Chapel Down’s full year sales fell slightly in 2024, due to “one-off” challenges in the first half of the financial year, but was bolstered by the retailer’s “strong” Christmas” trading.

In the 52 weeks ending 31 December, the UK’s largest winemaker posted a 5% total sales decline year-on-year to £16.3m.

Worse hit was the sales of its sparkling wine, which dropped by 7.0%, to £10.6m.

Chapel Down said it faced “one-off” issues in its retail division during the financial year, including a fall in stock retailers were holding, which it does “not expect to recur”.

Chapel Down also noted it exited the spirits business, with sales fizzing out to £0.2m, down from £0.6m in 2023. Excluding this division the wine producer’s net sales dropped 3% year-on-year.

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Despite this, the wine brand still reported success in individual categories, including sales of still wine which grew 22% to £3.1m, from £2.5m in 2023, with the business citing “customer demand, increased distribution and [lower prices]”.

Its performance was boosted by its second half as sales rose 1% overall  bolstered by “strong trading” over the Christmas period, with net sales rising by 7%.

Outgoing Chapel Down chief executive Andrew Carter said: “2024 was a year of continued strong consumer demand for Chapel Down’s award-winning wines, as well as significant strategic and operational progress for the Company.

“Chapel Down enjoyed strong growth in its direct-to-consumer channels, maintained its market leadership in the critical off-trade, with strong sales momentum across our channels in the second half of the year, accelerating in the all-important final quarter.”

Elsewhere in the business, Chapel Down revealed it planted 118 acres of new vines in 2024, increasing its total amount to 1,024, and 10% of the UK’s total.

Carter will be succeeded by The Lakes Distillery CEO James Pennefather in February.

Earlier in the year, Chapel Down also reported it had abandoned its sale, originally floated in a bid to fund new vineyards and a purpose built winery, and lowered its sales outlook after being hit with harvest woes.