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.




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Lifting the spirits

I were to sum up alcohol sales over Christmas 2017 in one word, it would be “gin”. At Nielsen, we define the Christmas period as the 12 weeks to December 30 and in that time gin sales were £199.4 million, which means they increased by £55.4 million compared with Christmas 2016. There’s no sign the bubble is about to burst either. Growth at Christmas 2016 was £22.4 million, so gin has increased its value growth nearly two-and-a-half times in a year. The spirit added more value to
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