Diageo has unveiled its YunTuo 云拓Single Malt Whisky Distillery in Eryuan County, Yunnan Province, China.

With an investment of US$120 million (RMB 800 million) that will span nine years, the YunTuo云拓Single Malt Whisky Distillery is Diageo’s first whisky production site in China.

China is the world’s biggest spirit market, with market research firm Euromonitor International reporting whisky sales were valued at $2.3 billion in 2022, a figure that is expected to almost triple by 2027.

“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.

“We are proud of the leading role we have played to grow whisky in China with our iconic brands. 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 name ‘YúnTuò’ 云拓 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.

At 2100 metres above sea level, the distillery 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. This unique terroir will provide YunTuo 云拓 with abundant raw materials to innovate, such as Yunnan oak for cask maturation and other local ingredients.  

YunTuo 云拓 will be crafted by a team led by Distillery Head Jiao Changyi. They will be supported by globally renowned whisky legends Jim Beveridge OBE, Master Blender Craig Wallace and Master Distiller Andrew Millsopp.

Designed by award-winning architects OLI, the state-of-the-art distillery incorporates local cultural elements and blends seamlessly into its surroundings, complementing the area’s natural beauty.

The distillery also features a visitor centre which will immerse whisky lovers and tourists in an interactive Chinese whisky experience including a holistic tour of YunTuo’s 云拓 production, craftsmanship, tasting, gifting and cultural elements and culminating in the centrepiece 29 metres high whisky barrel tower decorated with 1000 original used whisky barrels from iconic distilleries around the world.

Diageo said it expects the visitor centre will in time become a popular tourist destination that will contribute to the development of the local tourism economy.

The YunTuo 云拓 distillery is 100% carbon neutral thanks to 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.  

Diageo has 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. Partnering with the Tourism Association in nearby Dali, the Fund is also supporting business and hospitality skills training for young adults under Diageo’s Learning for Life programme, improving local employment opportunities for over 600 graduates.

“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,” Crew said.

“We look forward to an exciting journey filled with adventure, exploration and discovery.”     

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