Diageo, the spirit brand that owns Johnnie Walker, recently announced plans to open a single malt whisky distillery in China. The new production facility, which will be opened in Eryuan County in Yunnan Province, will produce the spirits giant’s first single malt whisky of Chinese origin.
Diageo has invested 1.5 billion yuan (US$221 million) in the distillery production line and plans to produce 6 million liters of liquor annually. The Diageo Eryuan Malt Whisky Distillery will have an annual production capacity of 110,000 cases of whisky, with each year seeing the production of around 400 casks.
The Diageo Eryuan Malt Whisky Distillery will use locally-sourced wheat, barley, and water to produce Single Malt Scotch Whisky. There are many distilled spirits brands enjoying success in China today, but with its planned investment and technology, Diageo is uniquely positioned to develop a Chinese Single Malt Whisky.
Chinese Single Malt Distilleries
Diageo Plans to Open a Single Malt Whisky Distillery in China
Trend Themes
1. Chinese Single Malt Whisky - The development of a unique Chinese Single Malt Whisky by Diageo using locally-sourced ingredients presents an opportunity for the establishment of a new trend in the spirits industry.
2. Localization of Production - Diageo's decision to use locally-sourced ingredients for the production of their single malt whisky presents an opportunity for the continued trend of localization of production in the spirits industry.
3. Expansion Into Emerging Markets - Diageo's investment in building a single malt whisky distillery in China presents an opportunity for other spirits companies to expand their business into the emerging markets of Asia.
Industry Implications
1. Spirits - The establishment of a new trend of unique Chinese Single Malt Whisky by Diageo presents a disruptive innovation opportunity for the growth of the spirits industry.
2. Agriculture - The localization of production trend in the spirits industry presents an opportunity for innovation in the agriculture industry to meet the demand for locally-sourced ingredients.
3. Tourism - Diageo's investment in building a single malt whisky distillery in China presents an opportunity for the tourism industry to capitalize on the emerging market of whiskey enthusiasts in the region.