UK – British multinational alcoholic beverage company Diageo has received regulatory permission to expand its Baileys global supply facility in Mallusk, Northern Ireland, at a cost of £26 million (US$33.19 million).
The facility is one of two global production sites of the Baileys brand, producing over 60 million bottles of Baileys each year, which are distributed to 150 countries across the world.
It is one of three Diageo sites in Northern Ireland, which includes a beer canning and packaging facility in East Belfast and its headquarters located in Belfast city centre.
The expansion expected to begin in early 2024 will enable Diageo to improve its logistics and warehousing facilities, according to the company.
Lesley Allen, operations manager at Baileys Mallusk, said: “We are delighted with the council’s decision to approve our plans to extend our site at Mallusk.
The extension will support the storage, delivery and distribution of raw materials and finished goods and we are looking forward to the opportunities it will create for us.”
The latest investment builds on the £40 million investment Diageo made in opening the site in 2003 and the ongoing investments to further develop the facility and the Baileys brand.
Baileys makes a considerable contribution to the local economy in Northern Ireland, and over 97% of our output is shipped around the world.
Heineken invests in additional capacity for zero-alcohol brand
Meanwhile, in Brazil, Diageo’s competitor in the beer business is investing 80m reais (US$16.3m) in Brazil to increase the production of its non-alcoholic brand Heineken 0.0.
The capital will be used to build additional production capacity at Heineken’s Araraquara factory in the state of SÈúo Paulo to enable it to supply the southern region of Brazil.
Heineken 0.0 was introduced to the Brazilian market in 2020 and has gone ahead to register strong growth in the country.
“Our expectation is to have 100% of our points of sale supplied with Heineken 0.0,” Rodrigo Bressan, the supply chain vice president for Heineken’s operations in Brazil, was quoted as saying by CNN Brasil.
In the first half of 2023, Heineken reported double-digit growth from its Heineken 0.0 brand as well as its low- and no-alcohol business in Brazil.
Overall, Heineken said underlying net revenue from its beer business in Brazil “grew organically in the low-teens, driven by pricing ahead of the industry and premiumisation”.
Heineken has been upping its investment in the South American country. In May, Heineken invested 1.5bn reais US($302.4m) into two breweries in north-east Brazil to expand production of its Amstel, Heineken and Devassa beer brands.
Last year, Heineken announced plans to invest 1.8bn reais in a new production facility in the city of Passos located in Minas Gerais, a state in the south-east of the country.
The Passos site was chosen to host the company’s 15th site in Brazil after the company abandoned its initial plans to build in Pedro Leopoldo over concerns about the “socio-environmental” impact on a nearby archaeological site.