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N.S. liquor sales up, taste for beer down
Posted: Wed Jul 20, 2011 12:32 pm
by mr x
Year-end figures show Nova Scotians are buying more wine, spirits and ready-to-drink beverages but their taste for beer seems to have slipped a little.
The Nova Scotia Liquor Corp. has released results for the fiscal year that ended March 31 that show net earnings of $223.2 million on sales of $581.6 million.
That represents an increase in net income of $3.8 million, about 1.7 per cent, compared to last year.
Bret Mitchell, president and CEO, says sales for the 2010-11 year increased by 0.4 per cent overall.
However, he says they were able to control costs and improve margins.
Wine sales rose by 5.2 per cent and spirits were down by 0.2 per cent, while beer dropped by one per cent and sales of ready-to-drink beverages were up 0.1 per cent.
Wholesale business with restaurants, pubs and bars declined by 1.7 per cent to $104.3 million.
http://thechronicleherald.ca/Front/9021500.html" onclick="window.open(this.href);return false;
I'd like to know if they do a breakdown of the craft beer market vs. BMC.
Re: N.S. liquor sales up, taste for beer down
Posted: Wed Jul 20, 2011 12:35 pm
by Jimmy
I'd like to think sales were down because more people are buying craft beer.

Re: N.S. liquor sales up, taste for beer down
Posted: Wed Jul 20, 2011 12:38 pm
by CorneliusAlphonse
they were able to "improve margins", aka raise prices without paying the producers anything more
Re: N.S. liquor sales up, taste for beer down
Posted: Wed Jul 20, 2011 12:52 pm
by andrewtrsmith
CorneliusAlphonse wrote:they were able to "improve margins", aka raise prices without paying the producers anything more
The figures in the article suggest a gross margin of appx 38% which is nuts!
Re: N.S. liquor sales up, taste for beer down
Posted: Wed Jul 20, 2011 2:55 pm
by LiverDance
I wonder is the improved margins has anything to do with more people buying craft vs. bmc?
Re: N.S. liquor sales up, taste for beer down
Posted: Wed Jul 20, 2011 5:58 pm
by derek
andrewtrsmith wrote:
The figures in the article suggest a gross margin of appx 38% which is nuts!
It actually seems low to me. Government liquor commissions aim for
at least 40%. Look for price increases.
Re: N.S. liquor sales up, taste for beer down
Posted: Wed Jul 20, 2011 6:08 pm
by mr x
Apparently, craft and imports are up 4% according to the CBC news this evening. They didn't separate the two. I wish they would drop the term 'domestic' when referring to beer.
Re: N.S. liquor sales up, taste for beer down
Posted: Wed Jul 20, 2011 8:32 pm
by PEIBeerGuy
If someone gets hammered on local stuff, then... is it domestic abuse?
Re: N.S. liquor sales up, taste for beer down
Posted: Thu Jul 21, 2011 8:37 am
by mr x
http://thechronicleherald.ca/Business/1254279.html" onclick="window.open(this.href);return false;
Beer sales are down in Nova Scotia for the first time in about 15 years, according to figures released Wednesday by the Nova Scotia Liquor Corp.
Year-end results from the corporation show a one per cent decline in sales of beer produced by the big breweries, resulting in a $6-million revenue drop.
"Due to the high percentage value of annual beer sales, any change can add up to big dollars," spokesman Rick Perkins said in an interview.
The one per cent decline in beer sales takes on new significance when you consider the category accounted for about 50 per cent of revenue of about $581.6 million for the year ended March 31, 2011.
"There are as many explanations for the decrease as there are beer drinkers in Nova Scotia," said Perkins.
Sales of craft brews from independent producers continued to increase as some consumers shifted from larger volumes from traditional big brewers, to smaller volumes from speciality labels, he said.
The year-end results show the corporation recorded net earnings of $223.2 million on sales of $581.6, for an increase in profit of $3.8 million or 1.7 per cent, compared to last year.
"Beer sales across Canada have seen a slowdown since last autumn. This is impacting the NSLC as well," said Bret Mitchell, president and CEO.
Sales were lower for the year than projected, but Mitchell said in a news release that strong expense management and margin improvement enabled the corporation to deliver on its net income target.
The one per cent decrease in beer sales was offset to some extent by a 5.2 per cent increase in wine sales. Sales of spirits were down 0.2 per cent, while sales of ready-to-drink product were up 0.2 per cent.
There was a 15 per cent increase in sales by the corporation to private wine and specialty stores, compared to previous years.
"The private specialty stores have definitely found their niches in the eight years since their introduction," said Perkins.
Licensee sales (restaurants, pubs and bars) decreased 5.3 per cent compared to 2010.
Wade Keller, regional director of corporate affairs for Labatt Breweries Canada, said the decline in beer sales in Nova Scotia could reflect the aging population, the state of the economy, poor weather, or possibly even increased gasoline prices.
"When it’s costing $25 extra each week to run a vehicle, it adds up to $100 (a) month (in) cash that is unavailable to spend elsewhere," he said.
Old Wade's got it all figured out.

Re: N.S. liquor sales up, taste for beer down
Posted: Thu Jul 21, 2011 8:40 am
by mr x
Re: N.S. liquor sales up, taste for beer down
Posted: Thu Jul 21, 2011 10:11 am
by Jimmy