ANNUAL REPORT 2011 ½ VIRGINIA DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL LETTER FROM THE CHAIRMAN

Fiscal year 2011 marked another record year for the Virginia Department of Alcoholic Beverage Control (ABC)’s Wholesale/Retail Division. This year ended with $692.7 mil- lion in gross sales, 0.4 percent above the projected $690 million and $17.3 million more than last fiscal year. ABC transferred a record $121 million in profits. Sunday store sales are up 9.6 percent or $1.8 million when compared to last year.

Restaurants seem to be making a rebound, as sales to mixed beverage licensees rose 2.9 percent in Fiscal Year 2011. It is the first increase in distilled spirits sales to licensees since 2008. Sales to restaurants went from a 2.5 percent decline last year to a 2.9 percent increase this year, creating new confidence in the economic situation in Virginia.

ABC’s Bureau of Law Enforcement is committed to working with licensees on compli- ance training to reduce sales of alcohol to underage persons and compliance rates for licensees remain at 90 percent. Sales associates approximate 2.2 million ID challenges per year, contributing to ABC store compliance rates remaining at an impressive 98 percent.

Gov. Bob McDonnell signed a bill on May 2 that makes it a felony to assault a special agent ABC Board Chairman J. Neal Insley of the ABC Bureau of Law Enforcement. The ABC Agents Association had advocated for agents to be afforded the same protection under the law as other Virginia law enforcement officers. The bill passed the House and Senate unanimously earlier in the year.

ABC agents participated in Operation Rolling Thunder, a public safety initiative created by Secretary of Public Safety Marla Graff Decker targeting violent crime. ABC part- nered with local police departments and other public safety agencies in joint operations in the cities of Richmond and Newport News. The results of these operations were 2901 Hermitage Road, Richmond, VA 23220 impressive, with 262 persons arrested on approximately 360 charges. The Bureau of Law Enforcement is monitoring activities on Facebook, and ads on eBay and Craigslist. ABC VISION Using social media as investigative tools, ABC agents were able to seize stills, moon- To enhance the quality of life for Virginia’s shine, marijuana and firearms as well as charge suspects with felonies for illegal manu- citizens by balancing service, revenue facturing of alcohol and more. and control in the distribution, sale and consumption of alcoholic beverages. Education initiatives this year included the 25th Annual College Conference with more than 200 students in attendance and the Youth Alcohol and Drug Abuse Prevention ABC MISSION Project (YADAPP) with nearly 500 high school students and adult educators. The To control the distribution of alcoholic bev- Alcohol and Aging Awareness Group (AAAG) continues to provide solutions to sub- erages; operate efficient, conveniently stance misuse problems facing older Americans. located retail outlets; enforce the laws of the commonwealth pertaining to alcoholic beverages and youth access to tobacco All 333 ABC stores received state-of-the-art point-of-sale (POS) systems and equipment products; and provide excellent customer this fiscal year. The new POS system allows customers to select debit, commercial credit, service, a reliable source of revenue and ABC Gift Card or cash as payment options. The new registers provide cutting edge tech- effective public safety. nology for employees with features such as infrared touch screens with much larger view- Cover (top, from left): Gov. Bob McDonnell ing areas and receipt printers that are twice as fast as before. Implementation of this new signs House Bill 1516, making it a felony system has placed ABC in the forefront of current POS technology and customer service. to assault an ABC agent; Sales Associate Caulbert Taylor, ABC Store 107 (Norfolk), ABC remains committed to the public safety of Virginia’s citizens, providing alcohol assists a customer with product selection; education for people of all ages; excellent customer service at each retail location; and Special Agent Davis Lincoln presents a Rural Law Enforcement grant check to generating a consistent source of revenue for some of the commonwealth’s most Officer Troy Wheeler accepting for the important programs. Town of Orange. (Bottom, from left): Education Coordinator Regina Whitsett speaks on behalf of the Alcohol and Aging Awareness Group (AAAG) at the Senior Connections 7th Annual Empty Plate Luncheon; the first-place poster in ABC’s middle school poster contest; ABC’s YADAPP summer leadership conference J. Neal Insley, Chairman draws enthusiastic participation from high school student participants.

VIRGINIA ABC • 2011 ANNUAL REPORT • LETTER FROM THE CHAIRMAN • PAGE 2 www.abc.virginia.gov CONTENTS

Executive Information...... 4 Legislative Synopsis ...... 5

Statistical Highlights Licensing...... 8 Prevention Education ...... 8 Law Enforcement...... 8 Hearings & Appeals ...... 9 Personnel ...... 9 Stores & Products ...... 10

Financial Reports A Message from the Chairman and Chief Operating & Financial Officers ...... 12 Financial Results in Brief, Fiscal Year 2011 ...... 12 Sales of All Beverages, Fiscal Year 2011 ...... 12 Comparison of Products Sold / Market Share, Fiscal Year 2011 vs. Fiscal Year 2010. . . 13 Analysis of Store Performance, Fiscal Year 2011...... 14 2011 Establishments by License Category – Cities ...... 22 2011 Establishments by License Category – Counties ...... 23

Financial Statements Introduction...... 25 Management’s Discussion and Analysis (Unaudited) ...... 26 Independent Auditor’s Report on Financial Statements ...... 30 Statement of Net Assets...... 32 Statement of Revenues, Expenses and Changes in Net Assets ...... 33 Statement of Cash Flows ...... 34 Notes to Financial Statements ...... 35

Fiscal Year 2011 in Review...... 41

VIRGINIA ABC • 2011 ANNUAL REPORT • CONTENTS • PAGE 3 www.abc.virginia.gov EXECUTIVE INFORMATION

Governor...... Robert F. McDonnell Secretary of Public Safety...... Marla Graff Decker

ABC Board Board Chairman ...... J. Neal Insley Commissioner ...... Sandra C. Canada

Executive Staff Chief Operating Officer, Secretary to the Board ...... W. Curtis Coleburn, III Chief Financial Officer ...... J. Craig Vanderland

Governor Robert F. McDonnell Division Directors Bureau of Law Enforcement Administration ...... Francis J. Monahan Bureau of Law Enforcement Operations ...... Shawn P.Walker Financial Management Services...... Barry M. Wenzig Hearings, Appeals and Judicial Services ...... Robert S. O’Neal Human Resources ...... J. Wayne Jenkins Information Technology Services ...... Stephen L. Fox Internal Audit ...... John W. Wszelaki Public Affairs ...... Rebecca V. Gettings Wholesale/Retail Operations ...... Virginia A. Adams

Also on the ABC Board this fiscal year, Wayne J. Ozmore Jr. served as commissioner until his resignation on June 14, 2011.

All division directors served throughout the fiscal year with the exception of the following. Enforcement Co-Director Shawn Walker was appointed to that position on Dec. 10, 2010. Secretary of Public Safety Human Resources Director Janet L. Lawson resigned on Aug. 24, 2010 and Wayne Jenkins was Marla Graff Decker named director on Jan. 10, 2011.

ABC Board: Chairman J. Neal Insley (left) and Commissioner Sandra C. Canada (right)

VIRGINIA ABC • 2011 ANNUAL REPORT • EXECUTIVE INFORMATION • PAGE 4 www.abc.virginia.gov LEGISLATIVE SYNOPSIS

From gourmet oyster houses to outdoor advertising, the 2011 session of the Virginia General Assembly adopted a number of ABC-related measures.

Pro-rated Fees The most interesting legislative action took place in connection with Senate Bill 1457. This was the only bill that did not become effective July 1, 2011. It had an emergency clause attached which made it effective upon Governor McDonnell’s signature on March 26, 2011. The bill allows the Board to pro-rate and refund license fees in the case where the premises were destroyed by natural disaster. Those provisions were adopted, but the bill was also amended to add a number of unrelated provisions, dealing with outdoor alcoholic beverage advertising.

Outdoor Alcoholic Beverage Advertising/Billboards The new law provides that manufacturers, wholesalers and retailers may advertise alco- Chief Operating Officer W. Curtis Coleburn holic beverages on lawfully erected billboard signs. Such signs may not depict persons consuming alcoholic beverages, may not use cartoon characters, nor use persons who have not attained the legal drinking age as models or actors. The billboards may not be placed within 500 feet of a church or synagogue; a public, private, or parochial school, college, or university; a public or private playground or similar recreational facility; or residentially zoned property.

Another portion of the legislation codifies the current provisions of 3VAC 5-20-30, which specify the number and types of alcoholic beverage advertising signs other than billboards allowed to be used by licensees. These new statutory provisions have a “sun- set” clause, which makes them expire on January 1, 2013. In the meantime, the legisla- tion requires that ABC promulgate new rules for outdoor alcoholic beverage advertising.

Corkage Fees With the passage of Senate Bill 1292, ABC-licensed restaurants may permit customers to carry in and consume their own lawfully-acquired wine on the restaurant premises in all areas and locations covered by the license. The licensee may charge a corkage fee to such customer for the wine so consumed; however, the licensee shall not charge any other fee to such customer. This is a voluntary program, restaurants may allow cus- tomers to bring in their own wine, but are not required to do so.

Providers to Underage House Bill 1496 addresses the situation where someone of legal age provides alcohol to someone less than 21. Currently, the commonwealth must prove that someone knew that the recipient was under 21 to obtain a conviction. The amendment adds the lan- guage “or having reason to know” to the statute, to enable the conviction of one who should have known the person he was giving alcohol was underage, without having to prove actual knowledge.

Alcohol Content of Cider House Bill 2295 and Senate Bill 1000 were identical bills concerning the lawful alcohol content of cider products. Presently, a product called “cider” may only contain 7 per- cent alcohol or less. Some Virginia cider producers argued that the natural sweetness of (continued)

VIRGINIA ABC • 2011 ANNUAL REPORT • LEGISLATIVE SYNOPSIS • PAGE 5 www.abc.virginia.gov LEGISLATIVE SYNOPSIS (CONTINUED)

Virginia apples produced a product with a higher alcohol content. The new law will allow cider produced without added sugar to be up to 10 percent alcohol. Products pro- duced by chaptalization, that is adding sugar to increase alcohol content, will continue to be limited to the 7 percent limit.

Catoctin Creek Store Senate Bill 1249 currently benefits only one known Virginia distillery, Catoctin Creek Distillery. This bill provides that ABC may establish a government store on the premises of a certified organic distillery, and appoint the distillery’s personnel as agents to oper- ate the store, selling products produced by the distillery. Catoctin Creek will be ABC’s fifth distillery store.

Oyster House License One bill that has been signed into law creates a new license. House Bill 2501 creates a new gourmet oyster house license for a facility located on the premises of a commercial marina and permitted by the Department of Health to serve oysters and other fresh seafood. This license will allow the business to give samples or serve wine and beer for on-premises consumption and sell wine and beer for off-premises consumption. The Board will set minimum seafood sales requirements.

Common Interest Communities Another bill creates a situation where a license is no longer needed. House Bill 1975 provides that a banquet license is no longer necessary for private events limited in attendance to members of a common interest community (as defined in Section 54.1- 2345 of the Code of Virginia) and their guests. Such functions must be conducted on the common area set aside for this purpose in the community.

Out-of-State Shipments Virginia’s farm wineries were successful in obtaining the passage of House Bill 1979 and Senate Bill 1083, identical bills that deal with tax exemptions for shipments of wine and beer to consumers in other states. The present law provides that Virginia excise tax is not collected on shipments from Virginia licensees to businesses in other states for resale, but shipments directly to consumers are not exempt. The new amendment will make ship- ments to out-of-state consumers also exempt from Virginia wine and beer taxes.

30-Day Objection Period House Bill 2226 was a piece of ABC-sponsored legislation, limiting the time for making objections to license applications. Currently, localities have 30 days to object to the issuance of a license, but there is no time limit on other objections. To streamline the application process, the amendment provides that objections from the public to ABC license applications must be made within 30 days of the first publication of the notice each applicant is required to run.

Assaults on ABC Special Agents For many years, it has been a Class 6 felony to commit assault and battery upon a law enforcement officer. Prosecutors and courts have usually assumed this applied to assaults against ABC Special Agents. A 2009 opinion of the Virginia Court of Appeals (continued)

VIRGINIA ABC • 2011 ANNUAL REPORT • LEGISLATIVE SYNOPSIS • PAGE 6 www.abc.virginia.gov LEGISLATIVE SYNOPSIS (CONTINUED) ruled that since ABC agents were not among the specific officers listed in the statute, they were not covered. House Bill 1516 corrected this situation, making the assault and battery upon an ABC Special Agent a felony carrying a minimum six month mandatory term of confinement.

Changes to “Zero Tolerance” House Bill 1407 and Senate Bill 770 were identical measures amending the “zero toler- ance” statute for underage drinking and driving. Under current law, persons under the legal drinking age found driving with a blood alcohol level of .02 percent by volume or more lose their driver’s license for six months and are subject to a fine of up to $500. The new law will make a violation of this statute a Class 1 misdemeanor, with at least a one-year license forfeiture, and a minimum of either a $500 fine or 50 hours of com- munity service.

(Below) Gov. Bob McDonnell signs House Bill 1516, making it a felony to assault an ABC special agent. The governor shakes hands with bill sponsor Delegate Robert Orrock, as ABC Agents Association President Special Agent Lisa Wright (center) and Secretary of Public Safety Marla Graff Decker (far left) look on.

VIRGINIA ABC • 2011 ANNUAL REPORT • LETTER FROM THE CHAIR • PAGE 7 www.abc.virginia.gov STATISTICAL HIGHLIGHTS: LICENSING

Licenses and Licensing ABC retail licenses (1) 17,248 New retail, wholesale and special-permit licenses 2,153 Licensed retail establishments 16,136 Private or corporate owners 12,534 Alcohol compliance rates for retail licensees (%) (2) 90.28 Average processing time for new retail applications (in days) (3) 76 One-day banquet and special-event licenses 18,119 (1) Inclusive of licenses for sale and consumption of beer and wine, mixed beverages, on- or off-premises. (2) FY 10 rate: 90.24 percent (3) FY 10: 90 days. ABC targets a 60-day average.

