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Canada: Diageo to close RTD bottling plant

23 October, 2009

Diageo is to close its Dorval bottling plant in Quebec in late February 2010 and move production to a third party.

This decision has been made as part of a review of the company's supply chain. A total of 65 employees will be affected by the closure.

Since 2003, the Dorval facility has bottled Smirnoff Ice, Smirnoff Ice Triple Black and Smirnoff Twisted V Flavors for Diageo's Ready-to-Drink (RTD) portfolio.

Mario Leduc, vice president Canada, bottling, said: "We are constantly reviewing our supply chain and looking for opportunities to drive greater cost efficiencies and effectiveness, while maintaining our commitment to the highest quality products. This is a tough business decision, but one that will help Diageo remain highly competitive in a declining but profitable RTD segment in Canada and help ensure the long-term sustainability of the business and jobs for the future.

Production will be moved to Delta Beverages in Woodbridge, Ontario.

Leduc said: "This will increase efficiencies and significantly lower costs in our supply chain while continuing to maintain our high-quality standards for Diageo's core line of Ready-to-Drink beverages.

"We will be providing counseling and reclassification/outplacement services to our employees to support them during these changes."