English winemaker Chapel Down has announced a significant strategic overhaul under new leadership, aiming to capture a 1% share of the global champagne market by 2035. The Kent-based company, led by chief executive James Pennefather and newly appointed non-executive chair Michael Spencer, has redefined its medium-term priorities to focus on boosting brand value, expanding international distribution, and ensuring disciplined capital management. This shift comes as the company navigates a challenging period for the English wine industry, marked by slowing demand and adverse weather conditions.

As part of its strategic reset, Chapel Down has scrapped plans to build a £32 million winery in Canterbury, a move expected to save significant capital expenditure. Pennefather emphasized that canceling the long-planned site will not impact the company's growth targets, which include targeting the world's top 10 champagne markets. Currently, Chapel Down has a presence in only five countries, but it plans to expand its footprint through agreements with top travel retailers, leveraging its 35% market share of sparkling wine sales in UK supermarkets and other retailers.

The company's international push is set against a backdrop of mixed financial performance. In the six months to the end of June, Chapel Down's revenues grew 11% to £7.9 million, with gross profit increasing 7% to £3.7 million. However, net debt rose to £11.3 million, up from £5.8 million in the same period last year, reflecting increased investment in vineyards and maturing stock. Adjusted earnings also declined by 23% to around £1.2 million in the first half, attributed to lower non-cash fair value adjustments, though the company remains on track for a return to profitability by the end of 2025.

Despite recent challenges, including the second-worst harvest on record for English winemakers in 2023 due to wet weather and disease, Chapel Down is optimistic about its prospects. Pennefather noted that better weather this year has aided recovery, and retail sales value of the company's sparkling wines continues to grow at 12% annually. With the global champagne market valued at $7.19 billion in 2023 and projected to reach $9.83 billion by 2030, Chapel Down's ambitious target underscores its confidence in competing on the world stage, even as the UK wine industry grapples with plateauing sales and evolving consumer tastes.

Global medical technology company Convatec has announced plans to establish a new flagship research and development hub in Manchester as part of a £500 million investment in the United Kingdom. The FTSE100-listed firm, which specializes in products for chronic wounds, diabetes, urinary incontinence, and stomas, will relocate its R&D operations from Deeside to Bruntwood SciTech's CityLabs 4.0 facility, scheduled to open in 2027. This strategic move represents a significant commitment to the UK's life sciences sector at a time when several other pharmaceutical companies have been shifting investments overseas.

The new Manchester facility will become one of the largest centers in Convatec's global network, spanning 125,000 square feet across seven storeys in the £42 million CityLabs 4.0 building. Located on Hathersage Road facing the Manchester Royal Infirmary, St Mary's and Royal Manchester Children's Hospital, the state-of-the-art facility will focus on research in four key therapeutic areas: advanced wound care, ostomy care, continence care, and infusion care. The company cited Manchester's "vibrant life sciences ecosystem, which includes leading universities, hospitals, and research institutions" as the primary reason for selecting the location.

Approximately 200 staff will be employed at the new Manchester hub, with most positions transferring from Convatec's existing R&D operation in Deeside, North Wales, which has served as a major research center since 1996. The company emphasized that no redundancies are planned as a consequence of the relocation and that the Deeside manufacturing site will remain unaffected, continuing to employ around 400 workers. The new Manchester facility is approximately 50% larger than the current Deeside operation and has capacity for up to 250 employees, allowing for future expansion.

Convatec's investment comes as part of a broader $1 billion worldwide R&D commitment, with the UK portion representing nearly half of this global initiative. The company, which generated $2.3 billion in revenue last year, typically allocates approximately 5% of its annual revenue to research and development. The relocation to Manchester positions Convatec to leverage the city's concentration of medical research institutions, including neighboring organizations such as the University of Manchester NHS Foundation Trust, biotech company QIAGEN, and MAC Clinical Research, strengthening its pipeline of new products addressing unmet needs in chronic care.