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Liquor Marts 2012/132012/13 MANITOBAMANITOBA LIQUORLIQUOR CONTROLCONTROL COMMISSIONCOMMISSION 90ANNUALTH ANNUAL REPORT REPORT FOR THE FISCAL YEAR APRIL 1, 2012 - MARCH 31, 2013 EXCEXCELEL. .INNOVAT INNOVATEE. .P PROGRROGRESESS.S. VISION Together we will be the model for innovative, sustainable, and responsible service within the Manitoba community and marketplace. MISSION To regulate, distribute and sell beverage alcohol, generating revenue for Manitobans within a framework of social responsibility, customer service excellence, business effectiveness and workplace quality. VALUES Importance of People - Foster a positive work force by working together as a team towards our common goals. Social Responsibility - Promote the responsible sale and consumption of beverage alcohol, promote sustainable development and demonstrate a commitment to our community. Integrity and Fairness - Develop respectful and ethical relationships and be fully accountable for our actions, decisions and behaviours. Service Excellence - Provide superior service to TABLE OF our customers, partners and co-workers. CONTENTS Innovation - Encourage our employees to be innovative. Boards & Governance . 2 Message from the Chair . 3 Message from the President & CEO. 4 Executive Management Committee . 5 The Amalgamation of the Manitoba Liquor . 5 Control Commission with Manitoba Lotteries, and MLCC Regulatory Services with Manitoba Gaming Control Commission 2012/13 Highlights . 8 2012/13 Business Plan Review . 9 Financial. 10 Social Responsibility . 11 Customer Service . 16 Business Effectiveness . 18 Workplace Quality . 19 2012/13 Financial Statements . 21 Charts and Graphs. 40 Liquor Marts . 44 Liquor Vendors . 45 Specialty Wine Stores . 47 Beer Vendors. 48 MANITOBA LIQUOR CONTROL COMMISSION ANNUAL REPORT 2012/13 | 1 BOARDS & GOVERNANCE The MLCC reports to the Province of Manitoba through In April 2012, the Province of Manitoba announced that a Board of Commissioners that is appointed by the the Manitoba Liquor Control Commission and Manitoba Province. The Board Chair reports to the minister Lotteries would be amalgamated into the Manitoba responsible for The Liquor Control Act, who in turn, Liquor & Lotteries Corporation. In the next year, reports to the Legislative Assembly. The day-to-day legislative changes will be proposed that will operation of the MLCC is the responsibility of the produce a new Act for the merged corporation. President & Chief Executive Officer who reports to the Board. MLCC BOARD OF COMMISSIONERS FIRST ROW Tannis Mindell, Chair Leslie Turnbull, Vice-Chair Fran Frederickson, Director Jean Paul Gobeil, Director Robert Mayer, Director SECOND ROW Marion Moist, Director Arnold Ouskan, Director Kevin Rebeck, Director Gerald Rosenby, Director David Schioler, Director THE LICENSING BOARD The Licensing Board considers applications for licences and determines the appropriate disciplinary action for breaches of The Liquor Control Act and its Regulations. These decisions may be appealed. The Licensing Board is comprised of five persons appointed by the Lieutenant Governor in Council. The board may be called to meet at any time by the chair of the board. All meetings of the LICENSING BOARD Licensing Board are open to (From left) Vic Wonnacott (Chair); Les Barrett; Cliff Bernhardt the public. and Dale Neal (Vice-Chair) Not pictured: Lorraine Sigurdson 2 | MANITOBA LIQUOR CONTROL COMMISSION ANNUAL REPORT 2012/13 MESSAGE FROM THE CHAIR On behalf of the Board of Commissioners, I am pleased to present the 90th Annual Report of the MLCC for fiscal year 2012/13. Fiscal year 2012/13 has been an exciting year on many fronts. In April 2012, the Province of Manitoba announced the amalgamation of the MLCC with Manitoba Lotteries to form the new Manitoba Liquor & Lotteries Corporation. Shortly after this announcement, a new Board of Directors was appointed to oversee both organizations and their integration. Over the past year, much work has been done and many milestones achieved in respect to the merger. Based on recommendations made in a third-party report we successfully began integrating the operations of both Crowns, starting with the development of a new organizational structure, as well as formulating a unified strategic direction. At the same time, an integration team was established to continue guiding us through the many complex activities surrounding the union of two large organizations. Currently, legislation is in process for the new Crown corporation and is anticipated to come into effect in late 2013. Once enacted, the Manitoba Liquor & Lotteries Corporation will be responsible for both beverage alcohol and lottery/gaming products. Also in process are legislative amendments that will combine the regulatory function of the MLCC with the Manitoba