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Diageo to build $75 million distillery to make its first Chinese single-malt whisky -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO. A bartender in Almaty (Kazakhstan), June 22, 2017, takes a Johnnie Walker whisky bottle. REUTERS/ShamilZhumatov/File Photograph

(Reuters) – Diageo LON: The company announced Tuesday that it will build a distillery in China worth $75 million to produce its first single-malt whiskey from a Chinese source. This is in response to growing interest in this spirit in China’s biggest beverage alcohol market.

The 66,000-square-meter distillery is located in southwest Yunnan, China. It will use water from Erhai’s lake to make its spirits. Construction will start next year.

Chinese single malts are one drink that Chinese people enjoy either at home or with small groups. Wine and spirit consultancy IWSR stated that the volume of single malts will rise 20% by 2020. It is also popular among its large millennial consumer base.

The COVID-19 restrictions that prohibit foreign travel are also saving people money. They have led to a greater appreciation for premium spirits.

The Johnnie Walker whiskey maker announced that its July fiscal 2021 end June 30 saw a 38% increase in net sales to Greater China.

In a statement, Sam Fischer (president, Diageo Asia Pacific, and Global Travel) stated that “the demand for whisky has been growing quickly among middle-class customers who want to further explore and enjoy high quality whiskies.”

The company also said the site of the distillery, called Diageo Eryuan Malt Whisky Distillery, will be carbon neutral when it opens.

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