WEST CHILTINGTON, England/OSLO (Reuters) -English winemakers are betting that surging exports can sustain their once novelty product after domestic sales growth slowed, hoping for a boost from Britain's warmest summer on record this year as climate change optimised conditions.

Days before pickers started to harvest this year's crop, sparkling wine from southern England beat French Champagne to win one of the industry's most prestigious awards, lifting its prospects in markets like Norway, Japan and China. 

Foreign sales have become more important as a subdued economy at home weighs on demand for a premium product. International producers are snapping up the country's increasingly attractive land to produce wine to sell home and abroad.

"Export is where the real growth is in the coming period," said Brad Greatrix, senior winemaker at Nyetimber, the English company which became the first non-French winner of the International Wine Challenge sparkling wine award in September. 

FROM FAIRWAYS TO VINEYARDS 

English wineries started to emerge in the 1990s as adventurous landowners took advantage of warmer summers. Now, on chalky slopes across southern England, vines are being planted on land once used for crops, apple orchards and golf courses.

Since 2000, English wine production has risen by an average 7% per year, and is set to keep growing after land dedicated to vines jumped by 30% between 2020 and 2024.

However, while British demand has driven growth so far, last year sparkling wine sales - which at 6.2 million bottles accounted for 70% of total wine sales - were flat, down from 11% growth the previous year. In September, Chapel Down, Britain's biggest wine producer, cancelled plans to build a new winery.

Nicola Bates, CEO of industry body WineGB, said steady sales were an achievement when restaurants and bars were struggling, and when Champagne shipments to Britain fell 13% last year. 

For many consumers English fizz is a luxury product, with the biggest brands Chapel Down and Nyetimber costing 30 pounds ($40) and 42 pounds respectively per bottle, similar to Champagnes.

With more vines being planted, Bates said, "we need to be growing sales at a faster pace for mid- to long-term health".

NORWEGIANS REQUESTING ENGLISH WINE

Though some winemakers will not sell this year's prized vintage for several years, exports are a bright spot they hope to build on. Export volumes grew 35% to account for 9% of total sales of English wine in 2024, and Bates said she was targeting doubling that figure by 2030.

Norway tops the list of buyers by volume. Its imports of English sparkling wine jumped to 111,639 litres last year from 451 litres in 2015, according to its wine monopoly, the single state body allowed to import wine and spirits.

That growth is far ahead of rises from other countries, said Arnt Egil Nordlien, the monopoly's head of product.

Aleksander Iversen, a sommelier at Brasserie Coucou in Oslo, says Norwegians are open-minded and curious about wine. Some customers specifically request English wines while others discover it on recommendation.

"Most are surprised by the quality, they often remark that it rivals top Champagne, but with its own unique character," he said. 

MORE UNPREDICTABLE WEATHER

This year, English vineyards have experienced "almost perfect growing season conditions", said Alistair Nesbitt, chief executive at Vinescapes, a viticulture consultancy.

The average temperature in southern England during the spring to autumn grape growing season has increased by 1 to 1.5 degrees Celsius over the last 40 to 50 years, he said, but it's not always straightforward.

Climate change means more unpredictable weather events and that is also affecting England. Persistent wet weather in 2024, for example, hit the grape harvest, cutting production by half compared to the previous year.

While climate change means more variability for wine producers globally, Nesbitt said cooler climates like England have the advantage over areas in southern Europe, which are being hit by more frequent droughts and heatwaves. 

Wine producers from the U.S., France and Australia started buying English land around a decade ago, with French Champagne house Taittinger acquiring a site in 2015 and California's Jackson Family Wines establishing a presence in 2023.

"If you're in a real climate-stressed area of the world, and you want to keep your wine production enterprise going, you look to cooler areas like the UK," he said.

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