Chapel Down expands tasting room offer amid strong performance

Chapel Down has confirmed works are underway at its Tenterden headquarters in Kent to add a new tasting room.

 

This is expected to open ahead of summer 2026 and increase sales revenue and tour capacity during peak periods, with the premises already welcoming 54,000 visitors last year.

 

The English winemaker posted 19% overall growth in net sales revenue for the 12 months to 31 December 2025, rising from £16.4m to 2025’s £19.4m.

 

The on-trade channel showed a solid 5% uplift from £2.5m to £2.6m, underpinned by an expanding outlet base and new account wins including the Pig, the Rosewood, the Stafford, and the Ambassador Theatre Group.

 

Listings increased by 29% to 5,998, which Chapel Down said reflected a broader range of expressions listed within outlets, and more by‑the‑glass placements that support rate of sale and future expanded listings potential.

 

On‑trade distribution grew 12% to 2,764 outlets last year, despite a challenging UK hospitality backdrop. Premiumisation remained a key driver, with sales of luxury and super premium sparkling wines growing 18%.

 

However, the firm’s overall gross margin reduced to 47.1% from last year’s 48.4%, driven by a higher proportion of sales through the off-trade channel and the higher cost of goods sold from the inflation-impacted 2022 harvest.

 

Chapel Down expects this will unwind in this financial year, leading to improved gross margins, as the lower cost of goods 2023 harvest wines become available for sale.

 

During the year it also progressed the cultivation and establishment of its newer North Downs estates, Boxley Abbey and Buckwell, which remain on track to be fully productive from 2026 and 2027 respectively. This is intended to support mix premiumisation and underpin the company’s growth into the 2030’s.

 

Following the reporting period, Chapel Down had a strong start to FY26, trading well ahead of the same period in the prior year across all key channels and delivering gross margin improvement, in line with management expectations.

 

The winemaker detailed it is not seeing any immediate impact on trading from the Middle East war, though it remains alert to the impact that fuel and energy cost rises might have on consumer confidence and disposable income levels, as well as on input costs for its viticulture and winemaking operations.

 

Looking ahead, the business is focused on delivering sustained double-digit growth and expects its FY26 results to be in line with market expectations.

 

CEO James Pennefather, who joined the company last year, said: “In 2025, Chapel Down delivered strong, profitable growth, comfortably in line with upgraded expectations and reinforcing our confidence in achieving our ambition of securing an equivalent 1% share of global Champagne by 2035. Our unique combination of premium vineyard and brand assets, underpinned by our high-performing and committed team, together provide a strong platform for sustained value creation.

 

“We continue to see significant opportunity for our brand both in the UK and internationally. This is driven by the consistently high quality of our wines, the effectiveness of our targeted marketing investment, and a generational shift as Millennials increasingly embrace English sparkling wine. These dynamics position Chapel Down well for continued double-digit growth in the years ahead.”

 

Chapel Down’s chair, Martin Glenn, stepped down last September following five years in the role. Michael Spencer replaced him, having served as a non-executive director since 2023. He is Chapel Down’s largest shareholder, holding a 27.3% stake through his investment vehicle IPGL.

 

Former Britvic chief executive Simon Litherland joined the board as an independent non-executive director in August 2025. He led Britvic through a period of growth from 2013 to 2025, culminating in its acquisition by the Carlsberg Group.

 

In June 2024, Chapel Down considered a sale amid a strategic review to fund its long-term growth plan, but scrapped the idea in October, saying there was no deal which would “create superior long-term shareholder value”.