Diageo, the world’s biggest drinks company, is to build its first new malt whisky distillery to meet growing demand for the spirit in Brazil, Russia, China and Mexico.

The group accompanied its half-year results with the announcement that it plans to invest £100 million, its biggest investment in Scotland for almost 20 years, to expand its Scotch whisky capacity, creating up to 200 jobs.

The Chancellor Gordon Brown said that it was “great news for Scotland”, adding: “This is a serious long-term investment by Diageo, confident about the stability which Scotland enjoys as part of the UK. It is a prosperity and stability we cannot afford to put at risk.”

Subject to planning consent, Diageo will build a malt whisky distillery in Roseisle, near the Moray Firth, where it already has a large maltings facility. It hopes to start production in 2009, with the first whisky becoming available in 2012.

Although a number of small distilleries have opened in Scotland in recent years, the new Speyside plant will be the first major distillery to be built by one of the big producers since the 1970s, when several were opened in Speyside.

Diageo, the world’s biggest whisky producer with 27 malt distilleries and two grain distilleries, is also expanding its Cameronbridge grain distillery in Fife, already the UK’s biggest, to cater for the growing demand in blended whiskies such as Johnnie Walker and J&B.

In tandem with the £80 million investment in new production capacity, Diageo will spend £20 million expanding bottling and warehousing, much of it at its Shieldhall packaging plant in Glasgow.

Paul Walsh, Diageo’s chief executive, said the investment would expand the company’s annual whisky output by 10 per cent or 10 million litres. “We see a huge opportunity for whisky going forward, particularly at the high end where we need to build up mature stocks.”

Johnnie Walker was the company’s best-performing brand in the half year ending December 31, lifting global volumes by 10 per cent and comparable net sales by 13 per cent. This helped to offset a sharp decline in volumes of Smirnoff Ice, its ready-to-drink vodka brand, which fell by 6 per cent.

An 11 per cent jump in net sales of Scotch whisky was a key factor behind Diageo’s strong first-half results, which showed underlying operating profits up 8 per cent to £1.31 billion and comparable net sales by 6 per cent to £4.02 billion.

Basic earnings per share rose by 14 per cent to 32.8p on a comparable basis, and the interim dividend is 5 per cent higher at 12.55p per share. Diageo raised its full-year forecast for organic operating growth from 7 per cent to 8 per cent.

While it saw strong growth in North America, Europe, Africa, Latin America and Asia Pacific, the company’s European performance was spoilt by poor trading in Great Britain and Ireland, mainly because of the changing consumer trend from drinking in pubs to off-trade sales and the decline of ready-to-drink products.

Mr Walsh used the results presentation to dismiss speculation that Diageo might be interested in bidding for Rémy Cointreau if the owning family decided to sell. “We have a 34 per cent stake in Moët Hennessy, which has the best Cognac brand in the world. We have a fantastic relationship with them and I believe it’s a relationship that will endure.”

Whisky galore

Diageo’s malt whiskies

Cardhu, Singleton, Cragganmore, Dalwhinnie, Glen Ord, Glen Elgin, Glenkinchie, Oban, Lagavulin, Knockando, Talisker, Royal Lochnagar, Clynelish, Caol Ila

Diageo’s blended whiskies

Johnnie Walker, J&B, Bell’s, Buchanan’s, Benmore, Black & White, Dimple, Haig, Old Parr, Vat 69, White Horse, Windsor Premier

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts