LIQUOR STORES NA LTD 4.70 PCT DEBS T.LIQ.DB.B

RE:RE:Is it really that bad?

[Goldbuggy1]

d_trump wrote:
people will eat out less and eat and drink more at home. So while liquor consumption may stay flat or decline slightly, liquor retailers may steal market share away from bars and then restaurants. Correct me if I am wrong but I don't believe liq sells to bars and restaurants?

I agree with what you are saying. Bars and Restaurants will feel the pain long before a Retail Liquor Store Industry will. I agree also they will steal customers away from bars and restaurants. But FYI LIQ does sell alcohol to bars and restaurants and even to people for private functions, which requires them to have a liquor license for such functions, through there Wholesale Division. They will even deliver. I am not sure of the criteria for them to do this. Perhaps it is easier and cheaper for some smaller bars to order smaller amounts through LIQ then the Alberta Liquor Control Board. Quicker for sure. So smaller bars and restaurants don't need to keep huge inventories which because of the lag time they would by ordering through the ALCB. But the good news is that the Mark-up (Gross Profit Margin) on Wholesale is a lot less than Retail. So since LIQ would gain customers from stealing them from bars and restaurants, they should show higher profits.