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Diageo Invests $18 Million in Illinois Plant to Meet Market Demand for Number One Selling Smirnoff Vodka

Source: Diageo plc
13/06/2008

Plainfield, Ill., June 13 - Diageo, the world's leading spirits, wine and beer company, is pleased to announce an $18 million investment in its Plainfield, Illinois brand technical and bottling facility, adding processing and storage capacity and upgrading packaging lines to meet market demand for the world's number one premium vodka brand, Smirnoff. This significant investment in a key manufacturing facility follows on the heels of Diageo's purchase of 36 acres of land adjacent to the facility in July 2007 for $13.9 million.

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    A number of local and state Legislators will be attending the groundbreaking event, including James Waldorf, Mayor of Plainfield, Bill Lamb and Walter Manning, Plainfield Trustees, Alex Harris, Village Administrator, John Noak, Mayor of Romeoville, Roger Claar, Mayor of Bolingbrook, John Greuling, President & CEO of the Will County Center for Economic Development, State Senator Linda Holmes (D) 42nd District, and State Representatives Art Turner (D) 9th District, Jim Meyer (R) 48th District, Linda Chapa LaVia (D) 83rd District, Tom Cross (R) 84th District.

    The Plainfield expansion follows a number of global investments Diageo has made in recent months to capitalize on consumer growth for premium spirits products, including $1 billion to construct a new Guinness brewery in Ireland, building its first new malt whisky distillery in Scotland and announcing an agreement in principle to acquire the Schenley Distillery and Bottling operation in Canada.

    "In this time of economic uncertainty, we are pleased to make another significant investment in one of our key manufacturing facilities and simultaneously bolster Plainfield's local economy," said John Council, President, Diageo, Americas Supply. "With more than 300 Diageo employees working in the state of Illinois, we are committed to giving back to the communities in which we live and work and this investment is a further testament to that," said Council.

    Smirnoff, which is the top selling premium distilled spirit in the world, grew nine percent last year, adding more than 700,000 nine-liter cases in 2007, according to IMPACT Databank. This investment will enhance production capacity for Smirnoff vodka and Smirnoff pre-mixed cocktails through the installation of several new tanks and processing equipment to Plainfield's seven existing bottling lines. Along with Smirnoff vodka brands, Plainfield produces a variety of products including flavored beers, such as Smirnoff Ice and Smirnoff Ice Triple Black, Gordon's gin and Booths Gin and bottles for a number of additional brands.

    Diageo's Plainfield brand technical and bottling facility, located just outside Chicago, is one of the largest combined spirit and malt beverage facilities in the world. It produces more than 12 million cases of spirits a year. Between employees located in the company's Chicago sales office and the Plainfield facility, Diageo generated approximately $1.1 million in 2007 for the Illinois state budget in income tax and state unemployment.

    About Diageo

    Diageo (Dee-AH-Gee-O) is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wines, and beer categories. These brands include Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan, Crown Royal, Beaulieu Vineyard and Sterling Vineyards wines.

    Diageo is a global company, trading in more than 180 countries around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE).



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