PEILCC Annual Report 2022

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PEI Liquor Control Commission

74 TH ANNUAL REPORT

For the Year Ended March 31 ST , 2022

LATE SUMMER 2021

FALL 2021

HOLIDAY 2021

SPRING 2021

SUMMER 2021

Limited time offers from July 28 - August 31 CELEBRATE SUMMER 2021 1

CELEBRATE SPRING 2021 Limited time offers from June 23 - July 27 1

Prices subject to change | Products not available at all locations | While supplies last

CELEBRATE LATE SUMMER 2021 Limited time offers from October 13 - November 23 1

Prices subject to change | Products not available at all locations | While supplies last

CELEBRATE FALL 2021 Limited time offers from November 24 - January 4 1

CELEBRATE HOLIDAY 2021

Prices subject to change | Products not available at all locations | While supplies last

Limited time offers from May 19 - June 22

Prices subject to change | Products not available at all locations | While supplies last

VISIT OUR CELEBRATE E-FLYER @ PEILIQUOR.COM

P.E.I. Liquor Control Commission 3 Garfield Street Charlottetown, PE C1A 6A4

PEILCC What Guides Us

Corporate Vision The Prince Edward Island Liquor Control Commission will be recognized as a truly superior retailer in Prince Edward Island. We will achieve this through quality products, modern technology and increased services. We will be the provincial leader in relationships with our partners, customers and suppliers. We will always strive for the best possible value for our customers, staff and other stakeholders. Mission Statement The PEI Liquor Control Commission regulates the sale of beverage alcohol under the authority of the PEI Liquor Control Act . It manages the distribution of alcohol by: • Operating in a socially responsible manner; • Achieving the revenue goals of the Provincial Government; • Providing suppliers with controlled access to the marketplace on a fair basis from modern, attractive venues; • Encouraging responsibility and moderation in the consumption of beverage alcohol; and • Providing its employees with equality of opportunity and increased training programs that assist in the individual’s personal development and in the Commission’s overall customer service strategy.

Please Don’t Drink & Drive

Corporate Values

• Moderation – We promote responsible use as a way of life.

• Quality Service – We take pride in the quality of our work. We strive for excellence in caring for our customers, suppliers and one another.

• Continuous Improvement – As a retailer, we welcome change. We are committed to continuous improvement to all of our services.

• Integrity and Fairness – We take responsibility and are fully accountable for our actions, decisions and behaviour. We meet our commitments and obligations to co-workers, customers and business partners. We are open, honest and fair. • Importance of People – We are committed to fostering a positive workplace that builds teamwork, mutual respect and encourages individual development.

• Focus on Results – We are committed to getting the job done and improving our productivity levels.

PEILCC 2021-2022 Annual Report

Visit liquorpei.com for product availability. | Please Drink Respon

Table of Contents

PEILCC - What Guides Us

Table Of Contents

Message from the Minister

Message from the Chairman

Message from the CEO

Corporate Governance

Mandate of PEI Liquor Control Commission Board

Accountability to Government and the Public

Appointment of Commission Members

Please Don’t Drink & Drive

Responsibilities of Commission Members

Audit Committee

Organizational Chart

Executive Summary

Sommaire

Operational Overview

Strategic Goal 1 - Business Results

Strategic Goal 2 - Customer Experience

Strategic Goal 3 - Corporate Social Responsibility

Strategic Goal 4 - People & Culture

Featured Producer - Lone Oak Brewing Co.

Challenges and Opportunities Ahead

Featured Product - Double Hill Cidery

Statistics

Retail Gross Receipts by Store

PEI Liquor Outlets

Summary of Profit and Expense Ratios – Two-Year Comparison

Our Spending... All Profits Stay Here

Sales Volumes (litres) by Category

Total Licenses and Special Permits – March 31, 2021 and March 31, 2022

Management’s Report

Appendix

Auditor’s Report and Audited Financial Statements

PEILCC 2021-2022 Annual Report

Message from the Minister

The Honourable Antoinette Perry Lieutenant Governor of Prince Edward Island PO Box 2000 Charlottetown, PE C1A 7N8

May It Please Your Honour:

Pursuant to the PEI Liquor Control Act and as Minister designate, it is my privilege to submit the 74 TH Annual Report of the Prince Edward Island Liquor Control Commission.

