Liquor maker Brown‑Forman plans to invest approximately $200 million to expand its Casa Herradura tequila distillery in Jalisco, Mexico, the company announced on Wednesday.
The project will increase the distillery’s production and bottling capacity, as well as expand its water recycling and treatment plant. Construction is expected to begin next month.
The expansion comes as Brown-Forman is enjoying strong sales growth, President and CEO Lawson Whiting said in a statement. The beverage company’s tequila sales increased 12% in Q3, with double-digit growth for both its Herradura and el Jimador brands.
“We believe strong consumer interest in tequila will continue and we’re expanding our production capacity to meet this demand,” Whiting said in a statement.
Net sales for el Jimador increased 19% in Q3 due to consumer demand and pricing growth in the U.S. and Mexico, Whiting added in a March earnings call.
Brown-Forman also owns liquor brands including Jack Daniel’s, Old Forester and Woodford Reserve, with more than 25 production sites around the world.
The Jalisco plant is one of Brown-Forman’s zero-waste-to-landfill sites, in which less than 1% of the site’s waste goes to a landfill, according to the company.
