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Sales of UK wines continue to boom thanks to rising temperatures and better yields, according to accountancy group UHY Hacker Young.
New research suggests total sales at the biggest producers of English wine has risen by 15% in the past year and is now more than treble the level recorded five years ago.
Analysis of Companies House accounts for the seven largest UK wine producers showed collective turnover rose from £32m to £37m last year, up from just £13m recorded in 2018-19.
UHY Hacker Young said a key driver of this growth had been “improved growing conditions in the UK as a result of climate change”.
However, the growth has also been driven by significant investment in the sector, particularly from international producers looking to diversify crops.
UHY Hacker Young partner James Simmonds commented: “Some of the investment in the UK by foreign wine producers is partly driven by their desire to diversify production away from areas where crop yields are being damaged by climate change.
“Traditional European vineyards are experiencing much hotter climates, with France in particular experiencing milder winters with sudden frosts that are killing off grape growth.
“New investors with deeper pockets are providing new capital for vineyards and are allowing UK winemakers to fund new production.”
Leading wine producers Chapel Down and Gusbourne are currently seeking new funding and possible sales to meet funding needs to achieve growth targets.
UHY Hacker Young’s analysis included figures from Chapel Down, Gusbourne, Denbies and smaller companies such as Hambledon, Forty Hall Vineyard, Henners Vineyard and Domaine Evremond.
Morning update
On the markets this morning, the FTSE 100 has slumped 2.3% back to 7,987.4pts this morning after weaker economic data from the US hit global markets on Friday.
Risers include Kerry Group, up 10.7% to €87.80, Naked Wines, up 2% to 367.3p and Haleon, up 1.1% to 372p.
Fallers include McBride, down 7% to 119.5p, Virgin Wines, down 6.7% to 42p and THG, down 6.2% to 59.6p.
This week in the City
Markets updates slow down this week after a hectic global results period.
In the diary this week is the BRC-KPMG Retail Sales figures for July tomorrow morning, while Deliveroo, Coca-Cola HBC and Coca-Cola Europacific Partners will post interim results on Thursday.
Globally, Kellogg’s posts Q2 results on Wednesday, while Thursday brings Q2 updates from Beyond Meat, Beiersdorf and Ahold Delhaize.
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