UK wine producer Chapel Down has completed a £18.5 million fundraising round as it hopes to boost production in response to rising demand.
The Kent-based company, which has previously raised capital through crowdfunding, said it has secured the packing of an international investor. Other backers include IPGL and the family office of Michael Spencer.
Proceeds will be used to grow the wine business by securing new vineyard land. It will also accelerate the growth of its beer business and “build a strong position in the spirits market though the recently launched gin and vodka brands”.
Chapel Down CEO Frazer Thompson said the investment marks a “transformational moment” for the company.
“This fundraising enables us to significantly invest in the business for further growth and to meet the increasing demand for our products,” he said.
“We welcome the new investors in our company and hope that many of our existing shareholders will take part in the open offer and continue their journey with Chapel Down. This marks the opening of a new chapter of growth for Chapel Down.
The company now hopes to raise nearly £1.5 million through the help of existing shareholders.
Chapel Down recently expanded its senior team with the hiring of Gareth Bath from Brewdog and Mark Harvey from LVMH to drive its beer and wines and spirits businesses respectively.
Research from accountancy group UHY Hacker Young revealed that the number of wine producers in the UK jumped to a record high of 397 in 2016.
Warmer temperatures seen across the UK over the last two decades are said to have led to higher quality UK wines being produced.
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