Chapel Down reports strong half-year results as it eyes King's Cross ginnery

A leading vineyard has been raising a glass to a healthy hike in its half-year results - as well as the acquisition of a new gin works.

Chapel Down, which is based near Tenterden, saw year-on-year sales rise by 15% to £5.716m - up from £4.977m in the first half of 2017.

Wines and spirit sales under the Chapel Down brand were up 19% to £3.981m with gross profit up 24% to £1.572m, while its Curious Drinks beer and cider sales rose by 6% to £1.735m but saw gross profit dip 2% to £0.545m.

Chapel Down's Kit's Coty vineyard
Chapel Down's Kit's Coty vineyard

Earnings before interest, tax, depreciation and amortisation was £216,000 - down from £235,000 last year - with the reason being put down to investment in its brands and infrastructure.

At the same time, it confirmed it has exchanged on an agreement to lease a 5,000sq ft in King's Cross, London where it will be opening the Chapel Down Gin Works - a bar, restaurant and ginney. Completion of the lease is subject to the appropriate planning and licensing approvals.

The firm has been active in recent months with 102 acres of new vineyards planted plans for a further 388 acres on the North Downs.

Chapel Down chief executive Frazer Thompson is overseeing the brand's continued growth
Chapel Down chief executive Frazer Thompson is overseeing the brand's continued growth

Work is also progressing on its Curious Drinks brewery in Ashford on track to welcome its first visitors in March, 2019.

Frazer Thompson, chief executive, said: “Whilst we have been affected by all of the market challenges in different ways, we remain completely focused on delivering solid top line growth at good margins whilst we continue to invest strongly to ensure we continue to build strong and sustainable brands that our consumers and customers love.

"It is encouraging that interest in English wines – and Chapel Down in particular – has never been higher.

The brewery Chapel Down is building for its Curious Drinks beer and cider brand in Ashford
The brewery Chapel Down is building for its Curious Drinks beer and cider brand in Ashford

"That has enabled us to continue to improve our pricing and improve our margins with sales up 19% and gross profit up 24%. And interest is not just from the UK, but increasingly in sophisticated wine markets internationally as news of the excellence of our wines spreads. We have taken our first significant steps to grow our international business through a partnership in our most important export market - the USA. We believe we have a distinctive and compelling proposition to offer Champagne’s export markets. This year, depletions in the US have grown by 17%.

"With demand for our wines continuing to exceed our ability to supply, we are greatly encouraged by the prospect of this years outstanding harvest with record yields and excellent quality fruit. Whilst all the fruit is not yet harvested, we can expect 40-60% more fruit than we have ever received at quality levels to match the best vintages ever in England."

Close This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.Learn More