Eyeing Global Growth, Chivas Brothers To Invest $60 Million Annually In CapacityMay 30, 2012
Pernod Ricard’s Chivas Brothers unit has announced a raft of capacity investments aimed toward fulfilling its goal of “high single-digit to double-digit value growth” in the coming years.
“We’re committed to a capital expenditure of £40 million ($62m) annually to further increase our distillation capacity and production facilities,” said Chivas Bros. chairman and CEO Christian Porta.
Upgrades currently in line for Chivas include a new bottling hall opening this summer in Paisley, which will increase hand-bottling for top-end variants of Chivas Regal, Royal Salute, The Glenlivet and Ballantine’s and provide expanded capacity for future new products. The group is also ramping up distillation at the Glenallachie, Glentauchers, Tormore and Longmorn distilleries and is reopening the Glen Keith distillery in April 2013, which should result in a 25% capacity increase company-wide over the next two years.
Chivas Brothers’ investment drive comes on the heels of continued strong growth in its core Scotch whisky business, particularly in emerging markets. Flagship brand Chivas Regal rose 8% to 4.9 million cases globally last year, ranking seventh among the top spirits brands worldwide by retail value at $1.76 billion, according to Impact Databank. Portfoliomate Ballantine’s ranked ninth at $1.48 billion, on 4.7% growth to 6.5 million cases.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.