Forecasting Scotch whisky demand growth, Diageo plans 1bn pounds investment
Premium drinks group Diageo is planning over 1billion pounds investment to scale-up its Scotch whisky production over the next five years to meet growing global demand and in the process create more jobs in the UK.
In the immediate horizon is a new malt distillery and major expansion of existing distilleries, while a second new distillery will be built if global demand for Scotch is sustained at expected levels, the company stated Wednesday.
Alongside, Diageo is planning to invest in substantial new warehousing capacity to house the millions of additional litres of Scotch whisky which the distillation investment will produce.
"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," said Paul Walsh, Diageo chief executive, announcing the investment.
"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 over 1billion in the next five years."
The maker of Johnnie Walker, JB and Bells whisky, has seen rise over 50 per cent in the last five years to nearly 3 billion pounds last year, creating a third of group profits.
In the second half of 2011, Diageo's market volumes grew 8 per cent and sales around 14 per cent.
Diageo said its investment will create 250 construction jobs over the five-year period and generate a further 500 jobs at its plants and throughout Scotland through a focus on employment generation for youth.
Source: Britain News.Net
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