Diageo Secures LCBO Deal for Crown Royal, Despite Plant Closure Uncertainty

Rowan Ashford

Published: February 13, 2026 4:32 PM ET

Diageo Secures LCBO Deal for Crown Royal, Despite Plant Closure Uncertainty

Ontario’s liquor stores will continue to feature Crown Royal, following a significant agreement between the provincial government and Diageo. The company, which owns Crown Royal, has committed to almost $23 million in investments aimed at bolstering the alcohol and agriculture sectors in Ontario. This deal comes after extended negotiations, especially in light of Diageo’s announcement to close its Amherstburg bottling plant, which will impact nearly 200 workers by February 2026.

Details of the Diageo and LCBO Agreement

Premier Doug Ford highlighted the agreement as a vital step towards strengthening supply chains in the province. The financial commitment will not only preserve the presence of Crown Royal in the Liquor Control Board of Ontario (LCBO) stores but also support the Amherstburg community.

Investments and Economic Support

Diageo will invest $11 million in purchasing grain spirits from Greenfield in Johnstown.
There will be an investment of $5 million for marketing initiatives in Ontario.
About $1 million will be allocated to organizations supporting the agriculture sector.
$500,000 is designated for Invest WindsorEssex to aid economic development projects in Amherstburg.
Another $500,000 will be used for community projects aimed at benefiting local residents.

The town’s economic development agency, Invest WindsorEssex, is currently working on specific programs to address the shifting economic landscape in Amherstburg. CEO Gordon Orr stated that the funding will help the community leverage its strengths and diversify its economic opportunities.

Community Reaction

However, reactions to the agreement are mixed. Amherstburg Mayor Michael Prue expressed disappointment over the terms of the deal. He noted that while the town had hoped for financial assistance directly benefiting local workers, the bulk of the investment appears directed towards areas outside Amherstburg.

Mayor Prue remarked, “None of this is going to help a single soul in Amherstburg.” He indicated that while there is interest in the now-available Crown Royal facility for future operations, nothing has materialized yet.

Local Economic Outlook

The impending closure of the Crown Royal plant is expected to have severe repercussions in a town of Amherstburg’s size. Mayor Prue emphasized that losing nearly 200 jobs is a major setback for the local economy. He criticized the agreement’s focus on funding initiatives elsewhere, which he believes fails to address the immediate needs of his community.

As the situation unfolds, community leaders are hopeful that efforts to attract new business to the closed facility will provide a path forward for affected workers. The challenge remains significant but the commitment from Diageo—alongside local government initiatives—aims to forge a clearer economic future for Amherstburg.