UK: Chapel Down secures GBP4.3m funds, appoints ex-C&C Group chief to board

By James Wilmore | 8 July 2013

Chapel Down is eyeing expansion after securing fresh funds

Chapel Down plans to boost production and exports of its English wines and beers after securing GBP4.3m (US$6.4m) in new funding.

The Kent-based company said today (8 July) that it will use the money to plant vines in Sussex, Essex and Kent to meet "growing demand" for its still and sparkling wines. The group also announced plans to build a brewery to produce its already-established Curious range of beers.

The search for a brewery location is underway, Chapel Down said. The Curious beers are currently brewed by Everards and West Sussex-based Hepworth & Co, a Chapel Down spokesperson confirmed to just-drinks.

Part of the funding - GBP2.4m - is coming from investment group Hothouse Club, whose founder is John Dunsmore, former Scottish & Newcastle and C&C Group CEO. Dunsmore will also join the board of Chapel Down.

Frazer Thompson, Chapel Down's CEO, and a former global brand director at Heineken, said the investment marked an "exciting new phase" in the company's development.

“This investment will allow us to continue to increase the supply for our award-winning brands to meet growing demand and further improve the quality and reach of both our wine and beer in the UK and internationally,” he added.

Chapel Down exports its wines and beers to markets including Japan, Finland, Hong Kong, Vietnam, Thailand, United Arab Emirates, Holland, Sweden, Finland, Ireland, Canada and France.

Earlier this year, Thompson forecast that the English wine industry is ripe for consolidation.

Expert analysis

Sparkling Wines in the UK

Over half of the UK sparkling wine drinking population say they have tried English sparkling wine, thanks to a better supply and a growing reputation for quality, according to new research published today. Sparkling wine from England, made using the “traditional method”, or the same way as Champagne, has been increasing sales dramatically over the past 5 years as investment has poured into vineyards in the south of England. During the same period sparkling wine sales in general have climbed rapidly in the UK, from around 6 million 9L cases in 2006 to 10 million cases in 2010, defying both the economic downturn and slowing growth in the still wine category. According to the Wine Intelligence UK Sparkling Report, around 15 million out of the 25 million people in the UK who drink sparkling wine at least once a year say they have tried English sparkling wine at least once, with Christmas and the associated party season the most popular occasion. The data is derived from Wine Intelligence’s own tracking research of UK sparkling wine drinkers, the most recent wave of which was a survey of 511 UK adults who drink sparkling wine, conducted in November 2011, using quota sampling to be representative of all UK sparkling wine drinkers.

Sectors: Beer & cider, Wine

Companies: C&C Group, Heineken

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