Thursday, October 28, 2021

Diageo to expand tequila manufacturing capacity

Diageo is investing more than $500 million to expand its tequila manufacturing capacity in Mexico.

The investment will see the beverage giant create new facilities in the State of Jalisco to support its growth in the tequila category.

Álvaro Cárdenas, President, Latin America and Caribbean, Diageo, said: “In fiscal 21, Diageo’s tequila organic net sales grew 79% with the category now representing 8% of the company’s organic net sales. Growth was primarily driven by North America, where tequila is benefitting from its broad appeal across consumer occasions.

“This exciting investment in Mexico will support our future category growth to meet Mexican and international demand. It will also allow us to continue surprising and delighting consumers with our amazing tequila portfolio.”

The new facilities will also support Diageo’s 10-year sustainability action plan, ‘Society 2030: Spirit of Progress’ by including environmentally friendly technologies.

“’Society 2030: Spirit of Progress’ sets out 25 ambitious goals which are designed to make a positive impact from grain to glass, preserving our natural resources and contributing to the communities in which we live, work, source and sell,” said Ewan Andrew, President, Global Supply Chain and Procurement, Diageo.

“I am really proud that our new facilities in Jalisco will support the achievement of these goals.”

Since the acquisition of Tequila Don Julio in 2015, Diageo has continuously invested in its operations in Mexico, primarily in Jalisco.

In 2019, the company finalised the first expansion of its facilities at “El Charcón” in Atotonilco El Alto, creating additional jobs and supporting the local community through initiatives including Hablemos de Emprendedoras, a skills programme for female entrepreneurs in Jalisco.

Construction of the new facilities is expected to begin this year.

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