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

Is it really that bad?

[Goldbuggy1]

We all know that the Alberta Economy is not healthy right now. With the unemployed reaching 7.4% that is never good news. But then LIQ is not selling Steak & Lobster, New Cars, Fur Coats, or Jewelry either. They sell Booze! If you ever lost your job before the first thing you want to do is get Drunk and hopefully stay Drunk until you find your next job. But having said that this is not the first time we have been through this either. In fact in 2008/ 2009 were worst years for Alberta. They lost more than double the jobs in one year then (45,000) then last year (19,600). But even then LIQ only dropped in share price to about $9 / share. So we know these oil prices will come back. We are also still making a profit and only 50% of our stores will be in Alberta soon. Let's put this another way. Saudi Arabia will run out of money long before LIQ does. Of this I am sure.

[d_trump]

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?

[Goldbuggy1]

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

[Goldbuggy1]

Just a couple more advantages as to why a bar or restaurant would want to buy Wholesale Liquor from LIQ, and not from the Alberta Gaming Liquor Commission, even if they have to pay say 10% more for it. For one thing, AGLC has a minimum order size. For Wine & Spirits I recall this being 25 cases. For Beer it is ordered through the Breweries, which also has minimum orders. So if you are a Small