Diageo reveals $120m YunTuo Chinese whisky distillery

Johnnie Walker owner Diageo has unveiled its first whisky distillery in China, called YunTuo, as part of a US$120 million project that will include a community centre.

In November 2021, Diageo revealed plans to build a malt whisky distillery in China in Eryuan County, Yunnan.

The US$120m investment will be phased across nine years, with the aim of ‘cementing Diageo’s position as a whisky leader in China’.

Located 2,100 metres above sea level, the YunTuo Single Malt Whisky Distillery is said to benefit from a temperate climate, rich biodiversity and natural resources, including spring water from the nearby Erhai Lake.

Furthermore, the distillery will be able to use Yunnan oak for cask maturation alongside other local ingredients in its production.

The name YunTuo (云拓) was chosen to represent the distillery’s surroundings and vision with ‘Yun’ meaning ‘clouds’ and ‘Tuo’ meaning ‘exploration’.

China on the ‘global whisky map’

Debra Crew, Diageo CEO, said the new site reflects the company’s “confidence in the future of Chinese whisky”.

She continued: “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.”

YunTuo will be led by distillery head Jiao Changyi, who will work alongside former Johnnie Walker master blender Jim Beveridge, master blender Craig Wallace and master distiller Andrew Millsopp (who looks after Diageo’s south Speyside distilleries). Wallace is the master blender for Diageo brands including Buchanans, Old Parr, Black and White Whisky and Royal Challenge.

YunTuo also features a visitor centre, bringing an ‘interactive’ Chinese whisky experience to tourists. The experience includes a tour of the site’s production, with tasting, gifting and cultural elements, and culminates with the centrepiece – a 29 metre-high whisky barrel tower decorated with 1,000 original used casks from distilleries across the world.

Diageo hopes the visitor centre will become a popular tourist destination in the future.

Sustainable operation

YunTuo is also a carbon-neutral operation, using electric boilers and renewable green energy. All water from the site is also recycle to cut waste.

Diageo has also established a local Community Fund to promote inclusion and diversity around the distillery, and a new community centre is expected to be completed by the end of the year.

The company has teamed up with the Tourism Association in nearby Dali to provide business and hospitality skills training for young adults under Diageo’s Learning for Life programme, improving local employment opportunities for more than 600 graduates.

Crew added: “The beauty of Eryuan has inspired us to build this wonderful beacon of local whisky culture that will make YunTuo the pride of Chinese whisky and a jewel in our global whisky portfolio. We look forward to an exciting journey filled with adventure, exploration and discovery.”

Diageo is among several spirits producers to launch major whisky distillery projects in China in recent years. Pernod Ricard launched its first Chinese whisky in December 2023 after opening its US$150m Emeishan distillery to the public.

At the end of 2023, Angus Dundee Distillers unveiled plans to build a malt whisky distillery in Chun’an, China, along with a visitor’s experience.

Earlier this year, Cognac maker Camus teamed up with one of the world’s biggest baijiu brands to launch its Guqi distillery project in Bozhou.

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Author: Nicola Carruthers