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Herradura gets $200m distillery expansion

Jack Daniel’s owner Brown-Forman will invest US$200 million to expand its Herradura Tequila distillery in Jalisco, Mexico.

Casa Herradura
Casa Herradura is located in Amatitán, Jalisco

The multi-million-dollar investment for Casa Herradura will allow the company to meet ‘increasing global demand’ for its Tequila.

“The world’s growing taste for premium Tequila is driving double-digit net sales growth of our Herradura and El Jimador brands,” said Lawson Whiting, president and CEO of Brown-Forman.

“We believe strong consumer interest in Tequila will continue and we’re expanding our production capacity to meet this demand. This strategic investment will improve our production efficiencies and increase our competitiveness.”

Casa Herradura was a pioneer in creating a water recycling and treatment plant that met government standards. It is one of Brown-Forman’s zero waste to landfill sites, with less than 1% of solid waste generated going to landfill.

The first phase of the project will extend the water recycling and treatment plant, followed by the expansion of capacity for distilling, bottling, maturation, and processing. The project is part of Herradura’s commitment to environmental sustainability.

“This expansion is particularly exciting as it will also advance our existing waste-to-energy efforts with a new water recycling and treatment plant,” said Elisa Gutierrez, vice-president and general manager, Casa Herradura.

Construction is expected to begin in July 2023.

Brown-Forman cited IWSR Drinks Market Analysis data that states Tequila is the fastest-growing spirits category globally by value, driven by the super-premium-plus price tier. The US accounts for 32m nine-litre cases, and US$12 billion in retail value, IWSR data revealed.

Herradura’s sales increased by 10% in the first nine months to 31 January 2023.

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