Diageo invests US$75 million in its first malt whisky distillery in China

Global spirit giant Diageo has announced that it has broken ground on its carbon neutral single malt distillery in Yunnan Province, China.

Located in Eryuan County in at an elevation of 2,100 metres, the 66,000 square metre distillery will produce Diageo’s first China-origin, single malt whisky. Details of the US$75 million investment were officially unveiled at a special ceremony in Eryuan, attended by provincial and local government officials, industry representatives, and the local community.

“China is the world’s largest beverage alcohol market and the demand for whisky is growing rapidly among middle-class consumers who are keen to further discover and enjoy fine whiskies. Today we celebrate another significant step forward, and one which builds upon our local insights and combines those with Diageo’s global whisky expertise in order to delight the next generation of Chinese whisky consumers,” said Sam Fischer, president Diageo Asia Pacific and Global Travel.

Sam Fischer, Diageo

The distillery site was carefully selected for its temperate climate, rich natural biodiversity, and access to natural spring water that is a source of the second largest highland lake, Erhai Lake, in Yunnan.

“The natural surroundings and the Eryuan landscape will allow us to craft a world-class, China-origin, single malt whisky that will capture the imagination of premium whisky lovers in China,” said Fischer.

Diageo’s ‘Society 2030: Spirit of Progress’ sustainability action plan will shape the design and development of the distillery. Renewable and clean technologies will be used in the distillery to ensure it is carbon neutral, recycles all the water it uses, and is a zero-waste site.

The site will feature an immersive and interactive visitor centre that will attract whisky enthusiasts and boost the local cultural tourism industry. The sustainable and innovative design of both the distillery and the visitor centre will incorporate local cultural elements and embrace the region’s natural landscape.

Construction is expected to begin in early 2022.  

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