Diageo is spending $ 80 million to expand US ready-made beverage production
March 18 (Reuters) – Liquor company Diageo announced Thursday it would be spending $ 80 million to install two new lines at a facility in Illinois to boost production of fast-growing instant beverages.
The new facility at their existing Plainfield, Illinois bottling complex will produce more than 25 million cases of ready-to-drink beverages each year, including Smirnoff seltzer and spirits cocktails from Crown Royal and Ketel One Botanicals.
Ready-to-drink beverage sales in North America rose 26% in the second half of 2020, the fastest growing category in North America for Diageo during the COVID-19 pandemic, the company said in January.
Competition for hard seltzer, flavored sparkling water with alcohol, is intensifying as liquor companies take advantage of a category where sales in the US have doubled every year since 2016.
Earlier this year, Diageo announced it would buy the maker of hard seltzer brand Lone River Ranch Water, while rival Anheuser-Busch Inbev announced it would invest more than $ 1 billion in its U.S. manufacturing facilities to support the production of Hard -Seltzern to boost. (Reporting by Siddharth Cavale in Bengaluru; editing by Shounak Dasgupta)