Grupo Estévez plans more than €65 million for Jerez cask project with Edrington

Grupo Estévez said Thursday that it plans to invest more than €65 million in Jerez alongside the Scottish drinks group Edrington, sharply increasing the publicly known scale of a project tied to the Sherry casks used by The Macallan.

The new figure is more than seven times higher than the €9.3 million previously associated with the construction of a new winery complex on the grounds of the former Guadalcacín sugar refinery. According to the Jerez-based company, the updated amount reflects the full scope of the initiative because it includes land, buildings, equipment, installations and the wines needed to prepare the casks used in the project.

José Ramón Estévez, president of Grupo Estévez, disclosed the larger figure during the presentation of the 12th Agro-Food Innovation Award organized by Grupo Joly and Banco Santander. He described the venture with Edrington as the company’s main strategic project and its largest investment commitment to date.

The partnership centers on the Sherry Cask business, a high-value segment linked to the use of casks seasoned with Sherry wines before they are sent to Scotland for whisky aging. The new facilities in Guadalcacín are being developed for that purpose and are expected to strengthen Jerez’s role in the international supply chain for premium whisky casks.

Until now, the best-known financial reference for the project was limited to the cost of the new complex itself. Grupo Estévez now says that figure did not reflect the full investment required to support the operation, especially the value of the wines used in the seasoning process and other assets needed to run the business.

The first phase of the complex is scheduled to open in the second half of next year, according to Estévez. He said it will create more than 30 direct jobs.

During his remarks, Estévez said the alliance with Edrington is built around a shared view of quality, origin and authenticity. He said those principles guide the work behind the Sherry casks prepared in Jerez for The Macallan, one of Edrington’s best-known brands.

Estévez said casks seasoned with wines from Jerez provide 100% of the color and close to 80% of the character and flavor in The Macallan whiskies. He used that claim to underline the strategic importance of the Jerez operation within the wider whisky business.

Under the model described by the company, the casks destined for the Scottish distillery remain seasoned for between 18 and 24 months with Valdespino wines. Estévez said those wines come entirely from the group’s own vineyards, allowing the company to control traceability from the grape’s origin through to the preparation of the casks.

The project also reflects the growing ties between the two companies since Edrington took a stake in Grupo Estévez. What began as a partnership around casks has expanded into other industrial and commercial areas.

Estévez said all Brugal rum produced for the European market is now bottled at the group’s facilities in Jerez. He added that the activity also supports suppliers in Andalusia that provide bottles, labels, corks and boxes.

The collaboration has also produced new consumer products. Grupo Estévez said it has launched the Origen vermouth and the Osorolo spritz using oloroso wines that were previously used in the seasoning process for casks later sent to The Macallan.

The company also said Valdespino brands are being distributed through The Macallan’s international commercial network. According to Grupo Estévez, that arrangement is expected to help the Sherry house enter new markets and reach new customers abroad.

The announcement comes as Jerez’s wine sector continues to look for growth beyond traditional sales channels, with cask seasoning and supply for premium whisky producers becoming an increasingly important source of business. In that context, the Estévez-Edrington venture stands out because of its size and because it combines vineyard production, wine aging, cask preparation and international distribution in one project.

Estévez thanked the Jerez City Council and the regional government of Andalusia for supporting the initiative, which the company views as its main growth project. He presented the investment as one of the largest recent commitments linked to the Sherry wine business in Jerez.