STATISTICAL HIGHLIGHTS: PREVENTION EDUCATION

Publications and Conferences Compliance Training Total prevention education / compliance pieces distributed (1) 163,536 Responsible Sellers & Servers: Virginia’s Program (RSVP) classes 89 Do Not Sell stickers distributed to licensees 16,500 RSVP participants (statewide) 1,511 Licensee newsletters distributed 48,000 Managers’ Alcohol Responsibility Training (MART) classes 21 College Conference registrants (2) 228 MART participants (statewide) 317 YADAPP Conference participants (3) 425 YADAPP Wheeler Awards (3) $1,000 Community Coalitions of Virginia (CCOVA) one-day training (4) $3,000 Alcohol and Aging Awareness Group (AAAG) participants trained (5) 4,601 AAAG radio campaign, listening audience (6) 148,100 Grants (1) Distributed to colleges and universities, law enforcement, licensees, community Operation Undergrad grants presented 6 groups, youth, parents and other Virginia citizens. Operation Undergrad disbursements $53,940 (2) 25th Annual College Conference on the campus of George Mason University, in Community Coalition grants presented 7 February 25–27, 2011 presented in conjunction with the Virginia College Leadership Community Coalition disbursements $53,080 Council. Funded through a grant from the Virginia Department of Motor Vehicles’ College Conference grant disbursements (1) $5,000 Highway Safety Office. YADAPP minigrants presented 15 (3) Annual Youth Alcohol & Drug Abuse Prevention Project (YADAPP) summer confer- YADAPP minigrants disbursements $4,000 ence, Longwood University, July 18–22, 2011. Seventy-four youth teams represented youth and communities across Virginia. Wheeler Award winners ($500 each) were Rural and Local Law Enforcement grants presented 3 Great Bridge High School (Chesapeake) and Virginia Beach Mayor’s Youth Leaders in Rural and Local Law Enforcement disbursements (2) $15,000 Action. Operation Undergrad and Community Coalition grants are funded by the Office of (4) ABC co-sponsored a one-day training at the Roslyn Center, Richmond, VA, March Juvenile Justice and Delinquency Prevention (OJJDP) and administered by ABC. 23–25, 2011. $3,000 in Office of Juvenile Justice and Delinquency Prevention (OJJDP) (1) Five campuses were awarded $1,000 minigrants to start their underage and high-risk workshop funding was disbursed for this event. drinking prevention initiatives. (5) Presented statewide by the Alcohol and Aging Awareness Group (AAAG) with 41 pre- (2) Local and Rural Law Enforcement grants of $5,000 each were awarded to the sentations and training 623 service providers. 312 participants took AAAG web based Harrisonburg Police Department, Town of Orange Police Department and Old training and over 15,000 pieces of literature were distributed. Dominion University Police Department. (6) December 20–29, 2010 and April 25–29, 2011, AAAG sponsored 15 on-air alcohol and aging awareness messages on public radio (WCVE-FM and WVTF-FM) in the Richmond, Roanoke, Lynchburg and Charlottesville markets.

STATISTICAL HIGHLIGHTS: LAW ENFORCEMENT

Law Enforcement Activity Tobacco Synar Criminal investigations 11,259 Synar compliance rate, May 1–September 30, 2010 (%) (1) 89.03 Arrests 2,213 Total tobacco checks by ABC agents (2) 1,121 Illegal still investigations 12 Part of a substance abuse prevention and treatment block grant from the federal govern- Inspections of licensed establishments 8,707 ment to the Virginia Department of Mental Health, Mental Retardation and Substance Underage Buyer compliance checks 2,968 Abuse Services. ABC special agents 93 (1) FY 09: 87 percent Written warning reports 1,012 (2) This includes attempted checks visited but found not suitable for an underage buyer Written violation reports 716 check. FY 09: 4,304 checks. Wine, beer and mixed-beverage application and state license fees collected $12,317,845

VIRGINIA ABC • 2011 ANNUAL REPORT • STATISTICAL HIGHLIGHTS • PAGE 8 www.abc.virginia.gov STATISTICAL HIGHLIGHTS: HEARINGS & APPEALS

Cases Referred for Hearings Average Case Turn-Around Time (in Days) Case Activity Count Activity FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 Violation/disciplinary reports 813 Violations 129 130 120 91 178 158 118.6 Contested applications 42 Applications 105 99 93 106 135 131 93.8 • Approved 35 • Denied 5 • Withdrawn before hearing 2 Contested banquet applications 12 • Approved 3 Case Decisions Appealed • Denied 4 Percentage • Withdrawn before hearing 5 Activity Count of Total (%) Wine and beer franchise cases 6 Initial decision of hearing officer to ABC Board 1 40 5.08 Total hearings requested 873 Final decision of ABC Board to circuit court 2 20 50.00 1 Percentage of all cases referred 2 Percentage of all cases appealed to the Board Hearings Dispositions Percentage of Total Civil Penalties Collected Case Activity Count Cases Received (%) Settled by consent settlement offer 316 40.15 Activity Count Heard by ABC hearing officer 1 329 41.80 Civil penalties collected (dollars) 1,041,730 Average civil penalty per case (dollars) 1,811.48 Settled by offer in compromise 118 15.00 1 Withdrawn or dismissed prior to hearing 2 24 3.05 Average suspension period per case (days) 17.73 Total hearings dispositions 3 787 100 1 Most ABC case decisions provide for a civil penalty or suspension period. This average reflects the results of all civil penalties or suspension time levied from all case deci- 1 329 hearings were held on 519 charges filed; licensees with multiple charges had cases sions, consent settlement offers, and offers-in-compromise for FY 11. When allowed by combined into one hearing for efficiency. 40 of these cases were appealed to the ABC the Board order, licensees may choose which penalty they prefer to accept. Some Board. penalties contain both mandatory suspension periods and civil penalties. 2 These cases were withdrawn or dismissed prior to the hearing process because the licenses had been surrendered or the applications were withdrawn. 3 120 cases were in process at the end of FY 10 and were completed during FY 11; 100 cases were in process at the end of FY 11 to be completed during FY 12

STATISTICAL HIGHLIGHTS: PERSONNEL

Training and Tuition Assistance Employee Demographics Description of Training Course Types Units* Average age (years) (1) 48 In-house training 8 283 Average years of service, classified employees (2) 11.8 Tuition Assistance Program (TAP) 11 14 Gender: male (%) (3) 57.9 E-learning, policy and regulation (1) 24 10,859 Gender: female (%) (3) 42.1 E-learning, safety 7 9,740 Minority (%) (4) 31.0 E-learning, emergency management (2) 1 2,489 The demographics of ABC’s workforce are generally consistent with the overall state E-learning, retail and product knowledge 7 9,768 workforce. Nearly 76% of all employees are over the age of 40, 42% are female and 31% Total 48 31,195 are minorities. The average age of an ABC classified employee is 48 years, with an aver- * These are units of training deployed to employees by ABC Human Resources. One age length of service at 12 years. ABC has a high number of retirement-eligible classified employee may account for more than one unit of participation. employees: 106 employees (11% of FTE positions) eligible to retire today, an additional 47 employees (5% of FTE positions) within the next five years, and an additional 63 employ- (1) Required agency-wide, inclusive of full-time, part-time, ABC stores and central office ees (6.5% FTE positions) eligible within 10 years. employees. On average, each employee was responsible for completing 14–28 mod- ules each. (1) Average age (all state employees): 46.1 years (2) State-mandated (2) Average years of service (all state employees): 11.9 years (3) Gender (all state employees): male, 45.6 percent; female, 54.5 percent (4) Minority (all state employees): 34.0 percent Employees and Hiring Total employees 2,505 Total classified employees 981 Total part-time employees 1,524 Classified employees hired in Fiscal Year 2011 94 Part-time employees hired in Fiscal Year 2011 521 ABC currently employs a diverse workforce, with approximately 981 classified employ- ees, 1,524 wage employees, and 6 contractors. These 2,505 agency employees work throughout the commonwealth operating 333 retail stores and eight regional offices. Approximately 352 employees are located in Richmond at the central office and ware- house facility.

VIRGINIA ABC • 2011 ANNUAL REPORT • STATISTICAL HIGHLIGHTS • PAGE 9 www.abc.virginia.gov STATISTICAL HIGHLIGHTS: STORES & PRODUCTS

ABC Stores Store Activities: July 1, 2010–June 30, 2011 Alcohol compliance rate for ABC stores (%) (1) 98 Store Location Activity Closed Opened Total Average delivery cost to ABC stores (dollars per case) $0.82 305 Richmond modernization 07-19-10 07-31-10 332 Total shipments to ABC stores (cases) 3,968,350 322 Centreville modernization 07-30-10 08-17-10 332 Total shipments to ABC stores (weight, in lbs) 126,525,964 139 Winchester relocation 09-18-10 09-21-10 332 (1) FY 10 rate: 98 percent 359 Charlottesville relocation 09-20-10 09-27-10 332 248 Arlington modernization 09-06-10 09-27-10 332 177 Chincoteague modernization 09-18-10 10-01-10 332 050 Crozet new store — 10-01-10 333 ABC Products 150 Henrico relocation 10-23-10 10-29-10 333 291 Martinsville relocation 10-30-10 11-04-10 333 PRICE LIST 218 Gate City modernization* — — 333 Active items on price list 2,732 191 Rocky Mount relocation 01-08-11 01-14-11 333 Virginia wines on price list 95 098 Virginia Beach relocation 01-08-11 01-13-11 333 Vermouths on price list 15 278 Virginia Beach modernization 01-09-11 01-24-11 333 Items de-listed from price list (1) 388 170 Herndon modernization 01-23-11 02-08-11 333 172 Chase City flooring 02-05-11 02-14-11 333 SPECIAL ORDERS 271 Woodbridge relocation 03-01-11 03-05-11 333 Active items on special order catalog 234 303 Warrenton modernization 02-19-11 03-05-11 333 Active items on special order noncatalog 843 179 Urbanna modernization 03-05-11 03-21-11 333 Total special order purchases (cases) (2) 12,845 352 Reston modernization 03-19-11 04-05-11 333 Total special order revenue (dollars) (2) $2,623,916 290 Grafton modernization 04-02-11 04-18-11 333 • Catalog purchases (cases) 4,315 234 Burke modernization 04-29-11 05-17-11 333 • Catalog revenue (dollars) $1,222,294 125 Charlottesville modernization 06-11-11 06-30-11 333 • Noncatalog purchases (cases) (3) 8,530 180 Richmond new store — 06-30-11 334 • Noncatalog revenue (dollars) $1,401,622 * Stayed open during renovation, operating from side door. (1) De-listed items remain on the price list until all inventory has been depleted. (2) These totals include both catalog and noncatalog special orders. (3) Noncatalog special orders are for those items not included in the special order cata- log. They must be purchased by the case and must be obtainable from a source within the continental United States.

(Below) Miss Virginia Caitlin Uze partnered with Virginia ABC to speak at more than 40 schools statewide, stressing the importance of saying no to alcohol, tobacco and illegal substances. The initiative was funded by a grant from the Office of Juvenile Justice and Deliquency Prevention (OJJDP).

VIRGINIA ABC • 2011 ANNUAL REPORT • STATISTICAL HIGHLIGHTS • PAGE 10 www.abc.virginia.gov Top 50 Brands Sold in Fiscal Year 2011, Based on Dollars Rank Gross Dollars Actual FY 11 FY 10 Brand Product Category FY 11 ($) FY 10 ($) Change (%) Change ($) Statewide 692,670,626 675,521,854 2.5 17,148,772 Top 50 359,243,353 366,313,675 (1.9) (7,070,322) All Others 333,427,274 309,208,179 7.8 24,219,095

1 1 Jack Daniel's 7 Black Tennessee whiskey 22,664,736 22,418,593 1.1 246,143 2 2 Smirnoff 80 domestic vodka 19,508,095 19,131,450 2.0 376,645 3 3 Grey Goose imported vodka 17,880,921 18,332,773 (2.5) (451,852) 4 4 Jim Beam straight bourbon whiskey 17,249,613 17,965,975 (4.0) (716,362) 5 5 Crown Royal Canadian whisky 15,806,513 17,366,315 (9.0) (1,559,802) 6 6 Absolut imported vodka 14,065,839 14,327,146 (1.8) (261,307) 7 7 Bacardi Superior domestic rum 13,171,165 13,851,996 (4.9) (680,831) 8 8 Aristocrat domestic vodka 13,001,667 13,623,632 (4.6) (621,965) 9 9 Jagermeister imported cordials12,871,214 13,226,412 (2.7) (355,198) 10 10 Captain Morgan's Spiced imported rum 12,102,268 12,905,298 (6.2) (803,031) 11 12 Jose Cuervo Especial Gold tequila 11,001,612 11,838,326 (7.1) (836,714) 12 11 Hennessy V.S. Cognac\Armagnac 10,730,236 12,198,050 (12.0) (1,467,814) 13 13 Patron Silver White tequila 10,559,119 9,923,893 6.4 635,226 14 14 Seagram's Extra Dry domestic gin 8,874,838 9,685,960 (8.4) (811,122) 15 16 Maker's Mark straight bourbon whiskey 7,919,679 7,454,453 6.2 465,227 16 15 Pinnacle imported vodka 7,253,355 8,572,252 (15.4) (1,318,897) 17 18 Skyy domestic vodka 7,132,015 7,252,498 (1.7) (120,483) 18 17 Bowman's Virginia domestic vodka 6,981,958 7,355,539 (5.1) (373,581) 19 19 Tanqueray imported gin 6,259,375 6,488,052 (3.5) (228,677) 20 23 Burnett's domestic vodka 5,788,417 5,337,055 8.5 451,362 21 22 Ketel One imported vodka 5,681,523 5,342,129 6.4 339,394 22 20 Canadian Mist Canadian whisky 5,660,149 6,258,839 (9.6) (598,691) 23 21 Grand Marnier Cordon Rouge imported cordials 5,432,245 5,477,135 (0.8) (44,890) 24 24 Bailey's Original Irish Cream imported cordials 4,890,959 4,936,606 (0.9) (45,647) 25 38 Jameson Irish Irish whiskey 4,809,179 3,812,553 26.1 996,625 26 28 Evan Williams Black straight bourbon whiskey 4,771,791 4,708,743 1.3 63,048 27 26 Dewar's White Label Scotch whiskey 4,659,858 4,766,815 (2.2) (106,958) 28 27 Stolichnaya imported vodka 4,575,806 4,715,701 (3.0) (139,895) 29 25 Early Times domestic whiskey 4,490,859 4,870,781 (7.8) (379,922) 30 32 Johnnie Walker Black Scotch whiskey 4,463,051 4,304,770 3.7 158,281 31 35 Ciroc Luxury imported vodka 4,441,143 3,966,378 12.0 474,765 32 29 E & J V.S. grape brandy 4,417,969 4,678,695 (5.6) (260,726) 33 31 Paul Masson Grande Amber V.S. grape brandy 4,294,218 4,562,035 (5.9) (267,817) 34 33 Malibu Coconut imported rum 4,217,939 4,090,082 3.1 127,857 35 30 Wild Turkey 101 straight bourbon whiskey 4,029,517 4,565,910 (11.7) (536,394) 36 40 Bombay Sapphire imported gin 3,771,617 3,656,877 3.1 114,740 37 34 Southern Comfort domestic cordials 3,648,927 3,987,437 (8.5) (338,510) 38 36 Kahlua Coffee imported cordials 3,627,709 3,945,443 (8.1) (317,734) 39 37 Seagram's 7 Crown blended whiskey 3,555,130 3,878,081 (8.3) (322,952) 40 39 Bacardi Gold domestic rum 3,534,254 3,673,745 (3.8) (139,491) 41 42 Evan Williams Green straight bourbon whiskey 3,345,063 3,155,136 6.0 189,927 42 50 Svedka imported vodka 3,244,670 2,528,750 28.3 715,920 43 — E & J V.S.O.P. grape brandy 3,188,428 3,471,423 (8.2) (282,994) 44 43 Courvoisier V.S. Cognac\Armagnac 2,997,091 3,058,287 (2.0) (61,196) 45 44 Johnnie Walker Red Scotch whiskey 2,988,732 3,021,937 (1.1) (33,205) 46 45 Aristocrat White domestic rum 2,985,409 2,960,361 0.8 25,048 47 46 Absolut Citron flavored vodka 2,755,794 2,784,954 (1.0) (29,161) 48 47 Barton domestic gin2,754,015 2,742,363 0.4 11,652 49 — Ciroc Red Berry flavored vodka 2,597,785 440,971 489.1 2,156,814 50 48 Henry McKenna straight bourbon whiskey 2,589,888 2,695,067 (3.9) (105,179)

VIRGINIA ABC • 2011 ANNUAL REPORT • STATISTICAL HIGHLIGHTS • PAGE 11 www.abc.virginia.gov FINANCIAL REPORTS

A Message from the Chairman and Chief Operating & Financial Officers

We are pleased to present the Fiscal Year 2011 Annual Report for the Virginia Department of Alcoholic Beverage Control (ABC). These facts and figures represent a thirteenth consecutive record-breaking year for retail sales by our agency. In Fiscal Year 2011, we opened two new stores, modernized 13 and relocated seven. Also in Fiscal Year 2011, ABC operations returned record profits of $121 million to the Commonwealth of Virginia. The agency has contributed more than $1.5 billion dollars to the commonwealth in the last five years.

