UK: Diageo plans US$75m Scotch whisky distillery

By | 3 April 2013

Click through for an artists impression of Diageos new distillery

Click through for an artist's impression of Diageo's new distillery

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Diageo has unveiled plans to build a new GBP50m (US$75.5m) malt whisky distillery in the Highlands and boost the capacity of two other sites as part of its five-year investment programme in Scotch. 

The new distillery will be next to the company's existing Teaninich distillery, near Alness. The facility will have “its own name and identity”, Diageo said, and will create up to 20 new jobs.  

The site will have the capacity to produce around 13m litres of spirit per year from 16 copper stills, Diageo said. Work on building the facility, which will be larger than Diageo's mega-distillery at Roseisle that opened almost three years ago, is expected to start next year.

Meanwhile, the capacity of the existing Teaninich distillery will be doubled with a GBP12m investment.

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Looking ahead, the company said it also plans to invest GBP30m in new production facilities in Speyside, including “substantially” increasing the capacity of its Mortlach distillery at Dufftown, with the building of a new stillhouse.

A new plant at Glendullan to process co-products and produce bio-gas to power the Glendullan distillery is also being planned. 

Elsewhere in Scotland, Diageo said plans for a “major expansion” of Glen Ord Distillery, near Muir of Ord are progressing and a move to build new warehousing at Cluny near Kirkcaldy is also in the pipeline.

Bryan Donaghey, Diageo Scotland's MD, said: “This announcement is a significant milestone in our GBP1bn investment programme in Scotland to support the global growth of our Scotch whisky brands. The plans also demonstrate Diageo’s commitment to building a sustainable business through investment in energy efficiency and renewable energy technologies.”

Diageo first announced plans for its investment programme in Scotch last June

Expert analysis

Global market review of blended and single malt Scotch whisky – forecasts to 2017

This latest global Scotch whisky report from IWSR and just-drinks is the most comprehensive edition we've published. It features 135 data tables covering the consumption volumes of the top malt and blended brands in each of 30+ countries, plus forecasts for Scotch by quality category globally and in each market.

Sectors: Spirits

Companies: Diageo

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