Kent vineyard Chapel Down delivers major growth in wine and beer sector

Wine producer Chapel Down has been raising a glass after its latest financial figures saw year-on-year sales rocket by 15%.

The firm, based in Tenterden, saw annual turnover across the business rise to £11.8m, as it invested heavily in establishing itself as a key performer in an increasingly competitive marketplace.

It saw wine sales soar by 20% to £8.1m, to the year ending December 31, and beer and cider sales, in its Curious Drinks company, up 7% to £3.67m.

Chapel Down Vineyard in Smallhythe near Tenterden
Chapel Down Vineyard in Smallhythe near Tenterden

In addition it said a push into the US market for its sparkling wines saw it hit its first year target of selling 10,000 bottles reached "with ease".

Pushing ahead, it says it also has plans to secure sites for a further 500 acres of vineyards.

Overall, its earnings before interest, taxes, depreciation, and amortisation were up 29% to £968,000.

Chief executive Frazer Thompson said: "With seven years of strong compound growth, Chapel Down is maturing to become a player with serious potential in growth markets. We are seeing good demand for English sparkling wines in sophisticated international markets and we enjoyed our first full year in the USA, reaching our target of 10,000 bottles of sparkling wine with ease.

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

"We have made a conscious decision to continue reinvesting any surplus cash in our people, our systems, and our brands.

"Gross margin on wine was slightly down due to euro exchange rates and increased cost of raw materials, but remains very healthy.

"We believe that there is great potential in our brands. They are well positioned, well managed and in attractive growth markets. We will accelerate our investment in planting new vineyards on the finest land, develop our winery and tourism infrastructure, build out our new brewery in Ashford and continue to innovate and excite the drinks business with initiatives like our gin and vodka."

Chapel Down delivered significant growth during 2017
Chapel Down delivered significant growth during 2017

The CEO said Brexit had "no significant impact on the business to date" but warned there could be repercussions.

He explained: "We would be affected, like all agriculturally based businesses, if we were not able to access EU workers for our viticulture.

"We are lobbying as an industry and are confident that there will be a solution given the strategic and cultural importance of a strong domestic food and drink industry and the growing importance of tourism to our economy.

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