Diageo to Make £100m Scotch Whisky Investment 

16/02/07 Diageo, the world’s leading premium drinks company, is to invest £100m expanding its Scotch Whisky operations in Scotland.

The investment - one of the biggest ever in the industry - comes at a time of sustained growth in Diageo’s Scotch Whisky business worldwide. It will meet anticipated long-term demand for the company’s brands in growing markets such as Brazil, Russia, India, China and Mexico.

Projected demand in these and other markets shows a clear requirement for additional production capacity in Diageo’s Scottish supply business. It will also increase employment. Diageo estimates up to 200 jobs will be generated during the investment period stretching over the next few years.

The £100 million programme will expand capacity in malt distilling and grain distilling, where almost £80 million will be spent, and in packaging and warehousing where the investment will be over £20 million.

Diageo will build a new malt distillery in the north of Scotland - the preferred location is at Roseisle on Speyside - and expand the Cameronbridge grain distillery in Fife, already the largest in the UK. Bottling capacity at the company’s Shieldhall packaging plant in Glasgow will be increased and warehousing capacity will be extended in central Scotland.

Bryan Donaghey, Managing Director of Diageo Scotland, said: "This is a significant investment. It underpins our commitment to Scotland and the long term growth and sustainability of our Scotch Whisky business. We see very encouraging growth in our Scotch Whisky brands. Expanding our capacity now will help us meet demand well into the future.

"While this is our largest single investment in Scotland for almost 20 years, Diageo has been committing significant sums to Scotland on a continuing basis. This investment is essential to underpin our long-term strategy for the development of our business here. It has been made possible by the expertise and knowledge of our people and by close and constructive relationships with government and other partners. This Government’s support for the Scotch Whisky industry, including its long-term freeze on UK duty levels, has helped create and maintain the positive environment in which this investment can be made."

David Gosnell, Managing Director of Diageo Global Supply and Global Procurement, said: “Scotch Whisky is an iconic product, enjoyed all over the world. It makes a unique contribution to Scotland. This investment is good news for both the Scotch Whisky industry and the Scottish economy.

"Through exports of Scotch Whisky, Scotland has a strong representation in the global economy. To maintain Scotland’s competitiveness, we need to be fast, responsive and adaptable and deliver even higher levels of service and support. This means investing in a modern, flexible supply chain - by doing this we will help Scotland maintain its competitive position and ensure the continued success of the Scotch Whisky industry."