Sparkling Opportunities: Unveiling the growth and tips for investment into the English sparkling wine industry

Historically, the United Kingdom has been more renowned for its wine consumption than its production, relying heavily on imports to satisfy demand. Even during the Roman era, when a warmer climate briefly favoured viticulture, British wines were often sweetened with honey and consumed quickly. Today, however, climate change is reshaping the landscape, turning parts of the UK into promising land for grape cultivation. This climatic shift has sparked a growth of investment into the UK wine industry, raising the topical question given this week is English Wine Week 2025: Is this growing investment a lasting change, or just another fleeting phase like the Romans' winemaking efforts?

The growth of the industry

Something for the history buffs

The UK's typically cold climate has historically hindered wine production. Although the Romans introduced viticulture around 43 BC, imports from France and Italy dominated the market. The spread of Christianity saw vineyards attached to monasteries, but Viking invasions disrupted this growth. The Normans expanded the industry, yet the cooling climate of the Middle Ages forced landowners to prioritise short-term crops, allowing French wine to dominate. The 18th and 19th centuries, along with wartime, saw little progress in viticulture due to land being repurposed for essential crops. A turning point came in 1952 when Major-General Sir Guy Salisbury-Jones planted the first commercial vineyard in Hambledon, Hampshire.

Current Landscape

While much of the UK remains unsuitable for wine production, regions in the South of England are thriving. Some of these areas boast limestone soils ideal for sparkling wine grapes, and their climate now resembles that of France's Champagne region. This has enabled the successful cultivation of Chardonnay, Pinot Noir, and Pinot Meunier. With growing expertise, the industry has seen increased yields and expansion.

According to WineGB, 2023 was a landmark year, with 20-22 million bottles produced, marking a 60% increase from 2018. Although 2024 saw a dip, this was consistent with challenges across Europe. WineGB reported 1,030 registered vineyards in 2024, a 9.2% annual increase, and a 10% rise in wine sales in 2023 despite declining global sales. England and Wales are gaining international acclaim for their sparkling wines, with Chapel Down's sparkling Rosé recently winning 'Best in Show' at the Decanter World Wine Awards for the third time, solidifying its status as a leading English wine producer.

Reasons behind the growth

The burgeoning interest in English Sparkling Wine can be largely attributed to the impacts of climate change. As reported by The Guardian on 5 August 2024, one of the key factors driving this growth is the "improved growing conditions in the UK as a result of climate change." Foreign investors are increasingly drawn to the UK wine industry as they seek to diversify their portfolios away from regions where climate change is adversely affecting yields.

A BBC article highlights that "vineyards are now able to ripen top-quality grapes conducive to producing wines with a distinctive identity, featuring prominent fruit and elegant, toasty notes." This improvement in grape quality has bolstered the reputation of English Sparkling Wine, which is now gaining international recognition as a high-quality alternative to Champagne.

In the UK, demand for English Sparkling Wine has soared, with the industry enjoying increased market prominence and a growing reputation. Notably, "wine tourism" is becoming a popular trend, offering guided tours and overnight stays that transform vineyards into multifaceted revenue generators.

The previous Conservative government established the Future Winemakers’ Scheme to support the continued success of the wine sector, ensuring its growth and sustainability in the evolving market landscape.

Recent investments

The evolving market trends have spurred significant investment in the English Sparkling Wine industry, both domestically and internationally. This influx of capital has been primarily driven by private investors and high-net-worth individuals, including families from traditional wine-making backgrounds, who are actively acquiring vineyards.

According to Strutt and Parker, nearly £480 million was invested in vineyards over the five years leading up to 2023. Notably, in 2023, Berry Bros & Rudd and Symington Family Estates made headlines with their acquisition of Hambledon.

The English Sparkling Wine industry has also captured substantial foreign interest. A BBC article highlights that French Champagne producers, such as Pommery and Taittinger, are acquiring real estate in southern England. Additionally, major international players like Cava giant Henkell Freixenet, South Africa's Benguela Cove, and California-based Jackson Family Wines have recognised the region's potential for producing exceptional sparkling wines.

One prominent example of such investment is Champagne Taittinger's acquisition of a 380-acre site in Kent, in partnership with its UK agency and partner, Hatch Mansfield. This venture led to the launch of Domaine Evremond in 2024, marking the first time a major Champagne house has invested in the UK with the aim of producing premium sparkling wines. The project involves constructing a state-of-the-art facility and planting enough vines to yield 300,000 bottles of high-quality English Sparkling Wine annually.

These investments underscore the growing confidence in the English Sparkling Wine industry and its promising future on the global stage.

Top tips for investing in the industry

Despite the industry's growth, investing in vineyards requires patience and a long-term perspective. As highlighted in an article by Money Week, these ventures often involve relatively small companies burdened with significant debt financing and offer "little immediate prospect for dividends”. Nevertheless, they are characterised by rapid growth and hold substantial long-term potential for investors willing to navigate these challenges. Below are some of our top tips for investing into the industry from our various sector expertise:

Corporate Structure

There are a wide range of corporate structures and investment vehicles available to investors looking to enter the English sparkling wine industry, including UK companies, offshore companies, limited liability partnerships and partnerships. Additionally, investors might consider structures such as vineyard investment trusts or specialised wine funds. Legal, financial and tax advice will be essential to identify which model is most appropriate for the investor's aims regarding control, capital, and operational expertise. We recommend advisors are engaged as early as possible in the investment process, to assist with crafting an investment approach that aligns with the investors ambitions in this vibrant and growing sector.

