Diageo to close Crown Royal bottling plant in Ontario amid supply chain restructuring 

CANADA – Diageo has confirmed plans to close its Crown Royal whisky bottling facility in Amherstburg, Ontario, by February next year as part of a restructuring strategy aimed at strengthening efficiency and supply chain resilience. 

In a statement, the company explained the move is “part of an ongoing commitment to increase the efficiency and resiliency of its manufacturing footprint.” While the Ontario site will cease operations, Crown Royal will continue to be mashed, distilled, and aged in Canada. 

The global drinks group noted that bottling for products destined for Canada and other markets outside the US will be handled at its Valleyfield facility in Quebec. Additional operations will also continue at its sites in Gimbli, Manitoba.  

Diageo will maintain its Canadian headquarters and warehouse facilities in the Greater Toronto area. 

According to the company, the closure is intended to “unlock additional productivity and increase resiliency and capacity to scale, effectively meeting demand across its markets and shifting some bottling volume to be closer to its many US Crown Royal consumers.” 

The number of employees impacted by the shutdown has not been officially disclosed. However, Unifor, the union representing workers at the Amherstburg facility, said in a separate statement that its members are “prepared to fight to save the 170 union jobs.” 

Marsha McIntosh, president of North America supply at Diageo, acknowledged the decision’s impact on employees but emphasized its necessity. She stated: “This was a difficult decision, but one that is crucial to improving the efficiency and resiliency of our supply chain network.” 

For the fiscal year ended June 30, Crown Royal reported a 3% increase in net sales on an organic basis, while volumes grew 4%. In the US, Crown Royal net sales climbed 3.8%, driven by strong demand for its flavored variant, Crown Royal Blackberry. 

Group-wide, Diageo’s reported net sales slipped 0.1% to US$20.25 billion, though organic sales were up 1.7%. Reported operating profit fell 27.8% to US$4.34 billion due to impairment charges, restructuring expenses, and unfavorable exchange rates.

Operating profit before exceptional items dipped 0.7% to US$5.71 billion. Reported net profit declined 39.1% to US$2.54 billion. 

Alongside its full-year results in August, Diageo increased its cost savings target by US$125 million, aiming for approximately US$625 million in savings over three years.

Interim CEO Nik Jhangiani said the company’s focus would remain on trade investment, advertising efficiency, and supply chain agility. 

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