Crown Royal whisky and barrels (Photo courtesy of Diageo)Crown Royal whisky and barrels (Photo courtesy of Diageo)
Windsor

Unnamed company seriously considering taking over Diageo plant

Just how serious is a new company about buying the Diageo bottling plant in Amherstburg? Serious enough that negotiations with the Ontario government are already underway.

Amherstburg Mayor Michael Prue said there have been multiple meetings between the company's officials and the Ontario government since Diageo announced last summer its intention to shutter the facility in February.

The announcement came as a shock to municipal and provincial officials. The plant is Amherstburg's biggest employer with 168 unionized employees. Ford responded by threatening to remove Diageo products from LCBO shelves the day the facility closes.

Prue refused to name the company, stating that revealing its identity could jeopardize talks. He did not disclose whether the company is Canadian, but indicated that it may be a new beverage producer in Ontario.

"We have met with them. We have shown them the site. We have introduced them to provincial officials. We have introduced them, through the Premier's office, to Invest Ontario. We have done everything we can and they're very, very interested in coming," said Prue.

So far, two challenges have surfaced. First, the company, which makes both alcoholic and non-alcoholic beverages, would need to be listed with the Liquor Control Board of Ontario to sell its products in the province.

"That sometimes takes years to get," said Prue. "For them to come, they would need the listing almost immediately, or at least by January or February, in order to keep the workers going."

The second is that Diageo hasn't committed to selling the Amherstburg facility. Prue identified that as a sticking point in negotiations.

Earlier this month, Premier Doug Ford told reporters three companies were interested in the plant.

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