Respectfully submitted,

Hon. D. Mark V. McLane, Minister of Finance Minister Responsible for the PEI Liquor Control Commission

*For the reporting period, Honorable Darlene Compton served as Minister responsible for Finance

Message from the Chairman

The Honourable D. Mark V. McLane Minister of Finance Minister Responsible for the PEI Liquor Control Commission PO Box 2000 Charlottetown, PE C1A 7N8

Minister:

In compliance with Section 87(3) of the PEI Liquor Control Act , it is my honour to submit this 74 TH Annual Report of the Prince Edward Island Liquor Control Commission covering the fiscal year April 1, 2021 to March 31, 2022.

Respectfully submitted,

Quentin Bevan, Chairman

PEILCC 2021-2022 Annual Report

Message from the CEO Mr. Quentin Bevan, Chairman PEI Liquor Control Commission 3 Garfield Street Charlottetown, PE C1A 6A4

Dear Mr. Bevan:

In reviewing the Prince Edward Island Liquor Control Commission’s financial performance for the period of April 1, 2021, to March 31, 2022, we saw gross receipts increase by more than $7.2 million to over $131.6 million. It is the 26th consecutive year of record sales, with returns to the Province exceeding $47.9 million, an increase of $2.7 million over the previous fiscal.

As we move through the pandemic, our dedicated warehouse, head office, and retail staff continue to work hard to expand our service offerings throughout our retail channels. I am grateful for their commitment and acknowledge that we have faced challenges due to product availability, staffing, and logistical issues. I would also like to extend my appreciation to our Commissioners and members of our Executive Management Team for the support, guidance, and leadership they have shown over the past year. Once again, the key to our success lies with every member of our organization. I am pleased to report that this year we were able to deliver strong returns back to the Province to fund important public services and programs in health care, education, and infrastructure. Our success would not be possible without the commitment of our stakeholders, and governing entities. We are very much focused on the year ahead, and look forward to continued success in all areas of our operations. It is my pleasure to present the Prince Edward Island Liquor Control Commission’s fiscal year 2022 Annual Report.

Please Don’t Drink & Drive

Respectfully,

Daniel MacDonald Chief Executive Officer

PEILCC 2021-2022 Annual Report

Corporate Governance Corporate governance describes the process and structure for overseeing the direction and management of a crown corporation so that it effectively fulfills its mandate. This involves both its public policy and commercial objectives. It defines who is responsible for what, and how to ensure accomplishment and accountability.

Liquor Control Commission Board Standing: Perry Gotell - Member, Kate Shreenan - Recording Secretary,

Susan Milligan - Member, Nicole DesRoche - Member, Murray Murphy - Commission Solicitor Seated: Daniel MacDonald - Chief Executive Officer, Quentin Bevan - Chair, Kim Griffin - Vice - Chair

Executive Management Team

Seated: Carl J. Adams - Chief Financial Officer, Daniel MacDonald - Chief Executive Officer, Heather Rossiter - Director, Corporate Affairs and Regulatory Services Standing: Shawn Alexander - Director, Human Resources and Employee Wellness, Gerald O’Halloran - Acting Director, Supply Chain and Property Management, Mark Carragher - Acting Director, Marketing and Sales, Linda Somers - Acting Director, Retail Operations and Development.

PEILCC 2021-2022 Annual Report

Mandate of PEI Liquor Control Commission Board

The mandate of the board is to supervise the business affairs of the Commission. Its most important responsibilities are:

• Ensuring that the PEILCC provides high-quality service to the public; • Developing and approving the strategic plan and monitoring management’s success in meeting the strategic plan; • Approving annual financial plans; • Assessing and managing business risk; and • Ensuring that the PEILCC performs its regulatory role in a fair and impartial manner.

