Diageo, Ontario government reach deal to keep Crown Royal on LCBO shelves – but plant to remain closed

Ontario will put Crown Royal on shelves in the province’s liquor stores after parent company Diageo agreed to spend about $23 million in the wine and agriculture sectors, it says.

According to a statement Friday, the province said it reached the agreement with the company after months of negotiations.

Last year, Diageo announced it would close its Amherstburg bottling plant in southwestern Ontario, laying off about 200 employees by the end of February.

Premier Doug Ford said the money will help strengthen provincial supply chains and “support the local community in Amherstburg and the surrounding area.”

As a result of the agreement, the province said Crown Royal will remain available through the LCBO.

Look Meyer says there is interest in a Diageo bottling plant:

Amherstburg mayor says alcohol company ‘very serious’ about buying Crown Royal plant

Diageo workers in Amherstburg recently signed a closure agreement, but Amherstburg Mayor Michael Prue says the municipality is focused on what happens next with the Crown Royal bottling plant which is closing in February 2026.

While some investment is going into Amherstburg, most of the money is earmarked for wine and agricultural sectors elsewhere in the province.

According to the province, approximately $500,000 will come to the group Invest WindsorEssex for economic development in Amherstburg, while another $500,000 will be used for “community projects” for Amherstburg residents.

Diageo will also spend $11 million to buy grain spirits made by Greenfield in Johnstown, “supporting local production in Eastern Ontario.”

Diageo will spend millions of dollars investing in new packaging and $5 million on Ontario-based marketing.

The agreement includes a $1 million commitment to explore options for a new Ontario canning facility and organizations that support the agriculture sector.

more to come