The situation surrounding Premier Doug Ford's decision to remove Crown Royal from the shelves of the LCBO has proven to be far more intricate than he initially anticipated. What began as a gesture of disapproval towards a whisky company for relocating jobs out of Ontario has transformed into a complex narrative about the challenges of reversing trade decisions.
This conflict involves Diageo, the British company that produces Crown Royal whisky, and it originated in Ontario last summer, ultimately affecting regions in Manitoba and Quebec as well. Now, months later, Ontario is on the verge of banning Crown Royal from its liquor stores, with tensions continuing to escalate. Let’s break down how this all unfolded.
Crown Royal, a brand that debuted in 1939 under the leadership of Seagram president Edgar Bronfman to honor the royal visit from King George VI and Queen Elizabeth, quickly became a symbol of Canadian heritage. Its distinct packaging—a regal purple bag adorned with gold stitching—made it easily recognizable. However, it wasn't until 1960 that this blended whisky was made available for purchase in the United States. In 2000, Diageo acquired Seagram’s beverage division, which included Crown Royal, and since then, the brand has thrived, even earning the title of Whisky of the Year in 2015.
In August, Diageo announced it would close its bottling plant in Amherstburg, Ontario, relocating operations to the U.S., a move that threatens approximately 200 jobs. Although this decision coincided with tariff threats from then-President Donald Trump, Diageo insisted that the change was necessary to enhance the efficiency and resilience of its supply chain, rather than being a direct result of tariffs. They reassured the public that the whisky would still be produced in Canada through mashing, distilling, and aging processes.
Premier Doug Ford expressed his outrage shortly after the announcement, making headlines by dramatically pouring out a bottle of Crown Royal in front of reporters. He criticized Diageo’s decision, claiming it was a foolish move given that Ontario represents their largest customer in North America, generating around $740 million in business annually. In the heat of the moment, he even mentioned the possibility of pulling Crown Royal from LCBO shelves, although he indicated this wouldn’t happen until after the plant closure in February.
However, it soon became clear that removing Crown Royal from Ontario’s shelves in solidarity with local workers is fraught with complications. While the whisky is indeed blended and bottled in Ontario, the initial distillation and mashing occur in Manitoba. This has led to criticism from a Manitoba MLA, who argued that Ford’s actions could threaten jobs in her province. Manitoba Premier Wob Kinew also weighed in, urging Ford not to harm their workers while trying to penalize Diageo. Kinew emphasized the importance of unity across Canada, stating, "I’m asking you to reconsider because this is about sticking together as Team Canada."
Additionally, Quebec plays a significant role in this story as well. Diageo has confirmed that Crown Royal intended for markets outside of the U.S. will still be bottled at their facility in Valleyfield, Quebec. Recently, Quebec Finance Minister Eric Girard expressed concern about how a potential ban on Crown Royal could adversely affect employment in Quebec.
Despite the complexities, Ford reiterated his intent to follow through with the ban, expressing excitement about taking such action. He predicts that while Diageo may maintain some operations in Canada for now, it’s likely they will eventually relocate everything to the U.S. to comply with Trump’s demands. Ford has claimed that Ontario is exploring "new opportunities" for the workers in Amherstburg, although union representatives noted that many have already secured new employment.
Interestingly, Ford has softened his stance slightly, suggesting he is willing to negotiate with Diageo if they can present a plan that would retain jobs in Ontario. He stated, "Show me a plan that’s going to replace those jobs, and then we’re good," highlighting the long-standing impact of the distillery in a community that has been linked to the whisky for over a century.
As it stands, if Diageo fails to provide a satisfactory strategy by February, Ontario will proceed with the removal of Crown Royal from LCBO shelves. Ford concluded by pointing out that there are other whisky manufacturers in Ontario that actively employ local workers, suggesting a shift in focus towards supporting them instead.
