Canada, ON: Diageo pays US$17m to ward off province-wide boycott

Diageo has succeeded in avoiding a threatened boycott of its Crown Royal Canadian whisky brand in Ontario, pledging to spend CAD23m (US$16.9m) on its operations in the province, Global Drinks Intel reported on February 17.

The threat had initially arisen after the brand owner announced plans six months ago to close a bottling unit in Amherstburg in Ontario. The closure, scheduled for this month, drew the ire of Premier Doug Ford, who just over a month later warned Diageo that the province’s alcohol retail monopoly, the Liquor Control Board of Ontario, would pull Crown Royal from its shelves should the termination proceed.

Established in 1927, the LCBO is one of the largest buyers and retailers of beverage alcohol globally.

In a statement late last week, the Ontario Government detailed an agreement reached with Diageo “following months of discussions”. Almost half (CAD11m) of the CAD23m pledged by Diageo will go towards purchasing “grain neutral spirits manufactured by Greenfield Global in Johnstown, supporting local production in eastern Ontario”. A further CAD5m will be spent on marketing and promotion within the province.

“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,” said Ford.

When contacted subsequently by Global Drinks Intel, a spokesperson for Diageo added: “We thank Premier Ford and his team for their exceptional leadership and collaboration in reaching this resolution. Diageo is pleased that Crown Royal … will remain on the shelves of the LCBO and we remain committed to Ontario through our significant investment in the province.”

Having posted a flat sales performance from its fiscal first quarter – to the end of September – three months ago, Diageo will release figures for Q2 and the first half of fiscal 2026 on February 25.

18 February, 2026