Diageo To Invest $190 Million In New Crown Royal Distillery

Diageo has announced plans to build a new C$245 million ($190m) distillery in Canada for Crown Royal. The facility will have capacity of 10.5 million proof gallons annually, and will sit on approximately 400 acres in Ontario’s St. Clair Township. The site will include blending and warehousing operations in addition to the distillery. The carbon-neutral distillery will operate with 100% renewable energy and contribute zero-waste to landfill from all direct operations.

According to Impact Databank, Crown Royal had U.S. volume of 7.3 million cases last year, including its flavored whiskies, and has been one of the fastest-growing brands in the spirits category over the past half-decade, during which it has tacked on about 1.6 million cases. It’s also one of only three spirits brands—the others being Hennessy and Tito’s—with U.S. retail value of above $2 billion annually.

Canadian whisky contributed 7% of Diageo’s global net sales and Crown Royal grew 12% in the six months through December. The new Diageo St. Clair Distillery will supplement the company’s existing Canadian manufacturing operations in Amherstburg, Ontario; Gimli, Manitoba; and Valleyfield, Quebec. Construction is expected to begin in the second half of this year, with the distillery expected to be operational in 2025.—Daniel Marsteller

Tagged : Crown Royal, Diageo

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