Province reaches $23 million deal with Diageo; Crown Royal products will remain on LCBO shelves

The Ontario government has reached a $23 million agreement with Diageo, which includes $1 million for Windsor-Essex.

As part of the agreement announced Friday, Diageo has committed to nearly $23 million in new investments, and because of this agreement, the province says Crown Royal products made by Diageo will continue to be available for purchase through the LCBO.

But there’s no word if this agreement will prevent the closure of Diageo’s Crown Royal bottling plant in Amherstburg, Ont., which is due to close at the end of February, putting just over 200 employees out of work.

In announcing the closure decision in August 2025, the company said it was to improve its North American supply chain, with Crown Royal whisky destined for Canada and non-U.S. export markets now being bottled at Diageo’s Valleyfield, Quebec, facility, while whisky bottling for the U.S. market shifts elsewhere.

Diageo has said its Crown Royal products will continue to be mashed, distilled, and aged at its facility in Gimli, Manitoba.

Premier Doug Ford had vowed to remove Crown Royal from the LCBO’s shelves after the Amherstburg facility closes if the company didn’t present a plan to keep some labour in Ontario.

Key elements of the agreement include:

• $500,000 to Invest WindsorEssex for economic development with a focus on Amherstburg and the surrounding area, and $500,000 to other community projects to support residents of Amherstburg.
• $11 million investment to purchase grain neutral spirits manufactured by Greenfield Global in Johnstown, supporting local production in eastern Ontario
• $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
• $1 million in direct funding to organizations that support the growth and sustainability of Ontario’s agricultural sector
• $2 million investment in new packaging for pre-mixed beverages through a new co-manufacturer in Scarborough
• $5 million in Ontario-based marketing and promotion

There is also a commitment to explore options to establish a new Ontario canning facility.

“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 Ford in a release issued Friday.

“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.”