Diageo to build malt whisky distillery in China

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Diageo has signed a deal to build its first malt whisky distillery in China to serve drinkers in the world's biggest market for alcoholic beverages.

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The $75m Diageo Eryuan distillery will be in Eryuan County, Yunnan province, and will produce the company's first single malt of Chinese origin.

The maker of Johnnie Walker and Talisker whiskies said the 66,000 sq m facility would be more than 2,100m above sea level and that the site was selected for its temperate climate, biodiversity and access to natural spring water. The distillery will be carbon neutral, zero waste and recycle all its water.

Sam Fischer, Diageo's president for Asia Pacific, said: "China is the world’s largest beverage alcohol market and the demand for whisky is growing rapidly among middle-class consumers who are keen to further discover and enjoy fine whiskies."

Construction is scheduled to start in early 2022.