Moet & Chandon could be among the potential suitors for English sparkling wine company Chapel Down in what is expected to be among the first of a flurry of deals in the sector, Hargreaves Lansdown analysts have predicted.

"Chapel Down is one of the founding fathers of the English sparkling wine industry and given how many international awards homegrown bubbles have won, there is likely to be considerable interest," Susannah Streeter (pictured), head of money and markets at Hargreaves Lansdown, told City A.M.

"Given the terroir and rock formations are almost identical to the champagne appellation, a big house like Moet & Chandon, owned by LVMH may be interested."

Private equity firms may also be "sniffing around", given recent acquisitions in the wine trade, such as Coterie holdings, she added.

The wine sector has been hit by a slowdown in recent years as shoppers tighten the purse strings amid a cost of living crunch. The slowdown could trigger further deals across the sector in areas like distribution and wholesale, Streeter suggested.

"2024 was expected to be a year of consolidation in the wider industry due to slower sales and impact of higher interest rates," she added.

(c) 2024 City A.M., source Newspaper