Ontario has confirmed that Crown Royal will continue to be available in the province’s liquor stores following an agreement with Diageo, the parent company, involving nearly $23 million allocated towards the alcohol and agriculture sectors. However, despite this development, local officials expressed concerns over impending job losses set to occur at the end of the month.
Last year, Diageo announced the closure of its Amherstburg bottling plant in southwestern Ontario, leading to the displacement of almost 200 employees by the end of February. Premier Doug Ford emphasized that the financial infusion aims to bolster provincial supply chains and provide support to the Amherstburg community and its surroundings.
The agreement secures the presence of Crown Royal on LCBO shelves due to the collaboration between the province and the company. Diageo’s spokesperson expressed gratitude towards Premier Ford and his team for their leadership in reaching this resolution, ensuring the continuity of Crown Royal availability.
While a portion of the investment targets Amherstburg, the majority of the funds are designated for the alcohol and agriculture sectors across other regions in the province. Notably, about $500,000 will be directed to Invest WindsorEssex for economic development in Amherstburg, with an additional $500,000 allocated for community projects benefiting local residents.
Diageo’s commitment includes a $11 million purchase of grain spirits from Greenfield in Johnstown to support local production in eastern Ontario. Further investments will cover new packaging initiatives and $5 million towards Ontario-based marketing. The agreement also includes provisions for exploring a new canning facility in Ontario and a $1 million allocation for organizations supporting the agriculture sector.
Despite the positive outlook from provincial officials, Amherstburg Mayor Michael Prue expressed disappointment, emphasizing the need for direct benefits to local workers. He raised concerns over the lack of clarity regarding the distribution of funds and their impact on the community, highlighting the challenges faced by Amherstburg in the wake of significant job losses.
John D’Agnolo, the president of Unifor Local 200 representing plant workers, echoed these sentiments, expressing dissatisfaction with the announced agreement. Efforts are underway in Amherstburg to attract a new company to the bottling facility to preserve job opportunities, with ongoing discussions with potential buyers following the plant’s listing for sale.
The impact of job losses in Amherstburg is described as “devastating” by Mayor Prue, who emphasized the importance of directing investments towards local communities facing economic challenges. Despite ongoing negotiations and offers, concerns persist regarding the equitable distribution of resources and the long-term economic sustainability of the region.