Bacardi invests in whisky brand

Global demand for whisky is growing

Drinks maker Bacardi has said it will invest more than £120m in Scotland to increase production of its Dewar's Scotch whisky brand.

The firm is trying to capitalise on emerging markets - especially in Asia and Latin America.

Its blending, packaging and bottling operations will see new investment, which will include the building of a new warehouse.

In February, Diageo said it was to spend £100m on a Scotland distillery.

'Clear commitment'

Demand for Dewar's premium whiskies has grown significantly, especially in Asia and other emerging markets Andreas Gembler Chief executive, Bacardi

Sales in Singapore, China and Venezuela are among those surging, prompting the industry to boost production capacity.

And demand in India is set to grow after a decision earlier this month to end the massive taxes it imposes on imported wines and spirit.

At the moment, Scotch whisky accounts for less than 1% of the whisky sold in India, but the lower tax regime should allow sales to quadruple in the next five years, analysts say.

"Demand for Dewar's premium whiskies has grown significantly, especially in Asia and other emerging markets where the brands were launched only in the past three years," said Bacardi's chief executive Andreas Gembler.

"This substantial plan demonstrates our clear commitment to Scotland, known around the world for its quality whisky, and to our Dewar's brands, favourites among consumers."

The existing Dewar's site at Parkhead in Glasgow will be redeveloped as part of the plan.

Bacardi bought the Dewar's brand in 1998 and employs 300 people at seven locations throughout Scotland.

It operates whisky distilleries in Aberfeldy, Macduff, Aultmore, Craigellachie and Royal Brackla with blending, bottling and packaging facilities in Glasgow and Coatbridge.

Enterprise Minister Jim Mather welcomed the announcement.

He said: "It is great news for the whisky industry in Scotland, the east end of Glasgow and for the Scottish economy as a whole.

"It demonstrates that whisky is a Scottish product that continues to grow in popularity across the world. The Scottish government will continue to work closely with the industry to ensure a healthy future for a truly global product."