Diageo has commenced production at its new-build distillery in China, built at a markedly higher cost than initially announced.
The YunTuo distillery, in the south-western province of Yunnan, has been officially opened by group CEO Debra Crew this week. The news comes almost three years to the day after construction started, with Diageo quoting an outlay of US$75m at the time.
In today’s announcement, the group said its investment in the project will be $120m “that will span nine years”.
YunTuo, Diageo’s first distillery in the country, will produce single malt whisky, although details of when the liquid will be ready for bottling and sale were not immediately available. Rival Pernod Ricard, which opened its own facility, The Chuan, in Sichuan province three years ago, launched The Chuan Pure Malt Whisky in the country 11 months ago. Global Drinks Intel exclusively revealed that the iteration also featured whisky produced in Scotland.
The whisky from YunTuo will utilise oak from trees grown in Yunnan for its maturation and will be carbon neutral. Global Drinks Intel has enquired about the distillery’s annual production capacity.
“This stunning new distillery marks a significant milestone for Diageo in China and reflects our confidence in the future of Chinese whisky” said Crew “We are proud of the leading role we have played to grow whisky in China with our … brands.
“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 … place China firmly on the global whisky map.”
Diageo and Pernod Ricard are not alone in having identified China as a whisky-producing destination: Late last year, Camus Holdings and Angus Dundee Distillers announced separate plans to build distilleries in the country. Both are expected to come on-stream next year.
