The number of wine producers has reached a record high after a 13 per cent increase last year, new research reveals.

Growing demand for “boutique” drinks was behind the rise to almost 400, said accountancy group UHY Hacker Young.

UK wines were also becoming more acclaimed internationally, winning an increasing number of industry awards.

James Simmonds of UHY Hacker Young said the trend across the drinks sector was for niche, “local” products to outperform the growth of global brands.

In the wine industry, this has led to more consumers swapping French or New World wine for English wine, he said, adding: “It is more of a talking point, more of an event, to order a Welsh wine than French, but it is not just novelty value, critics are giving English and Welsh wine higher and higher ratings.”

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