Diageo increases its tequila production capacity in Mexico by 33%
Diageo increased its tequila production capacity in Mexico from 3 to 4 million equivalent units in the 12 months ended June 30, 2021, compared to the same immediately previous period.
The company also increased its tequila production volume in the same proportion.
Diageo continues to invest in its tequila plant (end-to-end tequila production) in Mexico to allow for additional capacity to support growth.
For now, in Mexico, the company continues to work on a new distillery, bottling capacity expansion, wastewater treatment plan, liquid processing tanks and equipment, as well as storage facilities for maturation, packaging materials, and finished products.
An equivalent unit represents a nine-liter box of spirits, which is approximately 272 servings.
At the same time, a serving comprises 33 ml of liquor, 165 ml of wine or 330 ml of ready-to-drink beer.
To convert the volume of products other than spirits into equivalent units: beer in hectoliters divided by 0.9, wine in nine liter cases divided by five, ready to drink in nine liter cases divided by 10 and certain premixed products classified as ready to drink in boxes of nine liters divide by five.
Tequila
The production capacities quoted in the table are based on Diageo-owned actual production levels for the year ended June 30, 2019 adjusted to eliminate unplanned losses and inefficiencies. In addition, there are third-party production agreements with manufacturing facilities that include brewers and co-packaging partners licensed to produce Diageo brands.
The spirits are produced in distilleries located throughout the world.
Diageo owns 30 Scotch whiskey distilleries in Scotland, two whiskey distilleries in Canada, and two in the United States. Additionally, Diageo produces Smirnoff internationally.
Ketel One and Cîroc vodkas are purchased as a finished product from The Nolet Group and Maison Villevert, respectively.
Meanwhile, gin distilleries are located in both the UK and Santa Vittoria, Italy.
Baileys is produced in the Republic of Ireland and Northern Ireland.
For its part, the rum is mixed and bottled in the United States, Canada, Italy and the United Kingdom, and is distilled in the Virgin Islands of the United States and in Australia, Venezuela and Guatemala.
Raki is produced in Turkey, Chinese white spirits are produced in Chengdu, in the Sichuan province of China, cachaça is produced in the state of Ceará in Brazil, and tequila in Mexico.
Diageo’s maturing Scotch whiskey is in warehouses in Scotland, its maturing Canadian whiskey in Valleyfield and Gimli in Canada, its maturing American whiskey in Kentucky and Tennessee in the United States, and maturing Chinese white spirit in Chengdu, China.
Investments
The £ 185 million Scottish investment program that focuses on whiskey tourism (Johnnie Walker Princes Street with an investment of £ 150 million and restoration of the closed distilleries with £ 35 million).
The additional £ 35m investment focused on restoring Brora’s iconic ‘Lost’ distillery was completed and the distillery official opened in May 2021.
