Canada, ON: Diageo pauses plans for Ontario whisky distillery

An international company that announced plans two years ago to build a C$245-million whisky distillery in St. Clair Township has told municipal officials the project has been paused, London Free Press reported on November 20.

Diageo, a multinational beverage alcohol company, initially said the site near Sarnia would start making Crown Royal Canadian whisky brand by 2025.

Later, the company said the project would be built in stages, beginning with warehouses and a substation on about 161 hectares (nearly 400 acres) of industrial-zoned land on Moore Line near Highway 40, across from Nova Chemicals’ Moore Site.

St. Clair Township Mayor Jeff Agar said municipal officials spoke last week with company representatives during an online meeting about the project.

“They just said they’re going to pause it for a bit,” he said. “They didn’t say they weren’t going to do it.”

Diageo officials issued a statement Wednesday morning about the change of plans.

“Given the dynamic nature of our broader business and our emphasis on productivity, we have decided to pause the development of our facility in Lambton County’s St. Clair Township,” the statement read. “We will be revisiting plans and timeline at a later date, as part of our regular review of investments and priorities across our supply chain footprint.”

The company didn’t say how long the pause might last, Agar said.

“That’s up to them,” he said. “It’s their business.”

Initially, the company said the site would include a distillery and blending facilities, along with warehouses expected to employ “dozens” of workers, to supplement its existing Canadian manufacturing operations in the Essex County community of Amherstburg, Gimli, Man., and Valleyfield, Que.

In a May update, Diageo said it remained “committed to our investment and developing our operations in Lambton County’s St. Clair Township,” but “based on the evolving nature of our broader business and a focus on productivity, we have planned on building the new facility through several stages.”

The company had selected a contractor for the initial phase to build warehouses and a substation, Agar said, and work with the municipality on a site plan was progressing when the pause was announced.

“Sure, I’m disappointed they’re not starting now, because I assumed all along, they were going to be,” he said. “It’s just one of those things.”

Agar said he spoke frequently with company representatives and until last week, “they were always full speed ahead.”

Currently, the company plans to retain the property in the township.

“That’s a good sign,” Agar said. “I don’t see a for sale sign out there.”

The mayor said work will continue to attract more jobs to the community, already home to a refinery and several chemical manufacturing sites, including a recently completed $2.5-billion project by Nova Chemicals to build a new polyethylene manufacturing site on Rokeby Line (it’s third in the township) and expand its Corunna Site.

“St. Clair moves on,” Agar said.

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