Chapel Down loses £1.7m amid investment drive

Chapel Down Group has reported year on year combined sales up 21% to £6.744m, for the six months to 30 June.

Wine and spirits sales were up 19% to £4.748m (2018: £3.981m), while beer and cider sales, part of Curious Drinks Limited, were up 15% to £1.996m (2018: £1.735m).

The group made an loss of £1.7m (2018: loss of £0.55m) as it invests in brands, infrastructure and supply. 

The Kent-based producer said an extraordinary harvest in 2018 had enabled it to increase stocks by 37% to £8.256m, with substantially higher levels of sparkling wine.

An additional 154 acres of new vineyards were planted in the North Downs in Kent close to the group’s Kit’s Coty vineyard.

Its new brewery was completed and opened to the public on 10 May 2019 with its first trial brews commencing on 19 June, first commercial brews on 24 June 2019 and full brewing capacity available from Q4.

Frazer Thompson, CEO, said: “We operate in a highly competitive and challenging marketplace where change is a constant. We are seeing considerable change in grocery and off license retailing and the challenges on the high street and in casual dining are, if anything, increasing. We continue to see pubs and restaurants closing. The current market uncertainty means that we can see there is more change to come. At Chapel Down we believe that we must continue to provide consumers with more innovation and more excitement and provide our trade customers with more opportunity for premium pricing and great value from excellent brands than ever before.”

He said to remain innovative and relevant, Chapel Down was investing in a Gin Works at Kings Cross and a modern visitor experience at its new brewery, to complement the existing Vineyard at Tenterden.

With new vineyards, Chapel Down hopes to produce some 2.2m bottles of wine by 2020.

Sales growth in beer and cider has been frustrated by the loss of a contract brewing partner suddenly and the late completion of the brewing kit.