Chivas Brothers invests £88 million in distillery upgrades
Pernod Ricard's Chivas Brothers is investing £88 million in two Scotch whisky distilleries, Aberlour and Miltonduff. The funds will upgrade sustainable distillation technology and expand production capacity.
Chivas Brothers, Pernod Ricard's Scotch whisky business, announced an £88 million investment in its Aberlour and Miltonduff distilleries. The investment targets upgrades to sustainable distillation technologies and significant expansion of production capacity to meet growing global demand for Scotch.
The expansion projects are set to increase Chivas Brothers' total production capacity by 14 million litres of alcohol per annum. This move underscores the company's commitment to Scotland and reflects the rising global appetite for Scotch whisky, with notable market gains in regions including Latin America, the Middle East, Africa, and Asia. The company reported a 23% net sales increase in the first half of fiscal year 2022, surpassing pre-pandemic levels.
The investments will also accelerate Chivas Brothers' goal of achieving net-zero distillation by 2026. New bio-plants and high-efficiency Mechanical Vapour Recompression (MVR) technology will be installed across both sites. MVR technology recycles energy by compressing vapor to reheat the liquid during distillation, a technology previously piloted with a 90% energy reduction at the Glentauchers distillery.
Aberlour distillery's production capacity will double to 7.8 million litres of alcohol annually, supporting demand for the single malt. Miltonduff will see a new, state-of-the-art sustainable distillery built next to the existing facility, adding 10 million litres of alcohol per annum. Both distilleries are expected to reach full production capacity by mid-2025.