Changing climate provides boost for English wine

English wine makers have been buoyed by the changing climate, with turnover up 15% last year to £37m, according to accountancy firm UHY Hacker Young.

An analysis of Companies House filings for seven English wine producers shows that more reliable weather and crop yields is attracting capital into the sector. 

“Domestic and foreign investors are also looking to invest more into the UK market as the quality and reputation of UK wine grows,” explained James Simmonds, partner at UHY Hacker Young. “Some of the investment in the UK by foreign wine producers is partly driven by their desire to diversify production away from areas where crop yields are being damaged by climate change.”

Traditional European vineyards are experiencing much hotter climates, with France in particular experiencing milder winters with sudden frosts that are killing off grape growth.

This week, Tesco launched a wine made using a new disease-resistant grape varietal. The Floreal hybrid, developed to meet the challenges posed by climate change, reduces the need for vine treatments by 80 to 90%, according to a report in The Grocer, and cuts tractor usage, greenhouse gas emissions and soil compacting. The hybrid is currently grown in the Languedoc and Loire Valley in France.

In the UK the climate is much cooler, and combined with the clay soil common in the Southeast is proving the “ideal location” for vineyards in a warming climate, said Simmonds.

Figures from the Food Standards Agency Wine Team published by WineGB in July showed there are now 1,030 vineyards in the UK, a 9.2% year-on-year rise. Last year English and Welsh wine sales grew 10% compared to 2022. Another 87 new vineyards were registered in 2023. The total area under vine now stands at 4,209 hectares, representing a growth rate of 123% in 10 years. Some 51 different grape varieties were planted last year, with the UK now home to over 90 grape varieties. 

Volumes remain small compared to the big players like France, Italy and Spain. However, growth in the UK industry has attracted high profile investors like Michael Spencer and Nigel Wray who both own stakes in Chapel Down. Chapel Down is currently undergoing a strategic review so that it can accelerate its expansion.

Tourism is also an increasingly popular way for vineyards to boost turnover. Vineyards are setting up restaurants to expand into the tourism market, said Simmonds, with Denbies and Chapel Down both offering high-end restaurant experiences on site.