Essex leads the way in British wine production

Wine has featured heavily in our Private Wealth Guide as an up-and-coming alternative investment for many years now. Frequently featuring in Knight Frank’s own Wealth Report as one of the most profitable luxury investments, it has long been a stalwart of alternative investment portfolios.

Now, England is not a location you typically think of when it comes to award-winning wines. After all, what can cold, rainy England produce that more temperate nations such as France, Spain or Argentina can’t?

Well, as it happens, cold and rainy England is in fact an up-and-coming wine-growing nation, with particular areas – including Essex – building a name for themselves for their high-quality wines. In fact, at the International Wine and Spirit Competition 2022, Essex-based winery Lyme Bay won a gold medal for its 2020 Pinot Noir. Meanwhile, Essex-based New Hall Wine Estate picked up two silver awards at the Independent British Wine awards for its Barons Lane Red 2021 and Barons Lane Rose 2021, in addition to a bronze for its white offering.

It’s all about taste

Not only is Essex building a reputation for great-tasting wines, but the region is also making a splash in investment circles.

In fact, an article published recently in the Financial Times even called the county “England’s Côte d’Or” and pointed particularly to Crouch Valley as a location where some of England’s very best wines are currently being produced. Crouch Valley is considered such a good wine-growing spot that California’s Jackson Family Wines, which owns over 40 vineyards across the globe, recently announced a new Essex-based venture.

And it seems that people aren’t only developing a taste for English wines. Investors are also developing a taste for the potential return on investment these wines can deliver.

Return on investment

Britain is currently the world’s fastest-growing wine region, according to Knight Frank. And investment in vineyards and wineries is also exploding, according to land agents Strutt & Parker. The firm calculates that £480 million was invested between 2018 and 2022, and the average price per hectare of wine-growing land has exploded from around £2,500  to £40,000 – £50,000 in just the last year alone.

Two British wineries are even listed on the stock exchange, both based in nearby Kent. Both Gusborne and Chapel Down are known for their pricey sparkling wines. Gusborne, three-time award winner of the IWSC English Wine Producer of the Year, has witnessed huge growth, with sales tripling since 2020. Some of its more exclusive bottles retail for upwards of £200. Although not for the faint-hearted investor, Money Week suggests that both companies have great long-term potential and that “both should cheer the patient investor.”

What does the future hold?

There are definitely exciting times ahead for English wine, with no signs of slowing growth.

It is fair to say, however, that the English wine industry is still in its infancy, with few wineries producing investment-level wines that could perform well on the auction circuit. But according to the experts, it’s a case of when, not if. With global warming heating up the English summer, England could yet become a wine-growing region with the potential to rival the world’s biggest winemaking heavyweights.

Going back to Essex, all eyes are on Crouch Valley, with huge opportunities for ambitious winemakers. The quality of Crouch Valley’s fruit is widely acknowledged, with many winemakers across England importing Essex grapes for use in their wines. It really does look like that the good times are only just getting started for Essex winemakers – we’ll certainly be watching this space.

For more Private Wealth Content, please continue to keep an eye on our blog or hop over to social media using the hashtag #PrivateWealthGuide.