Annual report case study - Investing for the long term
Investing for the long term
Investing smartly means investing in the future success of our business. This supports the delivery of consistent performance and enables sustainable, quality growth. A core element of that growth is investing in production capacity in fast-growing strategic categories.
In September 2021, we launched the expansion of our tequila production capacity in Mexico through an investment of over US$500 million. With our tequila volumes growing 35% over the last five years,1 this investment will support future category growth.
We’re also investing to add capacity for Crown Royal Canadian Whisky, North America’s most valuable whisk(e)y brand.2 A new carbon-neutral facility in Canada, announced in March 2022, will support our growth ambitions.
To support growth plans for our ready to drink (RTD) portfolio of premium drinks in North America, we opened our new canning facility in Illinois, in March 2022. It has capacity to produce over 25 million cases of RTD cocktails.
In China, we broke ground on the Eryuan Malt Whisky Distillery. It will produce our first China-origin, single malt whisky and be carbon neutral on opening. Also featuring an immersive visitor centre, our $75 million investment in this distillery is part of our long-term growth plans in this key strategic market – the world’s largest for total beverage alcohol.3
And, in March 2022, to support the growth of Guinness, we announced a £40.5 million investment in capacity expansion at our packaging facilities in Belfast, Northern Ireland, and Runcorn, England.
1. Volume CAGR fiscal 18 to fiscal 22
2. Retail sales value, IWSR, 2021
3. Volume and retail sales value, IWSR, 2021