Diageo To Spend $80m To Boost Production Of Ready-To-Drink Beverages In The US

By Dave Simpson
Diageo To Spend $80m To Boost Production Of Ready-To-Drink Beverages In The US

Guinness manufacturer Diageo has said that it will spend $80 million to install two can-filling lines at a new plant in Illinois to boost production of fast growing ready-to-drink beverages.

The new facility in Plainfield, Illinois, will make more than 25 million cases of ready-to-drink beverages every year, including Smirnoff seltzers and spirits-based cocktails from Crown Royal and Ketel One Botanicals.

Commercial production is expected to start by the summer of 2021, the company said in a statement.

Sales of ready-to-drink beverages rose by 26% in North America in the second half of 2020, the fastest growing category for Diageo in the region during the COVID-19 pandemic, the company said in January.

Competition has been heating up for hard seltzers - flavoured sparkling water infused with alcohol - as liquor companies move to take advantage of a category where sales have doubled every year since 2016 in the United States.


Acquisition And Investment

Earlier this month, Diageo said that it had acquired the maker of hard seltzer brand Lone River Ranch Water, and earlier this year rival Anheuser-Busch InBev (AB InBev) announced a more than $1 billion investment in its US manufacturing facilities to ramp up production of hard seltzers.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.