China: Diageo unveils US$120m Chinese whisky distillery

UK-based spirits multinational Diageo pledged to “place China firmly on the global whisky map” with its new Chinese whisky distillery in Yunnan, The Drinks Business reported on November 15.

Diageo has unveiled its YunTuo 云拓 Single Malt Whisky Distillery in Eryuan County, Yunnan Province on November 15.

The spirits giant will invest a total of US$120 million (RMB 800 million) into the site — Diageo’s first whisky production site in China — over nine years.

Debra Crew, Diageo CEO, said of YunTuo: “This stunning new distillery marks a significant milestone for Diageo in China and reflects our confidence in the future of Chinese whisky.”

She said the company was “proud of the leading role we have played to grow whisky in China with our iconic brands”, which include Scotch whiskies such as Johnnie Walker, The Singleton, Mortlach, Talisker, and Lagavulin.

“Our ambition is to combine our global heritage and whisky making craftsmanship with deep local insights to create the highest quality China-origin single malt whisky that will fire the imagination of whisky enthusiasts worldwide and place China firmly on the global whisky map,” she said.

The distillery’s name reflects its location 2,100 metres above sea level. ‘Yún’ (云) means ‘clouds’ and is synonymous with ‘Yunnan’ and ‘Tuò’ (拓) means ‘exploration’.

Diageo has designed the distillery, which will be carbon neutral, to access spring water that feeds the region’s Erhai highland lake. The site will also use local raw materials including Yunnan oak for cask maturation.

Distillery head Jiao Changyi will lead operations, guided by Jim Beveridge OBE, Master Blender Craig Wallace, and Master Distiller Andrew Millsopp.

The distillery also features a visitor centre, which will contribute to the development of the local tourism economy, Diageo said in a press release.

Crew called the distillery a “beacon of local whisky culture that will make YunTuo the pride of Chinese whisky and a jewel in our global whisky portfolio”.