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, which involves an investment of nearly $23 million in the alcohol and agriculture sectors. However, the deal offers no relief to the workers facing job losses by the end of this month, as stated by the town’s mayor and the workers’ union.
The decision follows extensive negotiations between the province and the company, as disclosed in a statement released on Friday. Last year, Diageo had announced the closure of its Amherstburg bottling plant in southwestern Ontario, leading to the impending layoff of almost 200 employees by the end of February.
Premier Doug Ford emphasized that the investment aims to enhance provincial supply chains and provide support to the local community in Amherstburg and its vicinity. The province’s stance on safeguarding Ontario workers has resulted in securing nearly $23 million in investments that would otherwise not have been realized.
Under the agreement, Crown Royal will maintain its presence in LCBO stores. A spokesperson from Diageo expressed gratitude towards Premier Ford and his team for their leadership and collaboration in resolving the matter.
While a portion of the investment will benefit Amherstburg, the majority of the funds are designated for the alcohol and agriculture sectors across the province. Specifically, about $500,000 is allocated to Invest WindsorEssex for economic development in Amherstburg, with an additional $500,000 earmarked for community projects in the town.
Invest WindsorEssex is actively engaging with the community to identify strategies and programs that align with Amherstburg’s evolving economic requirements. The CEO of Invest WindsorEssex, Gordon Orr, highlighted the importance of leveraging the funding to bolster local strengths, promote diversification, and foster long-term success within the community.
Diageo’s commitment includes purchasing grain spirits from Greenfield in Johnstown for $11 million to support local production in eastern Ontario. Moreover, the company will invest in new packaging and allocate $5 million towards marketing activities based in Ontario. The agreement also entails exploring the establishment of a new canning facility in Ontario and providing $1 million to organizations supporting the agriculture sector.
The Minister of Finance, Peter Bethlenfalvy, emphasized Ontario’s dedication to preserving quality jobs. He stressed the significance of the partnership with Diageo, emphasizing the resilience of the agri-food and manufacturing sectors and the importance of advocating for workers’ rights.
While the deal was welcomed by many, Amherstburg Mayor Michael Prue expressed disappointment, stating that the funds did not directly benefit local workers as hoped. The lack of clarity on who would receive the funds further added to his disappointment.
John D’Agnolo, the president of Unifor Local 200 representing the plant workers, also expressed dissatisfaction with the announcement, considering it a minimal investment compared to the company’s substantial earnings from Ontario consumers. The town is actively seeking a new company to take over the bottling facility to preserve existing jobs.
The looming job losses in Amherstburg have raised concerns about the town’s economic well-being, with Mayor Prue highlighting the need for investments to support local workers and businesses.
