Chapel Down

Idea

Introduction

Almost twenty years ago we set about changing the way people thought about English wines. Forever.

At Chapel Down, we have always believed that cool climate wines are hot. Today a lot of the hard work in convincing the aficionados has been done. The quality of the wines are truly World class and we believe they will only get better.

With sales of English sparkling wine forecast to grow by 134% by 2026, demand for our award winning products is growing fast. At Chapel Down, not only are we the UK wine industry’s leader, but we're now challenging the hegemony of Champagne.

We believe that the opportunity for growth is huge. To continue our exciting trajectory we now need to scale up our winery, plant more vines, upgrade our e-Commerce infrastructure, deepen our export market footprint and continue to develop our tourism experiences.

Being part of our journey should be a revelation. So join our enlightened congregation of investors and help take Chapel Down to the next level.

Substantial accomplishments to date

· A brand that leads the UK wine industry

· A brand that is challenging the hegemony of Champagne

· A brand served at iconic venues and events in the UK and around the world

· A brand that we believe can change the way the world thinks about English wine forever

The UK wine industry has a handful of contenders, but Chapel Down is the leading brand by some margin. In 2020 Chapel Down Sparkling Wine sales increased by 52.8% whilst Champagne sales in the UK dropped by 21.7% over the same period…

Despite the trials of Covid we have emerged with a much stronger wine business. Indeed, 2020 was a record year for Chapel Down wines with revenue growing by 32% year on year* and ecommerce sales growing by 467% year on year.

We have built a dominant position in the major retailers for both sparkling and still English wines. Delivering an outstanding +61% volume growth in 2020 and broadening our industry-leading distribution further in 2021.

And our share is growing…

We also have a strong presence across the premium hospitality trade delivered via Matthew Clark and other high quality wholesalers. And we deliver a fantastic customer experience at our own winery at Tenterden.

And looking further afield, with all our International awards, we believe exports also have great potential.

Chapel Down is a brand that leads the UK wine industry.

Monetisation strategy

Chapel Down Group plc is quoted on the Aquis Stock Exchange where the shares can be traded.

We believe investing in Chapel Down should not just be rewarding financially, but it should be fun. Those who invested in our crowdfunding 7 years ago have benefitted from a 12% CAGR on the share price**. There are also many shareholders who regularly visit us and thousands who share the benefits and discounts that are theirs all year round.

**Source: Chapel Down Shares Aquis Exchange October 2014- May 2021. Returns calculated are not inclusive of fees, commissions or other charges, which reduce the figure above. Data is not available for seven full 12 month periods due to the launch date of Chapel Down's first Seedrs Campaign. Tax treatment depends on individual circumstances and is subject to change in future

Use of proceeds

We need to invest in a number of areas to enable us to really drive the brand – and the industry – to even greater success.

· We need to scale up and improve our winemaking capabilities and capacity to make more, even higher quality wine.

· We want to complete the planting of our biggest vineyard on the finest terroir in England.

· We have a great story to tell. It is inspiring. We want to tell more people what makes us so much more interesting than others.

· We will scale up our e-commerce to even higher standards.

· We can invest in selected export markets as the World awakens to the excellence of English sparkling wines.

· We want to give people an even better experience that they will remember forever at the Chapel Down winery.

So what do you get when you invest in Chapel Down?

FIRSTLY you get a great team working for you.

SECONDLY you get an investment in an ambitious brand in the wine business.

THIRDLY you get exclusive and fantastic shareholder benefits. 365 days a year.

Please find the terms and conditions for these rewards in the Share Offer Document attached.