Amherstburg whisky plant unaffected by Diageo’s $245M expansion pause — union

Alcoholic beverage giant Diageo’s decision to pause plans to build a $245-million whisky distillery near Sarnia won’t have any impact on the company’s Amherstburg operations, says the head of the union representing workers there.

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“I talked with them (Diageo management) Friday about the Sarnia decision, so no, not at all now,” Unifor Local 200 president John D’Agnolo said of having any concerns about potential impacts to the Amherstburg plant.

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Diageo’s Amherstburg plant handles Seagram’s Crown Royal and the various flavoured versions of that rye whisky.

“They (Diageo) are doing the opposite here. They’re creating more jobs in the area,” D’Agnolo told the Star. “They’ve called back anyone who was on layoff from a couple years ago.

“They hired some more people not that long ago. They’re doing well. They can’t keep Blackberry Crown Royal (introduced in March) on the shelves.”

The Star reached out to Diageo, but company officials were unavailable for comment.

In a statement Nov. 20, the multinational company said that, “given the dynamic nature of our broader business and our emphasis on productivity, we have decided to pause the development of our facility in Lambton County’s St. Clair Township. We will be revisiting plans and timeline at a later date.”

The company’s plans for that site included a distillery and blending facilities, along with warehouses, to supplement its existing Canadian manufacturing operations, including Amherstburg’s.

D’Agnolo, whose local represents Diageo workers in Amherstburg, said the plant there now has more than 50 employees.

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After receiving the alcohol from Seagram’s Gimli, Man., distillery, the Amherstburg employees do all the final mixing, packaging and shipping of the Crown Royal products.

Diageo is one of the largest alcoholic beverage companies in the world, with over 30,000 employees at 132 production facilities around the globe making 200 brands. In addition to Seagram’s Crown Royal, among the company’s brands are such well-known names as Johnny Walker, Hennessy, Bailey’s, Guinness, Smirnoff, Captain Morgan, Tanqueray, Bulleit and Don Julio.

D’Agnolo said since the COVID pandemic Crown Royal products have performed very well for Diageo.

Like much of the distilling industry, Diageo is still facing some materials challenges in the supply chain, he said. Glass bottles, materials to make the caps and even shortages of sugar have been common for the world’s distillers.

“They’re the biggest handlers of alcohol beverages in the world and are doing very well,” D’Agnolo said.

“I know there had been talk of taking Crown Royal global because it’s not global right now. It would’ve meant more sales and more workers.

“I’m not sure if those material shortages didn’t make the time right. The detail of the decision they didn’t share with me.”

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