- Diageo has announced a $400 million investment into Don Julio Tequila, which it recently acquired in a trade with Casa Cuervo.
- Some of that investment will be dedicated to increasing operations in Jalisco, Mexico, including expanding distillation, bottling, and water treatment facilities and enabling agave farmers to boost their output. The money will also be used for branding initiatives.
- Diageo CEO Ivan Menezes said, “This investment reaffirms our long-term commitment to Mexico and we look forward to playing a bigger role in the industry, investing in our people and communities and supporting wider economic development.”
Last year, Diageo had first intended to expand its Scotch whisky operations, though it paused that investment due to lack of growth in some markets and other unfavorable economic conditions. Diageo has its focus toward Mexico in terms of tequila, Don Julio's home country and biggest market, and the company will also capitalize on a soaring amount of consumers in Mexico who will reach the legal drinking age over the next few years, forecast to be about 64%.