Diageo Invests $120 Million in ‘the Future of Chinese Whisky’ With New Single Malt Distillery

Diageo

Diageo announced on Friday that the mega-brand invested a whopping $120 million in a new distillery called YúnTuò in the Yunnan Province of China. The investment will span a nine-year period.

The brand shared in a news release that YúnTuò pays homage to the nature surrounding the area. Yún means clouds, and Tuò means “exploration,” according to the outlet. Drinks International reported that YúnTuò’s facilities sit at 2,100 meters (6,890 feet) above sea level, making the name an appropriate one.

Diageo will is hiring Jiao Changyi to head the distillery. Changyi will work closely with Johnnie Walker alum Jim Beveridge. The aptly named Beveridge was the former master blender at the scotch brand. Master Distiller Andrew Millsopp and Master Blender Craig Wallace will be additionally joining the team to help get the distillery off the ground.

“This new distillery marks a significant milestone for Diageo in China and reflects our confidence in the future of Chinese whisky,” Diageo Chief Executive Debra Crew said in a statement. “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 and place China firmly on the global whisky map.”

A Burgeoning Market in China Has Major Brands Watching

All eyes appear to be on China for the future of global whisky production.

In December, Pernod Ricard launched its first Chinese whisky expression. The whisky is a single malt made in the Sichuan province, and it is called The Chuan. It was the first expression released from the distillery, which opened in Dec. 2021.

In January, Decanter reported on Chinese Whisky, speculating that the country’s brown spirits scene is “poised to explode.” The article referenced Diageo and Pernod Ricard’s generous investments of millions in building new distilleries in China. Other brands like Camus have followed suit by building Guqi Distillery, and it appears China is following in Japan’s footsteps.

“The rise of Japanese whiskey and also Kavalan [in Taiwan] makes people feel like Asian whiskey has a market,” President of Grace Vineyard Judy Chan said to Decanter. “If there is a market for Japanese and Taiwanese whisky, why not for China?”

Chan’s Grace Vineyard is located in Ningxia, China. The winery has been an emblem of premium Chinese wines since it started operating in 1997, according to Decanter.

The outlet claims that Chinese whisky tastes light and tilts towards the fruity end of the spectrum. It appears that cask finishes are in vogue, and the region’s diverse climate might yield whiskeys all over the map.

“China’s climate is so varied,” explained Spirits Buyer at The Whisky Exchange Dawn Davies. “There’s going to be a whole lot of very different products and styles, and that’s going to be very exciting.”

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Cynthia Mersten is an Editor for Bottle Raiders and has worked in the Beverage Industry for eight years. She started her career in wine and spirits distribution and sold brands like Four Roses, High West and Compass Box to a variety of bars and restaurants in the city she calls home: Los Angeles. Cynthia is a lover of all things related to wine, spirits and story and holds a BA from UCLA’s School of Theatre, Film and Television. Besides writing, her favorite pastimes are photography and watching movies with her husband.