Balfour will sell Hush Heath Inns to focus on winery

Balfour Hospitality has announced the sale of Hush Heath Inns, a joint venture with Stonegate Pub Company, as it doubles down on growing its Kent-based winery.

The group’s five-pub portfolio has hit the market, ending its eight-year partnership with the UK’s largest pub operator Stonegate.

Since 2017, the Kent-based operator has grown Hush Heath Inns into a collection of inns, including the Falcon Hotel in Painswick, The Woolpack in Tenterden, The Ship in Rye, The Swan in Forest Row and The Windmill in Hollingbourne.

In a statement posted to LinkedIn, the Kent-based operator, which is run by Leslie Balfour-Lynn, said: “This marks an exciting new chapter for us as we focus on our fully owned venues including the acclaimed Balfour Winery in Kent, which is on track to welcome more than 70,000 visitors in 2025 following a record-breaking 2024.

“Our partnership with Stonegate has been invaluable in helping us create pubs with character, charm and heart. We part ways on the best of terms and look forward to seeing these pubs continue to thrive under their stewardship.

“Here’s to the future, continuing to push the boundaries of English wine and hospitality.”

Pub sector struggles

This comes as English wine booms but the pub sector suffers. Six pubs per week closed their doors for good in England and Wales in 2024 according to the British Beer and Pub Association (BBPA), and the trade body warns 378 more pubs could close in 2025, as hospitality grapples with tax pressures, changing consumer habits and a recruitment crisis. On the other hand, the wine sector, in particular wine tourism, has seen significant growth, with a 55% hike in visitor numbers since 2022, and wineries have benefited from collaboration, such as training initiatives with VisitEngland and Knight Frank, to enhance visitor experiences.

Balfour Winery’s operations director Lee Hart acknowledged hospitality’s “tough” trading environment when the company purchased two Kent pubs last year. At the time, he told db that the company’s pubs “act as brand ambassadors for the Balfour Wine Brand, and English wine generally.”

He said that “whilst budgets for all remain tight”, investments in its hospitality arm allow Balfour to remain “attractive to our guests in terms of offer and price point, whilst protecting the business and our team”.

English fizz: a sunny future?

While English wine sales grew 3% last year, running a vineyard is no walk in the park; the market comes with challenges as well as opportunity. Just last week, Chapel Down axed plans for a £32m winery, citing planning delays and shifting market realities, and recent research from Wine Lister warned the category faces hurdles in price perception and category recognition. Chris Spofforth, a wine estate agent at Savills, told The Telegraph: “Sales of UK wine are increasing, but not at the same rate production is increasing.”

Hampshire-based winery Exton Park, which recently onboarded to the Mentzendorff portfolio, is aiming to establish itself as a super-premium brand, through capping visitor numbers and prioritising partnerships with high-end establishments, to mitigate choppy waters.

Speaking to the drinks business, the South Downs winery’s commercial director Kit Ellen forecasted: “In English sparkling producers, we’re likely going to see a real squeeze on the middle ground. Our theory is premiumisation gives us a buffer from a turbulent market.”

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