Diageo has averted industrial action at its Crown Royal distillery in Canada.

A spokesperson for Diageo North America confirmed to just-drinks today (1 February) that a strike, which was threatened by workers at Crown Royal last week, will now not take place. "We came to an agreement (with the workers)," the spokesperson said.

Although the spokesperson could not give specific details of the agreement, she added: "We worked toward a mutually-agreeable contract. There will be no strike. The issue has been settled."

Workers at the Crown Royal plant, based in Gimli, Manitoba, last week voted in favour of a strike if their contract demands were not met. The facility is the only production source for the Canadian whisky, and workers' leaders had warned that any industrial action would hit the UK drinks giant's bottom line.

Agreement was reached, however, when the two sides met on Monday (30 January). The strike had been scheduled for today.