Diageo, a global leader in beverage alcohol, has announced the establishment of a new research and development center in Shanghai to further its product innovation and development ambitions in China.

The state-of-the-art facility - the first of its kind in the beverage alcohol sector in Shanghai - will primarily support the China market and will strengthen Diageo’s ability to rapidly innovate and develop premium products that cater to Chinese consumer tastes. The aim is to create an exciting portfolio of products developed in China China based on local consumer insights and trends.

“Today’s announcement is another key step in our transformational journey to invest and deliver growth in a fast-moving and highly competitive market,” said Sam Fischer, president of Asia-Pacific and Global Travel. “China’s total beverage alcohol market is the largest in the world in both value and volume terms and is expected to grow over the next five years.1 Much of this growth will be driven by strong premiumization trends that is accelerating as new channels and occasions emerge for international spirits, beer and new-to-world innovations.”

Fischer continued, “Together with the recent opening of our major logistics hub in Shenzhen, this facility sets Diageo up for continued success and reinforces our strategic commitment to our business across China.”

Construction will begin in 2021 and the R&D center is expected to be fully operational by mid-2022.