Political Clash Over Crown Royal Ends in Investment Pact

Crown Royal will remain on shelves at the Liquor Control Board of Ontario after Diageo reached a settlement with Ontario Premier Doug Ford, ending a public dispute tied to the closure of a bottling plant in Amherstburg.

Diageo said it has committed nearly C$23 million (about US$16.9 million) to support Ontario’s agriculture and alcohol sectors as part of the agreement, the Wall Street Journal reported Friday. The Ontario government confirmed the investment and said it would direct funding toward local production, community projects and supply chain support, the Journal reported.

Ford had threatened to remove Crown Royal from LCBO stores after Diageo announced last year it would close its Amherstburg bottling facility, affecting more than 200 jobs, according to The Wall Street Journal. In September, Ford poured a bottle of Crown Royal on the ground during a press conference to protest the closure, according to the Windsor Star.

Plant Closure Still Moving Forward

Despite the deal, the Amherstburg plant will close at the end of February, with some of the work shifting to the U.S., the Windsor Star reported.

Unionized workers ratified a closure agreement in December that provided enhanced severance pay, according to The Wall Street Journal. About 160 employees were given the option to leave immediately or remain until the facility shuts down.

John D’Agnolo, president of Unifor Local 200, which represents almost 170 workers at the plant, criticized the agreement.

“I thought it was horrible. They didn’t look at how to support those members in that Amherstburg community,” D’Agnolo told the Windsor Star. “I’d like them to take the stuff off the shelf. They sell over $800 million in product … in Ontario (each year), and they throw $23 million at them, and they’re good with it.”

How the $23 Million Will Be Spent

According to the Wall Street Journal, the C$23 million package includes:

• C$11 million to purchase grain-neutral spirits from Greenfield Global in Johnstown, supporting production in eastern Ontario.
• C$3 million for new ready-to-drink beverages through a Toronto-based co-packer.
• C$500,000 to Invest WindsorEssex for economic development focused on Amherstburg and the surrounding area.
• C$500,000 for other community projects in Amherstburg.

The Windsor Star also reported the following additional commitments:

• C$1 million for organizations supporting Ontario’s agricultural sector.
• C$2 million for new packaging for pre-mixed beverages through a Scarborough co-manufacturer.
• C$5 million in Ontario-based marketing and promotion.
• A commitment to explore establishing a new Ontario canning facility.

Ford said the agreement secured investments that would not otherwise have come to the province.

“By standing firm in our plan to protect Ontario workers, we’ve secured nearly $23 million in investments that Ontario would not otherwise have seen,” he said, according to the Windsor Star.

Ontario Finance Minister Peter Bethlenfalvy said the deal reflects “the strength of our agri food and manufacturing sectors, and the value of standing up for workers,” the Windsor Star reported.

Political Tensions

The dispute also drew attention from Manitoba, where Crown Royal is distilled and aged in Gimli.

Manitoba Premier Wab Kinew urged Ford not to remove the brand from Ontario stores, saying the conflict was pitting one province against another.

Crown Royal was first created in 1939 as a gift for King George VI and Queen Elizabeth and is produced in Gimli on the western shore of Lake Winnipeg.

Union Response and Local Impact

D’Agnolo said the province should have removed Diageo products from LCBO shelves when the closure was announced.

“If [Ford] had taken the bottles off the shelf right away … they wouldn’t have closed. There’s no way,” he told the Windsor Star.

He estimated the plant costs between $14 million and $16 million a year to operate, compared with roughly $800 million in annual Diageo sales in Ontario, according to the Windsor Star.

Provincial Parliament Member Lisa Gretzky said the investment does not help the workers who lost their jobs.

“A commitment by Diageo to some investment in Ontario is a start, but this does nothing for the 200 workers who lost their jobs here,” Gretzky said, according to the Windsor Star.

Gordon Orr, CEO of Invest WindsorEssex, said the funding will “provide targeted resources and support that will help strengthen the Amherstburg economy and advance new opportunities for local businesses, workers and the broader Windsor-Essex community,” the Windsor Star reported.

In a statement reported by the Windsor Star, Diageo said: “We thank premier Ford and his team for their exceptional leadership and collaboration in reaching this resolution. Diageo is pleased that Crown Royal, an iconic Canadian Whisky, will remain on the shelves of the LCBO, and we remain committed to Ontario through our significant investment in the province.”

For consumers, the outcome means Crown Royal will continue to be available through Ontario’s state-run stores, even as the Amherstburg bottling plant closes and jobs are lost.