Diageo invests $500M to increase tequila production capacity

diageo-invests-500m-to-increase-tequila-production-capacity
Image credit: shutterstock

For expanding manufacturing footprint in Mexico

Diageo, a global leader in beverage alcohol, has announced plans to expand its manufacturing footprint in Mexico through an investment of more than $500 million dollars in new facilities in the State of Jalisco. This investment will support the company’s growth in the tequila category by expanding production capacity.

“In fiscal 21, Diageo’s tequila organic net sales grew 79 per cent with the category now representing 8 per cent 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,” said Álvaro Cárdenas, President, Latin America and Caribbean, Diageo.

The new facilities will also support Diageo’s 10-year sustainability action plan, ‘Society 2030: Spirit of Progress’ by including environmentally friendly technologies, and through the expected creation of over 1,000 jobs in Jalisco, Mexico. Construction of the new facilities is expected to begin in 2021.

 

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