UAE: Diageo Eyes Local Alcohol Production As Brand Reveals Gulf Expansion Plans


(MENAFN- Khaleej Times) Diageo could open a local alcohol production facility as part of its 5-year expansion strategy across the Mena region, a senior official said on Monday.

“We are in the process of doing our 5-year strategic plan, and as part of that, we are looking at all angles-whether it will be distilleries, breweries, etc. We are not saying 'no' because we are in the process of building our plan,” said Antoinette Drumm, managing director of Diageo Mena.

In November 2024, Sirocco, a joint venture between Heineken and Dubai Maritime Mercantile International, announced a plan to build the Gulf's first major commercial brewery in Dubai . The local facility is scheduled to open by the end of 2027.

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The Britain-headquartered Diageo relocated its regional head office from Lebanon to Dubai late last year to cater for the region better. In addition to alcohol, it also produces non-alcoholic beverages. The Gulf region is fast emerging as a major consumer of non-alcoholic beverages as the population grows.

“We are doing (production) under licence agreement in other parts of Mena. I would say it is not if but when (to start local production),” she said, adding that they're looking across all options for opening the facility in the UAE.

Drumm added that there are some phenomenal high-profile projects-such as Wynn Resorts coming up in Al Marjan Island in Ras Al Khaimah-are coming up in the region which will drive the hotel industry in the country.

The company also shared details of its comprehensive ESG plan-Spirit of Progress: 2030 Diageo-to promote responsible drinking, inclusivity and grain-to-glass sustainability.

The company also plans to launch a training academy in Dubai with its partners to cater to Dubai's fast-growing luxury hotel market. The academy will serve large groups in the UAE seven days a week for any training requirements that its partners need.

“We are looking at doing sessions that are smaller but more intimate,” it said.

The company will aggressively pursue its plan to reduce plastic and glass waste in the UAE and across the region through recycling, refuse and monetising used material to support local economies.

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Khaleej Times

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