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Diageo to build £50m Scotch whisky distillery

Published:  03 April, 2013

Diageo is to increase its Scotch whisky production with a new £50 million distillery in the Scottish Highlands. Text Diageo is to increase its Scotch whisky production with a new £50 million distillery in the Scottish Highlands.

 

The distillery, which will create up to 20 new jobs, will be adjacent to the company's existing distillery in Teaninich, near Alness, but will have its own name and identity.

 

The company also announced a major new phase of expansion to its Scotch whisky production in the Speyside area. The combined activity is a part of the £1 billion five-year investment plan launched last year.

 

The new Teaninch distillery will have the capacity to produce around 13 million litres of spirit per annum from 16 copper stills. An on-site bio-energy plant will also be constructed to convert co-products into green energy to power the distillery.

 

At the same time, Diageo also plans to invest £12 million in expanding 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 blended Scotch whisky brands.

 

The spirits giant also announced it will 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 that Mortlach uses.

 

Another element of the investment will be the construction of a new plant at Glendullan to process co-products in an anaerobic digestion process, producing bio-gas that will be used to power the Glendullan distillery.

 

Diageo Scotland managing director Bryan Donaghey, said: "This announcement is a significant milestone in our £1 billion investment programme in Scotland to support the global growth of our Scotch whisky brands."

 

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