Whisky Advocate

Diageo announces new Scotch distillery, expanded production at other distilleries

April 3rd, 2013

We knew this was coming. Here’s the summary, straight from Diageo:

  • teaninich-distillery-artists-impressionDiageo has today announced Teaninich near Alness in the Highlands as the location for its plans to build a new malt whisky distillery. It will have the capacity to produce around 13 million litres of spirit per annum (mla) from 16 copper stills.
  • The company also announced a major new phase of expansion to its Scotch whisky production in the Speyside area.  This includes an investment of  £12 million to expand the existing Teaninich distillery to almost double its capacity.
  • The single malt whisky produced at the new distillery and at the expanded Teaninich distillery will be used in a range of Diageo’s world-leading blended Scotch whisky brands.
  • Diageo also announced plans to invest around £30 million in new production facilities in Speyside, including a project to substantially increase the capacity of the Mortlach distillery at Dufftown. This will involve the building of a new stillhouse, which will replicate the unusual partial-triple distillation process which makes Mortlach unique.
  • Full details at: http://wp.me/p1etfV-6Y
  • All of this activity is a key milestone of the £1bn($1.5bn) five-year investment plan which was launched last year.

The whisky boom continues.

6 Responses to “Diageo announces new Scotch distillery, expanded production at other distilleries”

  1. politicalidiot says:

    Wow…it seems Diageo is doubling down with the hope that in 10 – 20 years from now the demand coming from China and India is going to be huge. If they are wrong, 1983 will look like a minor stop action. Aged whisky will be near free. At the same time I admire and scoff at this gambit. I guess that is why I am a retail buyer. Good luck!

  2. kallaskander says:

    Hi there,

    http://www.scotsman.com/news/comment-distillers-still-toast-exports-despite-volume-dip-1-2873210

    http://www.thedrinksbusiness.com/2013/04/top-10-scotch-whisky-export-markets/

    http://www.just-drinks.com/comment/comment-scotching-rumours-that-the-whisky-boom-is-on-the-wane_id109964.aspx?

    that makes a somewhat unclear picture.

    That the value of the exported Scotch goes up while volume – even if that still is a lot of whisky – only rises 1% shows that someone tries to get at our money fast.

    Trees do not grow into the sky and surely not into the heavens.

    Greetings
    kallaskander

  3. Danny Maguire says:

    Now we know where the new super distillery is going to be, have to have a good look round Mortlach when I go up there later this month. At the moment I can’t think where they’d put a new still house on that site.

  4. Well, massive expansion is needed for the blend industry. Not only America is going to un-aged whiskies at the moment. There will be 3 groups in the future in Scotland: blends (blended malts will disappear), un-aged malts and aged malts (10y or higher) I think. Diageo is buying all kinds of spirit, just for blending purposes. They built Roseisle for that purpose. The next will be something like Roseisle. No doubt about that. They are not the only ones….

  5. Jeff Miller says:

    Speaking as a retailer in the USA (Hamden, CT), I am seeing a tremendous upsurge in the interest in Scotch and Bourbon. My Scotch category grows across the board with nearly someone new every week trending away from beer toward scotch. I am getting tail end baby-boomers who have some disposable income and successful “generation x-ers”. Marginal interest from milennials but they are interested in craft bourbons.

  6. jimmy Curr says:

    Good for them! Someone taking a chance, albeit a calculated risk. If the emerging markets do continue to grow, Diageo will surely need the production.
    I am concerned about companies who are now introducing new expressions that are younger than the standard expressions up to this point…Better they increase production than reduce standards while increasing profits. It’s the same argument about NAS as well. Some may be on principal, and the product may be terrific, but I’m sure others are gambling that the consumer won’t know the difference.
    Congrats again to Diageo, and good fortune to you!

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