Diageo to invest £1bn in Scotch

Diageo plans to invest £1 billion in Scotch whisky production facilities over the next five years to meet growing global demand for Scotch from emerging countries in Asia, Africa, South America and Eastern Europe.

It’s expected that nearly 1,000 jobs will be created as a result of the expansion in Scotch activity via some 250 construction jobs and 100 within Diageo itself as well as up to 500 ‘downstream’ positions in the Scottish economy.

“I’m particularly pleased our investment will generate significant numbers of new Diageo jobs, as well as boosting the local construction sector and stimulating job creation throughout the Scottish economy,” commented Diageo Chief Executive Paul Walsh.

Scotch accounts for nearly one-quarter (23 per cent) of Diageo’s sales volumes and 27 per cent of net sales values. Net sales of its Scotch rose 50 increased by 50 per cent to nearly £3 billion in the financial year.

The company plans to expand some of its 28 distilleries and build a new distillery (or two, if global Scotch demand justifies it, according to Diageo) in addition to increasing warehousing facilities.

While Diageo would not confirm specific locations for the new facilities, the Speyside and Highland areas of Scotland are understood to be under consideration for lodging planning applications later this Summer.