Diageo Zamora Group has invested heavily in boosting capacity

Diageo Zamora Group has invested heavily in boosting capacity

Diego Zamora Group has completed construction of a new production facility that will see the Spanish spirits company increase capacity by 50%.

The company said late last week that the plant, based in Cartagena in the Murcia region of Spain, will also house group headquarters. A total of EUR15m (US$19.3m) has been spent on the plant, which will help Diego Zamora produce around 12m bottles of its flagship Licor 43 spirits brand.

"The recent growth obtained both nationally and internationally, has meant that the production capacity of our current factory was at its limit and an extension was necessary to allow us to continue our global expansion," said group CEO Emilio Restoy Cabrera.

The family-owned company also said last week that its sales in calendar 2012 rose by 9.1% year-on-year, reaching EUR124m (US$159.3m). Despite a “less-than-pleasing” environment in its domestic market, Diego Zamora's Zadibe distribution unit delivered a 5.2% lift in sales, thanks in part to the addition of Frangelico and Carolans from Gruppo Campari and Drambuie to its portfolio earlier in the year.

Sales outside Spain jumped by 19% last year, with international performance accounting for 34% of total sales. The firm highlighted growth for Licor 43 in Germany, Holland, Brazil, Australia, Mexico and the US.

“The situation in the domestic market is, objectively, very bad, with a slump of 30% in six years,” said Restoy Cabrera. “Internationally, the market is very different, with sustained growth, especially in the premium beverage industry. This is being felt in the very strong performance of our brands in international markets, where we continue to have a great growth potential in the medium term, through investment in brand knowledge and opening new markets.”

In late-May, local reports claimed that Diego Zamora will replace Diageo as the distributor of Jose Cuervo Tequila in Spain. A spokesperson for the company confirmed the reports to just-drinks today, saying that the switch took effect from 1 July.

Also in May, the company appointed Thomas Clamens to the newly-created position of MD for international operations. Clamens joined Zamora from Maxxium, where he was MD of its Dutch division.