Pernod Ricard invests £88m in Scotch distilleries
Pernod Ricard, owner of Chivas Brothers, is investing £88 million into expanding its Aberlour and Miltonduff single malt distilleries.
The investment will go into upgrading sustainable distillation technologies at the Speyside facilities along with significant production capacity expansions to meet the growing global demand for Scotch.
In half Year results in February, Chivas Brothers announced a 23% rise in net sales and the company expects total production ro rise by 14 million litres of alcohol per annum.
The distillery expansions will also serve to accelerate Chivas Brothers’ goal of reaching carbon neutral distillation by 2026.
Jean-Etienne Gourgues, chairman and CEO of Chivas Brothers said: “Scotch has demonstrated its resilience as a category over the past few challenging years and in the process has opened new avenues for growth.
“This expansion will allow us to increase our volume to capitalise on the increased demand and interest in Scotch, but also supports our drive to reduce emissions in line with our sustainability ambitions.
“We’re once again betting big on the future of Scotch so we can bring in new consumers to the category and continue to shape a sustainable future of whisky.”
The Aberlour distillery, which has been producing whisky since 1879 will see its production capacity double to 7.8 million litres of alcohol per annum. This additional capacity will support the accelerating global demand for the cult favourite Scotch which continues to be the best-selling single malt whisky in France and has made significant gains across Asia.
The distillery will undergo a significant facelift with an upgraded visitor centre which will draw more whisky fans to the area and boost local tourism. A new still house will be equipped with large windows providing visitors with views into the nearby woods and the River Spey; the water source for the spirit.
Miltonduff’s expansion will consist of a brand new state-of-the-art sustainable distillery built next to the existing facility. The distillery, which will include a bio plant and evaporator, will add 10 million litres of alcohol per annum to the total production capacity.
The single malt is one of the foundations of Ballantine’s blends and is a key component of other blended whiskies in the Chivas Brothers portfolio. This increased capacity will further accelerate Ballantine’s pace of growth which in HY22 results saw global sales rise by 23%, fuelled by a range of new expressions.
Secretary of State for International Trade, Anne-Marie Trevelyan, said: “Scotch Whisky is a UK exporting success story and this excellent news will see some of the best products made in Scotland, sold to the World – supporting jobs and economic growth and helping us to level up the country.
“It’s great to see Chivas Brothers adopt new ground-breaking energy efficient technology, helping deliver the Government’s Net Zero strategy, and maximising export opportunities through green UK innovation.”
Both sites are expected to be operating at full production capacity by mid-2025