Diageo North America to invest $415m in new Alabama manufacturing facility

Diageo North America, a global leader in the premium beverage industry, has announced a $415 million investment in a new manufacturing and warehousing facility in Montgomery, Alabama. The expansion is expected to significantly boost Alabama’s economy, generating approximately 750 construction jobs and 100 full-time positions once the facility is operational in late 2025.

The 360,000-square-foot facility will enhance Diageo’s North American supply chain, improving distribution logistics and increasing efficiency in beverage production. Positioned strategically in Montgomery, the site will allow for faster distribution across the southern region, reducing road travel and lowering carbon emissions associated with transportation.

State and local leaders have welcomed the investment, viewing it as a catalyst for economic growth. Governor Kay Ivey emphasized that Diageo’s decision to expand manufacturing in Alabama reaffirms the state’s position as a top destination for global investment.

“Diageo’s decision to establish a world-class manufacturing and warehousing facility in Montgomery speaks volumes about Alabama’s ability to attract industry leaders,” Ivey stated. “This project not only strengthens our state’s economy but also creates sustainable, high-quality jobs for our residents.”

What Role Will This Facility Play in Diageo’s North American Supply Chain?

The new facility, known as Diageo Montgomery, is designed to support the company’s growing production demands while reinforcing its long-term supply chain investment strategy. By establishing operations in Alabama, Diageo aims to streamline distribution and reduce supply chain disruptions.

Marsha McIntosh, President of North America Supply at Diageo, highlighted the strategic importance of this expansion in maintaining a resilient supply network.

“The Montgomery site will not only bring us closer to our customers and distributors in the southern region but will also improve operational efficiency and sustainability,” McIntosh explained. “This supply chain investment is part of our broader strategy to build a more agile, future-ready business.”

The facility will handle high-volume beverage production across Diageo’s diverse portfolio, which includes renowned brands such as Johnnie Walker, Smirnoff, Crown Royal, Guinness, and Don Julio. The increased manufacturing capacity is expected to meet growing consumer demand while enhancing Diageo’s export capabilities.

How Will Sustainability and Innovation Shape Diageo Montgomery?

As part of its commitment to sustainable manufacturing, Diageo has integrated state-of-the-art energy and water-efficient technologies into the Montgomery site. These initiatives align with the company’s global sustainability goals, focusing on reducing carbon emissions, optimizing energy use, and implementing water conservation strategies.

By relocating production closer to key distribution networks, Diageo aims to decrease transportation-related emissions while improving overall logistics efficiency. The facility’s energy-efficient design will contribute to Diageo’s broader environmental responsibility efforts, reinforcing its position as a leader in sustainable beverage production.

Local officials have praised Diageo’s emphasis on green innovation, noting that the facility will serve as a model for future industrial development in Alabama.

“We are excited to welcome Diageo to Montgomery,” said Steven L. Reed, Mayor of Montgomery. “Their commitment to sustainability, job creation, and community investment makes them an ideal partner for our city’s continued economic growth.”

How Will This Project Strengthen Alabama’s Workforce and Community?

Beyond economic impact, Diageo is investing in workforce development and education initiatives to support local talent. The company has pledged $750,000 to Historically Black Colleges and Universities (HBCUs) in Alabama, including Alabama A&M, Alabama State University, and Tuskegee University.

This funding will provide scholarships and financial aid to students pursuing careers in business, engineering, and the beverage industry, reinforcing Diageo’s commitment to diversity, equity, and inclusion.

Doug Singleton, Chairman of the Montgomery County Commission, emphasized the long-term impact of Diageo’s investment on the local economy and workforce development.

“The establishment of a major manufacturing facility in Montgomery is a testament to our city’s ability to attract industry-leading businesses,” Singleton stated. “Diageo’s investment not only creates jobs but also strengthens our position as a logistics and manufacturing hub.”

What’s Next for Diageo’s Expansion in Alabama?

Construction of Diageo Montgomery is already underway, with the facility scheduled to be fully operational by late 2025. The investment forms part of Diageo’s long-term strategy to enhance supply chain resilience, improve distribution efficiency, and drive innovation in beverage manufacturing.

By expanding its U.S. operations, Diageo is positioning itself for sustained growth in the competitive beverage market, ensuring that it can meet increasing demand while prioritizing sustainability and efficiency.

With Montgomery emerging as a key industrial hub, this project represents a significant step in Alabama’s economic development, reinforcing the state’s appeal to global brands seeking strategic manufacturing locations.

As Diageo continues to expand its presence in North America, the Montgomery facility is set to become a cornerstone of the company’s future supply chain strategy, supporting both domestic production and export operations.