Chapel Down targets 1% of global champagne market with strategic overhaul
Kent-based winemaker reshapes strategy under Michael Spencer to push international growth and profitability
Chapel Down PLC on Wednesday unveiled a strategic shake-up aimed at taking a larger slice of the global champagne market, targeting a 1% share by 2035. The Kent-based producer said it has redefined its medium-term priorities under a new management lineup led by Michael Spencer, the group’s top shareholder and non-executive chair. Chief executive James Pennefather said the plan centers on boosting brand value, expanding international distribution and practicing disciplined capital management.
Under the plan, Chapel Down will push into the world’s top champagne markets, aiming to be present in the top 10 by expanding its international footprint beyond its current five countries and sealing deals with major travel retailers. The company emphasizes the 1% market share target by 2035 as its milestone and notes the potential to unlock growth through international distribution.
Analysts estimate the global Champagne market was valued at about $7.19 billion in 2023 and is forecast to reach about $9.83 billion by 2030, according to Grand View Research. Chapel Down says the expansion is intended to capitalize on this growth, leveraging the English sparkling wine category's momentum and its plan to expand into higher-growth markets with a diversified distribution footprint.
Chapel Down said it remains on track for profitability in 2025 after English winemakers were hit by the second-worst harvest on record last year due to wet weather and disease, though it expects conditions to improve in 2025. The group reported a first-half decline in adjusted earnings before nasties by 23% to around £1.2 million, while net debt rose to about £11.3 million as it increases investment in maturing stock and cultivation. It highlighted investments such as vineyards planted at Boxley Abbey and Buckwell, which it says underpin its medium-term growth forecasts.
Pennefather emphasized that with over 1,000 acres of vineyards already planted in Kent’s terroir, Chapel Down has laid the foundations for sustained profitable growth in the medium term. He said the company has built winemaking capacity, a strong brand and routes to market to support growth, with significant potential both in the UK and in export markets.
Spencer noted that the combination of a strong brand, established routes to market and investments in assets including new vineyards, the Tenterden winery and maturing wine stocks positions Chapel Down to benefit from the underlying momentum of the English sparkling wine category and deliver sustained profitability in the medium term.
The group’s strategy also aligns with broader market dynamics, as producers of English sparkling wine have benefited from rising consumer interest in premium, locally produced beverages. Chapel Down’s push into new markets comes as the global champagne market consolidates around a few major players, and as consumer interest expands for high-end sparklers from emerging regions.
Investments underpinning the growth plan include the Boxley Abbey and Buckwell vineyard acquisitions, with the company stating these sites will support volume growth and quality improvements as it scales production. Chapel Down has stressed its intent to balance capital investment with disciplined capital management as it expands its distribution network and improves brand value.