Joint ventures and co-investment

When adopting a co-investment model, identifying a complementary partner is key. Aligning what each party brings to the table, whilst ensuring parties have a common vision and future goals regarding growth and exit is essential. Investors new to the industry will benefit from engaging a partner with a proven track record in viticulture and wine production.

Legal Agreements

As with any investment, it is essential that investors get all the legal agreements and documentation in place. This not only ensures matters such as financial contributions, control, disputes and exit are dealt with but can also help to protect value created by the business. Typical documentation you will need to prepare includes:

• A shareholders’ agreement, partnership agreement, investment agreement and/or articles of association (depending upon the corporate structure adopted);
• Licences and permits, to ensure that the business can be legally operated, including alcoholic products producer approval (APPA), and appropriate licences for the sale of wine. Different rules apply depending upon whether the investor plans to sell wine wholesale or direct to customers; and additional regulatory requirements need to be met when selling wine online;
• Labelling and Packing requirements. The regulatory requirements on product labelling and packing for food and drink items should be reviewed and compliance should be embedded into each stage of the production process. 
• Commercial agreements. To support business growth, it will be necessary to enter various supply, distribution and logistics agreements. It will be key to invest early in inventory management systems and, particularly where wine will be sold direct to consumers, the digital infrastructure required to support online sales and e-commerce platforms. 
• Employment agreements and policies. The Employment Rights Bill, which is due to be implemented in 2026, heralds significant changes for all sectors. These changes are likely to be particularly significant for the viticulture and wine production industry, due to seasonal shifts in working patterns, and a substantial proportion of short-term / flexible working and zero-hours contracts. For more on this topic see Employment Law Briefing: Labour’s Employment Rights Bill.

Real Estate

Assuming the land is let, the growing of grapes for the production of wine on a commercial basis would amount to agricultural use for the purpose of a trade or business which meets the criteria of the Agricultural Tenancies Act 1995. Therefore, the lease of a vineyard on this basis would be a Farm Business Tenancy. This will grant the tenant an exclusive right to possess and use the land for either a fixed term or on a periodic basis.  Typically, due to the time required to establish the vine stock, vineyard FBTs are granted for long fixed terms.  The landlord will have the ability to regain possession of the land by serving a notice requesting possession on the expiry of the term (or pursuant to any negotiated break clause), either on 12 months’ notice or less, if certain criteria are fulfilled. The landlord can also take action in the event the tenant is in breach of the tenancy (whether that be a failure to pay rent or comply with a covenant in relation to the use of the land, for example).

IP / Brand Protection

A brand name for a wine or vineyard will need to be chosen and importantly from an IP perspective protected as a registered trade mark. Clearance searches of the name should first be carried out to ensure that the name selected is not identical or too close to existing third party rights. These searches and any subsequent trade mark filing programme will need to consider the intended geographical reach of the new brand; ensuring that trade mark registrations can be obtained internationally / in key markets from the outset. Consideration may need to be given to the protection of the bottle design (if it is particularly different from that used as standard in the industry) and suitable agreements put in place regarding the ownership of the copyright in any labelling or other key branding assets that are produced. Of course, any English sparkling wine creator must not label their product as “champagne” which is a PDO (a Protected Designation of Origin) and can therefore only be used for sparkling wine made in the Champagne region of France.

Consumer Terms and Conditions

If wine will be sold direct to consumers, it will be necessary to prepare terms and conditions of sale as well as a privacy policy and cookie policy. Depending on the sales channels to be operated, it will also be necessary to prepare a set of website and/or app terms of use. Any use of consumer data for marketing purposes should be considered in line with the applicable data protection laws as there are clear rules around direct marketing.

Advertising and Marketing

Adherence to the UK Code of Non-Broadcast Advertising (the Code) in all promotional and marketing literature is essential. There is a specific section of the Code on alcohol advertising, the key rules being that advertisements must not target underage consumers or promote excessive drinking. Any product claims such as “sustainable” or “organic” or claims around origin need to be substantiated. Where influencer marketing may become relevant, influencer or brand ambassador agreements will need to be entered into to ensure ads are disclosed correctly and all other relevant requirements of the Code are adhered to.

Future Prospects

While the UK wine industry has experienced significant growth over the past decade, its total output still lags behind that of established wine-producing countries such as France, Italy, and Spain. Nonetheless, as climate conditions continue to create a more favourable environment for viticulture in the UK, this sector is poised for expansion. The Champagne market, valued at $7.19 billion in 2023, is projected to grow at a compound annual growth rate (CAGR) of 4.6% from 2024 to 2030. This growth trajectory signals promising opportunities for investors and high-net-worth individuals to consider this burgeoning market. As Money Week aptly noted, "Brave investors might like to join the party early," suggesting that early engagement could yield substantial rewards.