Accountability to Government and the Public

The PEILCC is held accountable by the Government and people of PEI in a number of ways, including:

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• The Annual Report, tabled in the Provincial Legislature and available for all Islanders to review, either in print or online at www.liquorpei.com; • Annual audits of the PEILCC’s financial statements by a qualified auditor; • Public access to records under the Freedom of Information and Protection of Privacy Act ; and • Publicly appointed commission members.

Appointment of Commission Members

The Lieutenant Governor in Council, through an Order-in-Council, appoints the members of the PEILCC Commission Board, establishes the honourariums, and designates the Chair and Vice-Chair.

Responsibilities of Commission Members

Each Commission member has individual responsibility for corporate governance including:

• Acting honestly and in good faith in making decisions with a view to the best interests of the PEILCC and all its stakeholders; • Overseeing the management of the business affairs of the PEILCC; • Avoiding conflicts of interest; • Having adequate knowledge of the PEILCC’s business, how it is organized and how it functions; • Attending Commission meetings and seeking professional advice where necessary; • Providing guidance on policy development; and • Reviewing appeals of listing applications, review, evaluate, and approve strategic plans. Audit Committee The Audit Committee is elected annually and consists of three Board Members in addition to the Chairman and the CEO as ex-officio. The committee ensures the reliability and accuracy of the PEILCC’s Financial Statements, helps co-ordinate and improve internal control functions, and ensures the PEILCC adheres to sound corporate governance principles.

PEILCC 2021-2022 Annual Report

T hink of your loved ones... T hink of your loved ones... loved ones...

DON’T RIDE IMPAIRED DON’T RIDE IMPAIRED DON’T RIDE IMPAIRED

Organizational Chart

Hon. D. Mark V. McLane

Minister Responsible

Quentin Bevan

Chair

Perry Gotell

Kim Griffin

Member

Member / Vice - Chair

Susan Milligan

Nicole DesRoche

Member

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Daniel MacDonald

Kate Shreenan

Chief Executive Officer

Executive Assistant

Heather Rossiter

Carl Adams

Director, Corporate Affairs and Regulatory Services

Chief Financial Officer

Shawn Alexander

Gerald O’Halloran

Director, Human Resources and Employee Wellness

Acting Director, Supply Chain and Property Management

Linda Somers

Mark Carragher

Acting Director, Retail Operations and Development

Acting Director, Marketing and Sales

* Shared-services agreement with PEI Cannabis Management Corporation (PEICMC) ** For the reporting period, Honorable Darlene Compton served as Minister responsible for Finance

PEILCC 2021-2022 Annual Report

Executive Summary The Prince Edward Island Liquor Control Commission (PEILCC) is a crown corporation responsible for the administration of the Liquor Control Act and Regulations, along with the purchase, control and sale of all beverage alcohol in the province. A five-member Board of Commissioners is responsible for the Commission’s activities. The chairperson reports to the minister responsible for the PEI Liquor Control Commission. The mandate under the Liquor Control Act has two primary components: regulatory and commercial. The regulatory function responsibilities include: • licensing and inspecting licensed premises and special permit events; • investigating and reporting on all licensee or special permit complaints and determining whether there were infractions of the Liquor Control Act ; and • making recommendations to government on amendments to legislation. On the commercial side, the Commission continues to be a major force in the provincial economy with gross receipts in excess of $131.6 million, making it one of the largest retail organizations in Prince Edward Island. In terms of monetary transfers to the Provincial Treasury, this past fiscal year saw $47.9 million returned to the Province, a year over year increase of $2.7 million. The Commission currently operates 18 corporate retail outlets, as well as a central warehouse and Licensee Distribution Centre located in Charlottetown. The Commission has contracted with private interests for the operation of a Liquor Agency store in eight locations: Cavendish, East Royalty, Eldon, Kinkora, Morell, Murray Harbour, Wellington, and Wood Islands.

A strategic plan is in place that guides the Commission to success in meeting its performance and accountability goals.

