Nyetimber reports £20m deficit but sales rise

Nyetimber has reported trading losses and a ‘net asset deficiency’  of £20 million for the year to 31^st December – but says it is on track to long-term expansion.

The English sparkling wine company’s which has 145 hectares of vines across eight sites, including six in West Sussex and two Chardonnay vineyards in Hampshire, reported assets up £2m in its subsidiary company Nyetimber Limited, with a topline figure showing liabilities of up to £20m highlighted the long-term nature of building profitability in wine production.

“The company continues to invest in production of stocks, which take a significant time to mature into saleable conditions. As a result, the company has sustained trading looses during the year and ” it explained.

A spokesman told db that as a luxury brand Nyetimber had made a long term commitment to “its passionate and relentless pursuit of excellence” and that it was proud of its expanding presence in the market. 

“We remain committed to investing not only into our own development but into realising the phenomenal potential of the English Sparkling Wine category as a whole. We are continually investing into the brand, the necessary infrastructure to support our continued expansion and the recruitment of top tier talent necessary to deliver and improve upon the level of quality we strive to achieve.”

The company, which was the first English sparkling estate to plant Chardonnay and Pinot Noir and the first to use the three Champagne varieties to make traditional method fizz, started harvest on 12th October.

“We are pleased to report that our early impression of this year’s harvest has been one of very good quality. However due to frost and other weather circumstances, the yield is low this year,” the spokesman continued. 

Two weeks ago English Wine Producers heralded the 2016 vintage as a “fantastic vintage for the UK” following the warm summer that led to early ripening, which was likely to lead to high quality and yield that was “a good average”, but distinguished wine critic Steven Spurrier,  who owns the Bride Valley vineyard in west Dorset,  disputed the claim as exaggerated, saying yields were less than a third that he needed to break even. Bride Valley vineyard manager Graham Fisher later told db “the yields are rubbish”, although hopefully of “top notch” quality.

Earlier this year Nyetimber, which did not make any wine during the 2012 vintage, saying it was too wet and cold for the grapes to ripen sufficiently, announced the launch of its second Tillington Single Vineyard vintage, the 2010, which will be available from £75 a bottle.