The billionaire Conservative Party donor Lord Spencer of Alresford has increased his already sizeable holding in Chapel Down Group, England’s largest wine producer, amid a protracted share-price slump since its December 2023 flotation.
Recent stock exchange filings show that Spencer, founder of broker Icap and a non-executive director at Chapel Down, snapped up an additional 450,000 shares via his investment vehicle IPGL, pushing his total stake beyond 27 per cent and reinforcing his position as the company’s largest shareholder.
Based in Kent, often referred to as the “garden of England”, Chapel Down cultivates more than 1,000 acres of vineyards—750 of which are fully productive—to produce sparkling and still wines. The company, which counts Ascot, The Boat Race and the England and Wales Cricket Board among its partnership roster, joined London’s junior Aim market at 55p in December 2023. Its shares, however, have tumbled by roughly 40 per cent since listing, closing flat at 34p on Monday—just above Spencer’s purchase price. The current market capitalisation stands at about £58 million.
Nigel Wray, the serial entrepreneur and former Saracens rugby club chairman, is the second-largest shareholder with a 13.8 per cent stake, while Lord Ashcroft—ex-Conservative deputy chairman and majority owner of rival sparkling wine producer Gusbourne—holds 2.6 per cent. Gusbourne is expected to delist from Aim following a push by Lord Ashcroft, who owns 66.8 per cent through a Belize-based investment vehicle, to take it private. Shareholders will vote on the matter next month.
Chapel Down, which instigated a strategic review in June, publicly indicated in October that no takeover offers would deliver “superior long-term shareholder value.” Meanwhile, its leadership has undergone recent changes: James Pennefather began his tenure as chief executive in November after steering The Lakes Distillery through a sale. His predecessor, Andrew Carter, is moving on to Timothy Taylor’s brewery. Chapel Down’s chief financial officer, Rob Smith, also stepped down, with a successor set to be named soon.
Despite the market challenges, the outgoing Carter spoke of a “massive improvement” in the second half of the year. Spencer’s further stake-building underlines continued commitment, even though the share price struggles to regain the fizz it enjoyed before the Aim listing.
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Lord Spencer extends backing for Chapel Down as share price falls flat