ABC reports record $1.2B in FY 2020 revenue
Sales to restaurants and hospitality businesses down 19%, however
The Virginia Alcoholic Beverage Control Authority (ABC) broke its gross revenue record again during fiscal year 2020, reporting $1.2 billion in gross revenue, the ABC announced Wednesday.
Last year, the state agency surpassed $1 billion in revenue for the first time. ABC’s profits of $545.3 million (an increase of $45.8 million over last year) will go to the state’s General Fund.
“In the months leading up to the pandemic, our sales performance was strong, with a 7% increase over the prior year,” ABC CEO Travis Hill said in a statement. “This growth is a testament to our efforts to improve customer experience by providing an assortment of products geared to consumer preferences and opening new store locations where population growth dictates.”
ABC’s profits for fiscal year 2020 reflect $212.1 million in profits from retail sales, $251.4 million in retail taxes and $81.8 million in wine and beer taxes. In the past year, ABC has added 12 new stores, generating $18.3 million in sales.
The increase in online sales and curbside pickup associated with the pandemic also added to the agency’s revenue. Online orders grew from an average of 23 orders per day to 419 orders per day by July — and curbside pickup was added at 370 stores. Sunday sales also increased by 18% this year, to $93.8 million.
“While we saw even greater growth as the pandemic took hold, we also had to meet the challenges of keeping our customers and employees safe,” Hill said in a statement.
And although revenue increased this year, sales to restaurants and hospitality businesses suffered in response to the pandemic. But the ABC eventually allowed for delivery and takeout of mixed beverages. Licensee sales still decreased by 19%, however.
“The pandemic has greatly affected our licensed establishments and Virginia’s distilled spirits industry,” Hill said in a statement. “We will continue to work with them to understand their challenges and adjust our processes to ease some of their pandemic-related pressures whenever possible.
“In this crisis, numbers only really tell part of the story. On the individual level, people are either looking for new employment or working under the challenges of the pandemic. ABC is no different than any other business in that our success this year would not have been possible without the commitment and sacrifice of our employees.”