The new facility will primarily support the China market and strengthen Diageo’s ability to rapidly innovate and develop premium products that cater to Chinese consumer tastes.

According to Diageo, the aim is to create a portfolio of products developed in China for 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 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. Much of this growth will be driven by strong premiumisation trends that are accelerating as new channels and occasions emerge for international spirits, beer and new-to-world innovations.

“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 centre is expected to be fully operational by mid-2022.