Diageo, province strike deal to keep products at LCBO, jobs still leaving town

An agreement was announced Feb. 10 that will keep Crown Royal on LCBO store shelves. The Amherstburg plant is still scheduled to close.

The Ontario government and Diageo have reached an agreement that will keep Crown Royal on LCBO shelves, but a Feb. 13 announcement references little if anything on the jobs at the Amherstburg plant.

Because of the latter, there is concern locally about the final result.

“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,” said Premier Doug Ford said in a Friday afternoon news release. “These investments will help keep Ontario workers on the job, strengthen provincial supply chains and support the local community in Amherstburg and the surrounding area.”

Ford has previously said the Crown Royal products would be removed from LCBO shelves once the final worker left the Amherstburg plant. He went as far as to pour out a bottle of Crown Royal at a press conference in Kitchener in early September.

The company’s decision to close the Amherstburg plant came in late August. Between 160-200 employees are being impacted by the closure.

According to the province’s news release, it claims the $23 million from Diageo as part of the agreement will “protect Ontario workers, deliver new investments across the province and reinforce Ontario’s position as a leader in agri-food manufacturing, packaging and innovation.”

Of the nearly $23 million, about $1 million is destined for this area. A total of $500,000 will be given to Invest WindsorEssex for economic development “with a focus on Amherstburg and the surrounding area,” and an additional $500,000 is part of the agreement for “other community projects to support residents of Amherstburg.”

The River Town Times has reached out to the Ministry of Finance for further specifics on what the community projects could be and how the funding will be used, among other questions. This story will be updated should a response come forward from ministry officials.

The funding breakdown also shows an $11 million investment to purchase grain neutral spirits manufactured by Greenfield Global in Johnstown, Ontario, supporting local production in the eastern part of the province.

There is a $3 million investment in new ready-to-drink beverages such as Crown Royal, Smirnoff and Captain Morgan canned beverages through a Toronto-based co-packer to supply the Canadian market, another $1 million in direct funding to organizations that support the growth and sustainability of Ontario’s agricultural sector, a $2 million investment in new packaging for pre-mixed beverages through a new co-manufacturer in Scarborough, an additional $5 million for Ontario-based marketing and promotion and “a commitment to explore options to establish a new Ontario canning facility.”

The province’s press release maintains “this agreement strengthens Ontario’s end-to-end beverage alcohol supply chain — from agriculture and manufacturing to packaging and distribution — while supporting long-term economic growth and resilience.”

There was no specific mention in the news release of the job losses at the Amherstburg plant, which is due to close this month.

“Following months of discussions with Diageo after concerns were raised last year about the closure of its Amherstburg facility, the government made clear that Ontario would stand up for local jobs and workers, a message that has resulted in concrete commitments that benefit communities across the province,” the Ontario government’s news release states.

The release quotes finance minister Peter Bethlenfalvy as stating: "Ontario remains committed to protecting good jobs and ensuring that industries across the province continue to grow and thrive. This agreement with Diageo reflects the strength of our agri food and manufacturing sectors, and the value of standing up for workers. By working collaboratively with industry, we are building a stronger, more resilient supply chain while ensuring that companies benefiting from Ontario’s marketplace invest back into our people and our communities."

Essex MPP Anthony Leardi told the RTT Feb. 2 that Ford was in negotiations with Diageo.

“I know discussions are underway between Diageo and the Premier's Office,” he said Feb. 2. “We'll just have to be patient to see if they result in anything.”

As of the talks of interested parties looking to buy the site and set up operations there, but Leardi added at that time he was “not in a position to talk about any of the (potential) buyers.”

Mayor Michael Prue said he received word from the Premier’s office that an announcement was coming and that there would be money coming to Amherstburg. He wasn’t overly impressed with what the result ended up being.

“What I see isn’t much,” he said. “I’m not even sure the community projects will be for Amherstburg.”

The $500,000 for Invest Windsor-Essex is designed to bring businesses to the area and it “could be us,” he said. He pointed out investments in the agricultural sector are province-wide.

“In all, we lose 160 jobs,” said Prue.

Prue said he will continue to fight to bring new jobs to town and to the site. There are prospective buyers, including the company he has said in the past that is very interested in bringing their beverage business to town, but Prue wants Diageo to sell the property.

“Just sell it,” he said. “I just want it sold.”

The property appeared on www.realtor.ca in late December and the listing is still posted there as of this posting.

Prue said he was “somewhat hopeful” about Friday’s announcement until he read what it was. He said the town will still work with prospective buyers but “Diageo is the roadblock.”

“They have to agree to sell it,” he said. “Then we will work with the new owners to bring them here and make them successful. It all boils down to Diageo.”

The mayor estimated the company could make that $23 million back with the sale of the property. Had the news broke the plant had been sold, “that would have made me much happier.”

“Now they’re out of pocket $23 million with virtually no benefit to the workers in Amherstburg,” he added.

Windsor West MPP Lisa Gretzky accuses the Ford government of “leaving workers out in the cold.”

Gretzky, who is an NDP MPP, issued a statement late Friday afternoon where she said it’s “unacceptable that the government continues to cast workers from the Amherstburg plant aside.” 

“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,” said Gretzky. “The plant will still be closed. Not a penny of the $23 million will go towards helping these workers feed their families, and only four per cent of it is going to our community. Does the Premier expect us to applaud him for commitments outside of Windsor-Essex?” said Gretzky.

Gretzky added: “Generations of families across the region have built their lives around these good-paying jobs. Ford has had months to actually fight to save these jobs, but apparently this is the best he has to offer: plunging more families into an uncertain future. This closure is devastating for our community, and Windsor deserves leadership who will pull out all the stops to keep good jobs here.” 

Diageo still has Canadian facilities in Quebec and Manitoba. When the company announced the closure in August 2025, it said it was "crucial to improving the efficiency and resiliency of our supply chain network. All Crown Royal will be mashed, distilled, and aged at our Canadian facilities."

By Ron Giofu