Diageo Invests $415M in New Alabama Facility to Boost Supply Chain
Diageo North America has announced a major investment in its supply chain. The company is developing a $415 million manufacturing and warehousing facility in Montgomery, Alabama. This strategic move aims to strengthen Diageo’s distribution capabilities while creating new economic opportunities in the region.
The new facility will enhance the company’s ability to meet growing consumer demand across North America, aligning with its commitment to efficiency, sustainability, and innovation. The project represents one of Diageo’s largest recent investments in North America, reinforcing its long-term growth strategy.
Facility details and strategic importance
The 360,000-square-foot facility will serve as a key distribution hub, enhancing supply chain resilience for Diageo’s North American operations. Designed with state-of-the-art technology, the facility will streamline production and warehousing operations, reducing lead times and improving the overall efficiency of product distribution.
A major advantage of the Montgomery location is its strategic positioning within the southeastern United States, providing direct access to major transportation routes and key markets. The new plant will incorporate advanced energy and water efficiency measures, in line with Diageo’s global sustainability initiatives.
These efforts align with the company’s broader goal of achieving net-zero carbon emissions across its operations. The facility is expected to leverage automation and smart logistics solutions to enhance operational effectiveness, ensuring seamless integration into Diageo’s existing supply network.
Economic impact on Montgomery and Alabama
The new Diageo facility is expected to generate significant economic benefits for Montgomery and the state of Alabama. The construction phase alone is projected to create approximately 750 jobs, providing a substantial boost to the local workforce. Once operational, the facility will employ around 100 full-time workers, offering stable employment opportunities in the region.
Alabama Governor Kay Ivey praised the investment, highlighting its role in strengthening the state’s manufacturing and logistics sectors. Local officials have also expressed optimism about the facility’s potential to attract additional investments and stimulate further economic growth.
Beyond job creation, the facility is expected to have a positive impact on Montgomery’s broader business ecosystem. Local suppliers, transportation companies, and service providers will benefit from increased demand, fostering regional economic development.
Diageo’s new Alabama facility is designed with sustainability at its core. The company has integrated several environmental initiatives into the development of the plant, ensuring that operations align with its global climate goals. The facility will also utilize energy-efficient equipment, water conservation technologies, and waste reduction programs.
The construction of the Montgomery facility is already underway, with completion and full-scale operations expected by the second half of 2025.
Sources:
To keep up-to-date with our latest manufacturing news, subscribe to our newsletter today.