We stand behind these figures with pride in the accomplishments made possible by the hard working and dedicated employees of ABC. To the best of our knowledge, these fig- ures accurately represent the operations of our agency during the fiscal year. The finan- Chairman J. Neal Insley (center), with Chief cial statements of the agency are audited annually by the Auditor of Public Accounts as Chief Financial Officer J. Craig Vanderland (left) required by the Code of Virginia. ½ and Operating Officer W. Curtis Coleburn.

Financial Results in Brief, Fiscal Year 2011 Revenue Source Fiscal Year 2011 ABC profit transfers (1) $ 121,013,600 State taxes (2) 114,201,593 General sales tax (3) 27,889,207 Wine liter tax (4) 32,171,151 Malt beverage tax (5) 43,915,010 Total $ 339,190,561 (1) Source: “Statement of Revenues, Expenses and Changes in Net Assets” (p. 33). Profits are reported in accordance with generally accepted accounting principles. Profits include licensing fees and ABC’s portion of the wine liter tax. (2) Source: “Notes to Financial Statements 4.B. General Fund” (p. 37). State tax on distilled spirits = 20 percent. State tax on wine sold in ABC stores = 4 percent. (3) Source: “Notes to Financial Statements 4.C. Department of Taxation–Sales Tax” (p. 38). General sales tax rate is 5 percent. (4) Source: “Notes to Financial Statements 4.B. General Fund” (p. 37). The non-ABC portion of the wine liter tax = $.40 per liter. $9,141,363 of the wine liter tax is transferred to the Virginia Department of Behavioral Health and Developmental Services. (5) Source: “Notes to Financial Statements 9. Collections of Malt Beverage Tax” (p. 39).

Sales of All Beverages, Fiscal Year 2011 Product Gallons (1) Liters Total Gallons (%) Gross Dollars Gross Sales (%)

STATE STORE SALES Distilled spirits 9,597,182 36,329,267 96.3% $685,576,109 99.0% Virginia wine 27,272 103,237 0.3% $1,530,661 0.2% Vermouth 37,737 142,851 0.4% $1,308,128 0.2% Alcohol 87 330 0.0% $6,407 0.0% Nonalcoholic mixers 308,514 1,167,850 3.1% $4,206,681 0.6% Total 9,970,792 37,743,536 100.0% $692,627,985 100.0%

DIRECT SALES FROM WHOLESALERS Wines ($0.40 liter) (2) 23,045,827 87,237,905 12.8% $34,895,162 44.3% Beer ($7.95 barrel) (3) 157,429,456 595,935,037 87.2% $43,887,251 55.7% Total 180,475,283 683,172,942 100.0% $78,782,413 100.0% NOTES: (1) Excludes miscellaneous records, nonbeverage and confiscated items. (2) Gross liter tax for wines after 12 percent allocated to ABC revenue (3) Malt beverage gallons are estimated. Gross tax is taken from the malt beverage tax listed in “Financial Results in Brief, Fiscal Year 2011” (this page). Source: Policy, Planning and Analysis (PPA)

VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL REPORTS • PAGE 12 www.abc.virginia.gov Comparison of Products Sold / Market Share, Fiscal Year 2011 vs. Fiscal Year 2010 Cases Sold Market Share (%) Change Products FY 11 FY 10 FY 11 FY 10 (%) Vodka 1,281,618 1,207,686 32.2 31.3 6.1% Domestic 693,502 683,268 1.5% Imported 319,924 305,679 4.7% Flavored 268,191 218,739 22.6% Rum 416,813 406,483 10.5 10.5 2.5% Domestic 278,537 265,827 4.8% Imported 138,276 140,656 (1.7)% Cordials, liqueurs, specialties 392,440 377,951 9.9 9.8 3.8% Imported 204,085 204,235 (0.1)% Domestic 188,355 173,715 8.4% Straight bourbon whiskey 379,082 365,042 9.5 9.5 3.8% Gin 246,411 248,762 6.2 6.4 (0.9)% Domestic 180,970 183,642 (1.5)% Imported 52,875 52,439 0.8% Flavored 11,877 11,906 (0.2)% Sloe 689 774 (11.0)% Tequila 193,225 180,865 4.9 4.7 6.8% Canadian whisky 169,495 171,071 4.3 4.4 (0.9)% Brandy 140,902 148,307 3.5 3.8 (5.0)% Grape 114,117 119,875 (4.8)% Imported 16,152 17,329 (6.8)% Blackberry 2,682 2,778 (3.5)% Apricot 2,406 2,478 (2.9)% Peach 2,329 2,364 (1.5)% Apple 1,096 1,139 (3.7)% Flavored 1,030 1,250 (17.6)% Cherry 1,063 1,071 (0.7)% Fruit 28 24 14.5% Scotch whiskey 137,207 136,568 3.4 3.5 0.5% Tennessee whiskey 98,285 98,116 2.5 2.5 0.2% Blended whiskey 94,626 96,795 2.4 2.5 (2.2)% Cognac \ Armagnac 79,784 78,096 2.0 2.0 2.2% Cocktails 77,844 74,447 2.0 1.9 4.6% Domestic 73,129 70,957 3.1% Imported 4,715 3,490 35.1% Domestic whiskey 39,798 42,857 1.0 1.1 (7.1)% Specialty bottles 38,494 28,854 1.0 0.7 33.4% Imported 27,268 20,936 30.2% Domestic 11,226 7,918 41.8% Irish whiskey 22,797 20,014 0.6 0.5 13.9% Egg nog 11,095 11,355 0.3 0.3 (2.3)% Corn whiskey 4,681 4,359 0.1 0.1 7.4% Straight rye whiskey 3,029 1,952 0.1 0.1 55.1% Rock & rye 1,327 1,420 0.0 0.0 (6.6)% Bottled in bond whiskey 362 338 0.0 0.0 7.0% Alcohol 32 39 0.0 0.0 (17.6)%

Vermouth 15,393 15,699 0.4 0.4 (1.9)% Imported 7,884 7,900 (0.2)% Domestic 7,509 7,798 (3.7)% Virginia wine 11,609 12,017 0.3 0.3 (3.4)%

Nonalcoholic mixers 109,834 114,527 2.8 3.0 (4.1)% Nonbeverage item 17,793 13,388 0.4 0.3 32.9%

Statewide totals* 3,983,976 3,857,005 100.0 100.0 3.3% The “Comparison of Products Sold / Market Share” table includes updated figures for 2010 and 2011 and properly accounts for sales of products by their respective spirits category. * Excludes miscellaneous records and confiscated items. Source: Wholesale/Retail Operations

VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL REPORTS • PAGE 13 www.abc.virginia.gov

to Virginia (4) Virginia to Rate of Return of Rate

(continued) Net Profit Net

Adjusted

,700 33.9

Expenses

Administrative

General & General

Allocation of Allocation

Profit

Net Store Net

Expenses (3) Expenses

Store Gross Profit Gross

rages.

Goods Sold Goods Cost of Cost

ofit + state taxes) ÷ sales gross Net Sales Net

Taxes (2) Taxes

Spirits & Wine & Spirits

Sales (1) Sales

Gross Gallons Sold Gallons Locality Includes state taxes, but does not include 5 percent sales tax. (3) Store expenses include miscellaneous revenue and net cash ove (2) State taxes on distilled spirits (20 percent) and wine (4 sold in ABC stores. (4) “Rate of return” = (adjusted net pr Statewide totals 9,661,682 $692,730,555 $114,300,031 $578,430,524 $337,260,619 $241,169,905 $82,503,668 $158,666,237 $37,944,537 $120,721 Far SouthwestSouthwestWytheville/Hillsville 55,114 $3,626,902 $600,157 $3,026,746Radford/Blacksburg 58,769 $1,761,286 $3,888,561 $1,265,459 $642,033 $427,467 167,615 $3,246,528 $10,442,876 $837,992 $1,891,421 $1,722,540 $198,552 $1,355,107 $8,720,336Roanoke $639,440 $5,084,135 $588,044 216,194 $3,636,200 $13,302,245 34.2 $767,063 $1,159,789 $2,199,284 $212,969 $11,102,961 $2,476,412 $6,471,566 $554,094 $572,046 $4,631,395 $1,904,365 30.8 $1,435,615 34.7 $3,195,780 $728,345 383,733 $2,467,436 $25,150,320 35.1 $4,150,619 $20,999,701 $12,244,703 $8,754,998 $2,638,123 $6,116,875 $1,377,562 $4,739,312 35.3 87 4027 College Ave. Co. Tazewell 58 3002 Lee Hwy.96 974 E. Stuart Dr. 16,970 Bristol City Galax City 1,177,87467 290 Peppers Ferry Rd. 194,354 Montgomery Co. 983,520 25,143 21,238 1,734,869 572,620 1,194,016 31,647 286,096 410,900 196,498 2,113,746 1,448,773 187,117 997,518 348,860 844,530 223,782 580,951 1,764,886 604,243 1,030,020 64,518 416,56757 1028 Richmond Ave. 220,39668 734,866 Hwy. 2196 John Wayland 159,264 155,092 383,846 Harrisonburg City 30.0 265,664 Staunton City 261,476 95,038 469,202 65,436 24,763 288,808 115,775 14,997 1,512,918 196,039 33.1 353,427 32.9 993,874 249,537 33.2 1,263,380 163,877 735,494 829,997 527,887 484,527 200,487 345,470 327,400 243,594 82,877 101,876 244,523 54,447 32.7 47,429 21.3 137 58 E. 674 Hwy. 194 16427-E Wise St.206 18 E. 4th St., N.218 23, N. 3982 Hwy. Norton City174 Wise Co. One Plaza Dr.197 G. C. Perry Hwy. 12686 Gov. Wise Co.230 Scott Co. 722 E. Riverside365 Co. Tazewell 340 Chase St. 23,498 Buchanan Co. 10,522135 Co. Tazewell 1173 N. Main St.141 1,623,298 12,136 Stuart Dr. 17,946 441 W. 153 8,958 Dickenson Co. Main St. 325 W. 729,528201 Main St. 545 W. 1,154,357343 268,450 748,834 2123 Euclid Ave. 525,242 8,872 120,920 Smyth Co. 1,354,848 190,459 Carroll Co. 8,009 123,993195 6,972 610,392 Co. Wythe 100 N. Franklin St. 86,795 608,609199 Co. Washington 788,036 140 Kinter Way 963,898327 505,187 Bristol City 624,841 1332 S. Main St.345 100,928 440,751 1072 Memorial Square Dr. 438,448 354,316356 St. 566,813 97 Walker 561,928 363,864 22,908 83,335 Montgomery Co. Pulaski Co. 14,819 509,464 255,070 37,371 254,293 72,957115 184,647 1423 Williamson Rd., N.E. 23,713 Giles Co. 401,970 1,366,284123 260,977 Montgomery Co. 531 Main St. 421,852 2,486,298124 840,699 22,424 297,590 Main St. 123 W. 183,378 367,794 1,471,319 51,656186 Roanoke City Main St. 1483 W. 26,807 382,166 226,014 149,268229 101,055 Radford City 245,612 Gateway Blvd. 3940 Valley 1,349,391 410,530 138,460259 211,874 Square Blvd. 1398 Towne 20,032 213,671 90,109 242,022 1,613,030269 202,636 81,955 1,140,270 S.W. 646 Brandon Ave., Roanoke City 88,877 252,702289 159,922 2,075,768 176,241 N.W. 3341 Melrose Ave., 222,921309 Roanoke City 702,239 1,164,662 13,354 1,229,298 Covington City S.W. 3901 Brambleton Ave., 154,123 Clifton Forge City 80,240 5,210,114 266,906337 Salem City 55,812 664,065 93,269 39,924 Rd. 1113 Vinyard Roanoke City 1,210,836 293,289 1,126,470364 Roanoke Co. 63,231 Roanoke City 56 Kingston Dr. 40,989 42,399 82,764 410,757 192,586 716,490 734,116 1,346,124 861,700 3,891,439 131,634 88,655 476,206 34.6 162,712 28,762 864,932 20,464 656,508 189,471 2,466,577 118,933 6,809 291,482 14,185 4,348,413 972,076 43,200 121,217 785,486 512,808 93,477 641,978 38.9 33,420113 164,174 Roanoke Co. 1,300,446 2827 E. Main St. 65,468 32.9 204,143 60,661 469,962 64,507 32.4 44,646122 408,015 31,103 2,534,401 54,407 201 State St. 2,865,201 Botetourt Co. 427,104 117,732 565,827140 3,249,461 892,059 560,638 130,909 612,899 445 E. Nelson St. 27,673 215,155 4,155,331 312,032 98,214 28.8 2,757,862 2,058,563 1,814,012 24,127 660,789 2,106,192 167,343 3,512,968 1,891,639 472,706 406,249 147,745 173,751 70,721 357,299 240,311 381,899 1,085,290 32.6 1,198,533 65,803 684,439 454,440 Bath Co. 30,572 74,801 136,169 1,357,822 349,621 396,311 578,687 302,619 2,392,495 41,341 21,873 162,497 Lexington City 744,314 356,383 255,601 46,066 320,328 29.5 632,607 Staunton City 80,641 3,470,892 860,029 2,303,421 1,820,087 1,756,571 1,417,702 1,396,682 2,934,281 237,231 524,621 25.9 290,442 1,421,632 73,895 2,029,884 433,017 243,752 207,440 1,341,936 121,066 127,684 301,258 452,683 1,019,849 88,305 1,713,380 300,728 249,767 33.9 37.6 285,252 1,067,380 995,813 234,399 228,724 1,441,008 31.7 39,002 311,297 36.9 1,220,902 148,944 961,486 134,535 1,519,359 63,767 1,132,450 6,474 232,023 191,677 736,721 22,730 610,262 213,162 294,362 1,187,233 33.5 459,707 2,516,199 38.3 130,686 30.9 344,023 1,533,716 251,128 885,590 179,985 69,681 222,839 40,206 512,824 261,006 135,040 854,218 701,451 692,679 413,739 981,301 32.0 252,940 180,611 876,879 633,769 710,358 38.4 513,882 475,222 94,329 84,522 71,194 79,263 156,946 494,554 2,102,460 227,687 1,280,775 192,486 151,102 189,217 35.8 29.4 48,826 115,230 189,811 428,302 1,227,293 544,506 23,378 194,362 753,613 748,146 684,393 559,255 131,785 31.1 444,552 398,653 35.5 249,654 875,167 55,885 300,192 34.6 532,629 36.0 36.8 31.3 35.5 99,669 178,648 268,115 29.6 77,881 188,137 344,883 122,468 607,052 222,311 344,493 35.5 137,920 32.1 56,181 84,018 469,133 28,096 260,475 35.1 28,084 33.5 22.0 Analysis of Store Performance, Fiscal Year 2011 Analysis of Store Performance, Fiscal Year ABC Stores by Planning District NOTES: (1)

VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL REPORTS • PAGE 14 www.abc.virginia.gov

to Virginia (4) Virginia to Rate of Return of Rate

(continued) Net Profit Net

Adjusted

Expenses

Administrative

General & General

Allocation of Allocation

Profit

Net Store Net

Expenses (3) Expenses

Store Gross Profit Gross

rages.

