2024 RESU LT S
3rd April 2025
CONTENTS
Introduction and Summary
English wine industry & the market opportunity
Chapel Down brand, products & distribution
Operational highlights
Financial results
Outlook
Q&A
2
1 . SUMMARY
FIRST IMPRESSIONS
ATTRACTIVE GLOBAL OPPORTUNITY
EXCEPTIONAL ASSETS PROVEN BUSINESS MODEL
4
5
OUR MISSIONTo change the way the world thinks about English wine
OUR VISIONTo be the leading and most celebrated English winemaker
PASSIONATE AND SKILLED LEADERSHIP TEAM
James Pennefather Chief Executive Officer
Chapel Down Group CEO since February
2025. Formerly CEO of The Lakes Distillery PLC, as well as global senior management roles at Diageo and William Grant & Sons.
Rob Smith
Chief Financial Officer - leaving April 2025
Chapel Down Group CFO since 2022. Chartered Accountant with senior leadership roles in Finance spanning 13 years as a PwC Partner. Chapel Down Shareholder since 2006.
Josh Donaghay-Spire
Operations Director & Head Winemaker
Chapel Down Group Winemaker since 2010 and promoted to Operations Director in 2022. Having graduated at Plumpton Vinology College, Josh has previous winemaking experience in Champagne, Alsace and Stellenbosch.
Tom Hepworth-Bond Sales Director
Chapel Down Group Sales Director since 2021. Formerly held senior sales roles at Chase Distillery and Bibendum.
Liam Newton
Chief Marketing Officer
Chapel Down Group CMO since 2022. Formerly VP of Marketing at Carlsberg, as well as senior marketing roles at Bacardi, AB InBev and Nestle Rowntree.
Denise Claxton
People Manager
Chapel Down Group People Manager since 2024. Extensive senior HR experience within the wine industry, including Liberty Wines.
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PASSIONATE AND SKILLED LEADERSHIP TEAMJOINED BY LOUAN MOUTON FROM MARCH 31ST
James Pennefather Chief Executive Officer
Chapel Down Group CEO since February
2025. Formerly CEO of The Lakes Distillery PLC, as well as global senior management roles at Diageo and William Grant & Sons.
Louan Mouton
Chief Financial Officer
A Chartered Accountant with significant experience in consumer goods organisations, including Group Finance Director at Fevertree Drinks plc and more recently as CFO and Board Director at Typhoo Tea Ltd.
Josh Donaghay-Spire
Operations Director & Head Winemaker
Chapel Down Group Winemaker since 2010 and promoted to Operations Director in 2022. Having graduated at Plumpton Vinology College, Josh has previous winemaking experience in Champagne, Alsace and Stellenbosch.
Tom Hepworth-Bond Sales Director
Chapel Down Group Sales Director since 2021. Formerly held senior sales roles at Chase Distillery and Bibendum.
Liam Newton
Chief Marketing Officer
Chapel Down Group CMO since 2022. Formerly VP of Marketing at Carlsberg, as well as senior marketing roles at Bacardi, AB InBev and Nestle Rowntree.
Denise Claxton
People Manager
Chapel Down Group People Manager since 2024. Extensive senior HR experience within the wine industry, including Liberty Wines.
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2024 HIGHLIGHTSBUCKWELL PLANTING
1,018 ACRES / 412 HECTARES OF VINEYARDS
'BEST IN SHOW' TROPHY FOR ROSÉ
BRAND LEADERSHIP STRENGTHENED
+16% GROWTH
+22% GROWTH
CONTINUED CATEGORY GROWTH
ON TRADE GROWTH
E-COMMERCE GROWTH 8
-
ENGLISH WINE INDUSTRY
A N D T H E M A R K E T O P P O R T U N I T I E S
UK MARKET GROWTH IS STRONGLY UNDERPINNED BY PLANTING AND MORE EFFICIENT PRODUCTION
Most recent data estimates ~4,500 hectares under vine (from 943 vineyards & 209 wineries)1 which is forecast to grow to c7,000 hectares by 2034 and support production of ~22m bottles of TMS / 32m bottles total
Forecast planted UK vineyards
Hectares ('000s)
Forecast UK wine production by style
Millions of bottles
4.5% CAGR
5.3
5.5
4.7
5.1
5.7
0.6
5.9
0.6
6.1
0.6
6.3
0.6
6.5
0.6
6.7
0.6
6.9
0.6
4.1
4.3
0.7
1.0
0.8
0.8
1.0
0.8
5.5
5.7
5.9
6.1
6.3
4.3
4.7
5.1
5.3
3.3
3.7
3.9
4.1
CAGR (2.4%)
5.6%
CAGR
8.4% CAGR
31.0
32.1
29.0
30.0
24.6
26.3
28.0
22.0
22.1
6.5
2.8
6.4
18.1
19.6
5.9
1.5
6.0
1.8
6.2
2.2
6.2
2.5
6.3
2.7
3.2
12.2
4.8
0.4
4.8
0.6
4.9
1.0
5.3
1.3
3.9
0.1
8.2
7.8
21.0
21.7
22.4
16.7
2.0
15.4
17.2
18.4
19.6
20.3
0.3
5.5
12.7
13.7
4.2%
31.3%
8.8%
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Significant percent of UK acreage relates to top winemakers with a long-tail of small wineries
Looking ahead, production growth is expected to slightly outstrip planting growth due to larger and more efficient vineyards with better land placement
Further, continued climate development is expected to be a positive for English yields and support production growth
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Source: Wine GB (historics 2022-2023) & Chapel Down (forecasts 2024 onwards) Note 1: Wine GB Industry Report 2023. 2024 data to be released.
