Chapel Down scrap £32m winery

Chapel Down, the UK’s biggest winemaker, has shelved plans for a £32m winery in Canterbury as part of a strategy to cut costs and refocus on profitability. The decision marks a major shift in direction for the Kent producer.

Chapel Down chief executive James Pennefather, appointed in February 2025, said the move would save 'significant' capital spending without affecting growth ambitions. The shake-up also sees billionaire investor Michael Spencer, the company’s largest shareholder, appointed as non-executive chair.

The cancellation comes after a turbulent year in which English wine sales slowed, weather dented harvests, and Chapel Down swung to a loss in 2024. Sparkling wine remains the star performer, with retail sales value rising 12 per cent annually and Chapel Down holding a 35 per cent supermarket share.

Pennefather remains upbeat, forecasting strong growth and a return to profitability by year end.