Price increases behind record revenues at N.B. Liquor
N.B. Liquor posted an increase in revenue last year but figures show the improvement was mostly generated by price increases and people dining out, the Crown corporation has quietly revealed in its latest annual report.
Sagging sales in N.B. Liquor's own corporate stores and an ongoing decline in customer traffic numbers were not openly discussed in the report, which instead took credit for what it is calling a record year.
"Total sales of $523.3 million and net income of $199.8 million exceeded the previous record results ... and are a reflection of the team's focus on customer service and having the right product at the right time and in the right place," wrote John Correia, N.B. Liquor board chair, in a letter to Finance Minister Ernie Steeves about the results.
But according to the annual report, it was the hospitality industry driving all of those revenue increases.
N.B. Liquor raised prices last year on most products to bolster revenues, including an unbudgeted increase on beer that was imposed on consumers in November. (Neil Cochrane/CBC)
Bars and restaurants bought $49.2 million in beer, wine and other alcohol products to resell, a $13-million — or 35.8 per cent — increase over the previous year.
By contrast, sales inside N.B. Liquor's own stores fell by $9.4 million to $311.2 million.
Retail sales by N.B. Liquor's network of privately operated agency and grocery stores also fell slightly. They ended the year at $162.9 million, $200,000 shy of the prior year.
Those declines came despite a series of prices increases imposed by N.B. Liquor across most of its product lines that ranged up to 5 per cent in some cases. That helped prop up corporate revenues somewhat, but may also have contributed to an ongoing slump in sales volumes.
New Brunswick pubs and restaurants had a big year in 2022 and early 2023, accounting for all of the revenue increases reported by N.B. Liquor. (Petr David Josek/Associated Press)
N.B. Liquor's results are not easily compared year-to-year because of its floating fiscal periods.
Last year included 52 weeks, compared to 53 weeks the year before. But even accounting for those differences, figures show product volumes being sold by the Crown corporation have been in a steady decline since interprovincial pandemic border restrictions ended in the summer of 2021.
According to N.B. Liquor's latest figures, it sold an average of 1.29 million litres of product per week last year. That's 21,800 litres per week fewer than the year before, and 57,600 litres per week fewer than two years ago — even though New Brunswick's population increased by more than 45,000 people during that three-year period.
Lori Stickles, centre, is president and CEO of N.B. Liquor. She appeared in front of a legislature committee last fall with chief financial officer Jamie LeBlanc (left) and board chair John Corriea. Corriea told MLAs to expect record results in the coming year. (Legislative Assembly of New Brunswick)
A request to interview N.B. Liquor president Lori Stickles about the annual report was rejected but in an email to CBC News, the corporation cited several factors that have been affecting sales, including inflation and the ability of people to move around more freely than allowed during pandemic restrictions.
"Coming out of [the] pandemic, people's buying trends have shifted and changed," the email said.
