Chapel Down has appointed former Diageo executive James Pennefather as CEO but also announced the resignation of its finance chief from the UK wine group.
Pennefather succeeds Andrew Carter, who quit in September after three years in the hot seat to join UK brewer Timothy Taylor & Co. in 2025. Pennefather will take up the CEO role from 1 February.
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Meanwhile, Rob Smith has tendered his resignation but will remain with Chapel Down as CFO and director until the issuance of the full-year results in April, the winery and sparkling wine producer said in a statement today (13 December).
Commenting on the new CEO appointment, chairman Martin Glenn said: “Chapel Down has made excellent progress as a business and a brand. James is well placed to continue Chapel Down’s development and growth.”
He added: “We are delighted to have appointed James, who is an outstanding business leader with deep experience in building premium drinks brands within emerging categories, developing strong customer relationships in the UK and globally and enhancing shareholder value.”
Pennefather is coming into the business from CEO of single-malt whisky producer The Lakes Distillery Company, which was sold to UK sparkling-winemaker Nyetimber in a deal concluded in June.
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By GlobalDataThe departure of two senior executives at Chapel Down comes on the heels of a strategic review launched by the London-listed company in June, including an option to sell the business.
However, after concluding that review, Chapel Down said in October it would continue in its current form on the basis “there were no transactions that would create superior long term shareholder value”.
Alongside that announcement, Chapel Down cut its full-year forecast for net sales to fall in the low, single-digit area from the single-digit growth estimate put forward at the half-year results in September.
Sales had dropped 11% in the opening six months to £7.1m ($8.9m), while gross profit decreased 22% to £3.4m. Adjusted EBITDA was down 58% at £1.3m.
The business delivered a net profit of £94,778, compared to £1.7m in the corresponding first half.
Today, Chapel Down said the 2024 harvest had been “successfully completed” as it stuck with its tonnage estimate of 1,875 provided in October, down from 3,811t in 2023. Production volumes of about 1.7 million bottles are expected for the year.
As well as Diageo, Pennefather previously served at spirits maker William Grant & Sons.
He said today: “I am excited to be joining Chapel Down at such an important time in the company’s growth story.
“Chapel Down is the leading English winemaker and I look forward to leading the business as it pursues the next stage of transformational growth for customers and shareholders.”
