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Diageo to invest $400m in Mexican operations

DBR Staff Writer Published 05 March 2015

Diageo has committed to invest around $400m in its operations in Mexico, a move that comes after its acquisition of Tequila Don Julio earlier this year.

Diageo

The proposed investment will be used in the expansion of the company's local production facilities across distilling, bottling and water treatment as well as increasing agave farming capacity over the next five years.

Diageo Mexico managing director Erik Seiersen said: "With this investment specifically in Mexico and more broadly across Tequila Don Julio, Diageo will play a key role in developing Mexico's most important geographical indication and driving its success on a global scale."

The company also plans to build a new heritage centre at Atotonilco, Jalisco.

The investment is expected to create around 200 direct jobs within Diageo Mexico and will generate a similar number of indirect roles in the initial three year period.

UK Deputy Prime Minister Nick Clegg said: "British businesses are booming in Mexico, so I welcome this excellent news from Diageo as President Enrique Peña Nieto begins his state visit to Britain.

"Diageo is but the latest in a long line of UK companies expanding their investments in Mexico. This will create hundreds of jobs and help secure Britain's place as Mexico's business partner of choice."

Diageo completed the acquisition of Tequila Don Julio on 27 February 2015.

The Tequila Don Julio acquisition expands Diageo's position in Mexico and broadens its participation in the fast-growing premium spirits sector.

In addition, Diageo opened a new $119m bottling line at its Meta Abo brewery in Ethiopia.

This forms a part of Diageo's $344m investment in the brewery that has tripled annual capacity to 1.7m hectoliters.


Image: Diageo world headquarters in Park Royal, London. Photo: courtesy of David Hawgood / Wikipedia.