Kent winemaker considering sale to help fund new vineyards
Chapel Down is the largest wine producer and seller in England
English winemaker Chapel Down has revealed it is considering putting itself up for sale as it seeks a cash boost amid ambitions to plant new vineyards.
The Kent-based business said it was undertaking a "strategic review" of long-term funding options that will support its growth plans.
This means it will consider several ways of clinching more funding, including investment from existing or new shareholders, or selling the company altogether.
Chapel Down has set its sights on growing new vineyards, which are currently predominately in the North Downs of Kent, as well as creating a purpose-built winery it hopes will be producing wines for the 2026 harvest.
It also wants to invest in developing its base in the Kent countryside, close to the market town of Tenterden, where people can visit for tours and wine tasting.
Chapel Down, which says it is the largest English winemaker by production and sales, specialises in sparkling wine but also produces still wines and spirits.
The company on Tuesday said it was on track to generate sales growth of more than a tenth this year, compared with last year.
Over 2023, its sales grew by 15% compared with 2022, driven by sparkling wine which sold nearly 900,000 bottles.
It said this had partly been driven by higher average selling prices, as well as an "exceptional, high-quality" harvest during the year allowing it to create millions of bottles of wine.
The AIM-listed company currently has a debt facility of £12m which it has agreed to extend and increase.
It also stressed that there can be "no certainty" that any sale will go ahead during the strategic review.