11
CHAPEL DOWN HAS A LARGE AND GROWING UK ADDRESSABLE MARKET
Within the 205m bottle Off-Trade sparkling wine market in the UK, we consider English sparkling wine and Champagne our core addressable market which represents over 31m bottles today, with significant runway for growth
Overview of the UK sparkling wine market 1
Volume breakdown
Demand opportunity for Chapel Down in context (off-trade)2
# bottles sold in the UK (2024)
1.26m |
0.97m |
0.68m |
0.66m |
0.66m |
0.53m* |
0.53m |
0.50m |
Estimated 205m bottles of sparkling wine sold in the UK, with English sparkling wine & Champagne representing 31m bottles. Increased demand for English sparkling wine +3% offsetting Champagne decline (1%).
Significant headroom to take further share of a large, addressable market, with Chapel Down growing faster than leading Champagne
Cava 7%
No/low 5%
Asti 2%
Cremant 2%
Other 13%
English Sparkling 4%
Champagne 11%
Prosecco 56%
brands
Additional upside opportunity from consumers trading up from other categories such as Prosecco, Cava & Asti
Further upside to the core addressable UK market within other channels, such as on-trade, export & the still wine category, where we also operate
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Note 1: Source IWSR UK Wine Report 2023, adjusted with Nielsen UK Sparkling Wine growth rates 52 w/e 28th Dec 2024 vs 52 w/e 30th Dec 2023
Note 2: Source Nielsen UK Sparkling wine- Total coverage - 52 w/e 28th Dec 2024. Also note this slide has been updated since the presentation on 3 April 2025 due to additional Nielsen data obtained. Some Champagne competitor data
has been updated and thus Chapel Down's position has changed from No. 4 to No. 6 compared to the same competitor set. The number of bottles sold (0.53m) for Chapel Down has not been changed.
WE FORECAST OUR UK ADDRESSABLE MARKET WILL GROW TO 40 MILLION BOTTLES BY 2034
Significant growth in the addressable market for Chapel Down as productive land comes online, supporting the growth of English traditional method sparkling relative to Champagne
Addressable market demand forecast (millions of bottles)
Market sizing focuses on traditional method sparkling wines as key opportunity for Chapel
UK
addressable market growth (%)
33.2
28.6 28.8
30.3
33.4
31.8
+1.5%
34.2 35.0 35.9
+7.5%
36.8 37.7
28.0
23.0 22.8
23.7
24.6
26.4 26.7
26.1
25.9
25.6
26.9 27.2 27.5
6.1
5.6
6.6
7.2
7.8
5.2
8.3
8.9
9.5
10.1
10.8
11.5
12.4
(14%) | 1% | 5% | 5% | 5% | 2% | 2% | 2% | 3% | 3% | 3% | 3% |
38.7 39.9
CAGR
Down given most comparable production method, quality and price point
Still and other wines (incl. Charmat) are small relative to addressable markets and not considered here
Two components for forecast growth for the traditional method addressable market:
UK traditional method: Forecast demand CAGR of 7.5%, a reduction on historic growth, but remaining strong
Champagne: Conservatively assumed demand growth back to 2022 levels
-0.2%
Further upside from Prosecco consumers trading up, but not considered in addressable market for conservatism
Chapel Down growth supported by increased
domestic demand for ESW as well as a large
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
UK Champagne SalesUK ESW Salesopportunity for international expansion.
