A nearly 100-year-old signature Canadian alcohol brand is closing down a bottling plant in Ontario and moving those operations to the United States. Diageo PLC said on Thursday that it will close its facility in Amherstburg, Ont., which currently bottles Crown Royal Canadian whisky products. At a press conference on Tuesday, Ontario Premier

Doug Ford lashed out at Diageo, calling the company a “few fries short of a Happy Meal” and poured out a bottle of Crown Royal in protest. Here, Financial Post reporter Denise Paglinawan distills the reasons behind the company’s decision.

What happened last week?

The decision to shut the plant is part of the company’s efforts to improve its North American supply chain, shifting bottling volume to the U.S., according to Diageo.

The company said it will cease operations at the bottling plant by February 2026 “to be closer to its many U.S. Crown Royal consumers.”

“This was a difficult decision, but one that is crucial to improving the efficiency and resiliency of our supply chain network,” said Diageo’s president of North America supply, Marsha McIntosh.

In an emailed statement, Diageo said the decision was made with long-term growth in mind, to ensure the company can meet consumer demand well into the future. “It is not a reaction to the current trade environment,” it said.

Who is affected?

The closure will affect 168 employees at the facility. In a statement on Thursday, private sector union

Unifor , whose Local 200 unit represents workers at Diageo Canada Inc. (Seagrams), said its members at the plant are “prepared to fight to save” those union jobs following the company’s “shock decision.”

“The decision to close the plant makes no sense and shows no loyalty to Canadian workers,” said John D’Agnolo, president of Unifor Local 200.

Diageo said Crown Royal will continue to be mashed, distilled, blended and aged in Canada, as it has been since 1939.

Bottling of Crown Royal whisky for the Canadian and non-U.S. export markets will continue at Diageo’s Valleyfield, Que., facility, the company noted.

On top of that, Diageo said it will maintain its significant footprint across Canada, including at its Canadian headquarters and warehouse operations in the Greater Toronto Area and other bottling and distillation facilities in Gimli, Man., and Valleyfield.

“Diageo will continue to invest in Canada through its ongoing production, local operations and contributions to local communities,” it said.

Why is Crown Royal special?

Crown Royal Canadian whisky was first created in 1939 and is distilled along the western shore of Lake Winnipeg in Manitoba in the small town of Gimli, where most of its operations are located.

Canadian spirits entrepreneur Sam Bronfman originally created the blend as a gift for King George VI and Queen Elizabeth, the first reigning monarchs to visit Canada, on their grand tour of the country that year.

It is said that Bronfman meticulously trialled more than 600 blends before he was happy with the final product.

Originally owned by Seagram, the Crown Royal brand was acquired by

Diageo in 2000 as part of a larger acquisition of Seagram’s alcoholic beverage business.

Aside from Crown Royal, Diageo owns such brands as Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Don Julio and Guinness.

How will the move impact the economy?

The company claims the sale of Diageo products contributes more than $300 million in annual revenue to Canadian restaurants and bars, $125 million of that in Ontario.

Unifor’s D’Agnolo said the facility is the largest employer in Amherstburg

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, Ont. and “the heart and soul of the community.” Diageo said it will support affected Amherstburg employees through the transition and work alongside Unifor to provide assistance to its local union members.

Last November, the multinational alcohol company paused its plans to build a $245-million whisky distillery in St. Clair Township in Ontario. First announced in 2022, Diageo initially said the site near Sarnia would start making Crown Royal Canadian whisky brand by 2025.

The company had not said how long the pause might last, or whether it will continue to build the plant.