Diageo delays Scottish expansion as whisky demand cools

30 October, 2014

Diageo has delayed plans to expand production capacity for Scotch whisky after the world’s thirst for the drink started to drop this year.

Scotch exports dropped 11% in the first half of 2014 as the Scotch Whisky Association blamed “economic headwinds and uncertainty” for hampered growth in several markets.

Diageo, the world’s leading producer, announced in 2012 it would invest more than £1 billion over five years to keep up with rising global demand.

But now that demand is cooling off Diageo, which supplies Johnnie Walker, J&B, Talisker, Bell’s and the David Beckham-fronted Haig Club, has decided to delay expansion plans.

“The weaker global economic environment has impacted the growth of Scotch in certain markets and therefore Diageo will continue to review and adjust the timing of the next phase of our investment programme to manage our Scotch whisky inventory and to retain the alignment between growth in production volumes and growth in demand,” a Diageo spokesman said.




Bookmark this


Site Search

COMMENT

The shops that stand out from the madding crowd

The judges met last week to sort out the winners in the independent categories of our 2018 Drinks Retailing Awards. The results are top secret until the awards dinner on February 6 but it’s giving nothing away to report that the overall standard of those that will be revealed in the shortlist of finalists in the January issue of DRN is higher than it’s ever been.

Click for more »
Upcoming events

Polls

Is blended Scotch overshadowed by single malt in retailers?

  • Yes
  • No
  • Don't know

Twitter