Brown-Forman makes $200m investment in Casa Herradura tequila distillery

By Rachel Arthur

- Last updated on GMT

Brown-Forman makes $200m investment in Casa Herradura tequila distillery

Related tags Brown-forman corporation Tequila

Brown‑Forman will expand its Casa Herradura tequila distillery in Jalisco, Mexico to meet increasing global demand for premium tequilas.

The Herradura and el Jamador brands saw double-digit net sales growth in the nine months ending January 31, 2023.  

“We believe strong consumer interest in tequila will continue and we’re expanding our production capacity to meet this demand,” said Lawson Whiting, President and Chief Executive Officer, Brown‑Forman Corporation.

“This strategic investment will improve our production efficiencies and increase our competitiveness.”

Advancing waste-to-energy projects

Brown‑Forman acquired Casa Herradura in 2007. The casa has been hand harvesting, producing, and estate bottling fine tequilas from the small town of Amatitán, Jalisco, since 1870.  

Construction on the expansion is expected to begin in July this year.

“This multi-phase project includes adding to our distillery operations, bottling, maturation, and processing areas. This expansion is particularly exciting as it will also advance our existing waste-to-energy efforts with a new water recycling and treatment plant,” said Elisa Gutierrez, Vice President and General Manager, Casa Herradura.

The first phase will expand the water recycling and treatment plant, followed by the expansion of capacity for distilling, bottling, maturation, and processing. It builds upon Casa Herradura’s commitment to environmental sustainability.

Brown-Forman champions Casa Herradura as having been a pioneer in establishing a water recycling and treatment plant that met government standards; while it is also one of Brown‑Forman's zero waste to landfill sites. (Less than one percent of the solid waste generated goes to landfill). Over the past decade, Brown‑Forman has made ‘significant investments’ in state-of-the-art technology and implementation of processes for environmental care.

Brown-Forman eyes up tequila as the fastest growing spirits category globally by value with the majority of the growth within the category driven by the super premium+ price segment. The US market accounts for 32 million 9L cases, and $12 billion in retail value. (IWSR 2022)

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