Diageo is the largest alcohol producer in the world and owns well-known brands such as Crown Royal, Johnnie Walker, Guinness, Baileys, and Captain Morgan. Today, the company has made news with plans to shut down its Amherstburg bottling plant. Because of this fateful decision, next year they will lose about 200 jobs. Its greatest impact will be on the local trained workforce.
In a written announcement, the company said part of its decision was based on moving more operations to the U.S. This latest relocation, which is intended to improve the efficiency of their supply chain, has worried local officials and employees. Diageo’s decision was based on its desire to cut costs overall with continuing difficult market conditions.
Impact on Local Employment
We know that the closure of the Amherstburg facility is a painful blow to that local community. Diageo has committed to working with Unifor, the union representing affected workers, and local officials to support employees during this transition period. The company understands this urgency and the need to provide sound technical assistance and resources to the communities, workers and employers affected by these job losses.
Local leaders have voiced their dismay at the automaker’s decision and stressed how critical these jobs are to the Amherstburg economy. With the loss of so many employment opportunities, what does this mean for their community in the long-term?
Crown Royal’s Market Position
With Crown Royal regularly ranking as one of the top-selling whiskies in the LCBO, it’s an important brand for Diageo’s portfolio. The brand’s popularity in Ontario has contributed significantly to the company’s overall sales. With the closure of their bottling facility, this often relatively localized product might become scarce in the region.
It is clear that Diageo still has a powerful chokehold on the alcohol industry. Their move away from operations will change how and where — and, most importantly, what supply of their flagship brands. The company’s decision to streamline its operations reflects broader trends within the industry as companies adapt to shifting consumer demands and economic challenges.
Government Response
Ontario Premier Doug Ford has blasted Diageo’s choice. He called out the importance of holding big companies accountable and raised a flag on their harm and disruption delivered to local communities.
“These large corporations are going to be held accountable,” – Doug Ford
Ford hinted at further scrutiny regarding other popular brands owned by Diageo, stating, “Then we’ll look at Smirnoff. Smirnoff’s next. That’s what happens when you try to undermine the people of Ontario.”
