Diageo to Build Carbon Neutral Crown Royal Distillery in Canada

The new CAD$245 million (about $191 million US) will be able to produce up to 20 million liters of absolute alcohol, equivalent to 10.5 million proof gallons, a year.  It will occupy 400 acres in St. Clair Township, Ont. , and will include blending and warehouse operations.

Diageo’s ‘Society 2030:Spirit of Progress‘ sustainability action plan will shape the design and development of the distillery. It will feature resource efficiency technologies and will operate with 100% renewable energy to ensure the new distillery is carbon neutral and zero-waste to landfill from all direct operations.

The new Diageo St. Clair Distillery will supplement the company’s existing Canadian manufacturing operations in Amherstburg, Ontario, Gimli, Manitoba, and Valleyfield, Quebec. This project will represent a further investment in Canada by Diageo of CAD$245 million, over the next three years. Once operational, this new facility will provide dozens of jobs in the local community, furthering Crown Royal’s commitment to generosity and giving back.

“A low-carbon world is essential for a sustainable future, so I am thrilled to announce our first carbon neutral distillery in Canada as we continue to build momentum in our journey to reach net-zero carbon emissions by 2030,” said Perry Jones, President, North America Supply for Diageo. “We celebrate such a significant milestone for our Crown Royal brand, our North American operations and global footprint.”

Crown Royal Canadian Whisky is the No.1 selling Canadian whisky brand in the world and North America’s most valuable whisk(e)y brand, according to ISWR. The growth of the brand has been driven by people’s love for the flavor of Canadian whisky and the right innovation, which introduces new whisky experiences to different consumers, Diageo says.  These innovations include Crown Royal Apple and rare, high-end luxury offerings like the recently released Crown Royal 18. Canadian whisky contributed 7% of Diageo’s global net sales and Crown Royal grew 12% in the first half of fiscal F222.

“Crown Royal is the heart of our whisk(e)y business, as the most valuable whisky brand. It’s critical when we extend our footprint, that we are committed to creating a more sustainable world,” said Sophie Kelly, Senior VP of Whiskies, Diageo North America. “We are thrilled by this new world-class distillery. It will enable us to drive momentum to 2030 and beyond to elevate Crown Royal as a best-in-class whisky brand that leads innovation in the industry.”

Diageo is committed to reaching net-zero carbon across its direct operations by 2030, harnessing 100% renewable energy. The company is also working to achieve net zero carbon across the entire supply chain by 2050 or sooner, with an interim milestone to achieve a 50% reduction by 2030.

As part of this journey, in North America, Diageo announced plans to transition its Valleyfield manufacturing site in Quebec, Canada to become carbon neutral by 2025, and opened its first carbon neutral whiskey distillery in North America in Lebanon, Kentucky, to support Bulleit Bourbon. On a global scale, three of Diageo’s distilleries in Scotland -Brora, Royal Lochnagar and Oban- have achieved carbon neutrality, and the company announced recently that it is also building a carbon neutral whisky distillery in China.

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