Interlake-Gimli MLA Derek Johnson is concerned the Crown Royal whisky war brewing in Ontario could negatively affect Canadian unity and is calling for Ontario and Manitoba to work together on a compromise solution.
Interlake-Gimli MLA Derek Johnson (right) toured the Diageo distillery about three years ago
In response to U.S. president Donald Trump’s tariff and trade war, and an August announcement made by alcoholic drinks-maker Diageo about moving its Amherstburg, Ont., bottling plant to America, Ontario Premier Doug Ford promised last fall to remove Crown Royal whisky from the Liquor Control Board of Ontario (LCBO), Canada’s largest alcohol retailer, and added that Diageo is jeopardizing $740 million worth of business with the LCBO.
Ford reiterated his promise last week, saying “100 per cent I am” and that he “can’t wait” when asked if he was still intending to remove Crown Royal when the Amherstburg plant closes at the end of February and about 200 Ontarians lose their jobs.
“You better stock up there, buddy,” Ford told a reporter.
Crown Royal is made in Gimli at the Diageo distillery.
Johnson says he can appreciate the pain Ontarians will feel when they lose their jobs at the bottling plant next month and “understands where Doug Ford is coming from,” but he says removing Crown Royal from LCBO shelves will create interprovincial trade barriers at a time when Canadian provinces and territories should be forming a united front in the face of economic threats from America.
“It will have a ripple effect. It won’t shut down Diageo [in Gimli] by any means. But the Ontario government is the largest purchaser of liquor in Canada, and it has buying power. Ford’s keeping one product off the shelf that’s actually made in Canada seems a little ridiculous,” said Johnson. “We as the [Manitoba] Progressive Conservative party hope that Doug Ford will get together will other leaders across the country … and they could, collectively, discuss taking Diageo products that aren’t made in Canada off the shelf because the last thing we want right now are interprovincial trade wars. I think our goal should be to break down trade barriers within our country and, quite frankly, put Canada first.”
Johnson said he had suggested a few weeks ago that Diageo products made in other regions around the world such as Asia-Pacific and in countries such as the U.S., Scotland, China, Ireland and Mexico could be taken off liquor shelves rather than Crown Royal, which supports Interlake jobs. And Manitoba PC leader Obby Khan had written to Ford a few weeks after the Ontario premier promised (in early January) that he’d follow through on removing Crown Royal, but the PCs had not received a response, as of Jan. 14 when Johnson spoke with the Express.
Johnson said Manitoba Premier Wab Kinew reiterated his suggestion after touring the Crown Royal distillery in Gimli last week.
Diageo decided to close the Ontario bottling plant to improve efficiency, its North American supply chain and to ensure the company is best positioned for long-term sustainable growth, according to a Aug. 28, 2025, news release. It’s distillation plant in Gimli will not be affected.
“Crown Royal will continue to be mashed, distilled and aged in Canada, just as it has been since 1939,” states the release. “Diageo will maintain its significant footprint across Canada, including at our Canadian headquarters and warehouse operations in the Greater Toronto Area and other bottling and distillation facilities in Gimli, Manitoba, and Valleyfield, Quebec.”
Diageo has over 200 brands and sales in about 180 countries, according to its website. In addition to Crown Royal, brands made by the company include Tanqueray, Captain Morgan, Smirnoff, Johnnie Walker and Guinness.
The company’s 2025 annual report says the “macroeconomic and geopolitical environment continues to be challenging for the total beverage alcohol industry …. [and that] over the past two years, consumer wallets and confidence have been under sustained pressure.” Compared to 2024, Diageo reported lower profits and earnings per share.
The Ontario premier said earlier this month that Diageo’s promise to keep its other operations in Canada going was a “bunch of BS.”
“It’s all going to Alabama. Mark my words, it’s going to Alabama,” Ford was quoted as saying.
Although it’s reassuring the London-based company has so far said it’s not upping sticks in Gimli, Johnson said there’d be a lot at stake should that change and Diageo decided to close the distillery on the northern outskirts of town.
Not only is Crown Royal a part of “Gimli and the Interlake’s identity,” but it also supports the economy in town and beyond.
“[The distillery] provides jobs in the Gimli community. We have families earning a paycheque. Plant employees spend their money in the community and that creates other jobs,” said Johnson. “The ripple effect [of the plant closing] would go a lot further than the jobs at the distillery. It would also affect boilermakers that come to work there once a year [for maintenance], electricians and Interlake farmers who produce the rye that goes into making the best whisky in the world.”
The plant ships whisky by rail, which supports that industry and also supports the trucking industry, which delivers rye and other supplies, he added.
“We can’t be cutting off our nose to spite our face. We need to work on this as unified front, putting Canada first so that we protect Canadian jobs and attract investment in Canada — and Manitoba as well,” said Johnson. “And we need to support our workers who are still working in this country and not jeopardize their livelihoods through interprovincial boycotts.”
Also reassuring, he said, is Diageo’s plan to invest $19 million into the Gimli distillery to replace its natural gas boilers with electric systems in order to operate on 100 per cent renewable electricity. Manitoba Hydro is providing a new 20-kilometre transmission line from a hydro station near Fraserwood.
The project is anticipated to start in 2027.
