Manitoba Liquor & Lotteries has best year in history

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This article was published 13/12/2022 (1054 days ago), so information in it may no longer be current.

Manitoba Liquor & Lotteries Corporation’s net income was almost $600 million during the 2021-22 fiscal year — a 40 per cent jump from the year before.

“This represents the best performance in the history of the company, and we expect to make more history in 2022-23,” president and chief executive officer Manny Atwal said Tuesday, during a provincial government committee meeting looking at the most recent annual MLL report.

With MLL revenues bouncing back from COVID-19 pandemic lulls, both the province and Crown corporation leadership were on the hot seat Tuesday in the wake of a recent government proposal to expand liquor sales among beer vendors and wine stores.

Under questioning by NDP MLA Mark Wasyliw, Atwal said MLL is saving up to $4 million per year now that it no longer has to hire security guards for entrances at Liquor Marts.

“We now manage them with our employees,” the CEO said. “Employees take turns. With some stores, it is an additional employee, but some not.”

The wide-scale installation of controlled entrance doors, where customers have to show identification before entering a Liquor Mart, has yielded results, Atwal said.

MLL reported an average of 462 thefts weekly in August 2019; annual losses were in the millions of dollars.

There has been a reduction in theft of about 97 per cent and a reduction in robberies of 100 per cent,” Atwal said.

“Prior to implementation, I would be talking to an employee as they’re stocking shelves and every time the door would open, the employee would look up and be stressed… Customers were actually trying to play Good Samaritan and trying to stop some people from making thefts, which is not a good way to end for anybody,” he said.

MLL surveys show 82 per cent of customers support the entrance controls and 95 per cent of Liquor Mart employees agree with the move, the CEO said.

“Our employees and their families are very happy to be working at liquor stores with controlled entrances in place.”

Fewer losses through theft also comes at a time when the corporation is seeing its best financial numbers since the pandemic began in 2020.

“We are essentially running at full capability and capacity as prior to the pandemic. We can safely say we are now in a business-as-usual position,” Atwal said.

Other financial highlights from the annual report include gaming and entertainment having record lottery sales of $276 million, with $57 million given to the province’s coffers, up 38 per cent from the year before. Manitoba has also launched a program to replace and update all VLTs in the province, with 960 machines targetted in the current year.

While revenues are down slightly at provincially run casinos from where they were before the pandemic, profitability because of improved operational expenses is up, Atwal said.

Wasyliw repeatedly pressed Tory MLA Andrew Smith, minister responsible for MLL, and Atwal about the government’s proposed changes in liquor sales, and whether it had studied the effect it would have on profits at the government-owned Liquor Marts.

“I think Manitobans deserve an answer to that question. I don’t think they deserve talking points. I think the minister is capable of answering that question and Manitobans deserve to hear it,” Wasyliw said.

Smith said the question was simply an ideological one — and out of step with what the public wants.

“Manitobans want more choice. They want more choice in their alcoholic purchases, they want more choice in where they can get their different types of alcohol, and I think that has been very clear,” the Southdale MLA said.

“Despite the fact they still think (MLL) is doing a great job of retailing, there’s obviously room for more venues to sell different types of alcohol… It’s time to get into the 21st Century — we’re already at 20 something years into it.”

Last month, the Progressive Conservative government introduced Bill 9, intended to allow existing licence holders to be able to sell liquor, spirits, wine and beer. It doesn’t allow grocery stores to sell beer or wine, something the Retail Council of Canada has requested.

kevin.rollason@freepress.mb.ca