Many UK winemakers vineyards are seeing either a loss or have hefty debts. (Image: Getty)
The sparkle of the once-growing UK wine industry has fizzled out as estates saw a damaging 2024 harvest, which they say has been worsened by the Budget.
This year has seen a more cautious approach to investment than previously which has plunged the future of British winemakers into uncertainty.
Many of the UK’s most prominent vineyards are now either losing money or being burdened by hefty debts.
This has left the companies in search of investors to inject cash to stay afloat or, more drastically, find a buyer to take them on and scale up production.
Two of England’s largest wine estates, Gusbourne and Rathfinny, are searching for buyers or partners. According to estate agents, many more companies are privately up for sale too.
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Many UK wine companies are reportedly up for sale. (Image: Getty)
The majority shareholder of Gusbournes, Lord Ashcroft, said in July last year that he was considering selling his stake. At the same time, Rathfinny said it was seeking a partner or buyer.
Experts believe that estate founders have now reached a pivotal point in their careers where they need to commit to a new investment cycle, sell the company or pass it on to a relative.
Chris Spofforth, farms and estates director at Savills, told the Financial Times: “It’s not a question of throwing in the towel, it’s a question of passing on the baton. If you’re going to commit further investment you need to be able to commit the time. In the end it’s an agricultural process.”
He added: “When buying an existing business, buyers do scrutinise the economics more than they used to, so that can take longer,
“In certain parts of the sector the economics have become much more difficult and the Budget hasn’t helped that.”
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The Budget has reportedly negatively impacted UK vineyard operations. (Image: Getty)
Estate agents have criticised the tax-heavy budget explaining how the higher minimum wage and national insurance contributions have impacted the wine industry in a detrimental way.
Due to winemaking relying on paying staff lower wages, vineyard operations are now taking a hit according to Nick Watson, head of viticulture at Strutt & Parker.
He said “there has been a lot of uncertainty,” in relation to and inflation, adding that “no market is immune from those macro pressures, so we shouldn’t be surprised that viticulture isn’t exempt from that.”