- New malt whisky distillery and major expansion of existing distilleries
- Substantial warehousing expansion to store maturing spirit
- Hundreds of jobs to be created in the company and the wider Scottish economy
The world's leading premium drinks business plans to invest over £1 billion in Scotch whisky production over the next five years to meet growing global demand.
In what is described as a ‘pivotal moment’ for the company, Diageo plans to build a new malt distillery, expand a number of its existing distilleries, create new warehouses and could even open a second new distillery, if global demand is sustained at expected levels.
The move will create over a hundred high-value jobs across Scotland, including many in smaller rural areas.
Announcing the investment Diageo Chief Executive, Paul Walsh said: "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 over £1 billion in the next five years, to seize that opportunity for global growth.”
As well as creating jobs within the company, the investment is also expected to create an average of 250 construction jobs for each year of the investment period, which will have a wider knock-on effect of generating around 500 further jobs in the wider Scottish economy.
Diageo have committed to taking on around 100 apprentices and graduate trainees over the investment period, whilst encouraging suppliers and contractors to focus on youth job creation and apprenticeships.
Diageo also have plans to reduce their environmental impact through the use of bio energy and to contribute towards a long-term sustainability and responsibility programme in Scotland.
Why invest in whisky?
- In the last five years Diageo reported 50 percent growth in net sales of its Scotch brands with total net sales approaching £3billion this financial year
- Scotch represented 23 percent of Diageo's volume, 27 percent of net sales and a third of gross profit in the financial year 2011
- In the first half of financial year 2012, Diageo's Scotch category saw 8 percent volume growth and 14 percent net sales growth
Find out more about investing in Scotland's food and drink sector