Chapel Down millennial demand drives profit guidance upgrade and bumper harvest

Chapel Down has upgraded its profit guidance on the back of Chapel Down millennial demand for sparkling wine, with the Kent-based English winemaker reporting that net sales grew by 19% to £9.4 million in the half-year to 30 June compared with the same period a year earlier.

The company attributed much of that growth to younger drinkers choosing sparkling wine for everyday social moments rather than formal events. Boss James Pennefather told the Press Association that the business has benefited from ‘millennials’ choosing to drink sparkling wine at ‘informal occasions’ such as birthday celebrations. That shift in drinking habits, away from reserving fizz for weddings and New Year, appears to be reshaping when and where Chapel Down’s bottles are opened.

How Chapel Down millennial demand is reshaping the numbers

The sales growth was spread across retail and hospitality, and international sales jumped 66%, with growth in the US a key driver. More venues selling Chapel Down wine by the glass helped lift volumes, alongside new listings with operators including The Gordon Ramsay Group and Handpicked Hotels.

According to Investor Meet Company, sparkling wine revenue grew 26% over the period, underlining where the business is finding its momentum. Sparkling wine sits at the heart of Chapel Down’s range, and that category’s outperformance explains much of the overall sales trajectory.

The company said it saw a ‘continued strong performance’ in the third quarter of the year, and stated it has ‘confidence’ in its trading plans for the final three months. As a result, adjusted earnings are now on track ‘to be materially ahead of market expectations’. Net debt is also expected to come in lower than market predictions, after capital spending ran below original forecasts.

Shares in the company were up 5.4% at 48.5p in early trading on Wednesday.

Brand recognition and financial health behind the optimism

The upgraded guidance sits against a broader picture of improving financial health. According to the Chapel Down Group PLC Official Filing, the profit for the year after taxation amounted to £230,000, compared with a loss of £1,309,000 in 2024. Net assets increased 1% to £33.1 million, up from £32.7 million the prior year.

The same filing shows that brand awareness reached 49%, up from 42% the previous year, while consumer penetration grew to 20% from 17%. Those figures suggest that the Chapel Down millennial demand story is not simply about existing fans buying more: new customers are finding the brand for the first time. Turning awareness into purchases, and purchases into repeat habit, is a different and harder task, and penetration growth of that scale points to progress on that front.

The company’s confidence extends to its vineyards as well as its order books. Chapel Down said it believes its 2026 vintage will be ‘high quality’ after completing more than half of its grape harvest for the year. Warm temperatures across the UK have kept vines in good condition, and a notably dry period has helped.

Mr Pennefather said: ‘The English region is coming into a multi-decade period of good temperatures for our vines, which were still green and in good condition after very little rain.’

With the harvest well advanced and new hospitality listings in place heading into the final quarter, Chapel Down enters the busiest trading months of the year with both its cellars and its guidance pointed firmly upward.