The royal family are set to go head-to-head with labels from Champagne in the wine market.

It has been announced that the British monarchy is to produce its own wine from grapes grown on the Windsor Great Park estate.

According to the Daily Telegraph, over 16,000 vines will be planted on the grounds within the next week, although it could be three years before grapes suitable for winemaking can be cultivated.

The vineyard will be planted with Champagne varieties – Chardonnay, Pinot Noir and Pinot Meunier – with a view to producing an English sparkling wine.

Predictably, the British winemaking industry has welcomed the news that an official Royal wine will be joining the market.

"It is quite simply the biggest boost the English wine industry has ever had," Bob Lindo of Camel Valley vineyards told the newspaper.

This welcome news follows the publication of data which shows that the English wine industry had its best ever year in 2010, with more than four million bottles sold.