Chapel Down has revealed its half-year results showing a strong financial performance and an increase in brand awareness for the leading English wine producer.
Following a challenging harvest last year, traditional method sparkling wine performance saw a growth of 35% from H1 2021, offsetting the anticipated decline in still wine availability.
The sparkling wines category also saw significant growth and now represents 72% of the company’s wine sales by value, compared with 61% in Chapel Down’s full year 2021 results.
Additionally, net sales revenues rose by 4% to £6.88million, up from £6.61million in H1 2021.
England’s largest winemaker also reported that average selling prices increased 21% as a result of food and drink inflation, with price increases hitting both still and sparkling wine in April 2022.
However, the business found price increases had no impact on wine volume.
As a result of a number of new partnerships, the results outlined that Chapel Down’s brand awareness continues to grow. Most notably becoming the ‘Official Sparkling Wine’ of the England and Wales Cricket Board earlier this year.
“Since the summer of 2021, we have been preparing for the impact of that year’s challenging harvest and the resulting lower availability of still wines in 2022,” said chief executive officer of Chapel Down, Andrew Carter.
He added: “The exceptional growth of sparkling wine sales, together with the price increases in April, with no adverse impact on volumes, has supported the 51% gross margin achieved in the period. With a strong first half delivered, we look to the remainder of the year with confidence.
“Despite the evolving consumer backdrop, we continue to trade positively and expect to deliver net sales revenue growth and sustained margins for the full year.
“This, together with our positive 2022 harvest, ensures we are on track to meet our target of doubling the size of the business by 2026.”
