Billionaire Conservative Party donor Lord Spencer of Alresford has expanded his investment in Chapel Down Group, England’s largest wine producer, despite the company’s ongoing share-price decline since its stock market debut in December 2023.
Recent filings reveal that Spencer, the founder of brokerage firm Icap and a non-executive director at Chapel Down, acquired an additional 450,000 shares through his investment vehicle, IPGL. This latest purchase boosts his overall stake to over 27%, cementing his position as the company’s largest shareholder.
Chapel Down, headquartered in Kent—often dubbed the “garden of England”—manages more than 1,000 acres of vineyards, with 750 acres currently producing grapes for its range of sparkling and still wines. The company, which partners with high-profile events such as Ascot, The Boat Race, and the England and Wales Cricket Board, joined London’s junior Aim market in December 2023 at 55p per share. However, the stock has since plummeted by about 40%, closing at 34p on Monday, marginally above Spencer’s recent purchase price. The company’s market capitalization now stands at approximately £58 million.
Other key shareholders include serial entrepreneur and former Saracens rugby club chairman Nigel Wray, holding a 13.8% stake, and former Conservative deputy chairman Lord Ashcroft, who owns 2.6%. Ashcroft also holds a controlling 66.8% stake in rival wine producer Gusbourne and is leading a bid to take that company private, with shareholders set to vote on the proposal next month.
Chapel Down initiated a strategic review in June 2023 and announced in October that no takeover offers would provide superior long-term value for shareholders. The company is also undergoing leadership changes: James Pennefather took over as chief executive in November after leading The Lakes Distillery through a sale, while outgoing CEO Andrew Carter is moving to Timothy Taylor’s brewery. Additionally, Chief Financial Officer Rob Smith has stepped down, with a successor yet to be named.
Despite recent market challenges, Carter cited “massive improvement” in the latter half of the year. Spencer’s increased stake signals confidence in the company’s future, even as its share price struggles to rebound from post-listing declines.
