Shares in England’s largest wine maker Chapel Down plunged again today after the company warned that it will make a loss this year following heavy rain during the harvest season.
The Tenterden, Kent based business - best known for its multi-award winning sparkling wine served at the wedding of the Prince and Princess of Wales - said that the near complete 2024 harvest is estimated at 1,875 tonnes, less than half last year’s record and the smallest since 2021.
Heavy rain in September and October that came just as the grapes were being picked “led to some pressure from mildew and consequently reduced yields.”
The company had already issued a profit warning a month ago when CEO Andrew Carter announced his departure to brewer Timothy Taylor next year.
Slow sales in the off trade means that full year revenue will fall by a “low,single digit” percentage this year.
Profits were already expected to be well down this year but the small yield will result in a write-down of between £750,000 and £850,000 that “will create a PBT loss for the full year.”
Shares in the company plunged 9p, or just under 19%, to 38.5p, valuing it at £63.5 million. They are down by almost half this year.
Chapel Down also revealed that a strategic review announced in June is now complete and the board has decided it should stay a standalone quoted company.
In a statement the company said: “The Chapel Down board and team, have great confidence in the continued growth of the English wine region, which is underpinned by the quality of the wines being created.
“The quality of Chapel Down’s wines continues to be recognised by international awards such as the 2024 ‘best in show’ for Sparkling Rosé at the International Decanter awards as well as Kits Coty Coeur de Cuvée being crowned WineGB ‘supreme champion’.
Head winemaker Josh Donaghay-Spire said: “The fruit is looking and tasting great, particularly at our vineyards on the Kent Downs.
“Whilst the 2024 vintage has faced more difficult weather conditions in September, vintage conditions and grape flavours are reminiscent of the 2019 harvest which delivered great quality traditional method sparkling wine such as the recently released Grand Reserve 2019 and Blanc de Blancs 2019.”
