Top drink: Chapel Down, Britain's largest sparkling wine producer, plans to make the most of a new taste for local produce
British drinkers drink 215 million bottles of sparkling wine every year, most of it in the form of Italian prosecco and Spanish cava.
Champagne accounts for just over 25 million bottles, while only 6 million bottles of English sparkling wine are consumed on these coasts.
But it seems the taste is changing. Demand for local products has risen by more than 20 percent this year, even as sales of continental bubbly have fallen.
Britain's largest producer of sparkling wine Chapel down wants to take full advantage of new trends.
The Kent-based group already has 38 percent of the UK market. But boss Andrew Carter has big ambitions and the shares, now at 71.5p, should respond.
Midas first looked at Chapel Down in 2013, when the share price was 19.75 cents, production was 500,000 bottles a year and the group owned 160 hectares of vineyards. The company currently has 906 hectares of planted land, and will add another 100 next year.
Production has increased enormously, the group has won several awards and critical drinkers give Chapel Down a big compliment.
Last month, Carter announced the production of nearly 3.5 million bottles of this year's vintage, following a record harvest of more than 3.8 tons of grapes.
The result, 86 percent more than in 2022, was achieved under ideal conditions, with plenty of sunshine in May, June and September and mild temperatures throughout the year.
British weather is notoriously unpredictable, but rising temperatures on both sides of the Channel are making life harder for champagne houses and milder for English growers. With its chalky soil there is little doubt that conditions in Kent are increasingly resembling those in the Champagne region of 40 or 50 years ago.
Carter is eager to reap the rewards. A drinks industry veteran, he joined Chapel Down in 2021 with a mission to double turnover to £28 million by 2026. 2023 results should show he is well on track with at least a 10 per cent increase in turnover to over £17 million and profits are rising too.
Over the past two years, Carter and his team have worked hard to ensure Chapel Down is sold across the UK, in bars and restaurants, supermarkets and off-licences, as well as direct to consumers through a thriving online site.
Sponsorship of English cricket has raised awareness and increased global sales, with Americans and Scandinavians showing a particular fondness for English fizz.
In a signal of its long-term growth plans, Chapel Down has just moved from the Aquis Stock Exchange to the London Stock Exchange's AIM, another market for young companies, but one that tends to attract a wider range of investors, large and small.
Like many drinks companies, November and December are crucial months for Chapel Down, accounting for a quarter of its annual turnover.
The season is going well. Chapel Down says one in seven households drink bubbly all year round, but this number is expected to rise over the festive period as young and old turn to home-grown bubbly.
Midas judgment: Chapel Down shares have more than tripled in the last decade, but there should be a lot more pop in the shares. The results are strong, Carter is passionate and blind tastings show that even the French like English sparkling wine. Shareholders also enjoy generous benefits, including a 33 percent discount on all purchases, ideal at this time of year. At 71.5p, this is a thirst-quenching long-term hold.
Traded on: GOAL ticker: CDGP Contact: kapeldown.com or 01580 766111