Diageo to maintain significant footprint across Scanda

Diageo to maintain significant footprint across Scanda

Diageo plc, a global leader in beverage alcohol, has announced strategic changes to enhance the resiliency of its North American manufacturing operations. The company, which produces a wide range of spirits, beers, and wines, has decided to cease operations at its bottling facility in Amherstburg, Ontario by February 2026 [2]. This facility, which currently bottles Crown Royal products, will see its production transferred closer to its many U.S. consumers.

The decision to shut down the Amherstburg facility is part of Diageo’s ongoing effort to improve the efficiency and resiliency of its supply chain. While the facility will be closed, Crown Royal will continue to be mashed, distilled, and aged in Canada, ensuring the product's traditional quality remains intact. The company will maintain its significant footprint across Canada, including its Canadian headquarters and warehouse operations in the Greater Toronto Area, as well as bottling and distillation facilities in Gimli, Manitoba and Valleyfield, Quebec [2].

The move aligns with Diageo’s global Accelerate program, which focuses on operational excellence and cost efficiency. This strategic shift aims to unlock additional productivity and increase the company's capacity to meet demand across its markets [2].

Diageo has expressed appreciation for its dedicated Amherstburg employees and has committed to supporting them through this transition. The company will work alongside Unifor to provide assistance for its unionized employees. Additionally, Diageo will continue to invest in Canada, supporting the local economy and contributing to job creation. The company has invested approximately CAD$150 million (USD$109 million) in its production facilities since 2021 [2].

The strategic changes come amidst a backdrop of increased institutional investment in Diageo. In the first quarter of 2025, Partners Capital Investment Group LLP purchased 159,967 shares of Diageo, valued at approximately $4.16 million [1]. Other institutional investors, such as Orion Capital Management LLC and Perkins Coie Trust Co, have also increased their stakes in Diageo, reflecting confidence in the company’s long-term prospects [1].

References:
[1] https://www.marketbeat.com/instant-alerts/filing-partners-capital-investment-group-llp-buys-shares-of-159967-diageo-plc-deo-2025-08-21/
[2] https://www.diageo.com/en/news-and-media/press-releases/2025/diageo-plc-announces-strategic-changes-to-increase-resiliency-of-north-american-manufacturing-operations