Booze and cannabis sales were up nearly $70 million during a full year of the COVID-19 pandemic which included lockdown and stay-at-home orders.
Total sales for the year were $793.1 million, with beverage alcohol sales of $707.0 million and cannabis sales of $86.0 million.
“A full year in pandemic mode certainly impacted our financial performance,” said Greg Hughes, President & CEO. “I am tremendously proud of the NSLC team who have shown their resiliency and ability to adapt, while supporting each other, our communities and our customers.”
It’s easy to see people were stocking up on supplies as overall overall transactions decreased by roughly nine percent but the corporation saw a 23.1 per cent increase in the average value of those transactions.
During the year, sales to Private Wine and Specialty Stores were up 7.9 per cent and sales to Agency stores were up 35.7 per cent, contributing to an overall 7.9 per cent increase in beverage alcohol sales.
A clear sign of the struggles at bars and restaurants as sales to licensees (bars, restaurants, and pubs) were down 52.9 per cent compared to the same time last year, especially in the Halifax area, due to COVID-19 restrictions.
“We were pleased to see our customers continue to be passionate about supporting our local industry partners,” Hughes said. Sales of local beverage alcohol and cannabis increased 30.2% overall to $92.5 million.
The corporation added 12 new cannabis stores to the network to offer Nova Scotians an expanded safe supply of cannabis.
Sales increased 21.1 per cent, and the average price per gram decreased by 28 per cent to $7.16, making NSLC cannabis prices more competitive with the illicit market.
“This was an unprecedented year in many ways,” Hughes said. “We navigated through it together, executing on our strategic priorities, adapting our operations and providing a healthy return to the province.”
YE Business Highlights
Front-line employees asked customers who appeared to be under the age of 30 for valid photo ID 2.2 million times and refused service 22,835 times.
The NSLC raised a record $485,000 to support the IWK Health Centre, $78,000 for Make-A-Wish Canada and $25,000 for Habitat for Humanity.
The NSLC came together with our customers and vendors to provide Feed Nova Scotia with just over $263,000, enough to provide almost 395,000 meals – supported by a generous $12,000 donation from Local 470 of the Nova Scotia Government & General Employees Union, which represents our Retail, Distribution Centre, and some head office employees.
The NSLC carried out renovations or upgrades at 13 beverage alcohol stores across the province:
Antigonish, Baddeck, Berwick, Bridgewater, Downsview, East New Glasgow, Mahone Bay, New Waterford, Pictou, Port Hood, Sheet Harbour, Sydney Mines and Tantallon
Opened 12 new cannabis stores:
Annapolis Royal, Baddeck, Barrington Passage, Elmsdale, Glace Bay, Liverpool, Mill Cove, Port Hawkesbury, Sheet Harbour, Tacoma, Tantallon, and Tatamagouche
Reduced the average price per gram of cannabis 28% compared to the previous fiscal year.
Financial Highlights (compared to the same period last year):
Net income (earnings) totaled $274.5 million; up $27.2 million or 11.0 per cent.
Total sales were $793.1 million; an increase of $66.9 million or 9.2 per cent, due to increased beverage alcohol and cannabis sales.
Cannabis sales were $86.0 million, an increase of 21.1 per cent.
Beverage alcohol sales were $707.0 million, an increase of 7.9 per cent.
Retail customer transactions (purchases) for beverage alcohol were down 9.6 per cent, however the average dollar value of each transaction grew by 22.7 per cent to $39.37.
The total volume of beverage alcohol sold was up 5.8 per cent.
Retail customer transactions for cannabis were down 3.1 per cent and the average dollar value of each transaction grew by 25.0 per cent to $43.41 as customers purchased more larger package sizes that carry a lower price per gram.
