume and yield. The previous year’s harvest was already strong at 2,050 tonnes, while the company achieved a record harvest of 2,173 tonnes in 2018.
CEO Carter noted that most vineyards in the UK are located in the south-east of England, but new ones are emerging in Berkshire, Buckinghamshire, and even Yorkshire as warmer weather extends further north. Currently, Chapel Down owns 9% of UK vineyards and aims to expand its holdings.
The company attributed its increased brand awareness to high-profile sponsorships of events such as Ascot races, musical festivals Pub in the Park, and its partnership with the England and Wales Cricket Board.
While Chapel Down primarily focuses on the domestic market, generating 95% of its revenues within the UK, it has experienced a 90% boost in export revenues following its launch into Duty Free with listings at London Heathrow and London Gatwick.
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