Diageo Investing $191M in Carbon Neutral Distillery

Canadian spirits manufacturer and distributor Diageo is committing CAD$245 million (about $191 million) to open a new carbon neutral distillery in Canada. Located in St. Clair Township, ON, the facility has a planned capacity of 20 million LAAs/yr of Crown Royal Canadian Whiskey brand products. Blending and warehouse operations will also be housed on the 400-acre site.

“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,” Perry Jones, president, North American Supply for Diageo, said in a release. “We celebrate such a significant milestone for our Crown Royal brand, our North American operations, and global footprint.”

Work on the site is slated to begin in the second half of 2022 and commence operations in 2025. Featuring resource efficiency technologies, the distillery will operate on 100% renewable energy.

“Crown Royal is the heart of our whiskey business, as the most valuable whiskey brand. It’s critical when we extend our footprint, that we are committed to creating a more sustainable world,” said Sophie Kelly, senior vice president, Whiskies for Diageo, in a statement. “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 whiskey brand that leads innovation in the industry.”

Diageo currently operates three distilleries in Canada. Over the past three years, the firm has invested about CAD$75 million to improve its manufacturing footprint in the country.