Diageo to open new Crown Royal Canadian Whisky distillery

Diageo is set to build a CA$245 million carbon-neutral distillery in Canada to support the growth of its Crown Royal Canadian Whisky brand.

The new facility in St. Clair, Ontario will have capacity to produce up to 20 million litres of alcohol annually (equivalent to 10.5 million proof gallons). As well as a distillery, the 400-acre site will include blending and warehouse operations.

In-keeping with Diageo's "Society 2030: Spirit of Progress" sustainability action plan, the distillery will use resource-efficient technologies, will operate with 100 per cent renewable energy, and will send zero waste to landfill from its direct operations. Construction is anticipated to begin in the second half of 2022 and the distillery is expected to be operational by 2025.

Crown Royal Canadian Whisky is the world's top-selling Canadian whisky brand, and North American's most valuable whisky brand. In the first half of its 2022 fiscal year, Diageo says Canadian whisky contributed 7 per cent of its global net sales and Crown Royal grew by 12 per cent.

Sophie Kelly, Diageo North America's senior VP of whiskies, said: "Cornw Royal is the heart of our whisky business, as the most valuable whisky brand. It's critical when we extend our footprint that we are committed to creating a more sustinable world.

"We are thrilled by this new world-class distillery. It will enable use to drive momentum to 2030 and beyond to elevate Crown Royal as a best-in-class whisky brand that leads innovation in the industry."

Perry Jones, president of North America supply for Diageo, 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."

Diageo currently has three production facilities across Canada - in Ontario, Manitoba, and Quebec - and employs approximately 700 people in the country. Over the last three years, the company has invested around CA$75 million at these facilities on new technologies and sustainability improvements.

The announcement of a carbon-neutral distillery for Crown Royal comes after Diageo opened its first carbon-neutral whiskey distillery in North America in Lebanon, Kentucky, to support the growth of Bulleit Bourbon.

10 March 2022 - Bethany Whymark