Chapel Down reports sales increase by a third

Shoppers’ taste for English wines shows no sign of waning as sales of Chapel Down grew by a third in the first half of the year.

Turnover at the vineyard increased by 33% to £3.3 million helped by a good performance from its ventures into beer and cider, where revenues increased 33% to £974,000.

Wine sales volumes grew 45% to £2.3 million, allowing the firm to make a gross profit of nearly £1.2 million, up 31%.

Chapel Down has vineyards in Tenterden, Blue Bell Hill and west Kent
Chapel Down has vineyards in Tenterden, Blue Bell Hill and west Kent

The company has planted a further 82 acres of vines at its new leased site in Boxley on the North Downs, part of 181 acres of rented land paid for by a £4 million crowdfunding venture last year.

It adds to vineyards it owns at its Tenterden headquarters and at Kits Coty near Blue Bell Hill, plus more leased land on the Kent and Sussex border.

Earnings before interest, tax and other charges grew to £84,000 compared with £74,000 in the six months to June last year.

Bosses said they made a conscious decision to reinvest any surplus cash in the firm’s people, systems, and brands, as the business made a pre-tax loss of £192,598, down from £262,767 on the same period a year earlier.

Chapel Down chief executive Frazer Thompson
Chapel Down chief executive Frazer Thompson

Chief executive Frazer Thompson said: “Consumers’ interest in English wines and beer grows from strength to strength and Chapel Down is well positioned to benefit.

“The proceeds of last year’s successful crowd funding are being used to plant more vines in the finest sites, improve our production facilities, winemaking equipment and systems and develop our people and brands.

“We are encouraged by the prospect of another good harvest in 2015 which will enable us to continue to improve the quality of our wines and ensure we have supply in place to meet future demand.”

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