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Source: Wine GB (historics) & Chapel Down (forecasts)
THERE IS A BIG INTERNATIONAL OPPORTUNITY FOR CHAPEL DOWN
Although Champagne shipments have reduced in the last two years due to destocking, they are very consistent
over t ime at c300m bottles. There is significant white space for export growth into our addressable global market.
Champagne bottles shipped (millions)
Champagne bottles shipped 2023 (millions) - top 6 export markets
350
299.0
127.4
p
roduction is shipp
~57% of annual
ed
internationally
26.9
25.5
15.3
11.7
9.9
8.9
25-year average 302m
bottles
300
250
200
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
150
Global France US UK Japan Germ any Italy Austral ia
Global
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Source: https://www.thedrinksbusiness.com/2025/02/why-have-champagne-shipments-dropped-by-almost-55m-bottles-in-two-years/ Source: Comite Champagne (2023). 2024 data is not yet available, but we anticipate no material changes.
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- CHAPEL DOWN:
THERE IS CLEAR WHITE SPACE WITHIN THE CATEGORY
HIGHER PERCEIVED QUALITY
Champagne
INFORMAL/
LESS BRAND-LED
Cava
Crémant
FORMAL/ BRAND-LED
"There is a clear opportunity to build a new
sparkling wine category with:
Same quality credentials as Champagne
Brand-led
A more approachable proposition"
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Prosecco
LOWER PERCEIVED QUALITY
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NO.1 ENGLISH SPARKLING WINE
PREMIUM
SUPER- PREMIUM
LUXURY
RRP
£30.00 £33.00
On trade exclusive
£39.00 £48.00 £65.00 £125.00
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SUPER- PREMIUM
LUXURY
CHAPEL DOWN STILL WINE PORTFOLIO17
PREMIUM
RRP
£15.00
£15.00 £15.00 £15.00 £26.00
£26.00
£26.00
£26.00 £26.00 £26.00
£36.00 £36.00
A TOUCH OF SPARKLE BY CHAPEL DOWNNew "Fun fizz" proposition targeting the Prosecco consumer
as an entry point into English Sparkling wine
New design, and upgraded materials, to bring proposition to life
Decoupled from core Chapel Down brand to distinguish from our Traditional Method sparkling wine range
Successful initial launch of A Touch of Sparkle Rosé
NATIONAL PRESS COVERAGE:
RRP
£15.00
£15.00
Rosé launched Q2-2024, Classic introduced Q1-2025. 18
CHAPEL DOWN IS AN ICONIC POWER BRAND WITHIN ENGLISH SPARKLING WINE
42%
Brand awareness
25%
Brand affinity
17%
Brand penetration
~127,000
Social media followers
~11,300
SKU Listings (off & on-trade)
~50,000
Annual visits to Tenterden
~100,000
Mailing database
~10,000
Shareholders
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Source: BrandVue Image 2024 (12 month rolling. Within sparkling wine buyers, last year), Chapel Down information
BRAND CAMPAIGNS HAVE DRIVEN INCREASED AWARENESS AND AFFINITY
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PRESTIGIOUS SPONSORSHIPS AND EVENTS DRIVE ENGAGEMENT
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QUALITY CREDENTIALS UNDERPIN ALL WE DO
22
OUR BRAND HOME IN TENTERDEN CREATES BRAND ADVOCATES
~50,000
Annual visitors
~25,000
Tour visitors
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41%
23%
+8pp
+9pp
15%
Chapel Down
STRONG BRAND METRICS WITH FURTHER HEADROOM TO GROW
Awareness
Affinity
Penetration
39%
42%
32%
+10pp
22%
25%
15%
+10pp
17%
10%
14%
+7pp
LTM May-24
LTM May-24
LTM May-24
29%
41%
89%
18%
23%
64%
14%
15%
25%
63%
22%
25%
Nyetimber
CD
Moet
28%
16%
17%
Nyetimber
CD
Moet
2022
2023
Dec-24
2022
2023
Dec-24
2022
2023
Dec-24
25
88%
42%
33%
Nyetimber CD Moet
Peer comparison
Dec-24
Source: BrandVue Image 2024. 12 month rolling. Within sparkling wine buyers, last year
CHAPEL DOWN IS THE MOST WIDELY DISTRIBUTED ENGLISH WINE
Off-trade | On-trade | E-commerce | Retail & Events | International | ||||||||
SPECIALIST RETAIL | LUXURY | Traffic Conversion Rate 810k 4.9% AOV Repeat Customers £115 51% | Active markets1 Live discussions2 | |||||||||
PREMIUM GROCERY | TREND LEADING | |||||||||||
TOURISM Google Reviews TripAdvisor (853 reviews) (1,163 reviews) | ||||||||||||