Goods Sold Goods Cost of Cost

ofit + state taxes) ÷ sales gross Net Sales Net

Taxes (2) Taxes

Spirits & Wine & Spirits

Sales (1) Sales

Gross Gallons Sold Gallons Locality Includes state taxes, but does not include 5 percent sales tax. (3) Store expenses include miscellaneous revenue and net cash ove (2) State taxes on distilled spirits (20 percent) and wine (4 sold in ABC stores. (4) “Rate of return” = (adjusted net pr Staunton/Waynesboro 299,462Winchester/Front Royal $19,393,809 $3,195,469 $16,198,340 $9,443,646 $6,754,694 $2,332,167 $4,422,527 260,538 $17,238,393 $1,062,597 $2,839,747 $3,359,930 $14,398,646 33.8 $8,397,269 $6,001,377 $2,109,250 $3,892,127 $944,539 $2,947,588 33.6 47 380 Gateway Dr.52 786 Shopping Center Rd.56 182 Delco Plz.75 226 Elizabeth Dr. Shenandoah Co. Winchester City Frederick Co. Stephens City 13,660 23,493 860,380 1,639,69933 12631 Galveston Court 18,90936 23,204 142,271 8038 Crescent Park Dr.39 10410 Bristow Center Dr. 270,04640 22000 Dulles Retail Plz. 1,266,595 1,618,72041 Prince William Co. 718,110 12950 Highland Crossing Dr. Prince William Co.42 1,369,653 Prince William Co. 7702 Richmond Hwy.45 Fairfax Co. 209,474 8428 Old Keene Mill Rd. 266,247 Loudoun Co.49 418,040 881 N. Quincy St. 798,41754 18,955 Center Plz. 42015 Village 1,057,121 1,352,47355 17,576 24,067 9528 Liberia Ave. Fairfax Co. Alexandria City61 300,070 22330 Sterling Blvd. 1,498,275 571,23663 Loudoun Co. 8951 Ox Rd. 1,275,894 615,160 788,339 1,865,51073 Plz. 43150 Broadlands Shp. Ctr. Arlington Co.76 Loudoun Co. 14,131 121,256 15,363 Broad St. 1212 W. 247,729 232,34878 Square 5331 Merchants View 113,133 441,961 306,630 564,134 24,903 Manassas City80 Loudoun Co. 6206 Little River Tnpk. Prince William Co. 1,316,757 1,431,57081 1,250,546 178,814 6230-J N. Kings Hwy. 26,069 1,162,76182 338,888 1,558,879 46930 Cedar Lakes Plz. 1,915,915 22,800 170,344 209,61583 217,613 7263 Arlington Blvd. 235,967 Falls Church City Fairfax Co.84 729,452 42,330 2,013,272 Alexandria City 25,116 13053 E. Jackson Hwy. 47,107 18,043 680,34785 911,695 1,954,376 89,848 314,966 2930 Chain Bridge Rd. 30,695 Alexandria City 271,616 1,099,144 Fairfax Co. 354,51990 1,195,603 24,607 12965 Fair Lakes Shp. Ctr. 3,637,122 2,190,865 331,92793 521,094 1,456,859 131,706 6124 Rose Hill Dr. 482,414 1,600,949 Fairfax Co. Fairfax Co. 2,413,91099 321,963 647,184 249,040 22,274 601 Post Dr. 641,742 1,920,359 Fairfax Co. 697,313 69,346 88,721 Fairfax Co. 597,710 1,681,345 25,381 360,821 31.8 296,028 239,479 1,632,413 31.7 933,137 26,737 133,612 398,172 16,020 1,900,552 326,122 317,854 457,403 202,270 498,291 3,039,413 265,798 2,123,168 1,830,044 979,979 1,217,381 Fairfax Co. 40,859 225,066 2,160,101 2,015,738 1,276,475 952,804 667,812 312,457 348,802 321,062 1,602,505 1,771,694 32.5 1,067,030 32.9 327,872 22,574 16,215 292,364 349,663 701,366 3,471,777 711,653 1,177,177 Herndon City 31,069 27,368 355,706 210,289 1,588,095 82,035 679,609 1,267,719 296,549 102,261 935,494 76,276 1,865,072 1,372,382 763,013 1,773,505 129,531 205,927 570,298 310,381 2,647,512 505,727 838,561 2,277,148 1,804,396 1,066,186 926,059 143,032 298,257 417,552 17,088 1,033,761 371,263 218,801 272,526 667,011 307,195 226,419 289,130 2,901,478 1,050,975 72,103 434,288 78,431 390,985 265,775 374,432 302,280 623,641 26.1 30,602 662,036 1,344,099 28.2 381,352 30.2 105,021 850,167 739,745 1,557,878 1,145,962 1,695,135 299,740 473,884 2,213,224 753,421 1,902,716 127,497 110,295 2,685,160 57,428 239,952 442,545 536,282 221,675 346,870 107,085 1,206,344 266,242 199,383 908,761 669,614 345,084 1,289,598 367,271 1,114,653 120,049 25.4 20.9 281,826 280,690 443,890 132,231 296,456 1,122,424 79,859 30.3 274,267 315,167 420,377 650,784 649,117 476,348 394,661 923,626 105,123 353,834 788,063 30.4 2,241,270 471,595 404,051 656,264 160,093 146,089 30.5 34.3 104,178 785,967 283,304 285,730 116,340 32.6 262,148 362,508 1,308,830 338,309 118,367 33.2 27.4 466,160 69,941 210,989 190,334 30.2 278,320 365,814 190,618 932,440 561,118 449,754 353,228 221,763 27.5 29.6 76,148 595,632 102,195 75,174 145,186 395,888 124,817 32.8 244,397 22.4 33.6 263,618 115,444 415,933 536,551 324,938 73,630 30.6 24.9 32.1 30.7 147,025 170,767 389,526 29.2 31.0 145 398 N. Main St.147 St. 58 Water 184 2035 E. Market St.302 132 Lee Jackson Hwy.338 125 Lucy Ln.339 Augusta Plz., Rt. 612 Harrisonburg City Staunton City Rockingham Co. Highland Co. Augusta Co. 34,960 City Waynesboro 139 235 Sunnyside Circle 68,724142 22,237 411-F South St. 2,198,157167 21 Crowe St.173 4,502,636 2,253 14817 Spotswood Trail 1,410,922193 15,491 47,831 211 Bypass 1412 W. 362,992 Frederick Co.261 Ave. 2218 Valley 742,155293 142,116 231,662 5814 Main St. 3,104,508 1,835,165318 Page Co. 965,940 462 N. Main St. Co. Warren 3,760,481 1,179,259 Page Co. 1,069,386 Clarke Co. 22,829 511,229 159,986 31,525 2,191,082 Winchester City 688,199 2,593,279 765,779 119,287 2,145,400 1,569,399 Shenandoah Co. 805,954 Shenandoah Co. 42,698 1,511,799 13,035 491,060 193,669 69,904 352,817 394,165 468,162 35,682 18,607 12,128 2,860,790 1,081,480 811,372 205,747 12,637 572,110 14,959 1,792,584 1,175,235 2,433,717 1,116,590 337,792 49,383 824,670 469,771 322,543 133,734 1,047,051 285,313 753,145 120,385 246,684 907,315 400,964 184,096 144,581 2,391,019 135,988 48,662 758,937 677,638 745,532 124,621 451,725 2,032,753 77,358 928,550 149,718 1,394,029 932,494 193,211 688,682 170,117 1,186,690 394,750 37.1 234,486 37.1 207,955 628,524 721 996,990 757,597 544,164 52,870 401,579 588,820 846,063 282,887 31.2 511,047 367,522 441,528 324,377 388,330 7,825 35.4 140,341 287,103 216,658 124,383 117,592 261,003 316,068 672,613 143,929 31.1 109 (7,104) 1731 Wilson Blvd. 155,390111 5722 Union Mill Rd. 629,406 158,505 393,455119 122,158 54,307 901 N. Saint Asaph St. 156,849 11.1 244,401 131,713 34.8 133,347 44,452 515,764 193,910 206,696 Arlington Co. Alexandria City Fairfax Co. 61,171 45,177 496,059 114,052 34.4 49,698 41,231 183,230 36.9 86,536 30.5 47,862 32.9 144,213 165,465 30,656 27.0 31,407 4,320,950 32.4 38.5 2,781,577 2,594,699 711,959 455,131 426,904 3,608,990 2,326,446 2,167,795 2,106,091 1,359,357 1,261,999 1,502,899 967,088 905,796 326,750 370,196 361,972 1,176,149 596,892 236,747 543,823 152,613 939,402 142,205 444,279 38.2 401,618 32.3 31.9 ANALYSIS OF STORE PERFORMANCE, FISCAL YEAR 2011 ANALYSIS ABC Stores by Planning District NOTES: (1)

VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL REPORTS • PAGE 15 www.abc.virginia.gov

to Virginia (4) Virginia to 7 Rate of Return of Rate

(continued) Net Profit Net

Adjusted

Expenses

Administrative

General & General

Allocation of Allocation

Profit

Net Store Net

Expenses (3) Expenses

Store Gross Profit Gross

rages.

Goods Sold Goods Cost of Cost

ofit + state taxes) ÷ sales gross Net Sales Net

Taxes (2) Taxes

Spirits & Wine & Spirits

Sales (1) Sales

Gross Gallons Sold Gallons Locality Includes state taxes, but does not include 5 percent sales tax. (3) Store expenses include miscellaneous revenue and net cash ove (2) State taxes on distilled spirits (20 percent) and wine (4 sold in ABC stores. (4) “Rate of return” = (adjusted net pr 120 5926 Kingstowne Ctr.127 13300 Franklin Farm Rd.131 Bradlick Shp. Ctr.133 9130 Mathis Ave.136 18 Fairfax St., S.E. Fairfax Co. Fairfax Co.166 210 Fort Evans Rd.168 1001 N. Fillmore St.170 1238 Elden St. Fairfax Co.181 St. 106 Washington Manassas City203 3678 King St. Loudoun Co.208 Shp. Ctr. 44110 Ashburn Village Loudoun Co. Loudoun Co.210 Arlington Co. 11160 S. Lakes Dr. 35,328 14,505212 167 Hillwood Ave.215 Loudoun Co. 320 23rd St., S.219 3,117,494 Fairfax Co. 1,173,943 35,460 8338 Leesburg Pike 25,025224 13944 Lee Jackson Hwy. 36,796228 Blvd. 1524 Belle View Alexandria City Fairfax Co. 38,726 512,557 2,675,637 193,341231 22,346 1,956,537 23,279 436 E. Maple Ave. Falls Church City234 Fairfax Co. 9574 Old Keene Mill Rd. 2,928,110235 Fairfax Co. 3,292,201 2,604,937 8628 Richmond Hwy. 1,861,356 440,659 Arlington Co. 7,073 2,094,131236 980,602 323,479 Fairfax Co. 7200 Little River Tnpk., E.241 29,160 482,828 11260 James Swart Circle Fairfax Co. 1,520,721 32,953248 542,289 2,234,978 4709 Lee Hwy. 14,717 306,572 1,633,058 Fairfax Co. 343,096 622,172 571,707260 Fairfax Co. 6198 Arlington Blvd. 26,385 2,442,456 Fairfax Co. Fairfax Co. 2,445,282264 1,084,216 2,813,324 16661 Rivers Ridge Blvd. 1,304,519 2,749,912 1,141,727267 1,554,784 1,751,035 40,336 1446 Chain Bridge Rd. 948,715 101,890 22,893 408,894268 2,293,752 68,539 1,428,026 403,714 6400 Springfield Plz.271 1,607,378 347,698 464,266 33,033 Prince William Co. 13586 Jefferson Davis Hwy. 1,020,079 930,459 3,310,754 188,254 Fairfax Co.273 909,660 2,118,198 9421 Lorton Market St. 684,343 1,017,256 24,638 6,962,528 377,725 2,038,742 Arlington Co. 520,281 233,204286 Prince William Co. Fairfax Co. 1,142,534 7555 New Linton Hall Rd. 33,751 2,349,058 2,846,072294 33,928 736,518 3556-E S. Jefferson St. 730,956 360,534 27,090 545,545 44,117 1,149,641 Fairfax Co. 953,473 645,124295 1,866,932 1,190,470 346,053 1,916,027 8095 Sudley Rd. 304,462 28,241 341,489 303,551 1,369,731 Fairfax Co.297 175,691 2,792,731 Prince William Co. 335,261 4607 Duke St. 2,529,460 463,776301 170,882 2,147,642 2,765,209 3,760,574 47,400 5,812,887 4292 Merchants Plz. 296,298 569,925 1,117,179 1,772,145 557,244 308,149 277,929 Fairfax Co.316 2,266,811 848,272 Ctr. 4108 Fortuna Village 379,880 675,768 216,730 23,344 979,328317 457,165 30,768 2,382,296 64,327 1,617,964 9600 Main St. 807,273 417,455 3,398,615 3,834,858 565,637 353,702319 1,034,804 620,338 43,495 35,435 2435 N. Hamilton St. 1,558,782 146,613 434,658 798,848 396,229 374,578322 367,196 321,742 Prince William Co. 1,894,656 Prince William Co. 14151 Germain Dr. 107,127 2,335,566 1,390,009 160,408 2,584,415 118,135 1,147,245 47,220 Prince William Co. 388,804323 2,112,005 2,414,272 111,364 180,392 609-O E. Main St. 34.6 1,793,940 3,140,236 3,945,325 634,202 2,828,290 22,855346 737,341 Alexandria City 909,027 1,892,233 423,313 8105 Lee Hwy. 114,866 300,611 267,241 1,366,153 101,992352 312,259 526,529 3,827,903 272,753 1,224,020 515,359 424,167 2555 John Milton Dr. 1,079,622 992,287 26.0 1,048,906 376,001 Arlington Co. 47,665 1,830,416353 590,524 626,881 3,200,656 98,595 4255 Cheshire Plz. 1,866,580 27,118 649,232 56,041 1,103,540 465,781 32.3 357 46,621 318,530 Fairfax City 649,755 319,791 Shp. Ctr. 1454 N. Point Village Fairfax Co. 498,237 1,582,396 969,413 265,203 30.5 128,988 34.1 2,160,248358 1,334,650 133,740 631,951 1,309,820 887,986 4312 Wheeler Ave. 4,124,386 Fairfax Co. 340,228 1,868,360 35.5 745,034 Loudoun Co. 771,244 154,096362 2,199,553 3,296,093 4,375,547 2,362,509 307,868 100 Edds Lane 3,659,894 26,923 34,130 Fairfax Co. 788,693 31.7 367 418,811 1,262,162 314,299 30.7 20070 Ashbrook Commons Plz. 125,690 922,710 3,195,952 409,114 381,320 Fairfax Co. 1,332,296368 392,790 62,547 Loudoun Co. 677,997 430,183 265,521 1,925,880 10308 Willard Way 1,380,184 Prince William Co. 652,059 441,451 181,395 436,428 1,558,711 362,454 721,379 23,179369 2,273,144 602,564 6343-A Columbia Pike 269,136 64,465371 1,866,851 116,251 898,086 Arlington Co. 335,4565739 Burke Centre Pkwy. 372,547 32.6 659,686 953,330 1,370,213 3,446,389 560,299 425,056 35,007 32.0 879,637 66,441 622,465 1,837,098 156,277 43,145 3,654,168 1,975,884 982,326 589,848 908,689 303,583 3,057,331 375,147 26,456 26.7 37,250 1,329,101 56,945 519,557 Loudoun Co. 302,560 32.7 2,010,404 Fairfax Co. 409,608 30.2 Falls Church City 102,255 Fairfax Co. 2,713,170 20,254 311,868 1,072,791 405,226 153,211 2,131,642 22.3 3,431,247 907,240 34.3 1,784,484 205,997 138,546 495,782 324,181 1,897,997 313,403 16,181 650,022 2,073,176 117,681 31,635 3,385,914 4,485,764 428,954 30.6 1,435,985 124,129 1,663,177 1,522,526 233,201 488,478 447,368 64,386 1,272,847 407,088 1,104,632 764,307 347,818 964,987 33.7 566,614 1,651,703 209,960 1,401,372 673,640 483,919 2,627,268 340,795 668,922 185,903 256,527 556,494 26,635 740,843 562,133 900,147 395,428 29.0 2,265,802 5,708,874 274,013 30.9 550,967 141,710 ANALYSIS OF STORE PERFORMANCE, FISCAL YEAR 2011 ANALYSIS ABC Stores by Planning District NOTES: (1)

VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL REPORTS • PAGE 16 www.abc.virginia.gov

to Virginia (4) Virginia to Rate of Return of Rate 32.3

(continued) Net Profit Net

Adjusted

Expenses

Administrative

General & General

Allocation of Allocation

Profit

Net Store Net

Expenses (3) Expenses

Store Gross Profit Gross

rages.

Goods Sold Goods Cost of Cost

ofit + state taxes) ÷ sales gross Net Sales Net

Taxes (2) Taxes

Spirits & Wine & Spirits

Sales (1) Sales

Gross Gallons Sold Gallons Locality Includes state taxes, but does not include 5 percent sales tax. (3) Store expenses include miscellaneous revenue and net cash ove (2) State taxes on distilled spirits (20 percent) and wine (4 sold in ABC stores. (4) “Rate of return” = (adjusted net pr Northern VirginiaWarrenton/Culpeper 2,388,885 $198,868,126 $32,662,913 $166,205,212 $96,990,307 $69,214,905 $26,815,525 $42,399,380Charlottesville 205,042 $10,902,917 $13,930,426 $31,496,463 $2,293,029 $11,637,397 $6,793,386 $4,844,011 $1,933,310Lynchburg $2,910,702 $763,403 305,110 $2,147,299 $21,841,155 $3,599,175 31.9 $18,241,980 $10,638,323 $7,603,657 $2,603,518 $5,000,140 273,254 $1,196,658 $17,109,928 $3,803,482 $2,829,571 33.9 $14,280,357 $8,316,683 $5,963,674 $2,084,825 $3,878,849 $936,779 $2,942,070 33.7 37 15149 Montanus Dr.51 Sag Trail 265 Turkey 66 11083-E Marsh Rd.72 Dr. 5309 A Lyndon 88 4199-B Winchester Rd. Culpeper Co. Fluvanna Co. Fauquier Co. Fauquier Co. Orange Co. 22,776 17,05846 183 Community St.50 325 Four Leaf Lane, Ste. 3 1,593,436 18,08270 14,089 8875 Seminole Trail 1,116,373 24,320 Albemarle Co. 1,189,840 263,014 987,957 183,371 Charlottesville City 1,565,184 1,330,421 196,064 Greene Co. 163,213 933,002 257,535 21,443 776,484 7,504 993,776 824,744 1,307,649 545,464 1,643,968 553,937 580,986 556,694 15,510 481,097 762,925 387,538 269,849 218,076 412,789 1,001,094 91,720 343,647 544,724 136,350 1,374,119 335,861 211,795 164,774 464,974 140,395 189,516 802,587 251,188 200,994 87,274 836,319 271,405 203,252 355,208 571,531 61,204 248,586 487,338 193,569 65,191 183,866 54,103 85,781 189,984 32.1 348,981 135,804 107,914 33.4 149,149 269,428 387,665 27.9 163,815 31.6 85,655 33.7 90,141 185,166 30,502 297,524 54,862 34.5 55,153 130,304 26.4 29.5 372 3161 Duke St.374 2955-A S. Glebe Rd. Arlington Co. Alexandria City163 583 N. Madison Rd.227 S. Main St.274 28 Madison Plaza Dr.303 51,995 175 Lee Hwy. 22,489329 185 Southgate Shp. Ctr. Orange Co. 4,323,415 1,901,988 Madison Co. Culpeper Co. 714,454 314,049 Orange Co.125 Fauquier Co. 304 Pantops Ctr.126 3,608,961 Hwy. 1,587,939 2819 Rockfish Valley 14,662138 Rts. 22 and 23185 9,655 2,104,383 Main St. 500 W. Nelson Co. 24,473189 925,612 Square 138 Scottsville Village 931,080202 1902 Emmet St. Albemarle Co. 1,504,578253 Albemarle Co. 611,995 8,725 1,635,451 1169 Emmet St. 51,202321 662,326 77 Callohill Dr. 154,129359 1653 Seminole Trail 395,360 3,744,729 Louisa Co. 100,740 269,790 554,383 Charlottesville City 292,392 776,951117 8,373 1,109,218 St. 309 Twelfth 9,075 Charlottesville City 1,365,662 35,098 613,959160 511,254 Salem Tnpk. 1128 E. Lynchburg Charlottesville City 91,214176 Bedford City Albemarle Co. 369,935 Highways 501 & 40, S. 37,159 452,230 Nelson Co.262 605,935 236,745 Rd. 20401 Timberlake 2,461,873 3,130,769 796,499 567,131266 298,034 Rd. 2118 Wards 61,257 463,169279 2,772,834 25,475 104,167 18013 Forest Rd. 53,850 1,829,413 324,721 872,473281 Campbell Co. 405,638 98,453 216 Amelon Square Plz. 569,163 City Lynchburg 93,811285 213,220 4,753,991 199 Ambriar Shp. Ctr. Campbell Co. 270,253 1,543,545 19,931 458,809287 1,301,356 265,767 3,858,739 24,134 4925 Boonsboro Rd. 36.7 147,570 2,056,235347 1301-I N. Main St. 507,482 244,925 Amherst Co. 10,435354 473,320 139,771 785,327 1,434,500 2,314,025 U.S. Rt. 460 W. City Lynchburg 254,041 192,916 30.5 1,480,870 635,055 1,198,866 404,289 Bedford Co. Amherst Co. 177,151 36,018 297,478 3,968,664 8,443 1,346,210 324,238 640,852 City 275,357 Lynchburg 132 1,289,504 235,604 2777 Greenboro Rd. 37,083 73,450 100,624 3,223,684 244,913146 857,369 897,067 Main St. 639 W. Campbell Co. 2,243,446 2,312,397154 50,967 210,004 235 N. Union St. 967,815 1,198,896 481,278 106,093 40,250 1,884,019 750,867 197,963 89,586191 24,970 2,339,330 1,235,956 Rd. 942 Tanyard Appomattox Co. 33,538213 92,292 247,764 205,376 1,656,267 Hwy. Washington 12990 B. T. 372,721 35,934 10,391276 Henry Co. 126,184 1,339,665 114,067 21,664 2,513,294 Dr. 221 Nor-Dan 1,535,841 699,963 270,715 Franklin Co. 534,759 234,652 538,638 386,264277 79,819 720,485 95,715 985 Fairystone Park Hwy. 691,692 1,870,726 39,912 609,605 2,338,966 422,036 30,383 Danville City 30.1 18,331 1,498,278 636,321 415,864 379,545 Danville City 30.8 254,105 1,953,066 498,933 311,837 697,099 95,937 16,035 164,356 Henry Co. 515,471 401,459 Franklin Co. 1,087,608 102,248 34.9 23.0 1,234,231 134,887 386,058 1,108,273 61,909 1,138,581 247,243 2,097,430 104,696 1,281,737 Danville City 960,120 324,043 151,798 222,922 934,031 233,408 374,282 188,097 33,290 34,088 21,301 783,118 1,952,907 260,341 31,049 474,718 1,220,738 182,903 27.6 1,251,035 20,332 814,485 746,631 531,625 211,471 545,301 11,670 174,890 129,681 2,198,829 1,258,781 154,986 1,137,507 168,052 327,374 84,590 190,240 62,647 35.8 973,890 30,611 71,199 876,692 731,340 925,370 1,223,476 21,398 212,021 535,106 309,256 36.2 748,649 28,517 362,908 208,414 648,362 26.6 815,400 78,647 779,045 126,519 37.0 289,691 93,241 1,812,683 81,078 592,878 29.1 1,165,138 272,608 538,203 202,407 519,696 35.9 200,200 222,370 602,463 1,855,762 1,835,921 1,050,367 107,451 35.2 452,926 234,085 96,243 299,445 246,296 122,718 41,533 35,080 1,021,069 192,764 387,168 213,234 604,084 1,073,478 128,119 142,670 334,906 306,901 611,057 23.1 540,911 1,513,238 326,119 33.2 581,315 470,160 594,085 26,335 58,161 972,374 137,590 155,276 306,462 762,442 1,548,860 474,344 439,310 84,081 79,700 315,274 880,976 37.6 149,876 128,109 25.6 426,983 564,980 466,494 15,198 36.8 231,891 899,949 243,859 82,067 250,825 153,663 34,874 225,636 632,262 453,206 176,243 35.1 219,522 19.7 407,394 648,911 224,395 60,703 32.9 518,584 285,647 35.9 119,709 220,662 44,826 51,105 207,461 158,792 31.5 171,188 193,852 120,435 23.5 68,903 105,928 411,600 125,138 248,602 31.9 66,981 398,149 455,059 216,744 30.0 35,483 99,267 140,480 34.6 63,787 101,604 33.8 312,333 28.0 70,444 184,815 353,455 33.7 27.4 32.4 35.6 ANALYSIS OF STORE PERFORMANCE, FISCAL YEAR 2011 ANALYSIS ABC Stores by Planning District NOTES: (1)

VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL REPORTS • PAGE 17 www.abc.virginia.gov

to Virginia (4) Virginia to Rate of Return of Rate

(continued) Net Profit Net

Adjusted

Expenses

Administrative

General & General

Allocation of Allocation

Profit

Net Store Net

Expenses (3) Expenses

Store Gross Profit Gross

rages.

