Diageo reaches US$16.8M settlement with Ontario to keep Crown Royal on Shelves
Diageo settles dispute with Ontario, securing Crown Royal’s LCBO presence and directing millions into local jobs and supply chains.
CANADA – Diageo has agreed to a nearly CA$23 million (US$16.8m) settlement with the Ontario government to ensure its Crown Royal Canadian whisky brand remains available in stores operated by the Liquor Control Board of Ontario (LCBO).
The agreement resolves a dispute that followed Diageo’s decision to close its Crown Royal bottling facility in Amherstburg, Ontario. The proposed closure prompted Ontario Premier Doug Ford to threaten a province-wide ban of Crown Royal from LCBO outlets.
In August 2025, Diageo announced plans to shut down the Amherstburg site, sparking months of public disagreement with Ford. The premier warned he would “hurt” the drinks group by permanently removing Crown Royal products from LCBO shelves.
Ford argued that Diageo intended to move the brand’s entire production from Canada to a new facility in Alabama, United States.
The dispute drew national attention, with Québec finance minister Eric Girard and Manitoba premier Wab Kinew urging Ford to reconsider the proposed boycott. Both leaders cautioned that removing Crown Royal from LCBO stores could result in further job losses across Canada.
Under the settlement, the Ontario government said the funds would be used to strengthen the provincial economy and support job creation. Of the total amount, CA$500,000 (US$367,000) will be allocated to Invest WindsorEssex for economic development initiatives focused on Amherstburg, while another CA$500,000 will support community projects benefiting local residents.
The largest share of the settlement, CA$11 million (US$8m), will be directed toward the purchase of grain neutral spirits produced by Greenfield Global in Johnstown, reinforcing local manufacturing in eastern Ontario.
The remaining funds will be invested in new ready-to-drink products, including Crown Royal, Smirnoff, and Captain Morgan canned beverages, through a Toronto-based co-packer.
Additional investments include direct funding for organisations supporting Ontario’s agricultural sector, new packaging for pre-mixed beverages through a Scarborough-based co-manufacturer, and Ontario-focused marketing and promotional activities.
Ford said: “By standing firm in our plan to protect Ontario workers, we’ve secured nearly CA$23m in investments that Ontario would not otherwise have seen.
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.”
Ontario finance minister Peter Bethlenfalvy added: “This agreement with Diageo reflects the strength of our agri-food and manufacturing sectors, and the value of standing up for workers.”
Despite the settlement, the Amherstburg facility is set to close this month, a move expected to affect approximately 200 jobs.
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