The Ontario government has reached an agreement with global spirits manufacturer Diageo that will see the company invest nearly $23 million in the province following concerns over the closure of its Amherstburg facility.
The investment package includes commitments to support local producers, manufacturing operations, and economic development initiatives across Ontario communities. Crown Royal products will continue to be sold through the LCBO as part of the agreement.
“By standing firm in our plan to protect Ontario workers, we’ve secured nearly $23 million in investments that Ontario would not otherwise have seen,” said Premier Doug Ford.
Investment breakdown
Diageo’s commitments include $11 million to purchase grain neutral spirits from Greenfield Global’s Johnstown facility in eastern Ontario and $3 million for new ready-to-drink beverage production through a Toronto-based co-packer.
The company will invest $2 million in new packaging for pre-mixed beverages through a Scarborough co-manufacturer and $5 million in Ontario-based marketing and promotion.
Community support includes $500,000 to Invest WindsorEssex for economic development focused on Amherstburg and the surrounding area, plus $500,000 for other local community projects. An additional $1 million will support organizations focused on Ontario’s agricultural sector.
Diageo has also committed to explore options for establishing a new Ontario canning facility.
Broader industry support
The agreement follows Ontario’s 2025 budget announcement of approximately $100 million in support for the alcohol marketplace in 2025-26 and approximately $155 million in 2026-27.
Since 2021, the province has provided up to $35 million annually under the Ontario Grape Support Program to eligible wineries, extended the VQA Wine Support Program until 2029-30 with up to an additional $31 million annually in enhanced eligibility, and granted $10 million to wineries and cideries with on-site retail stores.
Other measures include up to $16.7 million over five years for off-site winery retail store capital expenses and nearly $16 million in multi-year supports to wineries, small cideries and distilleries.
“This agreement with Diageo reflects the strength of our agri food and manufacturing sectors, and the value of standing up for workers,” said Peter Bethlenfalvy, minister of finance.
