Diageo, Scotland’s largest whisky producer, is unveiling plans to invest £1 billion in its Scottish business over the next five years, including the building of a least one more malt distillery to cope with demand from emerging markets.
The maker of Bell’s, J&B and Johnnie Walker will expand output from its existing production facilities by about 50 per cent and will build nearly 50 further warehouses to hold the extra Scotch.
Diageo expects the expansion will create 100 jobs within the company and a further 500 in the wider economy, includiong 250 in the construction industry each year over the next five years.
The group – which also makes Gordon’s gin, Guinness stout and Smirnoff vodka – is considering sites at Glendullan, near Dufftown, Inchgower, near Buckie, and Teaninich, near Alness, for the first new distillery and will make a decision in two years’ time on whether to build a second giant facility.
Diageo opened its £40m Roseisle distillery north of Elgin in 2010, the first major plant to be built in Scotland for decades.
News of the latest expansion comes just a week after French drinks giant Pernod Ricard – which owns Chivas Brothers, the maker of Ballantine’s, Chivas Regal and the Glenlivet and Scotland’s second-largest distiller – {http://www.scotsman.com/business/management/40m-splashed-out-on-raising-pernod-whisky-production-1-2327182|unveiled £40m plans to extend its output by 25 per cent|unveiled £40m plans to extend its output by 25 per cent} and {http://www.scotsman.com/scotland-on-sunday/business/drinks-giant-says-rising-thirst-for-whisky-overseas-may-require-more-distilleries-1-2335295|indicated it will make a decision within the next nine months on whether to build a further distillery|indicated it will make a decision within the next nine months on whether to build a further distillery}.
Diageo chief executive Paul Walsh said: “This is a pivotal moment in the development of the Scotch whisky category for Diageo. Over recent years our brands have achieved remarkable, sustained global growth. Scotch whisky is Scotland’s most celebrated manufactured export, led by brands like Johnnie Walker, resonating with consumers from Boston to Beijing.
“We expect that success to continue, particularly in the high-growth markets around the world, which is why we are announcing this major investment in Scotch whisky production, committing more than £1bn in the next five years, to seize that opportunity for global growth.”
