The drinks company is betting that Chinese whisky will be a hit
We may be on the precipice of a new trade war with China if Donald Trump follows through on his tariff threats once he takes office in January. If that does happen, and it looks like it probably will, it could mean that we won’t get to try any of the new whisky coming off the stills at Diageo’s new distillery in China, a project that is being phased in over the next several years to jumpstart whisky production in a country better known for baiju.
There is not a whole lot of whisky being made in China at the moment, but that is set to change. Diageo is not the only company bringing its business there—one year ago, Pernod Ricard announced that it was opening a whisky distillery in China. There has also been some whisky made by Chinese companies being released internationally, like a single malt made at the Goalong Distillery in Changsha that we had a chance to review (it was fine).
Diageo actually revealed its plans to open its new Chinese distillery, YunTuo 云拓Single Malt Whisky Distillery, back in 2021. But just last week the company officially “unveiled” the distillery, saying that it’s investing US$120 million into the operation over the next nine years. “This stunning new distillery marks a significant milestone for Diageo in China and reflects our confidence in the future of Chinese whisky,” said Diageo CEO Debra Crew 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 that will fire the imagination of whisky enthusiasts worldwide and place China firmly on the global whisky map.”
The distillery is located 2,100 metres above sea level, which according to Diageo means that the climate is temperate, there is ample spring water, and enough local Yunnan oak grows in the area to use for making casks. Jiao Changyi will lead the team as distillery head, but will be supported by longtime scotch whisky industry veterans Jim Beveridge OBE, master blender Craig Wallace, and master distiller Andrew Millsopp. There will be a visitor center at the distillery that the company hopes will become a tourist destination for both Chinese and foreign whisky fans. The distillery is said to be 100 per cent carbon neutral, using renewable green energy and recycling all of its water. And Diageo is starting a Community Fund “to promote inclusion and diversity around the distillery,” as vague as that sounds, as well as opening a community centre.
It will be some time before we get to actually try the single malt being produced at the new distillery, but we will let you know when it comes out. And hopefully it won’t have a 200 per cent tariff slapped on it when the whisky finally comes of age.
This story was first published on Robb Report USA. Featured photo by Diageo
