How is AI transforming the drinks industry?

AI is revolutionising the drinks industry by improving supply chain efficiency, enhancing product development, and enabling data-driven marketing strategies. It uses predictive analytics to optimise production processes, reduce waste, and forecast consumer demand. AI also helps in personalising product offerings based on consumer preferences and automating repetitive tasks, leading to increased productivity and operational efficiency.

What are common AI applications in the drinks sector?

Common applications include demand forecasting, inventory management, quality control, and product innovation. AI is used to analyse large datasets to identify trends, optimise production schedules, and develop new products that align with changing consumer tastes. In marketing, AI tools help craft personalised campaigns and predict consumer behaviour.

How can AI support sustainability in the drinks industry?

AI supports sustainability by optimising resource usage, reducing waste, and enhancing supply chain transparency. Through data analysis, AI can help companies monitor energy consumption, improve packaging design, and implement waste-reduction strategies. AI’s ability to streamline operations also minimises the environmental impact of production and logistics.

What are the challenges of AI adoption in the drinks industry?

Challenges include high implementation costs, the need for skilled personnel, and data privacy concerns. Integrating AI with existing systems can be complex, and maintaining data accuracy is crucial for effective AI outputs. Companies must also address ethical considerations related to automated decision-making.

What is the future of AI in the drinks industry?

The future of AI in the drinks industry involves more advanced applications like digital tasting, real-time consumer feedback analysis, and automated quality control. AI will continue to evolve, driving innovations in product development, personalised consumer experiences, and operational efficiency. As technology advances, AI will play a key role in helping brands remain competitive in an increasingly data-driven market.

Just Drinks

Diageo plans Talisker distillery rebuild

If the new development plan receives approval from the local council, the previous facilities will be demolished.

Diageo has proposed a redevelopment of its Talisker Scotch whisky distillery in the Isle of Skye.

The distillery, based in Carbost on the Minginish Peninsula on the Isle of Skye in Scotland was founded in 1830 but is set to be revamped by the UK spirits giant.

In a Proposal of Application Notice (PAN) made last week, Diageo said the development would include the "demolition of existing production facilities" with the view to construct a new distillery and "expand" Talisker's "existing output".

It added that the rebuild would incorporate “sustainable technologies, with associated support facilities at the site, together with all associated infrastructure, including new access, drainage, outfall, road improvement and landscaping works”.

In a statement to Just Drinks, a Diageo spokesperson said: “As a business we continually review our production footprint in support of our long-term growth ambitions for Scotch and the Proposal of Application Notice (PAN) for Talisker Distillery allows us to explore and evaluate potential options.

“A public consultation will form part of the PAN however at this point in time we have no firm plans for investment. Details of the public consultation arrangements will be shared in due course where the community will be able to view these proposals and provide feedback.”

According to Diageo's annual report, Scotch accounts for 24% of its reported net sales.

In its fiscal 2024, the Singleton whisky maker saw reported net sales for Scotch drop 6% in the 12 month period, while organically they declined 10%, driven by inventory reductions in its Latin America and Caribbean market. Organic volumes dipped 7%.

Diageo owns 31 Scotch whisky distilleries in Scotland, including Port Ellen which reopened in March. The revamp was part of the Lagavulin producer's wider £185m ($241m) investment into Scotch whisky and tourism in Scotland.

The group is also working to expand warehousing facilities in Midtown in
Clackmannanshire, which includes investment in "state-of-the-art automation of warehousing".