The Commission focuses on the following four key areas to measure performance:

1. Business Results; 2. Customer Experience; 3. Corporate Social Responsibility; and 4. People and Culture.

These areas serve as a blueprint for incorporating the Mission Statement into day-to-day activities and establishing strategic goals, the details of which are explained in further detail in this report.

PEILCC 2021-2022 Annual Report

Sommaire La Régie des alcools de l’Île-du-Prince-Édouard (RAÎPÉ) est une société de la Couronne responsable de l’administration de la Liquor Control Act (loi sur les alcools) et de ses règlements, ainsi que de l’achat, du contrôle et de la vente de toutes les boissons alcoolisées dans la province. Un conseil composé de cinq commissaires est responsable des activités de la Régie. La présidence fait rapport au ministre responsable de la Régie des alcools de l’Île-du-Prince-Édouard. Le mandat en vertu de la Liquor Control Act compte deux principaux volets – l’un, réglementaire et l’autre, commercial. Les responsabilités du volet de réglementation comprennent : • octroyer des licences et inspecter les débits de boisson et les événements rattachés aux permis spéciaux; • enquêter et faire rapport sur les plaintes concernant l’octroi de permis et les permis spéciaux ainsi que déterminer s’il y a eu infraction à la Liquor Control Act ; • faire des recommandations au gouvernement sur la modification des lois. Du côté commercial, la Régie continue d’être un levier important de l’économie de la province, ses recettes brutes dépassant les 131,6 millions de dollars, ce qui en fait le plus important organisme de vente au détail de l’Île-du-Prince-Édouard. Sur le plan des transferts monétaires au Trésor provincial au cours de la dernière année financière, un total de 47,9 millions de dollars a été versé à la province, soit une augmentation de 2,7 millions de dollars par rapport à la même période l’an dernier. À l’heure actuelle, la Régie exploite dix-huit (18) points de vente au détail ainsi qu’un entrepôt central et un centre de distribution pour les détenteurs de permis situés à Charlottetown. La Régie a passé un contrat avec le secteur privé pour les activités d’un magasin de franchise à huit endroits : Cavendish, East Royalty, Eldon, Kinkora, Morell, Murray Harbour, Wellington et Wood Islands.

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La Régie utilise un plan stratégique pour atteindre ses objectifs de performance et de responsabilité.

Elle concentre ses efforts sur quatre domaines principaux afin de mesurer sa performance :

1. Résultats opérationnels 2. Expérience client 3. Responsabilité sociale 4. Personnes et culture

Ces domaines servent de plan directeur à l’intégration de notre mission dans nos activités quotidiennes et à l’établissement d’objectifs stratégiques qui seront expliqués plus en détail plus loin dans ce rapport.

PEILCC 2021-2022 Annual Report

Operational Overview The Prince Edward Island Liquor Control Commission’s Strategic Plan continued to guide activities through fiscal 2021-2022. Progress on strategic objectives is supported by annual business plans that set priorities for actions to meet objectives and timelines for their completion. The following is an overview of the performance in each of the five strategic objectives: Strategic Goal 1 • Business Results

Goal To maximize net income within the policy guidelines established by the provincial government.

Objectives

1. Optimize return to government. 2. Grow revenue through effective planning and execution. 3. Continuously improve operational effectiveness and efficiency.

