Sparkling wine sales fizz for Chapel Down amid price rises

Winemaker Chapel Down has reported a jump in sales and profits after selling a record number of sparkling wines and bumping up its prices.

The Kent-based company said sales of traditional-method sparkling wine – which includes its Brut and sparkling Bacchus – surged by more than 50% over 2022, as the business took steps to become a premium brand.

It sold a record 790,000 bottles following an “outstanding” harvest during the year, which means it could produce more than two million bottles of wine.

Brand associations with sporting events like English cricket at the Ashes over the summer also helped lift sales as people enjoyed a tipple during the hot weather.

The retailer said the average price of items it sold increased by nearly a fifth, partly because it focused on marketing higher-priced drinks.

But it also bumped up prices for consumers in a bid to offset inflation pressures, which have pushed up the cost of glass, dry goods, energy and staffing across the industry.

Furthermore, Chapel Down said the fallout from Brexit continues to affect access to EU workers for viticulture (winegrowing) but that it is trialling the latest mechanical picking technology for a small proportion of still wine grapes.

The firm’s net revenues jumped by a tenth to total £15.6 million, and gross profit increased by a fifth to £8.5 million in 2022.

Nevertheless, it saw sales of spirits, which includes gin and vodka, decline by a third, and still wine sales drop by nearly 40%, which the business blamed on a disappointing 2021 harvest and as it focuses its efforts on sparkling wines.

Chapel Down said its brand name will be associated with a number of UK sporting events this year, including at Ascot Racecourse and cricket again, as well as creating a limited-edition vintage sparkling wine for King Charles’s coronation.

Chief executive Andrew Carter said plans to double the size of the business by 2026 are under way.

He said 2022 “has been a record year for Chapel Down with exceptional profitable growth delivered, driven by the stellar performance of our traditional-method sparkling wines, as we continue to premium-ise the Chapel Down brand.

“The English wine industry is enjoying the fruits of its extraordinary terroir, favourable climate and sustained investment, and these advantages show no sign of abating.

“This underpins our plans to double the size of the Chapel Down business by 2026.”