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Dispute over whisky plant closure tests provincial relations
A feud between Ontario and Manitoba over the relocation of a whisky bottling plant is exposing cracks in Canada's united front against US trade barriers. The conflict centers on Diageo, a British-owned distiller, which plans to shut its Ontario facility and shift operations closer to American markets.
Ontario's fiery response to Diageo's decision
In August, Diageo announced it would close its Amherstburg bottling plant in Ontario by February, ending five decades of local production. The company cited supply chain efficiencies as the reason for moving operations, with plans to relocate Canadian and non-US bottling to a Quebec facility near Montreal.
Ontario Premier Doug Ford reacted with outrage, publicly emptying a bottle of Crown Royal whisky during a press conference. He accused Diageo's owners of being "dumb as a bag of hammers" and vowed to retaliate by removing Crown Royal from provincial liquor stores-Ontario's Liquor Control Board is the largest alcohol wholesaler in North America, and Crown Royal is its top-selling whisky.
Ford later speculated that Diageo would eventually move operations to Alabama, though the company has not confirmed such plans. His combative stance has drawn praise from Unifor, the union representing 200 workers at the Amherstburg plant, whose jobs are now at risk.
Manitoba urges de-escalation to protect local jobs
Manitoba Premier Wab Kinew, whose province hosts a Crown Royal distillery in the town of Gimli, has urged Ford to reconsider. The Gimli plant employs hundreds and is a cornerstone of the community, which has a population of just 2,300. Kinew warned that Ontario's boycott could harm Canadian workers beyond its borders, noting Diageo employs over 500 people nationwide, including 100 in Ontario outside Amherstburg.
"Let's not take action that would harm other Canadian workers, and let's focus on being united. We have no shortage of economic challenges with US and Chinese tariffs."
Manitoba Premier Wab Kinew
Kinew, who holds the highest approval rating of any Canadian premier, visited the Gimli distillery on Tuesday to underscore the stakes. He invited Ford to Manitoba for a hockey game between Toronto and Winnipeg, framing the dispute as a distraction from broader trade tensions. Ford declined the invitation but maintained a cordial relationship with Kinew.
Trade wars and political posturing
Ford's aggressive stance aligns with his reputation as a vocal critic of US tariffs, earning him the nickname "Captain Canada" among supporters. His past actions include banning American liquor from Ontario stores in retaliation for trade levies-a move that irked the Trump administration and derailed trade talks. A recent Ontario-funded anti-tariff ad on US television further strained relations.
However, Ford's tactics have faced criticism. The United Food & Commercial Workers, representing Diageo employees outside Ontario, condemned his boycott as a "stunt" that threatens Canadian jobs. Kinew echoed this concern, emphasizing the need for unity amid economic pressures from US and Chinese trade policies.
What's next for Crown Royal and provincial relations
With Diageo's Ontario plant set to close in February, the fallout remains uncertain. Ford has not indicated plans to reverse his boycott, while Kinew remains "optimistic" about a resolution. The dispute highlights the delicate balance between provincial interests and a cohesive national response to trade challenges.
