Historically the laughing stock of the world’s viniculture fraternity, English wine has come of age. Just last month, London Wine Fair’s Battle of the Bubbles – a blind tasting that pips sparkling wines from some of the world’s top producers against each other – saw Dom Pérignon relegated to third place after Nyetimber and Gusbourne. No wonder the Brits are feeling a little smug.

As Gusbourne approaches its 20th anniversary – founded by South African orthopaedic surgeon Andrew Weeber, it was one of the first English vineyards to focus its efforts on the Champagne grape varieties of Pinot Noir, Chardonnay and Pinot Meunier – the landscape for English wines has evolved significantly over those two decades. 

The most recent figures from the Food Standards Agency show there are now more than 1,000 vineyards in the UK, a 9.2% rise since the last annual report. Meanwhile, sales of sparkling wine have risen 187% since 2018, from 2.2m bottles to 6.2m in 2023, against a wider trend of falling UK and global wine consumption. 

The price point of some bottles – Gusbourne’s 51° North 2016 vintage retails at £195, and even its cheapest wines will set you back £35 – may fuel perceptions of an ebullient industry awash with cash. In reality, the combination of price-conscious consumers, a competitive landscape, growing anti-alcohol sentiment and the impact of inflation have more recently left many in the industry feeling a bit flat.

Katharine Berry, Gusbourne’s COO and CFO, is not one of them. Berry joined the business two and a half years ago from Atom Supplies, the name behind specialist online retailer Masters of Malt. “I think there’s something quite romantic about the English wine industry, although when you get into it, it’s very hard work,” she says. “It’s agriculture, and you’re at the whim of Mother Nature, dealing with climate issues.”

The last couple of years are a case in point. Following an amazing harvest in 2023, 2024 couldn’t have been more challenging. “We had a wet summer, which meant mildew and disease pressures,” explains Berry. “We were lucky. We did harvest and got some good quality grapes, but I think some vineyards didn’t pick at all, which is just horrific. All the time we’ve been in business, we’ve never seen that before.”

Fair to say, the business risks involved with wine production aren’t for the faint-hearted. “You put the vines in the ground, two or three years later, you’ll start to get a crop and for sparkling wine you want to keep it two years plus in bottles,” says Berry. “It’s a long time before you can even think about selling your first bottle. And all that time, you’re having to invest in the ground, in the bottles, in the storage, in the people.” 

Gusbourne planted its first vines in 2004 but it wasn’t until 2010 that its first bottles hit the shelves. No wonder that one of the most common jokes told by those in the wine industry is, “How do you make a small fortune in the wine industry? Start with a big one.”

For Berry, it’s concerns about the harvest rather than accounting issues that are most likely to keep her awake at night, although the wine industry does present some accounting anomalies. “Under IFRS, we have to fair value the grapes and getting benchmarks is very hard because there’s not a huge market for traded grapes,” she explains. “It means that most years, you’re putting a write down through your accounts whereas most other English winemakers, who are not under IFRS, do averaging over several years, which is a much better method.” 

B2B sales – through distributors and retailers including Waitrose – last year represented around 45% of Gusbourne’s £7m turnover; however, ongoing hospitality sector woes are a worry. “Ever since COVID, hospitality just keeps on being hit and hit. The number of good restaurants in financial difficulty is a real concern,” admits Berry. 

International sales through a network of distributors across 37 countries generate about 20% of revenue. Last year, Gusbourne received the King’s Award for Enterprise for excellence in international trade, and it is the only English winemaker to receive the accolade to date. The remaining 35% of revenue comes from vineyard tours and direct consumer sales via Gusbourne’s website or on site via its fabulous cellar door, The Nest.

With 130 hectares under vine, including 60 hectares in Appledore, Kent, and 30 hectares next to the Goodwood Estate in West Sussex, Gusbourne doesn’t disclose the number of bottles it produces. The proposition is all about quality, not quantity, says Berry. “We’re not trying to go for any form of mass production. For us it’s about a beautifully crafted, quality product that people will savour and enjoy.” 

However, the cost-of-living crisis, rising inflation and interest rates have raised the cost of wine production, nibbling away at margins and reducing net income as never before. In 2023, former Tory party Deputy Chairman Lord Ashcroft — the majority shareholder via Belize Finance — initiated a strategic review, which concluded without securing a buyer.

Having been listed on AIM since 2012, Gusbourne delisted in March this year, citing the disproportionate costs and regulatory burden of maintaining its listing. In addition to slashing around £250,000 in costs associated with being on AIM, the company has said that the lack of liquidity in AIM trading was a limiting factor in its strategic flexibility. 

“The last few years of trading have been really tough across most businesses, made tougher this year by the cost of employment,” says Berry. “We needed to make changes so that we can do what our investors want us to do, which is to become profitable, cash generative and be a more attractive business.

“It’s made us a lot faster at decision making because the board acts more like a working group. We’re also able to be a lot more open with employees, which is a real benefit in a small business like ours.”

Berry is confident that the sector and Gusbourne will continue to rise to the challenges. “There’s still so much room for us all to grow. Champagne has such a monopoly over the sparkling wine market globally. English wine deserves a segment of that market because of the craft and the love that’s gone into all these products.” Let’s drink to that.