Diageo could sell Crown Royal site
Diageo has responded to rumours that buyers have emerged for its Crown Royal site earmarked for closure in Ontario, stating it has not received any credible offers.
In August, Diageo announced plans to shut its Crown Royal bottling facility in Amherstburg, Ontario, putting 200 jobs at risk. The company intends to shift some of its bottling capabilities to sites in the US and its plant in Valleyfield, Quebec.
Last week, reports emerged claiming there were three companies interested in taking over Diageo’s Amherstburg site, based on a council meeting with the town’s mayor, Michael Prue.
One of these unnamed groups intends to produce alcohol at the site, Prue told reporters after the meeting.
However, Diageo confirmed in a statement that it has not received any appropriate offers to buy the site. The company said it would not put the property up for sale until after its negotiations with trade union Unifor had ended.
A Diageo spokesperson said: “Our current focus is on engaging with the union and supporting our employees, and so we do not plan to list the property until after we have concluded negotiations with Unifor.
“However, if prior to that there were to be a potential purchaser with a credible plan to continue operating the facility as a going concern who committed upfront to retain unionised jobs, we would certainly engage in discussions. We have not yet been approached by any such party.”
Unifor national president Lana Payne said: “Our goal is to make sure our members can keep their jobs making great Canadian whisky. We can’t allow Diageo to shut down its Amherstburg plant, abandon 200 dedicated workers, and leave Ontario – home to one of its biggest customers, the LCBO [Liquor Control Board of Ontario] – simply to appease Donald Trump.
“If there are potential buyers interested in operating in Amherstburg, there’s plenty of space in this community, which has some of the highest unemployment in the country, for continued investment and good jobs.”
The Spirits Business has contacted Prue’s office for further comment.
Diageo has faced backlash against its move to shut the site. Ontario premier Doug Ford threatened to “hurt” Diageo and said he would delist Crown Royal whisky from LCBO stores if the closure happened.
Unifor also called on Diageo to “come clean” on how it plans to bottle Crown Royal and maintain its quality after the facility shuts.
A Diageo spokesperson told The Spirits Business last month that most of Crown Royal’s bottling for the US market would move to multiple Diageo facilities across the States, but it did not name the sites.
Diageo has reiterated that Crown Royal whisky would “continue to be mashed, distilled, blended and aged in Canada”.
Diageo continues to operate sites across the country, including the group’s Canadian headquarters and warehouse operations in the Greater Toronto Area, and other bottling and distillation facilities in Gimli, Manitoba and Valleyfield.
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