A showdown is brewing in Ontario, and the target is a Canadian icon: Crown Royal whiskey. Premier Doug Ford has vowed to pull the spirit from provincial store shelves, escalating a dispute with Diageo, the company behind the brand.
Ford’s anger stems from Diageo’s decision to close its Crown Royal bottling plant in Amherstburg, a community south of Windsor, resulting in the loss of approximately 200 jobs. He famously demonstrated his displeasure last year by dramatically pouring a bottle of Crown Royal onto the ground during a press conference.
The company maintains the closure isn’t a retreat from Canada, but a strategic move to streamline its supply chain. They insist Crown Royal will continue to be mashed, distilled, and aged within Canadian borders, with facilities remaining open in Manitoba, Quebec, and Toronto.
However, Ford remains unconvinced, describing the plant closure as a profoundly misguided decision. He stated he “can’t wait” to follow through with removing Crown Royal, though a specific timeline for the removal hasn’t been announced.
This isn’t an isolated incident. The situation echoes a previous trade dispute where Ontario’s liquor board, the LCBO, removed American spirits from its shelves in response to tariffs imposed by the United States. The LCBO is a massive purchaser of alcohol, wielding significant influence in the market.
The impact of these retaliatory measures is being felt by American distillers, who have become increasingly reliant on international sales. Exports to key markets like Canada, the UK, and the European Union – representing around $2.4 billion in 2024 – have significantly declined.
The ripple effects are already visible within the industry. Jim Beam recently announced a year-long closure of a distillery due to decreased demand and excess inventory. Other companies are taking drastic steps, like Phillips Distilling Co., which is shifting production of its Sour Puss liqueur to Canada to circumvent trade barriers.
While Ford is currently focused solely on Crown Royal, the situation highlights a growing tension in the alcoholic beverage industry, fueled by trade pressures and the strategic decisions of global corporations. The future of other Diageo brands on Ontario shelves remains uncertain.
Interestingly, despite the Crown Royal controversy, Ontario has seen a substantial 76% increase in wine sales, benefiting both large and small wineries within the province. This suggests a potential shift in consumer preferences as the dispute unfolds.
