The announcement today re-affirmed Diageo’s long-term commitment to its Mexico operations, according to a press-release, following completion of the company’s acquisition last week of Tequila Don Julio.
In addition to increasing advertising and promotional spend to further build the Don Julio brand, Diageo pledged capital investment to expand local production facilities across distilling, bottling and water treatment, as well as increasing its agave farming capacity.
Diageo also plans to build a new heritage centre at Atotonilco, Jalisco.
These planned activities, together with the acquisition costs of Tequila Don Julio, brings Diageo’s expected investment in Mexico to around $400 million over five years (subject to the market continuing to perform in line with expectations).
Diageo estimates that the investment will create around 200 direct jobs within Diageo Mexico, and will generate a similar number of indirect roles in the initial three-year period.
“Mexico is a country of enormous opportunity and will form an important part of Diageo’s future,” said Ivan Menezes, chief executive, Diageo.