LCBO sales top $4 billion; 2 million challenged in fiscal 2007-08

TORONTO, May 21 /CNW/ - LCBO today released its financial results for fiscal 2007-08, reporting more than $4 billion ($4.1 billion) in net sales for the first time. It also delivered a $1.345 billion dividend, not including taxes, to the Ontario government. This revenue helps pay for health care, education, social programs, infrastructure and other important government services.

LCBO staff challenged more than two million people who appeared underage or intoxicated, up 11 per cent from 2006-07. More than 134,000 were refused service, a nine per cent increase, the vast majority for reasons of age.

"Our goal at all times is to balance service with social responsibility," notes LCBO President and CEO Bob Peter. "Last year was our biggest-ever for sales and our most vigilant at the checkout."

In fiscal 2007-08, LCBO net sales increased 5.5 per cent (up $213爉illion), while net income rose 6.1 per cent (up $78 million to $1.37燽illion) and the dividend increased 5.1 per cent (up $65.3 million) compared to 2006-07. It was the 14th straight year LCBO has increased its dividend. All sales numbers have yet to be audited.

"It was a relatively strong year despite concerns over high gas prices and economic conditions south of the border," adds Peter. "The harsh winter also resulted in some slower days than expected during the holiday season. However, consumers continued to trade up to premium products, as seen in our VINTAGES fine wine and premium spirit sales, and beer and ready-to-drink products surpassed our expectations."

<< Highlights of the year include: - VINTAGES products were up more than 13 per cent to $300 million. - Beer and ready-to-drink products were up eight per cent to $990 million. - Ontario craft beers rose 37 per cent, and the Cocktails to Go segment was up 35.3 per cent. - Wine sales rose almost six per cent to $1.41 billion - Ontario VQA table wine sales were up 11.8 per cent while total sales from Ontario wineries were up 6.2 per cent; imported wines were up 5.9 per cent. - Red wines were up 6.6 per cent, whites up 6.4 per cent. - Wines priced $15-$20 topped all price bands in growth, up 19.3 per cent. - Vodka led all major spirits segments, up nine per cent. (On a smaller base, Tequila rose 12.3 per cent). - LCBO gift card sales were up 20.7 per cent. - LCBO opened five new stores and upgraded 12 stores in 2007-08 to expand product selection. >>

LCBO launched its 10th annual social responsibility TV campaign in partnership with MADD Canada to help prevent drinking and driving.

LCBO continued to support Ontario's Bag it back Deposit Return Program - more than 250 million beverage alcohol containers have been returned to The Beer Store since the program began in February 2007.