MULTIPLE GROCERY | PREMIUM & MID- MARKET | |||||||||||
ONLINE | WHOLESALE | |||||||||||
SKU listings | 6,527 | Listings | 2,462 | Orders 41k | Visitors | c.50,000 | GTR outlets | 35 | ||||
% of sales | 42% | % of sales | 15% | % of sales 23% | % of sales | 14% | Export markets | 14 | ||||
Consumer sales growth +2% | Sales growth | +16% | Sales growth +22% | Sales growth | Flat | % of sales | 4% | |||||
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Note 1: Includes USA, Sweden, Norway, Denmark, Finland, Belgium, Netherlands, Luxembourg, France, Germany, Hungary, UAE, Japan and Hong Kong Note 2: Includes Australia, Canada, China and Switzerland
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4 . OPERATIONAL HIGHLIGHTS2024 VINEYARD & WINERY HIGHLIGHTS
VINEYARDS
739 fully productive acres
(299 ha) for 2024
118 additional acres (47 ha) at Buckwell planted in Spring 2024
1,018 acres (412 ha) now planted, which will be fully productive from 2027
c.10% of all UK planted vineyards.
HARVEST UPDATE
High quality harvest which we believe will create comparable vintages to 2019
Lower yield at 2.5 tonnes per acre. The exceptional 2023 Harvest was
5.1 tonnes per acre and our rolling 6-year average is 3.2 tonnes per acre
WINERY
2.04m Traditional Method sparkling bottles filled from the exceptional 2023 harvest
Reviewing alternative options to increase winemaking production capacity in the medium term
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EXCEPTIONAL PORTFOLIO OF VINEYARDS
Our vineyards are mostly located in the highly attractive growing region of the Kent Downs, which sit on the same band of chalk as Champagne
Kent, located in South-East of England
241 hectares
Highly attractive growing conditions
The centuries-old tradition of growing Champagne in chalky soil has proven to consistently produce high-quality wines
England's chalk slopes, particularly in Kent, offer similar soil composition to the Champagne region in France and are enabling the growth of the English wine region
29
WELL INVESTED AND EXTREMELY HIGH-QUALITY VINEYARD ESTATE
A mix of freehold, leasehold and grower contracts
Growth to >400 hectares (>1,000 acres) in progress
Leases are all long-term, initially a minimum of 25 years with average leasehold outstanding of c.18 years
Traditional method sparkling wine grapes dominate existing and future planting
We are neutral between freehold, long-term leased or long-term grower contracts. We seek out the highest quality land and vineyards available
Fully productive 2024 | Planted 2022 & 2023 | Planted 2024 | Fully productive 2026 | Fully productive 2027 | |
Freehold | 117 | 117 | 117 | ||
Leased | 446 | 158 | 122 | 604 | 726 |
Grower contracts | 176 | 176 | 176 | ||
Total acres | 739 | 897 | 1,018 | ||
Total hectares | 299 | 64 | 49 | 363 | 412 |
Variety | Acres | % |
Chardonnay | 549 | 54% |
Pinot Noir | 276 | 27% |
Meunier | 43 | 4% |
Bacchus | 113 | 11% |
Other, inc. Pinot Blanc | 36 | 4% |
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WE HAVE AN UNWAVERING COMMITMENT TO SUSTAINABILITY
Our commitment:
To deliver our long-term growth ambitions & aspire to 'sustainability leadership' in the English wine sector.
Our 2025 goal:
To publish our baseline carbon footprint and finalise the future timeline for our Chapel Down Carbon Net Zero ambition. This will include our meaningful & measurable sustainability plans that will deliver this
VINEYARDS BIODIVERSITY PACKAGING DASHBOARD -
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100% of electricity from renewable sources
Full company baseline carbon footprint completed
Highly recyclable packaging materials used and where possible reduced bottle weight
Working with Encirc on a future zero carbon emissions ESW bottle
Established small scale wildflower strips on existing vineyards
Reduction in herbicide use
Founder member of Sustainable Wines of Great Britain
Anaerobic digestion of grape skins contributes to renewable energy
Current initiatives
CARBON FOOTPRINT