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Diageo to Shutter Canadian Bottling Plant

Diageo plans to close its main Crown Royal bottling plant in Amherstburg, Ontario next February, eliminating at least 170 jobs. The drinks giant plans to move most Crown Royal bottling to its plants in the United States, where most Crown Royal is sold.
In a statement, Diageo president of North American supply Marsha McIntosh emphasized that Crown Royal will continue to be mashed, distilled, and aged in Canada, and called the move a “difficult decision, but one that is crucial to improving the efficiency and resiliency of our supply chain network”.
Diageo will keep its blending and bottling plant at Valleyfield, Quebec, along with the main distillery in Gimli, Manitoba and its Canadian headquarters and warehousing site near Toronto. Crown Royal whiskies to be sold in Canada and non-U.S. export markets will continue to be bottled in Valleyfield.
Unifor, the union representing 170 workers at the Amherstburg site, plans to fight the closing and hopes to preserve the jobs of its members.
Crown Royal sales were up 3% during the last fiscal year, and the brand was one of Diageo’s best performers at a time when whisky sales have been lagging worldwide. Diageo is starting a $625 million cost-cutting program, and the Amherstburg closing is one of the first steps announced in that process.