Chapel Down takes itself off market and warns over weaker 2024 harvest

Chapel Down has abandoned potential plans to put itself up for sale as the winemaker revealed wet weather had dampened its 2024 grape harvest.

Shares in the Kent-based business dropped after it said the harvest is set to be half the size of 2023 and it was expecting to make a loss this year.

The company launched a strategic review into its long-term funding options in June.

It was seeking a cash boost and said it would consider selling the company altogether should it receive a suitable offer.

But on Friday, the firm told shareholders the review was now complete and it would be taking itself off the market.

The company’s board found there were no deals on the table that could boost value for shareholders more than it remaining listed on the London Stock Exchange.

Chapel Down has set its sights on growing new vineyards, which are currently predominately in the North Downs of Kent.

The company, which says it is the largest English winemaker by production and sales, specialises in sparkling wine but also produces still wines and spirits.

In the update to investors, Chapel Down revealed that growing conditions across its vineyards started well this year and into the summer, but worsened in September and October.

Poorer weather created “some pressure from mildew and consequently reduced yields, given our strict focus on quality”, the firm said.

It expects the 2024 harvest to be about 1,875, more than half the 3,811 tonnes produced after an “exceptional” 2023 harvest, and less than in 2022.

As a result of the lower-than-expected harvest and costs relating to its strategic review, Chapel Down said it expects to report a pre-tax loss for the full year.

It is also forecasting sales for the year to dip compared with the prior year.

Shares in Chapel Down were down by more than a 10th on Friday afternoon.