Chapel Down has revealed its half-year results showing a strong financial performance owing to strong demand for English sparkling wine, the reopening of the on-trade and strong off-trade sales boosted performance.
England’s largest winemaker also reported that average selling prices increased 21 percent as a result of food and drink inflation, with price increases hitting both still and sparkling wine in April 2022. However, the business found price increases had no impact on wine volume.
Following a challenging harvest last year, Chapel Down has reported a growth of 35 percent from H1 2021, offsetting the anticipated decline in still wine availability.
The sparkling wines category also saw significant growth and now represents 72 percent of the company’s wine sales by value, compared with 61 percent in Chapel Down’s full year 2021 results.
Additionally, net sales revenues rose by four percent to £6.88million, up from £6.61million in H1 2021.
As a result of a number of new partnerships, the results outlined that Chapel Down’s brand awareness continues to grow. Most notably becoming the ‘Official Sparkling Wine’ of the England and Wales Cricket Board earlier this year.
“Since the summer of 2021, we have been preparing for the impact of that year’s challenging harvest and the resulting lower availability of still wines in 2022,” said chief executive officer of Chapel Down, Andrew Carter.
“The exceptional growth of sparkling wine sales, together with the price increases in April, with no adverse impact on volumes, has supported the 51% gross margin achieved in the period. With a strong first half delivered, we look to the remainder of the year with confidence," he added.
“Despite the evolving consumer backdrop, we continue to trade positively and expect to deliver net sales revenue growth and sustained margins for the full year.
“This, together with our positive 2022 harvest, ensures we are on track to meet our target of doubling the size of the business by 2026.”
Meanwhile, plans to double the size of Chapel Down have "started strongly" after a hot summer has allowed the English wine maker to begin harvesting in August for the first time.
The London-listed firm described its 2022 harvest as looking "very positive", crediting the heatwave that swept the country this summer.
"We expect 2022 to combine a strong yield with excellent quality," it stated in interim results.
Tenterden-based winemaker also plans to plant 118 additional acres of vines at its Boarley site, taking the total to over 900 acres planted by this time next year.
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