Chapel Down announced on Tuesday morning that it is conducting a “strategic review” to help drive growth, as part of which the company might be put up for sale.
In an announcement to the markets this morning, Britain’s biggest winemaker said it was the right time to review long-term funding options to support its growth strategy.
“As part of the review, the board will consider all alternatives, including investment from existing shareholders, investment from new shareholders, a sale of the Company, and other relevant transactions,” the statement said.
Through its growth strategy, Chapel Down is hoping to make investments in new vineyards and build a new winery, which will be operational in 2026. This should help double the size of its business.
It will also develop its “brand home” at Tenterden.
The firm noted that it remains on-track to deliver double digit sales growth in 2024. It retains a strong balance sheet with significant headroom to its existing debt facility of £12m and has reached an agreement in principle to extend and increase this facility.
Chapel Down stressed that there could be “no certainty” that a transaction would be pursued by the company.
Chapel Down moved from the AQSE market to the AIM market last year and has, over the past two decades, grown from a startup into one of the UK’s biggest success stories.
In its latest financial results, covering the 2023 calendar year, the firm reported that revenue rose 15 per cent year-on-year to £17.9m.
English wines have been growing in popularity in recent years, reflected by a series of awards at the Decanter World Wine Awards.
The UK posted a record-breaking year for total medals awarded including a first-ever ‘Best in Show’ for English sparkling rose to Chapel Down’s rose brut, with eight other golds and one platinum across the range of English wines.