Actual 2020-2021

Target 2021-2022

Actual 2021-2022

% of Target 2021-2022

Target 2022-2023

PERFORMANCE MEASURES

Gross Receipts

$124,316,872

$121,000,000

$131,560,947

108.73%

$131,800,000

Gross Profit

$37,555,456

$35,852,100

$39,004,601

108.79%

$39,450,000

Operating Expenses

$16,917,794

$18,814,200

$17,334,801

92.14%

$20,084,500

Net Income

$23,414,429

$19,590,400

$24,913,541

127.17%

$22,157,100

Return To Government*

$45,242,793

$40,695,100

$47,968,354

117.87%

$45,327,100

Revenue Per Litre

$9.03

$9.10

$9.34

102.64%

$9.53

Spirits

$39.25

$39.50

$40.86

103.44%

$40.86

Beer

$5.68

$5.72

$5.86

102.45%

$5.88

Wine

$17.06

$17.15

$17.38

101.34%

$17.38

Wine Coolers

$8.77

$8.80

$17.62

200.23%

$17.62

Spirit Coolers

$7.18

$7.28

$6.98

95.88%

$6.98

Draught

$1.47

$1.55

$1.84

118.71%

$1.85

Operating Expenses as a % of Gross Receipts

13.61%

15.55%

13.18%

84.76%

15.24%

Shrinkage as a % of Gross Receipts

0.01%

0.03%

-300.00%

0.01%

Inventory Turnover**

Warehouse

50.1

75.0

54.5

72.67%

75.0

Stores

30.3

30.0

30.1

100.33%

30.0

* Inclusive of Net Income and health tax transfers to government ** Measured in days

PEILCC 2021-2022 Annual Report

The PEI Liquor Control Commission delivered both an increased net profit and an increased transfer to the provincial government in fiscal 2021-2022.

Gross receipts were $131,560,947 for the fiscal year ended March 31, 2022, an increase of $7,244,075 over the previous year. This increase came as a result of new sales and marketing initiatives.

Net transfers for the year totaled $47,968,354. This year’s performance resulted in a $2,725,561 increase in the PEILCC’s contribution to the Province over the previous year.

Performance Highlights

The Commission set inventory turnover goals at the beginning of the fiscal year as part of its strategic plan. These turnover ratios were based on the year ended March 31, 2021 to measure inventory efficiencies. The Commission has been better able to manage the days in inventory and the warehouse level in order to meet the needs of our customers. Store inventory turns are up slightly from last year which can be attributed to the increase in the number of products held in store inventory and necessary to fulfill customer demands. An improved store ordering process continues to keep store inventories in check and ensured better distribution and availability of inventory across the retail network. In addition, the central warehouse has been reconfigured to optimize space and manage warehouse efficiency.

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WE ENCOURAGE YOU TO DECIDE ON YOUR RIDE!

PEILCC 2021-2022 Annual Report

Performance Highlights

Figure A Sources of Gross Receipts

11%

Spirits

23%

Wine

Coolers

Merchandising

Other

Fiscal Year 2022

Beer

38%

25%

Figure B Application of Gross Receipts

13%

Payments to Province

Administrative Expenses

Federal Taxes

38%

13%

Suppliers

Fiscal Year 2022

36%

The Commission spent approximately $51.65 million on alcohol from both national and international sources. Gross margins decreased slightly due to unscheduled freight increases by transportation companies.

PEILCC 2021-2022 Annual Report

Strategic Goal 2 • Customer Experience

Goal To understand the needs of our customers so that we can provide quality products and services that are delivered by knowledgeable, courteous employees in attractive and accessible facilities. Objectives 1. Enhance the shopping experience for PEILCC wholesale and retail customers. 2. Provide enhanced customer services. 3. Improve product portfolio.

Actual 2020-2021

Target 2021-2022

Actual 2021-2022

% of 2021-2022 Target

Target 2022-2023

Customers served Average customer transaction value

2,325,095

2,500,000

2,590,766

103.63% 2,600,000

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$53.47

$48.40

$50.78

104.92%

$50.69

Actual 2020-2021

Target 2021-2022

Actual 2021-2022

% of 2021-2022 Target

Target 2022-2023

Litres

Beer

8,708,942

8,700,000

8,438,849

97.00%

8,400,000

Draught

856,768

845,000

892,273

105.59%

880,000

Spirits

832,886

820,000

848,343

103.46%

840,000

Wine (including BYO)

