$245-million Crown Royal distillery being built in St. Clair Township

A new multi-million dollar Crown Royal plant is set to be built in St. Clair Township.

Global beverage alcohol leader Diageo announced plans on Wednesday, March 9, 2022 for a new $245-million distillery to support momentum and growth ambitions for its Crown Royal Canadian Whisky brand.

Company officials say the facility, with capacity to produce up to 20 million LAA’s (litres of absolute alcohol, the equivalent to 10.5 million proof gallons) annually, will sit on approximately 400 acres in Ontario’s St. Clair Township, and includes a distillery, as well as blending and warehousing operations.

“We are excited about Diageo’s plans to invest in St. Clair Township and to bring positive economic impact to our community,” stated Steve Arnold, Mayor of St. Clair Township, in a media release.

“The company’s commitment to building a carbon neutral operation is also aligned with our priorities in ensuring a clean environment in the businesses that are in our community.”

Judith Morris, interim CEO for the Sarnia-Lambton Economic Partnership, said they are delighted to welcome Diageo to St. Clair Township.

“This significant investment will be a tremendous fit with the ongoing diversification of the local economy,” stated Morris, in a press release.

“The carbon neutral facility clearly links with the Sarnia-Lambton area’s efforts to attract new investment that aligns with the drive to a zero-carbon economy, while contributing positively to job growth.”

Diageo officials say construction is anticipated to begin in the second half of 2022 and the distillery is expected to be operational in 2025.

Diageo’s ‘Society 2030:Spirit of Progress’ sustainability action plan will shape the design and development of the distillery, company officials say.

It will feature resource efficiency technologies and will operate with 100% renewable energy to ensure the new distillery is carbon neutral and zero-waste to landfill from all direct operations, the company said.

“A low-carbon world is essential for a sustainable future, so I am thrilled to announce our first carbon neutral distillery in Canada as we continue to build momentum in our journey to reach net-zero carbon emissions by 2030,” said Perry Jones, President, North America Supply for Diageo, in a media release.

“We celebrate such a significant milestone for our Crown Royal brand, our North American operations and global footprint.”

Company officials say Crown Royal Canadian Whisky is the No.1 selling Canadian whisky brand in the world and North America’s most valuable whisky brand.

“Crown Royal is the heart of our whiskey business, as the most valuable whisky brand,” said Sophie Kelly, Senior Vice President of Whiskies, Diageo North America, in a media release.

“It’s critical when we extend our footprint, that we are committed to creating a more sustainable world. We are thrilled by this new world-class distillery. It will enable us to drive momentum to 2030 and beyond to elevate Crown Royal as a best-in-class whisky brand that leads innovation in the industry.”

With three production facilities across the country and headquartered in Toronto, Ontario, Diageo employs approximately 700 people in the country and is one of the major producers of spirits in Canada, the company said.

Over the last three years, the company has invested about $75-million to develop some of the most technologically advanced and environmentally sustainable distilleries and production capabilities in Canada.

The new Diageo St. Clair Distillery will supplement the company’s existing Canadian manufacturing operations in Amherstburg, Ontario, Gimli, Manitoba, and Valleyfield, Quebec.

This project will represent a further investment in Canada by Diageo of $245-million, over the next three years.

Once operational, this new facility will provide dozens of jobs in the local community, furthering Crown Royal’s commitment to generosity and giving back, company officials added.

Diageo officials say they are committed to reaching net-zero carbon across its direct operations by 2030, harnessing 100% renewable energy.

The company is also working to achieve net zero carbon across the entire supply chain by 2050 or sooner, with an interim milestone to achieve a 50% reduction by 2030.

As part of this journey, in North America, Diageo announced plans to transition its Valleyfield manufacturing site in Quebec, Canada to become carbon neutral by 2025, and opened its first carbon neutral whiskey distillery in North America in Lebanon, Kentucky, to support Bulleit Bourbon.

On a global scale, three of Diageo’s distilleries in Scotland -Brora, Royal Lochnagar and Oban- have achieved carbon neutrality, and the company announced recently that it is also building a carbon neutral whisky distillery in China, the company said.

Committed to creating a low carbon future with approved science-based targets, Diageo is part of a leading group of organizations that are championing a green recovery and supporting the Sustainable Development Goals, through membership of the United Nations Global Compact, We Mean Business Coalition and other key global advocacy organizations.

Diageo is also a signatory to the global Race to Zero campaign, a commitment to achieving net-zero carbon emissions by 2050.

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