UK – Diageo has announced the suspension of its Crown Royal whiskey distillery project in St. Clair Township, Ontario, Canada.
The project, first unveiled two years ago, was designed to enhance production capacity and support the growth ambitions of the Crown Royal brand.
The new distillery, planned on a 400-acre industrial-zoned site in Southwestern Ontario, was expected to produce up to 20 million litres of absolute alcohol annually, equivalent to 10.5 million proof gallons.
The facility was scheduled to begin operations by 2025, with initial construction focusing on warehouses and a substation.
In a statement issued on November 20, Diageo officials confirmed the project’s delay, citing broader business considerations and a focus on productivity.
“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, as part of our regular review of investments and priorities across our supply chain footprint,” the statement read.
The proposed distillery was expected to employ dozens of workers and would have supplemented Diageo’s existing Canadian operations in Amherstburg, Ontario; Gimli, Manitoba; and Valleyfield, Quebec.
It was envisioned as Crown Royal’s first carbon-neutral facility, incorporating resource-efficient technologies, renewable energy, and zero-waste practices, aligning with Diageo’s Spirit of Progress sustainability action plan.
Despite the pause, Diageo has already invested C$245 million (US$175.6 million) into the project.
The decision follows Diageo’s recent unveiling of the US$120 million YunTuo Single Malt Whisky Distillery in Yunnan Province, China.
Located at 2,100 metres above sea level, the YunTuo distillery leverages its temperate climate and access to pristine natural resources. It operates with 100 percent carbon-neutral technologies, including efficient electric boilers and renewable energy sourcing.
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