By Robb M. Stewart

Diageo has struck a deal to keep bottles of its Crown Royal whiskey on Ontario shelves, though the closure of a bottling plant in the province is going ahead.

The drinks maker said Friday it had reached a settlement with Ontario Premier Doug Ford and his government that ensures Crown Royal will continue to be sold through Liquor Control Board of Ontario outlets. The agreement involves a commitment from the company to invest almost 23 million Canadian dollars (US$16.9 million) to support the agriculture and alcohol industries in the province, the government said.

Ford threatened to remove Crown Royal from LCBO shelves after Diageo last year said it would close a plant in southwestern Ontario where the Canadian whiskey is bottled, affecting more than 200 jobs. Ford, who has had U.S. wine and liquor pulled from LCBO stores in response to the Trump administration's tariffs on Canadian goods, had pledged to protect workers and during one press conference poured a bottle of the whiskey on the ground to underscore his commitment.

Unionized workers at Diageo's plant in Amherstburg in December ratified a closure agreement that provided enhanced severance pay. About 160 workers had the option to leave the plant immediately or remain until its closure this month.

Diageo's planned investment includes C$500,000 to Invest WindsorEssex for economic development with a focus on Amherstburg and the surrounding area, and C$500,000 to other community projects to support residents of Amherstburg, the government said. The bulk, C$11 million, will be invested in buying grain neutral spirits manufactured by Greenfield Global in Johnstown, supporting local production in eastern Ontario, and another C$3 million will be put toward new ready-to-drink beverages through a Toronto-based co-packer to supply the Canadian market.

"We remain committed to Ontario through our significant investment in the province," a spokesperson for Diageo said.

Crown Royal was first created in 1939 by a Canadian spirits entrepreneur as a gift for the visiting King George VI and Queen Elizabeth. The whiskey is produced in the town of Gimli on the western shore of Lake Winnipeg in the province of Manitoba.

Manitoba Premier Wab Kinew had called on Ford not to follow through on his threat to pull Crown Royal in Ontario's state-run outlets, saying the dispute was pitting one province against another.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

February 13, 2026 14:30 ET (19:30 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.