Kent winemaker Chapel Down has reported a massive 98% fall in profits for the six months to 30 June 2024, making just £40,000 compared to £2.4 million the year before.
At the same time, company CEO Andrew Carter made the shock announcement that he was leaving the company to join brewery company Timothy Taylor. Chapel Down blamed the ‘challenging’ period on ‘one-off factors’ in the off-trade and ‘a more difficult macro-economic environment.’ It added that it remained confident of future growth and its ability to build on its reputation as the county’s market leader in English wine (it operates around one-tenth of the UK’s planted vineyards).
Net sales revenue also declined by 11% to £7.1million following a slump in orders from off-trade establishments like supermarkets and off-licences. Total off-trade revenues plummeted 36% to £3.1million, offsetting growth in its online, export and on-trade divisions.
Outgoing CEO Andrew Carter commented, “Chapel Down continues to be the market leader in the English wine industry, with the leading brand, the deepest distribution and internationally celebrated wines.
“2024 has seen continued strategic and operational progress with robust trading, particularly in the on-trade, export and direct-to-consumer channels which shows continued, strong consumer demand. In the first half, this has been offset by some challenges in the off-trade, predominantly caused by one-off factors.
“Chapel Down is fortunate to benefit from an exceptional team, committed to the delivery of our strategic plans and profitable growth, and I thank them for their contribution to Chapel Down’s continued success.”
Carter joined Chapel Down in 2021 after overseeing the Chase Distillery in Hereford’s sale to Diageo. He has also worked for Bacardi, Bulmers, and Australian winemaker Treasury Wine Estates. The news of his resignation and the fall in profits saw shares in Chapel Down fall 16% on the AIM stock market.
Chapel Down has also been engaged in an expensive legal battle about plans for a new £23 million winery near Canterbury, which is it is continuing to develop. It has also been linked to rumours of a sale of the company, with Carter saying he would “most definitely” be around “to see it conclude” before he leaves.