Diageo announces new carbon neutral Crown Royal Distillery in Canada

New facility will be the first original carbon neutral distillery for Diageo in the country

Feature

Diageo has announced plans for a new CAD$245 million distillery to support momentum and growth ambitions for Crown Royal Canadian Whisky. 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.

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

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

Perry Jones
Perry Jones

President, North America Supply for Diageo

Crown Royal Canadian Whisky is the No.1 selling Canadian whisky brand in the world and North America’s most valuable whisk(e)y brand[1]. The growth of the brand has been driven by people’s love for the flavor of Canadian whisky and the right innovation, which introduces new whisky experiences to different consumers. Canadian whisky contributed 7% of Diageo’s global net sales and Crown Royal grew 12% in the first half of fiscal F22[2].

“Crown Royal is the heart of our whisk(e)y business, as the most valuable whisky brand. 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.”

Sophie Kelly
Sophie Kelly

Senior Vice President of Whiskies, Diageo North America

“Crown Royal has called Canada home for more than eight decades and Diageo has proudly increased investment here in recent years to allow for the development of some of the most technologically advanced and environmentally sustainable distilleries and production capabilities in Canada. Diageo is excited to be expanding our footprint in Canada, and contributing to the community of Ontario.”

Jodi Rumble
Jodi Rumble

General Manager, Diageo Canada

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

In 2021, Diageo announced plans to transition its Valleyfield manufacturing site in Quebec, Canada to become carbon neutral by 2025. Diageo is 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.

[1] Source: IWSR CY20

[2] Diageo preliminary results, for half ending 12/31/21 https://www.diageo.com/PR1346/aws/media/13940/diageo-interim-results-press-release-f22.pdf