UK wine - what's the latest on the vineyard market?

The area of the UK planted to vines has surged by around 75% over the past five years to almost 10,000 acres. Annual production has also ramped up by a staggering 130% to over 12 million bottles. There are now around 950 vineyards across the country.

The market for English wine is certainly sparkling, but budding grape growers need to think hard if they are considering buying a vineyard.

Many of the smaller vineyards in England are owned by successful professionals who have now left the city wanting a new venture for their passions. However, where they chose to buy was often driven by desired location, rather than the type of wine they planned to make.

Abundant supply

Given that certain segments of the English wine sector are abundantly supplied, to run a profitable business rather than a hobby, requires an informed decision about what grape varieties you want to grow and how you plan to market your wine.

English makers have traditionally focused on sparkling wines but as the market matures, excellent still whites and even reds are now being produced.

You may have set your sights on a vineyard in Kent, Sussex and Surrey, the epicentre of English wine production, but by widening your search to Essex or Norfolk and considering an up-and-coming grape variety like Albariño, you are broadening your options and boosting your chances of creating something unique.

Will Banham (left) with Bertie Gilliat-Smith, who have both recently joined our growing Viticulture team.

Marketing

For the small producer with seven to ten acres of vines, it is very hard to run a business profitably by relying on third-party retail sales, even if you do manage to strike a deal with the likes of your local Waitrose.

The biggest margins come from cellar-door sales onsite, or better still, selling by the glass. To do that you need to be in a good location to attract visitors. You will need to consider things like road frontage, space for parking and whether the property you want to buy is on an existing vineyard tourist circuit.

You should also consider if you really need to grow your own vines. It may sound anathema to the budding viticulturist full of enthusiasm, but there are also some amazing young wine brands that buy in all their grapes from carefully selected vineyards.

Chapel Down, with a selection of Kent wines, beers and spirits, are a great example of a brand who have taken off in the UK consumer market.

Scaling up

International wine brands are now also looking to invest at the larger end of the UK’s vineyard sector. Until recently there probably wasn’t the scale in the UK to really interest a large brand from a different country, but now there are several businesses that have grown to the size required to warrant a sizeable investment.

There is huge potential for them here because they have so much experience, marketing expertise and access to international sales channels that most UK producers don’t.

The UK is also increasingly viewed as a climate change hedge by producers in parts of Europe where rising temperatures and more erratic weather conditions are making it more difficult to produce traditional local wines.

Several well-known brands like Chapel Down are publicly available for sale, but most available are off market. Our knowledge and client base allows us to identify those opportunities for potential buyers and facilitate these acquisitions.

Learn more about our UK Wine and Viticulture team here.

Get in touch with Will and Ed, and discover an English wine business tapping into our love of rosé by downloading or request a hardcopy of the latest edition of The Rural Report below.

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