Brown–Forman Corp invests US$200m in expanding tequila production capacity at Casa Herradura distillery

MEXICO – Brown–Forman Corporation, one of the largest in the spirits and wine business in America, has outlined plans to expand its Casa Herradura tequila distillery in Jalisco, Mexico, for US$200 million, to meet increasing global demand for premium tequilas.

Casa Herradura has been harvesting, producing, and estate bottling tequilas from the small town of Amatitán in Jalisco, since 1870, making it one of the most historic tequila producers in Mexico. Brown-Forman acquired Casa Herradura in 2007.

“This multi-phase project includes adding to our distillery operations, bottling, maturation, and processing areas,” said Elisa Gutierrez, Vice President, and General Manager, of Casa Herradura.

“This expansion is particularly exciting as it will also advance our existing waste-to-energy efforts with a new water recycling and treatment plant.”

Construction is expected to begin in July 2023. The first phase will expand the water recycling and treatment plant, followed by the expansion of capacity for distilling, bottling, maturation, and processing.

The investment in water recycling builds upon Casa Herradura’s commitment to environmental sustainability.

Brown-Forman champions Casa Herradura as having been a pioneer in establishing a water recycling and treatment plant that met government standards, while it is also one of Brown Forman’s zero waste to landfill sites.

“The world’s growing taste for premium tequila is driving double-digit net sales growth of our Herradura and el Jimador brands,” said Lawson Whiting, President and Chief Executive Officer, Brown-Forman Corporation.

“We believe strong consumer interest in tequila will continue and we’re expanding our production capacity to meet this demand. This strategic investment will improve our production efficiencies and increase our competitiveness.”

Tequila is the fastest-growing spirits category globally by value, with most of the growth within the category driven by the super-premium+ price segment.

The U.S. market accounts for 32 million 9L cases and US$12 billion in retail value, according to IWSR 2022.

In November last year, Brown‑Forman completed the purchase of the Gin Mare brands from Vantguard and MG Destilerías. 

Gin Mare, established in 2010, is the first gin that distills the Mediterranean lifestyle into a bottle. A recipe of botanicals inspires the Spanish gin, including Arbequina olives, thyme, rosemary, and basil.

Gin Mare will continue to be produced at MG Destilerías in Vilanova i la Geltrú, a fishing village between the Costa Brava and the Costa Dorada.

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