New investment marks the next phase of our expansion in Mexico
Two recently announced developments in Mexico will double our bottling capacity, generate up to 1,000 jobs and greatly expand our distribution footprint.
Feature 08 JUN 2017
We are very pleased announce plans to build new bottling, ageing warehouse and water treatment facilities at El Charcón in the municipality of Atotonilco, Jalisco.
Marking the next phase in our expansion of local production facilities in Mexico, the new facilities will more than double our bottling capacity in Mexico to over five million cases a year, and have the potential to generate up to 1,000 new jobs over the next five years.
The facilities also have sustainability at their heart, embedding water treatment into the Mexican supply chain for reusable biogas and bagasse – a byproduct of the agave plants used to make tequila – and reinforcing our commitment to sustainability throughout our supply chain.
“We feel really proud and delighted to move forward with the next phase of our long-term investment plans”, said Diageo Mexico’s General Director, Erik Seiersen. “We are sure that the new facilities will support our growth plans for the next five years”.
Investing in Mexico’s future
Since acquiring Tequila Don Julio in 2015, we have been committed to growing the brand’s global presence, along with investing in our operations across the country. In total we expect to invest around US$400 million in Mexico over five years.
As part of this commitment, we have expanded our distribution footprint through a new, world-class logistics centre in the state of Mexico. The centre spans an area of 24,000 square meters and will double our capacity, increasing our distribution footprint to around 11 million cases a year.
Speaking about our investment in Mexico, Erik Seiersen said, “The spirits category in Mexico represents an attractive opportunity and Diageo is well positioned to capture this potential with a leading position across categories and price points.
“We are building a portfolio that has breadth and depth across categories and price points, and the correct distribution, which will allow us to meet consumer needs from standard scotch through to super-premium tequila.”