USA – Diageo has announced a US$415 million investment to establish a new manufacturing and warehousing facility in Montgomery, Alabama, as part of its broader strategy to strengthen its supply chain and drive long-term growth in North America.
Named ‘Diageo Montgomery,’ the 360,000-square-foot facility is expected to be fully operational in the second half of 2025.
Once complete, it will have a multi-million case annual production capacity, supporting the company’s extensive portfolio, which includes brands such as Smirnoff, Don Julio, Bulleit Bourbon, Johnnie Walker, and Captain Morgan.
The investment is designed to enhance Diageo’s North American supply chain operations while supporting future export growth.
By establishing a presence in Alabama, Diageo aims to improve logistics, reduce transportation distances, and increase overall efficiency.
The facility will serve as a key operational hub closer to the company’s southern region distributors.
Diageo has also emphasized sustainability in the new facility’s design. The site will feature advanced technology to optimize water and energy usage, aligning with the company’s broader commitment to environmental responsibility.
“The new facility will not only bring our business closer to our customers and distributors in the south but also enable our broader supply network to operate more efficiently and sustainably,” said Marsha McIntosh, Diageo’s President of North America Supply.
“This investment underscores our commitment to building greater resiliency into our supply chain across North America.”
The construction phase of the project is expected to create approximately 750 jobs. Once operational, the facility will employ around 100 full-time personnel, further contributing to economic growth in the region.
As part of its community engagement efforts, Diageo has committed US$750,000 in investments to support Historically Black Colleges and Universities (HBCUs) and Minority-Serving Institutions (MSIs) in Alabama.
Beneficiaries include Alabama A&M, Alabama State University, and Tuskegee University, with the funds allocated for scholarships and leadership development programs.
North America remains Diageo’s largest market, accounting for 39 percent of the company’s total sales. However, the company reported a 3 percent decline in North American sales for the fiscal year ending June 30, 2024.
Meanwhike, Diageo has restructured its operations in West Africa, divesting its 80.4 percent stake in Guinness Ghana Breweries to Castel Group for US$81 million.
This follows the sale of its Guinness brewing operation in Cameroon in 2022 and its Guinness Nigeria shares to Tolaram in 2023.
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