Gaming Control Commission. The amalgamation of these two bodies will create a single regulatory organization for gaming and beverage alcohol called the Liquor and Gaming Authority of Manitoba. Amid all of the activities surrounding the merger, the MLCC can take pride in returning a net profit to the Provincial Government, while continuing to provide outstanding service to our customers. The success of this past year could not have happened without the efforts and teamwork of everyone at the MLCC. In closing, I, along with my fellow board members, would like to express my appreciation to President & CEO Winston Hodgins and the executive team for their leadership and commitment. Thanks as well to the employees of both the MLCC and Manitoba Lotteries Corporation for their continued hard work and dedication as we work towards merging our organizations. Together, we can ensure that the new Manitoba Liquor & Lotteries Corporation is an important contributor to both the government and people of Manitoba for many more years to come. Tannis Mindell MANITOBA LIQUOR CONTROL COMMISSION ANNUAL REPORT 2012/13 | 3 MESSAGE FROM THE PRESIDENT & CEO It is my pleasure to report on what has been first two Liquor Mart Express outlets located a very significant year for the MLCC. While every within grocery stores. These new locations year is notable in some respect, fiscal 2012/13 have provided shoppers in south Winnipeg and has been a year like no other. Early into the Brandon west with the convenience of shopping new fiscal season, the Province of Manitoba for their groceries and beverage alcohol in one announced the amalgamation of the MLCC place, while ensuring these products continue with Manitoba Lotteries, beginning a year of to be sold in a socially responsible manner. This considerable transition for both organizations. past year we also continued retail improvements While much time and effort has been put into to our stores through both new builds and bringing together our two Crown corporations, renovations. Our flagship Liquor Mart store at the the MLCC has also remained steadfast in its Grant Park Mall recently re-opened with new and commitment to being one of the best liquor exciting features not previously found in our retail jurisdictions in Canada. environments including a dedicated enclosure showcasing rare and unique products. I am pleased to report that in 2012/13, the MLCC returned $260.6 million to the provincial treasury. In 2012/13, we were also pleased to launch This is good news for the people of Manitoba a new public website, www.liquormarts.ca. as our returns play a vital role in supporting Developed to enhance both our customers’ government initiatives that are a benefit to online and shopping experience, the new all Manitobans. site features improved product descriptions, images, tasting notes, product inventory by While fiscal 2012/13 was, on many fronts, a year store (updated five times daily), and expanded of change and transition, it was also one which search capabilities. Developed using cutting- highlighted the dedication of employees on both edge technologies, the site offers Manitobans sides of the organization. The new Manitoba the opportunity to apply for an occasional permit Liquor & Lotteries Corporation will be a blended online and is mobile-device friendly. workforce of more than 3,000 people and it is through the continued engagement, contributions This past year, the MLCC was also honoured and commitment of our employees that we will to be the first liquor jurisdiction in Canada to emerge as a strong, merged, Crown corporation. win a Canadian Fairtrade Award in recognition of our ongoing commitment to the Fair Trade In 2012/13 we began establishing the Manitoba movement. It is also my pleasure to report that Liquor & Lotteries brand by introducing a new logo for the seventh consecutive year, the MLCC to the public through our community relations and was recognized as one of the Top 25 Employers social responsibility programs. Internally, a new in Manitoba as part of the Top 100 Employers organizational structure and executive team in Canada competition. was established and a new three-year corporate direction developed. Over the course of the next I would like to thank our Board of Commissioners, year the new corporation will determine related our Executive Management team and all of our business objectives and performance indicators employees for their hard work and dedication this that best serve this strategy. In the spring of past year. Our accomplishments to date have 2013 we also completed a major staff relocation, been made possible only through a strong sense combining related departments from the two of teamwork and dedication. Both the MLCC and organizations in each of the head office locations.
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