Diageo to build new US$75 million distillery to produce the group's first China-origin, single malt whisky

ERYUAN,China,Nov. 2,2021 --Diageo,the global leader in beverage alcohol and owner of Johnnie Walker and Singleton Scotch whiskies,today broke ground on the site of its first malt whisky distillery inChina.

Diageo Eryuan Malt Distillery Visitor Centre Reception with view of Copper Stills; the distillery will access natural spring water that is a source for Erhai Lake.

Locatedin Eryuan County in Yunnan Province,theDiageo Eryuan Malt Whisky Distillerywill produce Diageo's first China-origin,single malt whisky.Details of the US$75 million investment were officially unveiled at a special ceremony today in Eryuan,attended by provincial and local government officials,industry representatives,and the local community.

Aerial view of Diageo Eryuan Malt Whisky Distillery,a site inspired by the harmony of culture,nature and craftsmanship.

"China is the world's largest beverage alcohol market[1]and the demand for whisky is growing rapidly among middle-class consumers who are keen to further discover and enjoy fine whiskies",said Sam Fischer,President,Diageo Asia Pacific and Global Travel. "Today we celebrate another significant step forward,and one which builds upon our local insights and combines those with Diageo's global whisky expertise in order to delight the next generation of Chinese whisky consumers."

Diageo Eryuan Malt Whisky Distillery Visitor Centre Entrance; at more than 2,100m above sea level,Diageo’s first malt whisky distillery in China will be carbon neutral.

At more than 2,100 meters above sea level,the site of the 66,000 square meter distillery was carefully selected for its temperate climate,rich natural biodiversity,and access to natural spring water that is a source of the second largest highland lake,Erhai Lake,in Yunnan. Sam Fischer added,"The natural surroundings and the Eryuan landscape will allow us to craft a world-class,China-origin,single malt whisky that will capture the imagination of premium whisky lovers in China."

Diageo Eryuan Malt Distillery Visitor Centre Whisky Barrels Beacon Tower Skywell; a collection of cask heads from Diageo distilleries all over the world reflect our rich heritage and experience in whisky making.

Diageo's 'Society 2030: Spirit of Progress' sustainability action plan will shape the design and development of the distillery.Renewable and clean technologies will be used in the distillery to ensure it is carbon neutral,recycles all the water it uses,and is a zero-waste site.

The site willfeaturean immersive and interactive visitorcentrethat will attract whisky enthusiasts and boost the local cultural tourism industry.The sustainable and innovative design of both the distillery and the visitor center will incorporate local cultural elements and embrace the region's natural landscape.

Construction is expected to begin in early 2022.

Notes to Editor:

Diageo's commitment to sustainability:More information on Diageo's Society 2030 Spirit of Progress action plan can be foundhere.

Diageo's plans for building a low carbon future:Combatting climate change and its associated impacts is at the heart of Diageo's 'Society 2030: Spirit of Progress' action plan. The company has already halved the carbon emissions associated with its operations since 2008 and is now working to reach net-zero carbon across its direct operations by 2030,harnessing 100% renewable energy.

As part of its2030action plan,Diageo is developing site-by-site roadmaps and is also working to achieve net-zero carbon across the entire supply chain by 2050 or sooner,with an interim milestone to achieve a 50% reduction by 2030.Building on a long track-record of environmental,social and governance (ESG) progress globally,Diageo is now in the top 1000 companies in the world taking action to address climate change in a science-led and systemic way. The company's goals in this space have been calculated in accordance with the principles of Science Based Targets Initiative (SBTi) and recently validated as meeting the criteria for the1.5°Cpathway.

Diageo isalsopart of a pioneering group of organizations that are championing a green recovery and supporting the Sustainable Development Goals,through membership of the United Nations Global Compact,We Mean Business Coalition and other key global advocacy organizations. As a signatory to RE100,Diageo aims to source 100% of its electricity from renewable sources by 2030. In addition,Diageo has signed onto the global Race to Zero campaign,a commitment to achieving net-zero carbon emissions by 2050 or earlier.

About Diageo: Diageo is a global leader in beverage alcohol with an outstanding collection of brands across spirits and beer categories. These brands include Johnnie Walker,Singleton,Smirnoff,Captain Morgan,Baileys,Don Julio,Tanqueray,and Guinness. Diageo is a global company whose products are sold in more than 180 countries around the world. The company is listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO). For more information about Diageo,our people,our brands,and performance,visit us atwww.diageo.com. Visit Diageo's global responsible drinking resource,www.DRINKiQ.com,for information,initiativesand ways to share best practice.Celebrating life,every day,everywhere.

[1]International Wines & Spirits Record (IWSR) database,2020 Report,accessed at https://www.theiwsr.com/