Why Pulling Crown Royal from LCBO Shelves is More Complicated Than Doug Ford Thought
What began as a symbolic gesture by Premier Doug Ford to express his dissatisfaction with a whisky company's decision to relocate jobs out of Ontario has evolved into a cautionary tale about the challenges of reversing free trade policies. The dispute involving Diageo, the U.K.-based corporation behind Crown Royal whisky, started in Ontario but soon spread to Manitoba and Quebec, highlighting the intricate web of dependencies in the alcohol industry.
Months after the initial conflict, Ontario is now threatening to remove Crown Royal from LCBO shelves, and the verbal sparring continues. Here's a breakdown of how this situation unfolded.
The Alcoholic Beverage
First introduced in 1939 by Edgar Bronfman, then president of Seagram, to commemorate the royal tour of Canada by King George VI and Queen Elizabeth, Crown Royal quickly became a beloved Canadian brand. Its distinctive regal purple bag with gold stitching set it apart, and it wasn't until 1960 that the blended whisky was made available for sale in the U.S.
Seagram's beverage division, including Crown Royal, was acquired by Diageo in 2000, but the brand's success continued. Crown Royal was named whisky of the year in 2015, further solidifying its popularity.
The Decision to Cut Jobs
In August, Diageo announced its intention to close its Amherstburg, Ontario, bottling facility and transfer the work to the U.S., impacting approximately 200 jobs. This move was made amidst U.S. President Donald Trump's tariff threats, although Diageo attributed it to the need for supply chain efficiency.
Diageo assured that the whisky would still be mashed, distilled, and aged in Canada, maintaining its commitment to the country's alcohol production.
The Outburst and the Threat
Premier Doug Ford expressed his outrage at the job cuts, pouring out a bottle of Crown Royal in a public display of his displeasure. He criticized Diageo, stating that the company was making a poor business decision by losing Ontario as its largest North American customer, with annual sales of $740 million.
Ford initially threatened to remove Crown Royal from LCBO shelves, but this decision was contingent on the plant's closure in February. However, the complexity of the situation became apparent when it was revealed that the brand's production process involves both blending and bottling in Ontario and distillation and mashing in Manitoba.
The Backlash and Counterarguments
Manitoba MLA's criticized Ford's threat, arguing that it would jeopardize livelihoods in their province. Manitoba Premier Wob Kinew joined the chorus, urging Ford to reconsider, emphasizing the importance of unity as 'Team Canada'.
Quebec also weighed in, with Finance Minister Eric Girard expressing concern about the potential impact on Quebec workers if Crown Royal were banned from LCBO shelves.
Ford's Stance Softens
Despite his earlier determination, Ford recently softened his stance, offering an olive branch to Diageo. He stated that he would accept a plan to replace the affected jobs in Ontario, but he emphasized the need for a comprehensive solution.
Ford's current position is that Crown Royal will be removed from LCBO shelves in February if Diageo fails to provide a plan to retain labor in Ontario. He believes in supporting local whisky manufacturers in the province.
The Ongoing Debate
The situation continues to evolve, with Ford's threat of a ban on Crown Royal from LCBO shelves raising questions about the impact on workers and the alcohol industry's interconnected nature. The debate surrounding free trade and job protection in Canada remains a complex and contentious issue, leaving many to ponder the best course of action for the affected workers and the whisky industry as a whole.
