English winemaker Chapel Down has announced the departure of its CEO Andrew Carter.
Carter is to take up the hot seat at Yorkshire regional family brewer Timothy Taylor next year, succeeding Tim Dewey who is retiring.
He would continue to lead Chapel Down until the appointment of a new CEO in the first half of 2025, the winemaker said.
Carter had “made a significant impact” during his three-year tenure as CEO, establishing Chapel Down as the leading player in English wine, as well as leading the businesses’ market listing onto AIM earlier this year, Chapel Down said.
Read more: Chapel Down CEO Andrew Carter on comebacks, climate change and raising capital
News of Carter’s departure came alongside the publication of Chapel Down’s half year results. Both sales revenue and profit took a hit in the six months ended 30 June, as the winemaker was beset by “one-off challenges in the off-trade”
Net sales revenue net of retro fell by 11%, to £7.1m, with growth in online sales and on-trade performance being offset by a 36% fall in off-trade sales, to £3.1m. This was down primarily to “one-off factors, particularly movement in retailers stock holdings”, Chapel Down said.
There was a lack of “the usual, expected re-stocking” during the first half of the year, Chapel Down said, as well as the impact of lapping The King’s Coronation. Meanwhile, poor weather and a “challenging macro-economic environment” lead to a decline in the rate of sale of its wines.
However, consumer sales in the off-trade were “more resilient” than performance suggested, Chapel Down claimed.
EPOS sales data showed the brand’s sales to consumers in retail settings were actually only down by 7% to £4.1m, it said. Meanwhile, its share of English sparkling in the first half stood at 34%, down only 3% from the 37% market share it enjoyed in 2023.
Chapel Down exits spirits
Gross profits were down 22% to £3.4m, impacted by a greater weighing of still wines due to the 2023 harvest, and higher COGS Chapel Down said. Operating profits sunk by 91% to £218k, while profit before tax was down 98% to just £40k. EBITDA fell by 58% to £1.4m.
Of the different divisions of Chapel Down’s business, only still wines and tours and other sales saw sales growth in the first half of the year, with traditional method sparkling, a touch of sparkle and spirits all seeing double digit declines. Chapel Down confirmed it has now exited spirits entirely.
“Although H1 has been more challenging predominantly due to one-off factors in the off-trade and a more difficult macro-economic environment, Chapel Down remains the clear leader within English wine,” said Chapel Down chair Martin Glenn.
Chapel Down had “enduring sources of competitive advantage, as well as a complete focus on being England’s leading and most celebrated winemaker”, Glenn said, adding this gave him “great confidence about the future”.
On the departure of Carter as CEO, Glenn added: “Chapel Down has enjoyed huge success and celebrated several strategic milestones during Andrew’s time as chief executive and he should be very proud of what the business has achieved.
“I and the Board have enjoyed working with Andrew immensely and wish him every success in his new role leading another iconic British brand.”
In June Chapel Down announced a strategic review of its funding options that could result in the sale of the company. The review was “ongoing” Chapel Down said today, adding it would “provide a further update in due course”.
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