Recession Proof, the LCBO's Sales Increase in 2011

By Bizclik Editor

 

The Liquor Control Board of Ontario (LCBO), announced its fiscal 2010-11 earnings on Thursday, a total of $4.55 billion in sales. Transferring a record $1.55 billion to the Ontario government, the LCBO was able to give 9.9 per cent more than the previous year. Clearly, as by LCBO’s successful example during the global recession, the alcohol industry thrives in times of strife.

The LCBO is a provincial government enterprise that employs 7,000 people encompassed in 600 stores in Ontario. Revenue from the LCBO helps pay for health care, education, social programs, infrastructure, and other important Ontario government services.

"The improving economy saw shoppers trading up to premium products again and this contributed to higher net sales," said LCBO President and CEO Bob Peter, in a statement. "Good expense control and inventory management, combined with appealing products and promotions, helped us exceed plan and last year's dividend."

Leading sales were table wines and craft beers. Wine sales rose 6.7 per cent to $1.57 billion with rosé sales increase up 14.7 per cent.

"There's growing interest in buying local products and we're seeing very positive results from our promotional efforts in support of VQA wines and Ontario craft beers," noted Peter.

 

SEE RELATED STORIES FROM THE WDM CONTENT NETWORK:

Click here to read the latest issue of Business Review Canada

So successful, the LCBO was even able to open 19 new stores and carry out major upgrades to 32 others, improvements that attributed to approximately $80 million in additional sales.

For the alcohol industry, it’s clear, when the economy starts to show marginal signs of improvement, consumers spend more on their libations.  

Share

Featured Articles

How Elon Musk pulled off a $44bn hostile takeover of Twitter

As the world’s richest man, Elon Musk, takes over tech giant Twitter, we highlight the timeline that led to this titanic takeover

Amazon, Alphabet, Wells Fargo best workplaces, says LinkedIn

The top 50 workplaces to grow careers prioritise flexible work and tuition-support programs, as top-ranking firms Amazon and Alphabet prove, says LinkedIn

Top 10 women in technology in the US

These 10 women in tech are forging a path into bold areas of innovation and technological ambition, according to sister publication Technology Magazine

8 executive moves to crypto – from mainstream to startup

Technology & AI

Digital Twins tech ‘missing link’ in urban decarbonisation

Technology & AI

The Metaverse Foundry from Infosys is a business playground

Technology & AI