UK-based Diageo, the world's leading spirits company, inaugurated its first whisky distillery in southwest China's Yunnan Province on Friday, aiming to cater to the growing customer needs in the appealing Chinese market.
China continues to attract foreign investment as the government reinforces its commitment to high-level opening-up and high-quality development.
The world's top whisky producer, Diageo, has turned a new page in China. Its single malt whisky distillery officially opened on Friday in Er'yuan County.
"The great thing about Yunnan is it's incredible about biodiversity and the climate, the air and water quality. All of this is really important for whisky making," said Debra Crew, Diageo CEO.
With a planned investment of 120 million U.S. dollars over nine years, the distillery is the multinational's first whisky production site in China. Local officials see the project as a boost to the region's overall development.
"On the one hand, the distillery will create employment opportunities. On the other, it will attract visitors from around the world, boosting local businesses such as hotels, restaurants, entertainment, and shopping. This will have a significant indirect impact on increasing local residents' income," said Wan Peng, head of Er'yuan County Government.
Whisky consumption in China has grown rapidly in recent years. An industry report indicates that in 2023, the total domestic whisky production reached about 50,000 kiloliters, representing a year-on-year growth of 127 percent.
According to a recent survey by China Council for the Promotion of International Trade, nearly half of the surveyed foreign enterprises believe China's market appeal is "rising," and some 20 percent of them plan to increase investment.
"We're very excited about this investment, and we intend to continue to invest in it. Whisky-making takes a long time, so it really is a long-term commitment into China. We look at China as being one of the most strategic markets," said Diageo CEO.
China's Ministry of Commerce reports that in the first 10 months this year, over 46,000 foreign-invested enterprises were established nationwide, reflecting a year-on-year growth of nearly 12 percent. Market regulation authorities have also pledged to step up efforts in creating a more attractive investment environment.
UK-based Diageo sets up whisky distillery in Yunnan to explore appealing Chinese market
