London, England - Diageo Distillery has pledged to invest $400 million in its Mexican operations after completing the acquisition of the Don Julio tequila brand last month. The world's largest distiller said in a statement last week that the investment, which will be injected over the next five years, will be used to expand distillation, bottling and water treatment facilities in Jalisco, as well as to increase its agave farming capabilities.

Diageo further committed to lifting its promotional spend to expand Don Julio globally. A new heritage center at Atotonilco in Jalisco is also planned and a total of 200 direct jobs are expected to be created, according to the company's announcement.

Diageo CEO Ivan Menezes, revealed the group's investment intentions during the State Visit of Mexican President Enrique Peña Nieto to the UK, and commented: "Mexico is a country of enormous opportunity and will form an important part of Diageo's future. This investment reaffirms our long-term commitment to Mexico and we look forward to playing a bigger role in the industry, investing in our people and communities and supporting wider economic development."

Diageo said in November that it was acquiring Don Julio from the Mexican family behind Jose Cuervo tequila in a complex asset swap. In return for Bushmills Irish whiskey, it acquired control of Don Julio tequila, took back production and distribution of Smirnoff vodka in Mexico and collected $408 million in cash. The deal - whose value was estimated by Nomura analysts at about $300 million - was completed at the end of February.