Spirits maker Diageo will cease operations at its bottling facility in Amherstburg, Ont., early next year, as it shifts some bottling volume to the U.S., the company announced on Thursday.
The facility, which bottles Crown Royal products, will close in February in a move aimed at improving its North American supply chain.
About 200 jobs will be affected.
“This was a difficult decision, but one that is crucial to improving the efficiency and resiliency of our supply chain network,” Marsha McIntosh, Diageo’s president of North America supply, said in a statement.
Diageo said it will engage with the community and find ways to support its employees through the transition, and work alongside Unifor to assist unionized workers.
Union officials said the decision to close the plan makes no sense and shows no loyalty to Canadian workers.
“Diageo did not have the decency or dignity to talk to the union or its members prior to announcing this closure publicly, knowing how unpopular this decision will be in the region, in a province that continues to boycott American liquor, and in a country determined to protect jobs here at home,” said Unifor National President Lana Payne, who added they will be fighting to save the 170 union jobs at the plant.
“This company will be talking to Unifor and to these workers—the easy way, or the hard way.”
The company said it will still maintain a “significant” footprint in Canada — including its headquarters and warehouse operations in the Greater Toronto Area, and bottling and distillation facilities in Manitoba and Quebec.
McIntosh added the company’s Crown Royal products will continue to be mashed, distilled and aged at its Canadian facilities.