1,680,117

1,670,000

1,776,264

106.36% 1,610,000

Refreshments

1,692,451

1,700,000

2,124,251

124.96% 2,100,000

Total

13,771,164

13,735,000

14,079,980

102.51% 13,830,000

Performance Highlights

Packaged beer volume decreased by 3.1%, dollar sales were down 0.6% over the previous year. Customers purchasing patterns are returning to pre-Covid levels, with less pantry loading on large beer packs. Local craft beer continues to grow. Draught beer volume increased by 4.1%, dollar sales were up 29.1%. Licensee sales showed positive signs of growth in 2022. The Refreshment category volume increased by 25.5%, dollars increased by 24.7%. These products continue to see significant growth with many customers switching from other categories to this category. Customers continue to look for “what’s new” within these offerings. Spirits volume was up 1.8%, dollar sales increased by 5.9%. Category growth was led by the Tequila, Gin and Liqueur segments. At home cocktails continue to be a popular trend which has driven much of the Spirits growth.

The Spirits Festival was cancelled again in 2021 but plan on moving forward with the 2022 Festival in November.

PEILCC 2021-2022 Annual Report

The Wine Category showed strong growth in 2021-2022 with licensee sales representing a large portion of the growth. Consumers returning to local restaurants and licensed premises drove licensee sales which showed a 35% increase in litre volume and 39% increase in sales volume. The category as a whole realized a 5.7% increase in litres and an 7.7% increase in sales volume. Supply chain proved to be one of the biggest challenges over the past year with the biggest impact being on products coming from countries like New Zealand and Australia. The next year should see the return of a more stable and predictable wine supply.

The annual Festival of Wines was not able to take place again this year. We remain optimistic the event will resume in 2023.

Our commitment to improving customer experience continued in the past year with 53 retail employees choosing to participate in advanced training in the WSET program. This program provides employees with an additional level of expertise which is beneficial when assisting customers.

PEILCC 2021-2022 Annual Report

Strategic Goal 3 • Corporate Social Responsibility

Goal In partnership with community groups and suppliers, the PEILCC will strive to raise public and staff awareness of the responsible use of beverage alcohol. Objectives 1. Enhance our reputation as a socially responsible corporate citizen. 2. Build corporate social responsibility into all areas of our business. 3. Regulate the consumption of beverage alcohol throughout the province in a fair and responsible fashion.

% of 2021-2022 Target

Actual 2020-2021

Target 2021-2022

Actual 2021-2022

Target 2022-2023

Number of ID Checks as a % of transactions

10.60% 10.00% 12.42% 124.20% 10.00%

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Funds raised for charities and foundations

$16,334

$100,000

$37,626

37.63% $100,000

Licensee Compliance Rate

98.7% 95.0% 98.1% 103.3% 95.0%

Number of Inspections Conducted

1754

3300

2901

87.9%

3100

% of Sanctions without Adjudication

100%

Performance Highlights

The Commission continued to participate on a number of committees promoting responsible use including, Canadian Liquor Jurisdictions Social Responsibility Committee. The PEILCC also completed the final year of a five-year agreement with the Island Nature Trust (INT) with $100,000 in total collected through this supplier supported campaign. A portion of sales from a variety of products were donated to the INT. Closures and reduced operating hours, as the result of COVID-19 restrictions negatively impacted the amount of funds raised for charities as well as the number of inspections that PEILCC inspectors were able to carry out. The PEI Liquor Control Commission was also glad to support the efforts of the RCMP through their holiday season paper bag campaign. New this year, we partnered with stakeholders to promote safe bar messaging in light of drink spiking incidents.

The PEI Liquor Control Commission continues to promote the responsible use of alcohol by offering products that are socially responsible and incorporating responsible messaging into product promotions. Ongoing responsible use activities include: Challenge and Refusal Initiative, ID Training for PEILCC corporate retail and liquor agency staff and the Check 30 ID Program. A variety of targeted responsible use messaging was promoted throughout the year, using local media outlets as well as social media platforms. The Prince Edward Island Liquor Control Commission continued its support of MADD Canada’s Multi-media School Assembly Program during the 2021-2022 school year, with 27 online interactive classroom presentations of the English language version Wrong Turn and two of the French language version Détour , which took place in schools across the Island. The commission provided ongoing support for MADD Canada’s campaign 911, and expanded the in-store retail ice program in a number of corporate retail outlets which also benefits the work of MADD Canada.

