Diageo, the owner of Johnnie Walker, has officially opened its first whisky distillery in China, marking a major step in the company’s strategy to tap into the growing Chinese whisky market. Located in the Yunnan province, the YunTuo Distillery is the company’s first production facility in China, and follows similar moves by its rival Pernod Ricard.
The YunTuo distillery, which began construction just over three years ago, was initially projected to cost US$75 million. However, the company has now confirmed a total investment of $120 million, which will be spread over nine years. The facility will produce single malt whisky, though it is unclear when the product will be ready for sale.
The new distillery, which Diageo says represents a significant milestone for the company in China, will focus on producing whisky using locally sourced ingredients, including oak trees from Yunnan for maturation. The facility is also designed to be carbon neutral, in line with Diageo’s sustainability goals.
Diageo’s move into China comes nearly three years after Pernod Ricard launched its own whisky distillery, The Chuan, in Sichuan province. Pernod Ricard has already begun selling The Chuan Pure Malt Whisky, which includes whisky produced in Scotland.
Diageo CEO Debra Crew expressed confidence in the future of Chinese whisky, saying the company aims to combine its global whisky-making expertise with local insights to create a high-quality, China-origin single malt whisky that will gain global recognition.
The growing interest in whisky production in China isn’t limited to Diageo and Pernod Ricard. Other companies, like Camus Holdings and Angus Dundee Distillers, have also announced plans to build distilleries in the country, with both expected to begin operations next year.
As more multinational spirits companies invest in China’s whisky industry, the country is becoming an increasingly important player in the global whisky market.
