Chapel Down H1 sales rise 19% as US expansion and sparkling wine growth gather pace

Chapel Down Group has delivered a strong first half, with net sales revenue rising 19% to £9.4 million during the six months ended 30 June 2026.

Growth was recorded across all four of the wine producer's main sales channels, while international revenue jumped 66% as its US expansion gained traction. The company also increased its share of the English sparkling wine market and maintained guidance for the full year.

The main point for investors is that Chapel Down's increased marketing activity appears to be translating into broader distribution, customer growth and higher sales. However, net debt has also climbed to £14.0 million as the group continues investing in wine stocks that require time to mature.

You can read the original company announcement for the complete regulatory disclosure.

Chapel Down's key H1 2026 figures

Metric	H1 2026	Comparative period	Change
Net sales revenue	£9.4 million	£7.9 million	+19%
Off-trade revenue	£4.4 million	Not disclosed	+18%
On-trade revenue	£1.5 million	Not disclosed	+18%
International revenue	£0.8 million	Not disclosed	+66%
Direct-to-consumer revenue	£2.5 million	Not disclosed	+4%
Net debt	£14.0 million	£12.4 million at FY 2025	+£1.6 million
On-trade outlets	2,750	2,597	+6%
Traditional Method Sparkling share of wine revenue	74%	70%	+4 percentage points

The 19% top-line increase was in line with management's expectations and materially ahead of the prior year.

Importantly, this was not growth concentrated in a single part of the business. Retail, hospitality, international and direct-to-consumer sales all moved forward, although the pace varied considerably.

Sparkling wine remains the main growth engine

Off-trade revenue, which covers sales through retailers rather than hospitality venues, increased 18% to £4.4 million.

Chapel Down's sparkling wine sales grew by 20%, ahead of 15% growth for the wider English sparkling wine category. Its off-trade market share consequently increased from 35% to 37%.

That combination of category growth and market share gains is encouraging. Chapel Down is not simply benefiting from a larger market. It is also taking a greater share of that market.

The premiumisation strategy made further progress. Traditional Method Sparkling wines accounted for 74% of wine revenue, compared with 70% a year earlier. Traditional method means that the wine undergoes its second fermentation in the bottle, the production approach associated with premium sparkling wine.

Chapel Down's price index against Champagne was maintained at 92%. This indicates that its Traditional Method Sparkling wines retained pricing close to the average selling price of Champagne, rather than relying on discounting to drive sales.

US distribution is beginning to make a difference

International revenue was the fastest-growing channel, rising 66% to £0.8 million.

Chapel Down ended the half trading in 19 international markets, up from 16. Its US partnership with Jackson Family Wines helped expand the brand's presence to 31 states, while a new listing was secured across 250 Whole Foods Market stores nationwide.

International sales remain relatively small compared with the UK off-trade business, but the direction is promising. Wider US availability gives Chapel Down an opportunity to build a meaningful additional route to growth if consumer demand follows distribution.

Investors should still keep the £0.8 million figure in perspective. The US opportunity is developing, but it is not yet the dominant part of the investment case.

UK hospitality and direct sales also advanced

On-trade revenue, generated through venues such as restaurants, bars and hotels, increased 18% to £1.5 million. Distribution rose 6% to 2,750 unique outlets.

New partnerships were signed with The Jockey Club and the Royal Philharmonic Orchestra, while Chapel Down renewed its Ascot partnership for a further three years. Consumer sales at Royal Ascot increased 45% by value following greater brand visibility and the launch of the Rosé Magnum.

Direct-to-consumer revenue grew at a slower rate of 4% to £2.5 million. Chapel Down added 3,838 new customers through its website and increased its returning customer rate from 62% to 63%.

The returning customer improvement is modest, but repeat purchasing matters because direct customer relationships can support loyalty without relying entirely on third-party retailers or hospitality distributors.

Brand awareness remained unchanged at 46%, which Chapel Down said was the highest among English sparkling wine brands. Its Tenterden Brand Home also increased its TripAdvisor rating from 4.7 to 4.8, supported by more than 1,000 five-star reviews.

For more company information and future updates, see the Chapel Down Group PLC share page.

Rising debt is the main counterweight

Net debt increased to £14.0 million, compared with £12.4 million at the end of 2025 and £11.3 million at H1 2025.

Management said the increase was in line with expectations and reflected its capital allocation policy. Chapel Down extended its revolving credit facility from £20 million to £25 million, with an additional £5 million accordion option that could take the facility to £30 million.

A revolving credit facility is a flexible borrowing arrangement that allows a company to draw and repay funds within an agreed limit.

Wine production requires cash to be tied up in stock while bottles mature, so investment can support future sales rather than immediately appearing as revenue. Even so, debt is rising faster than the disclosed first-half revenue base, making cash generation and borrowing levels important figures to monitor.

No H1 adjusted EBITDA, operating profit or cash flow figure was disclosed. Chapel Down said its marketing initiatives were producing continued profitable growth at an operational level, but investors will need the interim results for a fuller picture of margins and cash conversion.

Harvest uncertainty has not changed guidance

Weather conditions in Kent were variable, including a late frost in May followed by warm and sunny conditions.

The board currently expects vineyard yield, measured in tonnes per acre, to be broadly in line with the five-year average. A further update will be provided closer to harvest when management has better visibility.

Harvest outcomes can also affect the non-cash fair value adjustment applied to biological produce. This accounting adjustment reflects changes in the estimated value of agricultural produce and is excluded from the company's adjusted EBITDA market expectation.

The board remains focused on delivering strong double-digit growth and expects full-year results to be in line with market expectations. Those expectations are net sales revenue of £22.1 million and adjusted EBITDA of £3.7 million, excluding the biological produce adjustment.

H1 revenue represents roughly 43% of the full-year sales expectation, leaving approximately £12.7 million to be generated during the second half. The announcement does not disclose enough information to determine how this compares with the company's normal seasonal pattern.

What investors should watch next

Chapel Down's first-half update contains several clear positives: 19% revenue growth, gains across every main channel, higher sparkling wine market share and rapid international expansion.

The US progress is particularly interesting because it adds a potential growth route beyond the UK market. Meanwhile, maintaining a 92% price index against Champagne suggests the premium positioning remains intact.

The key question is whether that sales momentum can translate into attractive profit and cash generation while the company funds stock maturation and carries higher debt. With no first-half profit or cash flow figures disclosed, the interim accounts will be important.

Harvest yields, international sales growth and net debt should therefore be the main numbers to follow through the remainder of 2026. For now, Chapel Down has reiterated expectations and presented evidence that its investment in distribution and marketing is supporting continued double-digit growth.