Diageo is upping investment in American whiskey

Diageo is upping investment in American whiskey

Diageo has confirmed it expects its new US$115m Kentucky distillery to be operational by late-2016 as as it broke ground on the site today.  

The company announced plans in May to build the 1.8m proof gallon distillery and six barrel-storage warehouses in Shelby County, on 300 acres of land. The facility, to be known as The Bulleit Distilling Co, will distill “current and future” Bourbon and North American whiskey brands, Diageo said. Around 30 people are expected to be employed at the site.

The group's CEO, Ivan Menezes, has signalled the firm's intent to up investmest in the American whiskey segment  as it seeks to gain a stronger footprint in the thriving category. He has also not ruled out making acquisitions in the segment.

In February, Diageo launched the Orphan Barrel Whiskey Distilling Co, a new US unit, for releasing high-end “rare” Bourbons

In its last set of full-year results, Diageo said Bulleit Bourbon sales rose by 63% in North America. The company acquired the brand from Seagram in 2001.