Crown Royal Secures $23M Deal for Continued LCBO Availability

Crown Royal, the renowned whisky brand, has secured its place on the shelves of the Liquor Control Board of Ontario (LCBO) following a significant $23 million investment deal. This agreement, reached between the Ontario government and Diageo, the parent company of Crown Royal, will enhance local production capabilities and employment opportunities.

$23 Million Investment by Diageo

The investment will facilitate several initiatives aimed at supporting Ontario’s economy and local communities. Premier Doug Ford highlighted the importance of this deal, citing it as a critical step in protecting jobs and revitalizing the province’s supply chains.

Key Details of the Agreement

• Diageo will invest $11 million in purchasing grain neutral spirits from Greenfield Global in Johnstown, Ontario.
• A $3 million investment will promote the production of ready-to-drink canned beverages, delivered via a Toronto-based co-packer.
• Another $500,000 will be directed to Invest WindsorEssex for economic development in Amherstburg and surrounding areas.
• The agreement includes $500,000 allocated to community projects in Amherstburg.
• Direct funding of $1 million will support organizations focused on Ontario’s agricultural sector.
• Diageo plans to inject $2 million into new packaging for pre-mixed beverages through a co-manufacturer located in Scarborough.
• The company will also allocate $5 million for marketing and promotional efforts within Ontario.

Background and Context

This agreement comes after Premier Ford threatened to remove Crown Royal from LCBO shelves in response to Diageo’s decision to close a bottling plant in Amherstburg. The plant’s closure raised concerns about job losses and production moving to the U.S. Previously, Ford had publicly expressed his discontent by dumping a bottle of Crown Royal during a press briefing.

His stance faced criticism from Manitoba Premier Wab Kinew, who urged unity and collaboration among Canadian provinces. Despite the backlash, Ford remained steadfast in his position regarding the closure.

Conclusion

The $23 million investment by Diageo marks a significant commitment to Ontario’s economy. It not only ensures the availability of Crown Royal at LCBO but also bolsters local industry and job security in the region. This collaborative effort exemplifies how dialogue between corporate entities and government can yield favorable outcomes for communities.