Ontario Reaches Agreement with Diageo

The Ontario government has reached an agreement with Diageo, the global spirits company that produces Crown Royal, which will protect Ontario workers, deliver new investments across the province and reinforce Ontario’s position as a leader in agri-food manufacturing, packaging and innovation.

Following months of discussions with Diageo after concerns were raised last year about the closure of its Amherstburg facility, the government made clear that Ontario would stand up for local jobs and workers, a message that has resulted in concrete commitments that benefit communities across the province.

“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. 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.” – Premier Doug Ford

As part of the agreement, Diageo has committed to nearly $23 million in new investments in Ontario, which will support local producers, boost the economy and create new opportunities for Ontario farmers, manufacturers and communities across Ontario. As a result of this agreement, Crown Royal products made by Diageo will continue to be available for purchase through the LCBO.

Key elements of the agreement include:

• $500,000 to Invest WindsorEssex for economic development with a focus on Amherstburg and the surrounding area, and $500,000 to other community projects to support residents of Amherstburg
• $11 million investment to purchase grain neutral spirits manufactured by Greenfield Global in Johnstown, supporting local production in eastern Ontario
• $3 million investment in new ready-to-drink beverages such as Crown Royal, Smirnoff and Captain Morgan canned beverages through a Toronto-based co-packer to supply the Canadian market
• $1 million in direct funding to organizations that support the growth and sustainability of Ontario’s agricultural sector
• $2 million investment in new packaging for pre-mixed beverages through a new co-manufacturer in Scarborough
• $5 million in Ontario-based marketing and promotion
• A commitment to explore options to establish a new Ontario canning facility.

This agreement strengthens Ontario’s end-to-end beverage alcohol supply chain — from agriculture and manufacturing to packaging and distribution — while supporting long-term economic growth and resilience.

Quick Facts

• The 2025 Ontario Budget announced support of approximately $100 million in 2025–26 and approximately $155 million in 2026–27 to foster a more dynamic and competitive alcohol marketplace.
• Examples of Ontario’s support to other alcohol-beverage industry participants include (since 2021):
• Providing up to $35 million in annual support under the Ontario Grape Support Program to eligible wineries over five years, from 2025–26 until 2029–30, with total program funding amounting to $175 million
• Extending the VQA Wine Support Program until 2029–30 and enhancing program eligibility to provide up to an additional $31 million annually
• Providing up to $16.7 million over five years, beginning in 2025–26 until 2029–30, to support a portion of capital expenses for off-site winery retail stores (WRS) that re-locate into grocery stores, supporting more opportunities for businesses and convenience for consumers
• Granting $10 million to wineries and cideries with on-site retail stores
• Extending nearly $16 million in multi-year supports to wineries, small cideries and distilleries
• Increasing by $1.2 million the Small Distillery Program
• Eliminating the 6.1 per cent wine basic tax at on-site winery stores.