Diageo announces $500m investment in tequila production

Diageo has announced plans to invest more than $500 million to expand its tequila footprint in Mexico with new facilities in the state of Jalisco. 

This new investment enables the company’s growth in the tequila sector by increasing its production capacity. 

Álvaro Cárdenas, president of the Latin America and Caribbean section of Diageo, said: “In fiscal 21, Diageo’s tequila organic net sales grew 79% with the category now representing 8% of the company’s organic net sales. Growth was primarily driven by North America, where tequila is benefitting from its broad appeal across consumer occasions.”

He continued: “This exciting investment in Mexico will support our future category growth to meet Mexican and international demand. It will also allow us to continue surprising and delighting consumers with our amazing tequila portfolio.”

Construction of the new facilities is expected to start this year and will include environmentally friendly technologies.

The new sites will support Diageo’s ten-year sustainability plan, ‘Society 2030: Spirit of Progress’.

The facilities are also expected to create over 1,000 jobs in Jalisco.

This announcement comes after Diageo unveiled plans to build a new research and development centre in Shanghai, China.