Diageo to Close Dorval, Quebec Bottling Plant

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.

23 Oct 2009 --- DIAGEO announced that it will be closing its Dorval bottling plant in Quebec in late February 2010 and moving production to a third party. This decision has been made as part of a thorough and careful 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.

"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," stated Mario Leduc, Vice President Canada, Bottling.

Production will be moved to Delta Beverages in Woodbridge, Ontario. "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," commented Mr. Leduc.

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

Diageo Canada Inc has wholly owned supply facilities in Valleyfield, Quebec, as well as in Amherstburg, Ontario and Gimli, Manitoba. Diageo also produces through third party agreements in Quebec, British Columbia, Alberta and New Brunswick.