Annual Report

Annual Report 2015-2016

LCBO_AR15-16-english

 

Maximizing Value

In April 2014, the Ontario government announced the appointment of an Advisory Council to recommend ways to improve the efficiency and optimize the value of certain crown assets, including the LCBO. The Premier’s Advisory Council on Government Assets was directed to examine the existing system for beverage alcohol distribution and how value for Ontarians could be maximized. As its mandate evolved, the focus shifted to increasing consumer choice and introducing an element of retail competition.

The resulting recommendations, endorsed by the government, will see up to 450 grocers selling beer and cider and up to 300 selling wine in Ontario. The LCBO now faces more competition than ever before and is evolving its business model – investing more in frontline staff development, strengthening data-based decision-making, further expanding its wholesale business, expanding Products of the World destination stores and launching a new e-commerce platform. We face the future with confidence.

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Highlights

Product category sales increase

  • LCBO continued to successfully support the domestic industry. Ontario wine sales rose 8.0 per cent to $456 million. Sales of LCBO-listed VQA wines rose 8.7 per cent while the Vintages VQA category gained 1.3 per cent. Sales of International Canadian Blends (ICB) continued strong with an 8.5 per cent increase. Ontario craft beer sales led all beer segments, with sales growth of 36 per cent; sales of Ontario craft cider gained 54 per cent.
  • Wine sales were $1.451 billion, an increase of $65.4 million (4.7 per cent).
  • Spirits sales were $2.13 billion, an increase of $115.5 million (5.7 per cent).
  • Beer & Cider sales were $1.18 billion, an increase of $123.3 million (11.7 per cent).
  • Vintages sales were $511.36 million, an increase of $36 million (7.6 per cent).

Corporate Social Responsibility

  • Retail staff challenged 14.5 million people who appeared underage, intoxicated, or were suspected of purchasing for a minor or an intoxicated person. About 346,600 were refused service; 85 per cent of refusals were for reasons of age.
  • We maintained a waste diversion rate of 93 per cent for the containers LCBO sells when the Ontario Deposit Return Program and municipal Blue Box programs are combined. Since the program’s inception, more than 2.6 billion containers have been recycled, equivalent to more than 1 million tonnes of glass, plastic and metal containers.
  • LCBO’s Quality Assurance laboratory performed more than 554,000 tests to ensure the products available on our store shelves are safe.
  • Thanks to the generosity of our customers and employees, we raised a new record of nearly $11 million for worthy causes. Also setting a new record was our December Giving Back In Our Community campaign, which raised $5.4 million for MADD Canada and four children’s hospitals serving Ontario.

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