Diageo invests $500m in tequila production in Mexico

By Rachel Arthur

- Last updated on GMT


Related tags Diageo Tequila Mexico

Diageo will expand its manufacturing footprint in Mexico with an investment of more than $500m in new facilities in the State of Jalisco: supporting the company’s growth in the tequila category.

Construction of the new facilities is due to begin later this year, and the expanded production capacity is expected to lead to the creation of 1,000 jobs.

In fiscal 2021, Diageo’s tequila organic net sales grew 79% and the category now accounts for 8% of the company’s organic net sales. Growth is being primarily driven by North America.

Diageo acquired Tequila Don Julio in 2015, followed by George Clooney’s Casamigos in 2017.

Álvaro Cárdenas, President, Latin America and Caribbean, Diageo, said: “This exciting investment in Mexico will support our future category growth to meet Mexican and international demand. It will also allow us to continue surprising and delighting consumers with our amazing tequila portfolio.”

The new facilities will also support Diageo’s 10-year sustainability action plan, ‘Society 2030: Spirit of Progress’ by including environmentally friendly technologies.

In 2019, Diageo finalised the first expansion of its facilities at “El Charcón” in Atotonilco El Alto.

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