English wine producers celebrate record turnover from past year

Independent English wine producers have defied ridicule to register £132m in turnover from 2015-2016, an all-time high

Although not traditionally viewed as serious competitor to more established wine-growing regions, English wine has become a major growth industry in recent years (Getty)

On the rise and no longer laughing, stocks of English wine have enjoyed a record year.

Independent English wine producers have defied ridicule to register £132m in turnover from 2015-2016, an all-time high, according to new research by online business finance supermarket Funding Options.

Although not traditionally viewed as serious competition to more established wine-growing regions, English wine has become a major growth industry in recent years. Its latest turnover figures represent an increase of 16 per cent on the previous year, while the sector has nearly trebled over the last five years, the study shows.

Funding Options says greater national and international recognition has helped overcome consumer scepticism and increase prices. In May 2017, Norfolk-based Winbirri Vineyards’ Bacchus 2015 wine was named the world’s best white wine in the prestigious Decanter World Wine Awards.

Wine makers are also capitalising on the growing popularity of boutique British alcohol production and increased sales are encouraging more producers to enter the market. The latest statistics from HM Revenue and Customs show a record 64 new wine producers obtaining a licence for wine production in 2016.

Conrad Ford, founder of Funding Options, said that English wine is now being ranked alongside French and German vintages, but added that producers must increase investment and capacity to keep pace with growing demand. This would help growers looking to the export market as a result of the falling pound, he said.

“Wine growers need to reduce restrictions on production and capacity to ensure consistent, sustainable growth in the long-term,” said Mr Ford.

“The fall in the value of sterling serves to showcase exactly how producers need to be able to increase capacity to react quickly to changing market conditions.

“In an industry with expensive, advanced machinery, a lack of sufficient funding, particularly for many smaller and medium-sized producers, can restrict volume capacity.

“However, many wine growers will not fit the risk profile for larger high street banks when looking for lending to increase production. Winemakers need to look at all the options open to them for funding when looking to grow.”

Although the UK’s climate is inhospitable to producing quality red wine, the south of England has established a reputation for sparkling white wine. French champagne house Taittinger recently planted a vineyard in Kent, the county that is home to England’s leading winemaker Chapel Down.

There are 502 vineyards in England and Wales with production reaching five million bottles a year, according to English Wine Producers.