Diageo launches YunTuo single malt whisky distillery to expand in Chinese market
CHINA – Diageo, multinational alcoholic beverage company, has positioned itself for growth in the Chinese whisky market with the launch of YunTuo Single Malt Whisky Distillery.
At 2,100 metres above sea level, Diageo said the distillery in Eryuan County, Yunnan Province, benefits from a temperate climate, rich biodiversity and natural resources, including access to fresh spring water that feeds the region’s pristine Erhai highland lake.
The unique terroir will provide the distillery with abundant raw materials to innovate, such as Yunnan oak for cask maturation, and other local ingredients.
The name ‘YúnTuò’ expresses the brand’s natural surroundings and vision; ‘Yún’ (云) meaning ‘clouds’ and synonymous with ‘Yunnan’, evokes a highland of unparalleled natural beauty.
‘Tuò’ (拓) meaning ‘exploration’ captures the brand’s spirit of enterprise and innovation to explore new frontiers in the art of whisky making.
“This stunning new distillery marks a significant milestone for Diageo in China and reflects our confidence in the future of Chinese whisky. We are proud of the leading role we have played to grow whisky in China with our iconic brands,” said Debra Crew, Diageo’s CEO.
“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 crafted by a team of remarkable young talents led by Distillery Head Jiao Changyi, who will in time become the next generation of Chinese whisky masters.
The brand’s creativity will be enhanced by the expertise of globally renowned whisky legends Jim Beveridge OBE, Master Blender Craig Wallace, and Master Distiller Andrew Millsopp, who will contribute their extensive experience and knowledge to the process.
The Chinese whisky distillery also features a visitor centre, which will immerse whisky lovers and tourists in an interactive Chinese whisky experience.
The YunTuo distillery is also 100% carbon neutral through the use of sustainable production technologies such as highly efficient electric boilers, and the sourcing of renewable green energy.
All production water is recycled for industrial purposes, maximising water use efficiencies and reducing waste.
According to 2023 China Whiskey Industry Development Research Report, the Chinese whiskey market achieved a remarkable size of 5.5 billion yuan, marking a 10% increase compared to the previous year.
Over the past decade, the market has expanded more than fourfold, demonstrating resilience even in challenging economic conditions. International brands have predominantly driven this growth, as domestic production is still nascent.
The future looks promising for the Chinese whiskey market, with analysts predicting a potential doubling in size over the next five years. However, the market will likely be characterised by increased competition, both from established global brands and emerging local distilleries.
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