Chapel Down, England’s largest wine producer, has announced that it will halt plans for a GBP 32 million (EUR 36.6 million) winery near Canterbury.
The decision comes after continued delays in securing planning permission and recent changes in the wine market, prompting the company to take a more cautious approach to investment.
Founded in 1977 and based in Tenterden, Kent, Chapel Down has long been at the forefront of raising the profile of English wine. Its sparkling wines have won international acclaim, and the company has experienced steady growth in recent years. Despite a successful 2025 harvest and an 11% increase in sales during the first half of the year to GBP 7.9 million (EUR 9.05 million), Chapel Down still posted a pre-tax loss of nearly GBP 700,000 (EUR 802,000).
Chief executive James Pennefather remains confident in the future of both the company and the broader English wine sector. He noted that 2025 brought excellent growing conditions and one of the strongest harvests in recent years.
A Slowing Market
Chapel Down’s decision comes against a backdrop of slowing growth in the English wine industry. Sales of English wine increased by just 3% in 2024, compared to 10% in 2023, with some producers now holding more stock than they would like. According to wine estate agent Chris Spofforth of Savills, demand is rising but not fast enough to match the pace of production. This imbalance can create cash flow pressures for vineyards, though Spofforth emphasized that the industry is not in crisis and remains full of opportunity.
Industry Trends and Resilience
WineGB, the national association for English and Welsh wine producers, reported that the 2024 harvest was smaller than average, with yields expected between six and seven million bottles—up to 40% below the ten-year average. Fortunately, reserve stocks from strong previous harvests have provided a buffer. Nicola Bates, CEO of WineGB, praised producers’ resilience, highlighting the high quality of the 2024 crop despite lower yields.
The English wine industry has undergone rapid expansion in the past decade. There are now more than 1,030 vineyards across the UK, mostly in southern England. Sparkling wines still dominate, but demand for still wines—particularly Chardonnay—is growing both domestically and internationally. Export sales have doubled from 4% of total sales in 2021 to 8% in 2023, with further growth expected if government support for the sector expands.
Opportunities on the Horizon
External factors could create new openings for English producers. Potential U.S. tariffs on European Union wines may give English sparkling wines a stronger foothold in the American market. Wine tourism is also thriving, with vineyard visits increasing by 55% since 2022 to 1.5 million annually. WineGB forecasts a further 20% rise by 2029, underlining wine tourism’s growing contribution to rural economies.
Industry leaders continue to advocate for supportive policies such as Cellar Door Duty relief, reforms to tax-free shopping, and more flexible visa rules, which could strengthen both production and tourism growth.
A Cautious Step, Not a Setback
Chapel Down’s decision to pause its ambitious winery project reflects a more measured strategy after years of rapid expansion, rather than a retreat from growth. With favorable harvest conditions, rising recognition of English wines, and increasing consumer interest both at home and abroad, the outlook for English wine remains optimistic.
Source: Vinetur