Diageo to Make Whisky in China to Woo Premium Drinkers

  • British giant makes play for market long dominated by baijiu
  • Will produce whisky from new 217,000-foot facility in Yunnan
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Diageo Plc is investing $75 million into building its first whisky distillery in China, aiming to turn more local drinkers into whisky lovers in a spirits market long dominated by baijiu makers like Kweichow Moutai Co.

The British alcohol giant will next year start construction on a 66,000 meter (217,000 foot) facility in Yunnan province, aiming for completion in 2023, it said in a statement Tuesday. The distillery will produce Diageo’s first Chinese-origin, single malt whisky targeting the country’s so-called “premium” drinkers, the statement said.