Diageo to build a $75 million distillery to produce its first Chinese single-malt whisky

diageo build 75mn distillery producing first ever chinese single malt whiskey

Global beverage alcohol leader, Diageo, will be building a $75 million distillery in China to make its first-ever Chinese single-malt whiskey in a move to tap into the demand for single-malt whiskey in the world's largest beverage alcohol market.

The new 66,000 square meters distillery named the Diageo Eryuan Malt Whisky Distillery is located in Eryuan County in Yunnan Province. The distillery will produce Diageo's first China-origin, single malt whisky. Diageo unveiled its $75 million investment at a special ceremony held in Eryuan and attended by industry representatives, provincial and local government officials, and the local community.

Sam Fischer, Diageo's president for the Asia Pacific and Global Travel, said it recognizes China as the world's largest beverage alcohol market. The demand for whisky was multiplying among Chinese middle-class consumers keen to further discover and enjoy fine whiskies. He added that the natural surroundings and the Eryuan landscape would allow Diageo to craft a world-class, Chinese-origin, single malt whisky that would capture the imagination of premium whisky lovers across China.

Situated at more than 2,100 meters above sea level, the 66,000 square meters Diageo Eryuan Malt Whisky Distillery was carefully selected for its rich natural biodiversity, temperate climate, and access to natural spring water, a source of China's second-largest highland lake, Erhai Lake, in Yunnan. Diageo's 'Society 2030: Spirit of Progress' sustainability action plan will shape the design and development of the distillery. The distillery will be carbon neutral and a zero-waste site.