GCIChapel Down reports strong year for English sparkling wine
(Sharecast News) - Winemaker Chapel Down (CDGP) saw a slowdown in revenue growth in the second half of 2023 but said that English sparkling wine outperformed the Champagne market over the year.
England's largest winemaker reported net sales revenue of £17.9m for the 12 months to 31 December, up 14% on 2022, as 21% growth in the first half was followed by just 9% in the second.
Traditional method sparkling (TMS) wine net sales, excluding duties, were up 25% over the year at £12m, while 'A Touch of Sparkle" carbonated wine sales were up 7% at £1.5m.
Chapel Down said that English sparking wine grew retail sales by 16% in the UK off-trade, while Champagne sales declined by 9%, with the company's off-trade value market share holding more or less stable at a market-leading 35.4%.
Elsewhere, however, still wine net sales fell 7% to £2.6m due to a "competitive market" and higher duties, while spirits net sales reduced by 7% to £0.6m - with the company reiterating its plans to exit the latter market early this year.
Across the board, average realised prices were up 12% in 2023, which the company put down to a "continued premiumisation of the brand" as well as a favourable product mix.
"2023 was a landmark year for English Wine and Chapel Down, and it is great to see the strategic and operational progress that we have delivered, and the continuing sales momentum we have," said chief executive Andrew Carter.
"Chapel Down continues to grow profitably - a core strength which, along with our strong balance sheet, makes us resilient and underpins our ambitious plans. We look forward to updating the market on the continued profitability of our business in our full year audited results."
The stock was down 1.6% at 63p by 0937 GMT.
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