ENGLISH winemaker Chapel Down Group is kicking off a strategic review that may result in a sale of the company as it seeks ways to fund longer-term growth.
The Kent-based firm known for its range of sparkling wines is working with Rothschild & Co on options ranging from investment from existing shareholders, bringing in new investors or a sale of the business, it said in statement on Tuesday (Jun 25). There can be no certainty a transaction will be pursued, it said.
Chapel Down plans to invest in new vineyards, build a new winery in time for the 2026 harvest and develop its base in Tenterden, England. The winemaker said it was now appropriate to review the full range of long-term funding options to support this plan.
The announcement comes a week after its Rosé English sparkling wine made it on the Decanter World Wine list of top 50 globally and just months after its shares were admitted to trading on the London Stock Exchange’s AIM market.
Britain is currently the world’s second-largest importer of Champagne, but that may change as warmer temperatures triggered by climate change improve growing conditions in England.
Chapel Down, which counts billionaire Michael Spencer as its biggest shareholder, is on track to deliver double-digit sales growth in 2024, it said. Its shares have fallen 15 per cent since joining AIM in December. BLOOMBERG
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