Diageo North America Expands Operations to Support Growth in the Ready-to-Drink Category

Rhea-AI Summary

Diageo North America is investing approximately $80 million to expand its manufacturing capabilities in the Ready-to-Drink (RTD) sector by installing two can lines in Plainfield, Illinois. The new facility, occupying 225,000 square feet, will produce over 25 million cases of RTDs annually, including popular brands like Smirnoff and Crown Royal. The project is expected to create 50 full-time jobs and enhance operational synergies with existing sites. Diageo's expansion aims to meet the growing consumer demand for convenient RTD formats.

Positive

• Investment of approximately $80 million to enhance manufacturing capacity.
• New facility expected to produce over 25 million cases of RTDs annually.
• Creation of approximately 50 full-time jobs.
• Strengthens operational synergies with existing bottling site.

Negative

• None.

To support Diageo North America’s growth strategy in the Ready-to-Drink (RTD) category, the company announced plans to expand its manufacturing footprint and install two can lines at a new facility in Plainfield, Illinois. With an investment of approximately $80 million, the site will have the capacity to produce over 25 million cases of RTDs per year, including Smirnoff seltzers and the newly launched spirits-based RTD cocktails from Crown Royal and Ketel One Botanicals.

(Photo: Business Wire)

“As the ready-to-drink category continues to grow rapidly in the United States, this expansion is very exciting as it will support our plans to meet increased consumer demand in line with emerging trends for convenient formats that are ideal for casual and at-home occasions,” said Debra Crew, President, Diageo North America. “The new operation will supplement our existing ready-to-drink production across North America and strengthen our path to continue building our RTD offering.”

Sitting on a 225,000 square-foot property in Plainfield, Illinois, the new facility will include a 500 cans per minute (CPM) line and a 1200 CPM line, both of which are expected to be available for commercial production by summer of 2021.

“The strategic location of the new site, near our warehouse and Plainfield bottling operation, will allow Diageo to create synergies and the flexibility to expand and carry other market-leading brands in the future,” said Perry Jones, President, North America Supply for Diageo. “We are thrilled to expand our manufacturing footprint and further deepen our relationship with the Village of Plainfield.”

“The Village of Plainfield is proud to have Diageo here. The company has made a long-term commitment to our community through continued investments and charitable activity in Plainfield and Will County,” said Brian Murphy, Administrator, Village of Plainfield.

Once open, the new site will employ approximately 50 full-time team members. Diageo North America has built a 55-year-old partnership with the Village of Plainfield and has played a role contributing to its economic development. Diageo’s presence has grown and expanded over the years: the Plainfield Bottling site -opened since 1966- and the warehouse collectively employ more than 600 additional people.

About Diageo North America

Diageo is a global leader in beverage alcohol with an outstanding collection of brands including Johnnie Walker, Crown Royal, Bulleit and Buchanan's whiskies, Smirnoff, Cîroc and Ketel One vodkas, Casamigos and Don Julio tequilas, Captain Morgan, Baileys, Tanqueray and Guinness.

Diageo is listed on both the London Stock Exchange (LSE: DGE) and the New York Stock Exchange (NYSE: DEO) and its products are sold in more than 180 countries around the world. For more information about Diageo, its people, brands, and performance, visit www.diageo.com. Visit Diageo's global responsible drinking resource, www.DRINKiQ.com, for information, initiatives, and ways to share best practice. Follow at Twitter and Instagram for news and information about Diageo North America: @Diageo_NA.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210318005530/en/

FAQ

What is Diageo's recent investment in Plainfield, Illinois?

Diageo is investing approximately $80 million to expand its manufacturing capacity for Ready-to-Drink (RTD) beverages.

What products will be produced at Diageo's new facility?

The new facility will produce Smirnoff seltzers and spirits-based RTD cocktails from Crown Royal and Ketel One Botanicals.

How many jobs will the new facility create?

The new facility is expected to create approximately 50 full-time jobs.

How much RTD product will Diageo's new facility produce annually?

The facility will have the capacity to produce over 25 million cases of RTDs each year.

When is the new manufacturing operation expected to begin production?

The new can lines are expected to be available for commercial production by summer 2021.