Goods Sold Goods Cost of Cost

ofit + state taxes) ÷ sales gross Net Sales Net

Taxes (2) Taxes

Spirits & Wine & Spirits

Sales (1) Sales

Gross Gallons Sold Gallons Locality Includes state taxes, but does not include 5 percent sales tax. (3) Store expenses include miscellaneous revenue and net cash ove (2) State taxes on distilled spirits (20 percent) and wine (4 sold in ABC stores. (4) “Rate of return” = (adjusted net pr Danville/MartinsvilleSouth Boston 248,351 $15,177,661Farmville $2,509,547 $12,668,114 $7,375,580 $5,292,534 107,454 $2,014,982 $6,339,562 $3,277,552 $1,050,996 $831,017 $5,288,566 $2,446,535 $3,079,109 $2,209,457 32.7 105,406 $6,199,103 $828,520 $1,028,229 $1,380,937 $5,170,874 $346,925 $3,006,234 $1,034,012 $2,164,640 32.9 $925,073 $1,239,567 $339,205 $900,362 31.1 59 3136 Halifax Rd. South Boston 37,030 2,212,01638 2501 New Kent Hwy.77 1800 S. Creek Dr. 366,06786 2610 Buford Rd.89 34-A Broad Street Rd.97 1,845,949 6504 Hull St. New Kent Co. 1,075,171 Powhatan Co. Goochland Co. Richmond City 770,778 23,607 Richmond City 313,562 13,358 19,396 1,546,169 27,491 1,390,694 457,216 855,903 254,589 1,993,967 36,750 229,156 1,291,580 121,093 141,683 327,765 2,618,490 1,161,538 753,513 336,123 714,219 1,666,202 432,618 679,069 31.7 538,066 417,551 973,874 2,185,872 482,469 187,597 1,273,422 296,668 692,328 160,445 350,470 912,450 118,247 229,593 322,024 281,709 84,727 178,422 462,735 76,196 265,743 630,740 109,301 46,852 245,828 33.7 143,391 353,433 131,570 34.2 34.2 487,349 31.9 35.1 283 Plz. Tightsqueeze 291 Commonwealth Blvd. 243 W. 324 301 S. Main St. Martinsville City373 3308 Riverside Dr. Pittsylvania Co.143 812 E. Atlantic St. 31,865157 302 New Hicks St. Danville City Patrick Co.172 112 N. Main St.214 2,009,307 Ave. 608 Virginia 12,699 Mecklenburg Co.152 332,482 1506 S. Main St. Brunswick Co.161 740,323 501 F Main St. 25,371164 Ave. Virginia 1618 W. 10,500 Mecklenburg Co. 1,676,825178 Mecklenburg Co. 974 Main St.196 122,374 4875 Main St. 35,422 1,642,418275 1527 S. Main St. 975,630 622,584351 11,022 Prince Edward Co. 15127 Patrick Henry Hwy. Nottoway Co. 2,149,733 617,949 10,671 271,279 13,310 Lunenburg Co. 103,122 701,195 Amelia Co. 613,572 356,481 1,371,139 359,548 566,882 43,555 Buckingham Co. 797,360 Charlotte Co. Nottoway Co. 246,919 519,462 102,045 1,793,252 10,086 798,184 2,670,834 258,401 94,252 132,152 9,169101 Broad St. 3100-A W. 302,417 1,044,394 454,276102 511,527 Main St. 1901 W. 578,793 10,034 572,955 442,231104 142,797 9,889 Commons 7028 Woodlake 472,630 665,207108 484,813 16,382 10242 Staples Mill Rd. 217,045 109,998 748,858 6,293116 297,798 2,228,603 12635 Jefferson Davis Hwy. 587,661 234,353 96,144 Richmond City Chesterfield Co.150 115,604 567,425 5654 Brook Rd. 274,309 387,437169 Chesterfield Co. 958,381 80,607 10 N. Thompson St. 344,278 1,296,738 198,936 351,195 80,855171 Richmond City 213,729 Henrico Co. Broad St. 8700 W. 338,602 482,650 97,722180 40,537 2026 E. Main St. 198,321 94,232 277,771 33.7 182 159,225 Broad St. 1217 W. 404,206 931,866 549,922 32,671187 136,189 58,069 St. 2421 Venable 43,097 90,882 280,646190 489,939 89,946 Richmond City 52,817 13121 Rittenhouse Dr. 122,052 103,088 75,067 Henrico Co. 473,194205 799,156 234,778 2288 John Rolfe Pkwy. 2,321,654 254,658 117,636 20,126 Henrico Co. 3,078,488207 293,126 34,076 10106 Brook Rd. 122,848 202,003 21,943 3,662,890 284,473 248,657242 26.7 Richmond City 1601 Willow Lawn Dr. 274,678 Richmond City 174,682243 76,269 1,368,561 464,600 Chesterfield Co. 169,429 381,583 Hwy. 209 N. Washington 432,286 677,208 508,355247 Henrico Co. 170,322 Richmond City 102,113 1,532,003 Broad St. 9685 W. 31.7 602,620 118,294 79,064 33,556 205,466251 2924 North Ave. 198,516 1,940,072 36.7 252 226,432 43,637 334,556 23,736 Hanover Co. 114,562 Henrico Co. 2,570,133 31,004 Southside Plz. 618 W. 146,194 33.0 254 122,805 251,060 3,060,271 37,242 6,109,361 Henrico Co. 7015 Three Chopt Rd. 111,653270 89,292 1,130,821 83,710 18,869 40,731 809 E. Parham Rd. 1,142,129 1,496,525 1,583,394 131,045 83,980284 171,208 35 14229 Midlothian Tnpk. 531,014 1,783,035 45,265 Henrico Co. 1,280,944 2,822,289 26,191 54,867292 998,651 Richmond City 1521 Parham Rd. 70,719 15,322 31.2 1,212,402 2,940,175 1,073,608 809,250 93,813 Richmond City 665,313 33.0 Richmond City 31,661 261,859 1,277,236 36.4 114,536 24.6 1,582,775 163,347 748,578 466,630 5,110,709 33,812 Chesterfield Co. 33,934 26,516 1,079,717 3,249 Henrico Co. 200,728 483,816 31,789 52,085 370,169 275,085 1,321,535 476,816 32,140 52,048 350,815 2,974,098 2,355,660 263,257 2,153,239 31,041 2,500,299 52,424 532,366 177,822 44,949 Henrico Co. 1,011,674 23,747 2,456,358 28,351 2,467,354 13,256 769,210 27,182 703,439 534,165 19,229 25.6 2,136,612 227,803 1,375,072 532 1,319,518 61,674 32,714 926,421 355,011 411,933 110,924 3,013,754 213,580 1,432,295 83,495 1,710,824 22.5 588,938 901,895 404,042 1,953,423 168,598 552,326 788,156 127,267 35,113 377,935 980,588 27.1 2,329,877 249,013 32,856 757,241 1,798,228 2,088,366 200,751 28.2 1,024,064 31.3 500,318 2,717 281,758 318,786 2,063,313 526,149 422,736 321,113 27,410 2,332,377 1,758,676 1,049,783 534,841 131,039 406,898 25.9 236,357 1,218,780 384,155 286,193 562,277 725,670 74,923 2,513,436 278,339 1,202,042 1,429,066 84,029 375,746 1,632,310 199,286 1,584 1,982,972 33.9 34.0 385,616 335,258 1,945,722 748,446 869,586 657,117 315,968 1,459,847 36.3 694,394 178,225 174,090 832,610 745,724 861,270 234,757 954,778 168,146 1,423,418 326,768 1,946,761 1,135,998 223,449 1,053,589 220,296 1,133 380,099 275,155 29.3 154,529 86,692 384,052 161,135 596,456 257,549 31.7 1,134,203 39.6 1,656,203 677,532 207,600 809,724 66,365 265,430 528,150 277,018 594,431 11,522 539,865 229,277 584,589 86,559 256,130 603,721 812,558 965,994 269,913 289,348 157,085 59,164 788,160 35.7 31.0 117,962 123,220 136,995 (10,390) 36.3 297,493 135,352 340,326 296,773 690,209 29.5 407,619 148,436 520,376 164,879 410,188 457,436 153,798 35.4 468,370 93,745 245,258 515,785 178 30.2 107,078 127,638 35.5 34.8 623,280 43,106 35.4 246,580 (10,568) 127,706 444,952 300,541 37.3 392,739 (308.9) 110,692 30.9 388,079 31.8 108,645 33.3 30.7 33.2 336,306 33.4 ANALYSIS OF STORE PERFORMANCE, FISCAL YEAR 2011 ANALYSIS ABC Stores by Planning District NOTES: (1)

VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL REPORTS • PAGE 18 www.abc.virginia.gov

to Virginia (4) Virginia to Rate of Return of Rate

(continued) Net Profit Net

Adjusted

Expenses

Administrative

General & General

Allocation of Allocation

Profit

Net Store Net

Expenses (3) Expenses

Store Gross Profit Gross

rages.

Goods Sold Goods Cost of Cost

ofit + state taxes) ÷ sales gross Net Sales Net

Taxes (2) Taxes

Spirits & Wine & Spirits

Sales (1) Sales

Gross Gallons Sold Gallons Locality Includes state taxes, but does not include 5 percent sales tax. (3) Store expenses include miscellaneous revenue and net cash ove (2) State taxes on distilled spirits (20 percent) and wine (4 sold in ABC stores. (4) “Rate of return” = (adjusted net pr RichmondFredericksburg 1,417,493 $100,409,470 $16,555,413 $83,854,057 $48,870,015Northern Neck $34,984,042 $10,772,294 $24,211,748 $5,500,753 $18,710,995 337,943 35.1 $24,466,429 $4,127,527 $20,338,902 $11,860,247 78,945 $8,478,655 $4,799,783 $3,165,162 $792,521 $5,313,493 $4,007,261 $1,334,214 $2,338,077 $3,979,279 $1,669,184 33.1 $702,821 $966,363 $262,873 $703,491 31.2 35 2757 Jefferson Davis Hwy.44 18035 Jefferson Davis Hwy.62 1416 Carl D. Silver Pkwy. Stafford Co.64 Caroline Co. and Country Dr. 43 Town 74 Trail 10857 Tidewater 95 City Fredericksburg 10025 Jefferson Davis Hwy. Stafford Co. City Fredericksburg Fredericksburg City 35,674 21,624 14,798 24,064 2,863,389 1,707,733 12,571 968,091 20,886 1,782,213 469,678 378,551 1,465,467 847,749 160,095 291,994 2,393,712 1,329,182 241,783 139,790 807,996 1,490,220 1,394,378 775,633 1,223,684 707,959 469,988 869,321 999,334 553,549 713,43332 413,484 16273 General Puller Hwy. 338,007 620,898 301,549 320,829 510,251 Middlesex Co. 294,475 151,074 249,371 697,784 232,720 198,301 172,585 186,933 371,527 157,025 87,193 14,381 311,949 121,890 53,004 540,759 97,757 145,526 871,745 80,273 46,442 35.3 133,929 273,770 30.7 143,038 231,677 30.4 31.7 75,449 32.3 728,706 25.4 424,957 303,749 64,941 238,808 47,802 191,006 38.3 300 9502 Chamberlayne Rd.304 2734 Fairgound Rd.305 3910 Mechanicsville Tnpk.308 11252 Patterson Ave. Hanover Co.314 4320 S. Laburnum Ave. Henrico Co.315 7048 Commons Plz.326 Goochland Co. 2105 Academy Rd.330 5722 Hopkins Rd. Henrico Co. Henrico Co.331 3406 Pump Rd.332 4018 Glenside Dr.334 24,390 Chesterfield Co. 7057 Mechanicsville Tnpk.348 27,971 7036 Forest Hill Ave. Powhatan Co. 13,823350 11108 Midlothian Tnpk. 1,614,276 Hanover Co. Chesterfield Co.360 2901 Hermitage Rd. 1,892,145363 11,666 9949 Hull St. 69,194 Henrico Co. Henrico Co. 903,014366 30,255 1370 Gaskins Rd. 266,821 Richmond City Chesterfield Co. 314,198 4,975,155 841,658 15,177 149,320 2,079,849 1,347,455 33,898 Richmond City 37,284 1,577,946 819,055 138,986 965,654 2,285,921 343,904 785,666 753,694 65,544 Henrico Co. 52,986 16,801 42,874 2,481,582 Chesterfield Co. 916,165 4,156,101 702,672 1,735,945 159,873 4,787,722 378,190 75,389 439,377 561,789 4,317,233 1,016,908 3,042,391103 409,402 6348 Jefferson Davis Hwy. 2,419,461 661,782121 507 William St. 1,011,905 1,907,731183 410,861 5,792,564 788,743 805,781 Pwky. 560 Celebrate Virginia Spotsylvania Co. 35,837 314,317 710,639 167,344 213,620 501,494 2,072,181200 1,736,640 356 Garrisonville Rd. 28,053 Stafford Co. 278,650209 1,111,051 5055 Jefferson Davis Hwy. 724,040 3,998,979221 291,811 958,800 1,209,503 470,051 2,379,084 3,606,594 2,540,896 15423 Dahlgren Rd. 142,034 849,564 348,169239 414,349 2,099,858 Broaddus Ave. 320 W. Spotsylvania Co.245 383,131 2,333,149 796,680 14,570 1271 Jefferson Davis Hwy. 260,397 2,104,810 1,484,983 4,833,764 Stafford Co. Fredericksburg City313 146,430 393,280 862,678 335,729 4189 Plank Rd. 1,322,291 495,070 172,284 344,457 88,392 1,665,830 City Fredericksburg 103,512 2,814,461 1,501,785 1,055,913 Caroline Co. King George Co. 223,393 22,259 938,852 463,644 1,985,804130 257,572 145,382 151,268 30,931 700 McKinney Blvd. 272,637 1,755,400 24,672 354,495149 259,777 49,442 2,019,304 E. Richmond Rd. 343,984 279,619 1,616,254 1,157,188 363,750192 323,131 573,287 19,535 154,844 101 S. Main St. 113,876 1,049,655 1,025,893 2,127,567220 1,782,286 44,021 605,106 184,461 46,095 109 East End Place 32.6 168,207 Spotsylvania Co.238 122,842 1,321,845 31.4 219,313 Rt. 360 1,138,035 8,584 266,176 1,327,497 828,616 Co. Westmoreland 732,782 125,145 37.6 349,767 784,007 3,443,585 729,507 351,083 6,939 294,137 135,933 30.1 52,859 99,287 186,288 1,799,990 262,330 Richmond Co. 1,350,078 236,589 600,990 219,561 33.4 291,427155 166,681 448,141 Co. Westmoreland 1,776,484 Crossing Rd. 456,544 2334 York 1,488,149 566,829 36,814 Lancaster Co. 324,650175 469,172 407,547 10,299 1,059,516 28.3 416 14th St. 131,603 317,091179 55,731 786,790 901,446 1,107,936 St. 231 Virginia 36.1 1,037,867 566,101 99,365198 537,189 2,876,756 2,587,209 Ctr. 869,214 Towne 327,463 Tappahannock 35.4 38.6 404,857 Gloucester Co. 30.2 233 1,482,899 652,170 67,350 6619 Main St. 37.3 6,736257 130,558 563,288 646,053 Hwy. 35.1 8,321 4915 Tappahannock 1,677,008 738,617 Essex Co. Northumberland Co. 130,267 501,624 426,291 618,935 161,023 39,135 42.2 115,153 108,252 340,197 29.3 1,199,748 408,598 King William Co. 233,903 461,883 485,869 2,160,919 214,898 Middlesex Co. 406,922 292,436 King William Co. 2,429,257 14,455 186,570 29,643 166,440 289,705 543,917 198,140 332,513 1,259,957 199,079 67,280 Gloucester Co. 329,384 33.6 523,719 80,519 209,189 400,732 1,957,991 30.2 823,889 432,365 51,430 15,068 19,573 318,699 142,056 18,137 900,962 867,235 262,804 341,319 2,028,525 88,564 116,536 9,633 323,491 405,350 135,738 67,437 1,197,189 115,010 97,621 919,203 225,218 1,132,840 91,888 23,899 1,183,986 188,713 284,141 198,818 1,634,501 240,820 407,183 72,680 236,051 569,937 28.7 688,151 197,819 141,752 334,744 152,097 115,423 1,510,323 186,679 678,522 844,539 31.4 616,821 35.6 142,501 50,169 953,200 190,125 169,298 35.3 94,264 400,523 999,370 32,906 767,106 248,864 109,795 36.2 946,161 317,301 141,754 30.9 681,301 22,317 68,492 287,628 90,326 475,673 582,220 108,846 1,261,459 447,405 551,884 35,681 475,066 527,238 232,267 27,852 74,009 34.6 279,034 111,280 417,150 734,401 78,973 319,701 394,277 34.8 133,069 74,115 23.4 449,034 196,639 176,348 149,697 22,390 527,058 133,119 26,591 166,313 28.0 394,169 107,222 267,453 178,229 83,678 45,142 51,619 186,582 32.7 52,382 227,965 341,812 29.1 131,206 348,829 112,961 65,558 27.4 50,321 34.0 62,067 32.4 201,895 82,751 31,204 136,261 165,897 33.4 31.4 266,078 31.1 81,757 34.1 30.9 ANALYSIS OF STORE PERFORMANCE, FISCAL YEAR 2011 ANALYSIS ABC Stores by Planning District NOTES: (1)

VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL REPORTS • PAGE 19 www.abc.virginia.gov

to Virginia (4) Virginia to 7

3.3 Rate of Return of Rate

(continued)

Net Profit Net

8 38.7

Adjusted

Expenses

Administrative

General & General

Allocation of Allocation

Profit

Net Store Net

Expenses (3) Expenses

Store Gross Profit Gross

rages.

