Chivas Brothers, the Scotch Whisky Affiliate of Pernod Ricard, Invests in Sustainable Future of Scotch With £88 Million Expansion of Aberlour and Miltonduff Distilleries
29 Abril 2022 - 2:00AM
Business Wire
Regulatory News:
Chivas Brothers, the Scotch Whisky business of Pernod Ricard
(Paris:RI), today announced a £88 million investment into Aberlour
and Miltonduff, two of its strategic single malt distilleries. The
investment will go into upgrading sustainable distillation
technologies at the Speyside distilleries along with significant
production capacity expansions to meet the growing global demand
for Scotch.
The distillery expansions will grow Chivas Brothers’ total
production by 14 million litres of alcohol per annum. The
investment is further confirmation of Chivas Brothers’ commitment
to Scotland and a testament to the growing global demand for Scotch
whisky which has seen exports increase across all regions, with
market gains in Latin America, Middle East, Africa and Asia. In its
Half Year results in February, Chivas Brothers announced a net
sales increase of +23%, confirming the company’s recovery to beyond
pre-Covid levels.
The distillery expansions will also serve to accelerate Chivas
Brothers’ ambitious goal of reaching net zero distillation by 2026
with the installation of new bio plants and high-efficiency
Mechanical Vapour Recompression (MVR) fan technology for pot still
distillation across both sites. This mechanism enables a major
energy recovery by compressing the vapor which thus rises in
temperature and is then sent back to heat the wines during the
distillation process. Last year, the company announced plans to
roll out MVR technology across all viable sites in its distillery
portfolio by 2026 following a groundbreaking pilot study at its
Glentauchers distillery which resulted in energy reductions of 90%
on a single pot still there.
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 also
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. Miltonduff 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 MP, 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
Ends
About Pernod Ricard Pernod Ricard is the No.2 worldwide
producer of wines and spirits with consolidated sales amounting to
€8,824 million in FY21. The Group, which owns 16 of the Top 100
Spirits Brands, holds one of the most prestigious and comprehensive
portfolios in the industry with over 240 premium brands distributed
across more than 160 markets. Pernod Ricard’s portfolio includes
Absolut Vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal
Salute, and The Glenlivet Scotch whiskies, Jameson Irish whiskey,
Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur,
Mumm and Perrier-Jouët champagnes, as well Jacob’s Creek, Campo
Viejo, Mumm Sparkling and Kenwood wines. Pernod Ricard’s strategy
focuses on investing in long-term and sustainable growth for all
its stakeholders, remaining true to its founding values:
entrepreneurial spirit, mutual trust, and strong sense of ethics.
The Group’s decentralised organisation empowers its 18,500
employees to be on-the-ground ambassadors of its vision of
“Créateurs de Convivialité”. Pernod Ricard 2030 Sustainability and
Responsibility roadmap “Good Times from a Good Place” is integrated
into all its activities from grain to glass, and Pernod Ricard is
recognised as a UN Global Compact LEAD participant. Pernod Ricard
is listed on Euronext (Ticker: RI; ISIN Code: FR0000120693) and is
part of the CAC 40 and Eurostoxx 50 indices.
About Chivas Brothers Chivas Brothers is a global drinks
producer and exports company steeped in Scottish heritage. It is
the only Pernod Ricard business dedicated entirely to Scotch whisky
and comprises a prestigious range of single malt and blended
whiskies. Chivas Brothers’ award-winning portfolio features some of
the world’s most revered Scotch whisky brands including Chivas
Regal, Ballantine’s, Royal Salute and The Glenlivet. With a
multitude of awards and accolades for its quality, craftsmanship,
industry-leading sites and award-winning campaigns, its brands are
at the heart of moments of connection across the globe. The company
comprises 1,600 employees, 14 Scotch distilleries, two bottling
facilities and over 300 warehouses across its 26 sites including
Orkney, Scotland and London. www.chivasbrothers.com
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Mayle / Directeur des Relations Investisseurs +1 416 779 6092
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