Global beverage giant Diageo has confirmed the sale of its shuttered bottling facility in Amherstburg, Ontario. The company, which owns the Crown Royal whisky brand, announced that a purchase agreement has been signed, though it has opted to keep the identity of the buyer and the financial terms of the deal confidential for the time being.
A spokesperson for the UK-based firm stated, “We can confirm that a purchase sale agreement for the Amherstburg facility has been signed. The process remains confidential and we are not currently in a position to share details regarding the purchaser.”
Context of the Closure
The Amherstburg site was officially closed in February of this year. Diageo had originally announced its intention to shutter the facility in August 2023, citing a broader strategic effort to enhance the “efficiency and resiliency” of its global manufacturing network. At the time, the decision drew significant pushback from Ontario provincial leadership, including Premier Doug Ford, who publicly criticized the move and suggested potential restrictions on the sale of Crown Royal products within government-operated retail channels.
Manufacturing Shifts in Ontario
The closure of the Amherstburg plant was eventually reconciled through a collaborative agreement between Diageo and the provincial government. Under the terms reached in February, the company committed to maintaining a robust manufacturing footprint in Ontario through several key initiatives:
- Co-packing arrangements: Diageo partnered with a facility in Toronto to handle production for canned ready-to-drink (RTD) beverages, including Crown Royal, Smirnoff, and Captain Morgan brands.
- Packaging innovation: The company entered into an agreement with a manufacturer in Scarborough to develop new packaging solutions for its pre-mixed product lines.
- Future expansion: Diageo has maintained a stated commitment to explore the establishment of a new, dedicated canning facility within the province.
While the sale of the former bottling plant marks the end of Diageo’s operational presence at that specific Amherstburg location, the company continues to navigate its manufacturing obligations within the Canadian market. Further updates regarding the transaction are expected to be released by the company when appropriate.