Goods Sold Goods Cost of Cost

ofit + state taxes) ÷ sales gross Net Sales Net

Taxes (2) Taxes

Spirits & Wine & Spirits

Sales (1) Sales

Gross Gallons Sold Gallons Locality Includes state taxes, but does not include 5 percent sales tax. (3) Store expenses include miscellaneous revenue and net cash ove (2) State taxes on distilled spirits (20 percent) and wine (4 sold in ABC stores. (4) “Rate of return” = (adjusted net pr West Point/MathewsWest Petersburg/Hopewell 144,511 $8,988,093 $1,482,980 $7,505,114 $4,376,759 $3,128,355 228,108 $1,159,075 $14,618,075 $1,969,280 $2,418,618 $12,199,456 $492,329 $7,103,717 $1,476,951 $5,095,739 32.9 $1,815,801 $3,279,938 $800,274 $2,479,665 33.5 60 Dr. 4330 Westgate Dinwiddie Co.43 36,172 235 Carmichael Way53 11409 Windsor Blvd.69 1620 Cedar Rd. 2,212,77379 1437 Sam's Dr.98 3312 Princess Anne Rd. Chesapeake City 367,088 Isle of Wight Co. Beach City Virginia 1,845,684 Chesapeake City 14,160 Chesapeake City 1,075,597 11,100 13,747 967,624 770,087 26,915 665,719 37,895 988,143 159,511 1,852,320 215,145 110,227 2,725,270 162,570 808,113 305,970 554,941 555,492 450,802 825,573 1,546,350 471,475 2,274,467 121,075 323,421 481,030 901,405 336,637 1,324,512 433,866 232,072 344,543 644,945 201,017 949,956 36.2 70,499 233,677 240,284 135,620 291,877 161,573 110,866 404,661 658,079 53,011 36,440 54,157 101,439 149,203 82,609 125,133 303,222 56,709 508,875 25.0 35.4 32.9 22.2 35.2 333 10972 Buckley Hall114 4575 Whitehill Blvd.118 Mathews Co. St., W. 18 Washington 144 301-H Market Dr.151 210 N. Main St.232 3107 Boulevard, Ste. 3240 Prince George Petersburg City Rt. 460255 3330 S. Crater Rd.310 14,177 5232 Oaklawn Blvd. Emporia City Colonial Heights City Hopewell City 13,656 828,866 22,167 34,954 Petersburg City Prince George Co. 1,651,800 136,727 820,606 2,242,561 26,121 Sussex Co.105 17,704 Pkwy. 869 Lynnhaven 106 269,974 28,670 136,778 692,139 2973 Shore Dr. 1,567,410 370,697 37,774107 Beach Blvd. Virginia 141 W. 1,043,057110 1136 London Blvd. 1,381,826 1,951,376128 Norfolk City 403,658 Dr. Beach City Ocean View Virginia 1,871,864 159 W. 683,829 2,495,351 260,043129 1615 General Booth Blvd. 172,804134 803,556 2301 Colley Ave. 10,891 323,197 1,089,403165 1,307,367 288,481 397,884 413,407 550 E. Liberty St. Beach City Norfolk City Virginia 188 Beach City Virginia 32,360 4334 Holland Rd. Portsmouth City 870,254211 1,628,180 Point Rd. 578,270 6550 Town 633,140 782,461 2,081,944 760,775216 150,832 285,944 1100 Armory Dr. 64,833 2,300,523225 405 30th St. 48,883 506,855 34,532226 948,416 1,212,887 Norfolk City 217,376 Dr. 104,631 7862 Tidewater 268,676 546,592237 Chesapeake City 4,867,271 162,881 137,649 Hwy. 3812 George Washington 16,703 378,028 Suffolk City246 Portsmouth City Beach City Virginia 3,475,954 42,611 5020 Ferrell Pkwy. 2,370,467 363,399249 679,764 869,057 2350 E. Little Creek Rd. 360,894 528,509 513,786 217,474256 807,206 1,121,688 1,922,496 Franklin City 123,063 1612 Laskin Rd. 45,404 2,825,362263 572,823 Norfolk City 390,742 Beach Blvd. 5900 Virginia 144,176 26,765278 41,935 218,470 281,523 308,343 Beach Blvd. 3333 Virginia 1,118,047 4,060,066 122,793 90,647 60,581 Beach City Virginia Norfolk City280 186,438 329,117 29,559 1103 S. Military Hwy. Beach City Virginia 2,903,131 44,859 467,497 1,979,725 92,245 Norfolk City288 5748 Churchland Blvd. 1,712,432 24,532 2,930,740 219,223 2,365,250 Beach City Virginia 298 461,294 587,533 4,258,424 Constance Rd. 220,166 821 W. 804,449 390,993 270,248 1,918,706 1,695,510299 935,250 1,154,357 2,357,864 85,762 1917 S. Church St. 27.6 Beach City Virginia 29,049 86,806 78,205306 1,793,380 1,694,816 284,606 Pkwy. 483,851 2085 Lynnhaven 25,604 Chesapeake City 76,526307 34.0 106,807 136,574 Portsmouth City 32.7 57,088 706,102 1,207,621 957 & 959 Providence Sq. Ctr. 188,925 318,623 1,373,037 90,080 79,787311 540,884 825,368 1,735,376 243,355 Suffolk City 5,883,884 Blvd. 4020 Victory 26.2 Beach City 41,788 Virginia 1,427,826 295,352 2,446,889312 1,815,049 131,779 451,035 Godwin Blvd. 5,206,411 2815 Gov. 59,775 3,552,322 354,487 450,959325 Beach City Virginia 162,135 1,600,083 320,637 5,803,670 22718 Main St. 984,827 Isle of Wight Co. 615,523 32.1 130,086328 394,366 2,766,209 287,562 242,972 1,425,553 969,441 79,674 Lane 1,498,028 836 Eden Way 9,716,636 830,668 1,243,781 300,126 2,068,382336 4,328,937 34,895 862,339 1067 Independence Blvd. 34.7 32,326 34.6 32.1 Suffolk City 931,758349 957,311 886,985 237 S. Battlefield Blvd. 126,114 275,789 1,447,814 1,021,336 Portsmouth City 4,914,443 5,725,832 1,606,254 458,034 42,706 187,973 34,670 582,397 871,965 1,483,940 1,514,924 266,337 2,401,201 597,159 4,344,072 717,060 35,270 2,168,227 Beach City Virginia 35,127 4,846,358 668,325 Chesapeake City 2,865,624 190,443 489,409 8,110,382 2,308,175 3,086,626 843,793 275,792 709,038 946,018 Southampton Co. Chesapeake City 2,527,308 206,393 129,868 881,810 626,063 342,617 3,611,877 2,047,716 95,416 977,444 397,256 151,877 357,562 2,264,812 2,828,369 2,048,819 4,729,041 1,345,672 35,627 37.7 262,768 65,557 696,542 4,779,813 509,338 27,246 604,021 1,816,765 154,674 2,101,715 745,544 1,141,323 31.6 452,529 36.7 2,003,944 633,114 217,881 340,017 1,810,665 61,352 2,017,990 375,049 35,538 445,282 3,381,342 2,459,034 470,769 4,531,514 2,783,286 36.5 962,503 38,015 2,577,289 7,540 1,855,508 405,557 1,510,161 1,166,152 554,364 223,151 459,630 35.6 160,514 1,055,042 233,029 1,707,698 227,849 145,042 1,889,764 2,667,301 408,182 412,585 1,996,528 1,578,050 93,664 550,090 1,499,496 407,610 2,636,198 748,227 259,125 306,573 104,964 36.2 413,420 1,357,134 388,636 837,793 585,030 380,870 1,102,166 755,623 908,293 995,545 29.6 1,605,405 441,485 405,265 1,077,792 2,831,251 2,051,424 98,269 322,383 3,783,287 399,005 351,618 435,992 1,548,935 1,121,526 300,593 703,379 284,967 36.5 37.9 68,650 274,245 787,597 272,390 2,225,816 712,153 94,975 317,917 1,194,134 1,255,667 2,206,482 1,597,523 37.2 532,034 291,779 309,913 99,378 2,200,207 1,072,167 902,359 32.3 236,936 151,414 1,299,157 1,287,48 344,770 563,548 240,355 1,576,805 37.8 200,711 285,895 483,233 2,299,217 857,290 1,285,751 33.7 313,552 305,888 786,013 37.2 646,576 884,590 551,965 926,659 202,029 33.0 40.2 131,457 412,727 118,778 1,283,972 547,242 511,441 295,084 914,456 33.4 169,068 37.0 36.5 270,174 276,954 1,164,07 ANALYSIS OF STORE PERFORMANCE, FISCAL YEAR 2011 ANALYSIS ABC Stores by Planning District NOTES: (1)

VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL REPORTS • PAGE 20 www.abc.virginia.gov

to Virginia (4) Virginia to

Rate of Return of Rate

Net Profit Net

Adjusted 571 36.2 ,700 33.9

Expenses

Administrative

General & General

Allocation of Allocation

Profit

Net Store Net

Expenses (3) Expenses

Store Gross Profit Gross

rages.

Goods Sold Goods Cost of Cost

ofit + state taxes) ÷ sales gross Net Sales Net

Taxes (2) Taxes

Spirits & Wine & Spirits

Sales (1) Sales

Gross Gallons Sold Gallons Locality Includes state taxes, but does not include 5 percent sales tax. (3) Store expenses include miscellaneous revenue and net cash ove (2) State taxes on distilled spirits (20 percent) and wine (4 sold in ABC stores. (4) “Rate of return” = (adjusted net pr Statewide totals 9,661,682 $692,730,555 $114,300,031 $578,430,524 $337,260,619 $241,169,905 $82,503,668 $158,666,237 $37,944,537 $120,721 Norfolk/Virginia BeachNorfolk/Virginia 1,655,945 $115,232,947 $19,048,098 $96,184,849 $56,043,487 $40,141,363Newport News/Hampton $11,109,150 $29,032,213 $6,309,642 $22,722, Eastern Shore 655,231Distilleries $46,999,673 $7,749,926 $39,249,748 $22,850,739 $16,399,009 $5,175,784 68,578 $11,223,225 $4,359,009 $2,574,749 $719,756 $8,648,476 $3,639,253 34.9 $2,123,041 0 $1,516,212 348,010 $694,557 81,885 $821,655 266,125 $238,732 $582,923 200,888 29.9 65,237 0 65,237 17,458 47,780 48 6610-I Mooretown Rd.92 227 Fox Hill Rd. Co. York Hampton City 31,854 18,134 2,084,969 1,253,588 344,132 206,829 1,740,837 1,046,758 1,014,846 609,784 725,991 436,97434 241,354 Belmont Farms Distillery31 Distillery Mount Vernon 30 207,214 Copper Fox Distillery Store91 484,637 Bowman's Distillery 229,760 114,197 68,666 370,439 34.3 161,094 29.3 0 0 0 53,310 134,552 150,229 0 12,544 31,659 35,348 9,919 40,767 102,892 114,881 2,334 30,583 76,519 87,983 7,585 10,183 26,373 26,898 5,803 0 0 0 1,782 10,183 26,373 26,898 0 2,674 6,750 7,536 1,782 7,509 19,624 19,362 37.6 38.1 36.4 498 1,285 36.5 355 4300 Portsmouth Blvd.361 812 Airline Blvd.370 1169 Nimmo Pkwy. Chesapeake City112 Portsmouth City Beach City Virginia 61 N. Mallory St.148 4640-3 Monticello Ave. 40,165158 3214 Jefferson Ave.217 619 Pilot House Dr.222 44,218 2,808,904 Ave. 209 Village James City Co.244 43,816 Mercury Blvd. 4909 W. 250 Hampton City 2078 Nickerson Blvd. 3,070,864258 Newport News City 463,355 3831 Kecoughtan Rd. 3,065,596265 Newport News City Centre Way 20 Towne Hampton City272 55 Hidenwood Shp. Ctr. 504,074 2,345,549282 Co. 57,029 York 2400 Cunningham Dr. Hampton City 508,420 26,572290 Hwy. 5226 George Washington Hampton City320 Co. 35,672 25,272 1,365,840 York Hampton City 2,566,790 1246 Richmond Rd. Newport News City 4,300,233335 2,557,177 1,703,824 801 F Merrimac Trail340 309-A Oyster Point Rd. 1,496,576 Hampton City 2,639,560 1,805,282 50,042341 979,709 621 Stoney Creek Lane 1,488,887 703,508342 281,427 Blvd. 10872 Warwick 21,353 22,677 1,070,214 Williamsburg City 3,485,879 437,516 298,525 29,049 Co. York 1,068,290 Newport News City 292,429 22,893 38,190 3,596,726 1,422,396 Newport News City 1,481,771156 1,520,475 22485 Lankford Hwy. 268,938 27,422 2,202,045 1,506,756162 1,927,266 577,909 7107 Lankford Hwy. 66,978 2,098,543 Newport News City 1,698,310 2,850,851 318,594177 687,280 6371 Pension St. 818,209 30,543 36,562 244,952 251,169223 1,283,791 1,815,574 4090-B Lankford Hwy. 61,599 2,907,970 878,192 319,207 801,275 1,498,182 5,307,447344 Four Corners Plaza Shp. Ctr 280,401 468,900 Northampton Co. 749,696 153,866 2,079,523 2,711,937 1,236,819 20,169 1,269,307 604,187 1,688,202 Accomack Co. 4,562,836 Accomack Co. 918,253 299,887 1,608,059 33,220 168,379 628,565 872,584 399,275 1,417,909 2,381,951 Northampton Co. 1,396,583 167,749 533,414 341,382 Accomack Co. 447,369 721,618 739,614 1,219,768 260,905 1,515,687 2,373,766 750,631 248,693 935,202 1,390,952 4,434,863 14,545 1,098,907 632,896 313,706 826,915 35.5 1,738,141 2,264,568 231,005 581,948 515,201 529,692 228,695 3,812,205 343,281 884,835 2,577,123 20,728 392,593 14,198 9,845 37.0 672,857 669,561 235,942 990,999 930,763 590,994 314,859 1,013,368 1,317,823 1,165,578 35.6 2,217,738 1,857,740 9,263 191,418 1,327,226 226,096 1,981,173 991,073 630,852 93,308 821,523 654,506 144,452 862,965 228,127 262,819 154,027 217,405 724,773 946,745 679,073 98,842 1,594,467 1,154,908 472,308 220,048 624,991 323,783 303,597 190,760 223,752 36.4 249,973 135,959 107,982 525,109 444,730 728,180 776,736 245,431 373,589 293,024 216,017 486,505 425,939 1,385,432 826,265 1,107,178 101,739 31.2 800,312 36.5 81,134 83,265 407,099 685,564 546,523 105,487 156,254 454,348 28.5 1,168,528 479,342 653,721 226,971 93,014 290,923 645,408 262,652 39.5 523,252 242,648 220,331 399,699 99,428 317,948 339,243 571,926 322,389 250,077 1,094,509 114,021 148,554 280,575 259,534 461,770 563,614 32.9 31.0 305,639 34.2 36.5 307,672 285,865 228,575 37.1 125,071 918,451 33.0 365,322 505,167 76,461 152,435 129,963 217,613 33.5 136,118 138,877 36.6 34.0 35.1 197,318 183,073 433,650 309,335 142,056 149,747 89,698 50,953 29.6 34.8 72,630 75,557 44,972 146,364 35,851 236,705 34,325 32.3 104,774 53,847 34.4 29.3 41,232 24.7 22.9 ANALYSIS OF STORE PERFORMANCE, FISCAL YEAR 2011 ANALYSIS NOTES: (1) ABC Stores by Planning District

VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL REPORTS • PAGE 21 www.abc.virginia.gov 2011 Establishments by License Category—Cities 2006 Establishments by License Category – Cities

Cities (1) All Others (2) Bed and Breakfasts Beer/Wine Importers Beer/Wine Wholesalers Breweries Carrier Licensees Caterer Establishments Clubs Convenience Stores Delicatessens Distilleries Drug Stores Gourmet / Gourmet Brew Shops Grocery / Grocery- Gourmet Stores Hotels/Resorts Restaurants (Mixed Beverage) (3) Restaurants (Beer and Wine) Wineries Grand Total Alexandria 709731463030132816131331862461 Bedford 00000000200005148121 Bristol 00010020151035521323070 Buena Vista 00000000200125018019 Charlottesville 715610862110521163941391335 Chesapeake 606900210791116294531221732504 Colonial Heights 0000000290053621928074 Covington 00000000400113016016 Danville 2101002746004227222400156 Emporia 000000001000204022020 Fairfax 101000134007910034530123 Falls Church 0000100250032902351096 Franklin 10000001600114069029 Fredericksburg 210001212000186457820185 Galax 000000013001240511027 Hampton 12 122212195200111333860970315 Harrisonburg 1111101622005814336670167 Hopewell 10000006150022801219065 Lexington 2100003000014101016038 Lynchburg 8217104829106925648750230 Manassas 010001138004816027410110 Manassas Park 000000002000070310022 Martinsville 3000000280002501012042 Newport News 70220151268101216538951560438 Norfolk 17 10213928580014237091662200621 Norton 00020000410102222016 Petersburg 2013001832003318118340124 Poquoson 000000012001220411023 Portsmouth 60020201436008728041560200 Radford 1000001051010601113039 Richmond 18 5661012231426118215872553330912 Roanoke 5003225118100510305841200363 Salem 40230016220033611329093 Staunton 220020241110361021525287 Suffolk 50000005272051020433430154 Virginia Beach 24 22412914117213758871942857111,379 Waynesboro 00000002700351301323066 Williamsburg 69000030900372746620154 Winchester 414210157005615336590149 Grand total 154 29 42 63 17 14 81 216 1,020 21 3 214 336 694 115 2,002 2,913 9 7,943 NOTES: (1) All cities are “wet”—approved for liquor by the drink. Ten counties are “dry”—not (3) “Restaurants (Mixed Beverage)” represents the total number of wine and beer estab- approved for liquor by the drink; however, beer and wine may be served. Referendums lishments also having mixed beverage licenses. These licenses are included in the may allow for mixed beverages in certain towns located within dry counties. grand total column. (2) “All Others” includes hospitals, fire departments, rescue squads, performing arts facili- Source: CORE, July 2011 ties, gift shops, food concessions, etc. It does not include banquets.

VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL REPORTS • PAGE 22 www.abc.virginia.gov 2011 Establishments by License Category—Counties 2006 Establishments by License Category – Cities

Counties (1) All Others (2) Bed and Breakfasts Beer/Wine Importers Beer/Wine Wholesalers Breweries Carrier Licensees Caterer Establishments Clubs Convenience Stores Delicatessens Distilleries Drug Stores Gourmet / Gourmet Brew Shops Grocery / Grocery- Gourmet Stores Hotels/Resorts Restaurants (Mixed Beverage) (3) Restaurants (Beer and Wine) Wineries Grand Total Accomack (wet) 642200 0329102516324411139 Albemarle (wet) 19 5 2 12 3 0 5 10 28 2 1 3 26 21 6 39 76 22 280 Alleghany (wet) 0000000580011110616048 Amelia (wet) 000000011300104025026 Amherst (wet) 20010012120021140714359 Appomattox (wet) 000000025000112025027 Arlington (wet) 401026364410202239252002900663 Augusta (wet) 1115000323002425111221100 Bath (wet) 210000007000142510032 Bedford (wet) 9104011624004518121404139 Bland (dry) 0000000020000500108 Botetourt (wet) 20050001141012110316359 Brunswick (wet) 200100001500106148038 Buchanan (dry) 000000011600219002031 Buckingham (wet) 100000008000014034030 Campbell (wet) 1001000332004225110232104 Caroline (wet) 1100000324001250414055 Carroll (wet) 3002000118001110136248 Charles City (wet) 02000000200003035015 Charlotte (dry) 0100000112001013103133 Chesterfield (wet) 90211066961029335841442051596 Clarke (wet) 410200039000340511244 Craig (dry) 0000000040000200006 Culpeper (wet) 4125001516014328219332126 Cumberland (wet) 00000000600003003012 Dickenson (wet) 10000001810106003021 Dinwiddie (wet) 200000011800219037043 Essex (wet) 110000019000170712140 Fairfax (wet) 33 0 41 36 3 0 22 27 79 4 2 61 123 123 42 568 855 1 2,020 Fauquier (wet) 15 2 3 17 00342910513154325325221 Floyd (dry) 11013002501023119232 Fluvanna (wet) 000000006001410412028 Franklin (wet) 3001000225013518018332111 Frederick (wet) 52260025251041226324331151 Giles (wet) 1100000411302011128044 Gloucester (wet) 10000004191024901627083 Goochland (wet) 21220003100003701018361 Grayson (dry) 10000000520005015019 Greene (wet) 21010001900125059238 Greensville (wet) 000000011500000011018 Halifax (wet) 40050003160020341723499 Hanover (wet) 50550027381061125045851236 Henrico (wet) 14 1 14 19 0 0 10 17 124 1 0 31 43 53 24 184 263 0 798 Henry (wet) 300000183500413023193109 Highland (dry) 0000000010000610109 Isle of Wight (wet) 1100000418002871715064 James City (wet) 2012103313214118350673174 King & Queen (wet) 00000000310004012011 King George (wet) 1012000011000240515142 King William (wet) 000000037001250511034 Lancaster (wet) 41010104500221032230287 Lee (dry) 000000042000107004036 Loudoun (wet) 25 2 9 25 2 15 11 8 39 3 1 20 45 51 12 150 270 27 715 Louisa (wet) 40010002120020192813265 Lunenburg (wet) 10000004800009002024 Madison (wet) 23020000600015137838 Mathews (wet) 11000002600031048026 Mecklenburg (wet) 11020001034002020013191103 Middlesex (wet) 7100000160004401113047 Montgomery (wet) 0200105232104726446740204 Nelson (wet) 11 3162012101001132391075 New Kent (wet) 1001000011002360916150 Northampton (wet) 41150112130011511319270 Northumberland (wet) 400100027001160610139 Nottoway (wet) 0013000413000060614047 Orange (wet) 55010003160033501023377 Page (wet) 53010005121001122819271 (continued)

VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL REPORTS • PAGE 23 www.abc.virginia.gov 2011 ESTABLISHMENTS2006 Establishments BY LICENSE by License CATEGORY—COUNTIES Category – Cities (CONTINUED)

Counties (1) All Others (2) Bed and Breakfasts Beer/Wine Importers Beer/Wine Wholesalers Breweries Carrier Licensees Caterer Establishments Clubs Convenience Stores Delicatessens Distilleries Drug Stores Gourmet / Gourmet Brew Shops Grocery / Grocery- Gourmet Stores Hotels/Resorts Restaurants (Mixed Beverage) (3) Restaurants (Beer and Wine) Wineries Grand Total Patrick (dry) 1200000113001013037142 Pittsylvania (wet) 21140004370010290214398 Powhatan (wet) 10000011151001201114148 Prince Edward (wet) 100000221300211001523170 Prince George (wet) 1000000212002170713045 Prince William (wet) 11 0 9 11 0 1 4 12 47 2 0 19 40 95 6 167 246 1 671 Pulaski (wet) 40121016122051260511178 Rappahannock (wet) 86050010301005046746 Richmond (wet) 10050010200116006225 Roanoke (wet) 1057002334105715038612181 Rockbridge (wet) 34010023140000144411262 Rockingham (wet) 1101200534002312010263100 Russell (dry) 000100021700115026237 Scott (wet) 0100000012001114014034 Shenandoah (wet) 4204000914003629314378133 Smyth (wet) 12250002201020131315269 Southampton (wet) 0000000213001110034034 Spotsylvania (wet) 602430075411121423149782257 Stafford (wet) 8046002644109817044642215 Surry (wet) 00000000700002014014 Sussex (wet) 1010001114000111006036 Tazewell (wet) 20100003211024270720088 Warren (wet) 1201000520002413121372109 Washington (wet) 3514300235203611211262116 Westmoreland (wet) 510100071000231201420580 Wise (wet) 1001000130105250616169 Wythe (wet) 200200031720112001014274 York (wet) 70012002290061110432622168 Grand total 319 79 118 253 29 25 95 309 1,849 45 10 337 551 1,442 180 2,310 3,840 206 11,997 NOTES: (1) All counties are “wet”—approved for liquor by the drink unless indicated as “dry.” Ten (2) “All Others” includes hospitals, fire departments, rescue squads, performing arts facili- counties are “dry”—not approved for liquor by the drink; however, beer and wine may ties, gift shops, food concessions, etc. It does not include banquets. be served. Referendums may allow for mixed beverages in certain towns located within (3) “Restaurants (Mixed Beverage)” represents the total number of wine and beer estab- dry counties. Following are the “dry” counties in Virginia: Bland, Buchanan, Charlotte, lishments also having mixed beverage licenses. These licenses are included in the Craig, Floyd, Grayson, Highland, Lee, Patrick and Russell. grand total column. Source: CORE, July 2011

(Above) ABC honored the Middle School Poster Contest participants during the Flying Squirrels Education Day at The Diamond. Students are pictured with mas- cots Zinger and Nutzy.

VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL REPORTS • PAGE 24 www.abc.virginia.gov FINANCIAL STATEMENTS

The financial statements of the agency are audited annually by the Auditor of Public Accounts as required by the Code of Virginia. The Auditor of Public Accounts is part of the legislative branch of Virginia government and reports through the Joint Legislative Audit and Review Commission (JLARC) of the General Assembly. This structure pro- vides independence from the executive and judicial branch agencies they audit. ½

Financial Statements Contents

Management’s Discussion and Analysis (Unaudited) ...... 26 Independent Auditor’s Report on Financial Statements ...... 30 Statement of Net Assets...... 32 Statement of Revenues, Expenses and Changes in Net Assets ...... 33 Statement of Cash Flows ...... 34 Notes to Financial Statements ...... 35

(Below) Posing during a tastings presentation at Store 169 (Richmond) are (left to right): Store Manager Kate Rogers, Diageo Retail Accounts Manager John Reed, Sampling Hostess Kelly Davis and Diageo Director of Virginia and West Virginia Gary Holland.

VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 25 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 26 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 27 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 28 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 29 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 30 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 31 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 32 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 33 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 34 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 35 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 36 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 37 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 38 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 39 www.abc.virginia.gov VIRGINIA ABC • 2011 ANNUAL REPORT • FINANCIAL STATEMENTS • PAGE 40 www.abc.virginia.gov FISCAL YEAR 2011 IN REVIEW

ABC Stores Receive Technology Upgrade. From October 2010 to January 2011, the Information Technology Services and Wholesale/Retail Operations divisions installed a new point-of-sale system in all 333 ABC stores with no lapse in service. Each store’s upgrade typically began around 4 a.m. and most were ringing sales on their new systems by the 10 a.m. opening time. The new registers provide improved features such as infrared touch screens with much larger viewing areas, enhanced ID verification and receipt printers that are twice as fast as before. The system complies with standards set by the payment card industry, increases lane service and provides smoother transactions for customers and store associates.

ABC Agents Ride in Bike for the Blue. As part of National Police Week, Virginia ABC special agents rode 117 miles on May 13, 2011 in the Bike for the Blue event. More than 200 officers rode from Richmond to Washington D.C. to honor and remember those who have died in the line of duty. Participating from ABC were Special Agent in Charge Donnie Brown and Special Agents Matt Halphen, Marc Haalman, Danny Blye and Tony Jimenez. They completed the ride in spite of wind and rain. Special Agent Gary Frank drove the support van equipped with extra water and supplies.

Silver Anniversary for College Conference. ABC presented the 25th Annual College Conference February 25–27, 2011 on George Mason University’s campus. More than 200 students, prevention advocates and campus professionals from Virginia’s colleges and universities attended the super hero themed event “25 Years of Saving Lives.” Attendees launched the Hero Institute—campus teams developed or modified alco- hol-related prevention programs specific to their respective schools. At the end of the weekend, teams representing five campuses (Shenandoah University, Ferrum College, Saint Paul’s College, Virginia Tech and Virginia Union University) received $1,000 mini-grants to start their own underage and high-risk drink- ing prevention initiatives on campus.

Plaudits for Perfect Audits. In August 2010, the Board implemented a reward and recognition program for ABC store staff when a store receives an “Extraordinary Review” audit rating. Internal Audit Division staff conduct periodic audit inspections in each store statewide on a random basis. During Fiscal Year 2011, Internal Audit reviewed 217 stores; 20 earned “Extraordinary” rating with auditors noting an encouraging trend toward reduced audit findings.

Middle School Poster Contest Inspired Student Artists. ABC’s Education Section hosted the “Alcohol Has No Place” Middle School Poster Contest in 2011. Talented students embraced the challenge of creating messages to discourage peers from drinking underage and illustrating the many fun, healthy, alcohol-free activities that fill their lives. From the 549 entries, the judging panel selected three winners and 26 honor- able mentions. The first-place winner received an iPad and her poster was printed for bulk distribution. In April, ABC and the Flying Squirrels honored the contest participants during an Education Day special event at The Diamond in Richmond.

Tastings Pleased Many Palates. Tastings began in ABC stores on July 1, 2010. As provided by Senate Bill 26/House Bill 952, representatives of distilled spirits and wine companies conduct tasting events to allow customers to sample select products before making a purchase. Each sample is limited to 1/2 ounce of dis- tilled spirits, with a maximum of three samples per person, or up to a total of five ounces of wine. Vendors choose up to three products to showcase at each tasting event. Tastings are held primarily on Fridays and Saturdays and last a maximum of two hours. During the first year of tastings more than 2,850 events were held at approximately 195 ABC store locations.

Social Media and Web. The ABC Web Team implemented numerous changes to make the website more timely, visually appealing and easier to navigate. The home page was revamped to make Quick Links to the most frequently-viewed pages and Online Services easier to find. Other upgrades streamlined business functions such as the ability to purchase gift cards and apply for special event licenses online. The agency also increased utilization of social media to enhance customer service and increase accessibility, while communicating with a wider audience, to highlight the agency’s mission and accomplishments. ABC’s Facebook page and Twitter handle both crossed the 1,000-follower/”likes” milestone and almost 30 videos were posted to YouTube.

Governor Signs Assault Bill. Governor Bob McDonnell signed a bill on May 2, 2011 that makes it a felony to assault an ABC special agent. The ABC Agents Association advocated for the bill which allows for ABC special agents to be afforded the same protection under the law as other Virginia law enforcement offi- cers. The bill, sponsored by Delegate Robert Orrock, passed the House and Senate unanimously. The Board and ABC agents from multiple regional offices, as well as other state and local law enforcement offi- cers and first responders, attended the bill signing ceremony.

Photos (top to bottom): Members of the point-of-sale team gathered at ABC Store 239 in Bowling Green to celebrate completion of the project; Bureau of Law Enforcement agents rode from Richmond to Washington D.C. in the Bike for the Blue event; promotion postcard for the 2011 College Conference; staff at ABC Store 295 in Manassas earned an Internal Audit Division “Extraordinary Review” rating; ABC’s YouTube channel videos feature a variety of agency initiatives.

VIRGINIA ABC • 2011 ANNUAL REPORT • 2010 IN REVIEW • PAGE 41 www.abc.virginia.gov