PEILCC 2021-2022 Annual Report

CREATIVE EXECUTIONS FOR YOUR CAMPUS

WHAT IS ?

KEEP IT SOCIAL IS … A multi-year platform designed to promote responsible consumption and harm reduction of beverage alcohol and recreational cannabis among university and college students. Founded in 2013, the Keep It Social program has been adopted by 13 schools and 5 liquor jurisdictions in Canada. OBJECTIVES 1. Promote responsible consumption of beverage alcohol and recreational cannabis. 2. Student-led, collaborative and sustainable. 3. Gain student leadership commitment.

| Fall 2019

WHAT IS CANNABIS?

ONSET AND DURATION

Cannabis refers to a group of plants with psychoactive properties. The flowers of these plants are harvested and dried and used for recreational, medical and industrial purposes. In PEI, recreational cannabis is sold by the PEICMC. There are three types of Cannabis plants; indica, sativa and hybrids of the two. • Indicas: Reported to have more relaxing, sedating effects than sativas • Sativas: Reported to provide a more euphoric, energized effect

Everybody’s response to cannabis is different, and it can vary from one occasion to the next. It takes longer to feel the effects of eating or drinking cannabis, but the effects are often stronger and last longer than when it is smoked or vaporized.

Onset Time for Type of Cannabis Consumed

STAGE

INHALATION

WHAT IS THC AND CBD? Tetrahydrocannabinol (THC) and cannabidiol (CBD) are the two primary cannabinoids that occur naturally in the Cannabis plant. Both of these interact with the cannabinoid receptors found in the human body and brain, but they differ dramatically in their effects. • THC is psychoactive and provides a euphoric feeling once consumed • CBD is non-psychoactive which means that it does not provide a euphoric effect

INGESTED

Onset

5-10 minutes

30 minutes - 2 hours

Duration

5-30 minutes

Plateau

4-12 hours

1-2 hours

Onset Type

1-2 hours

Rapid

Slow

PEILCC 2021-2022 Annual Report

| Fall 2019

Please Don’t Drink & Drive

The PEI Liquor Control Commission partners with both the University of Prince Edward Island (UPEI) and Holland College for each institution’s KEEP IT SOCIAL (KIS) programing. KIS is helping students make responsible decisions when it comes to alcohol. Led by students and guided by the PEILCC, Keep It Social is a long-term initiative designed to address and reduce high-risk consumption. Now in its sixth year, KIS tackles the false perceptions that many students have about how much alcohol their peers consume. By getting the message out on campuses, keepitsocial.ca offers students tips and advice on how to make the right decisions when they’re planning a night out. UPEI and Holland College appoint several student athletes as KEEP IT SOCIAL Ambassadors who act as leads to spread the message about the impacts of high-risk alcohol consumption among students. The KIS message is promoted through social media and KIS videos that are shown and promoted throughout the academic year at various athletic and social events. In partnership with UPEI, Coach Atlantic, and KKP, a PEILCC funded bus wrap puts a focus on the campaign when student athletes travel throughout the Maritime Provinces.

PEILCC 2021-2022 Annual Report

Gift of Giving Campaign Results

The PEI Liquor Control Commission (PEILCC) presented donations to several charitable organizations as part of its annual Gift of Giving Campaign.

The Gift of Giving Campaign is an annual event which donates a portion of gift card sales from PEILCC locations across the Island during the month of December to community organizations. This past holiday season, the campaign raised over $17,500 for charities across PEI, including, Blooming House, Bedford MacDonald House, MADD Canada, Make-A-Wish Foundation, Canadian Mental Health Association, and several food banks across the Island. “Spearheading the Gift of Giving Campaign is something that we are very proud of as it gives us the ability to give back to Islanders, especially during difficult times,” said Minister of Finance Darlene Compton. “To be able to recognize these amazing charitable organizations and the work that they do for Islanders each and every day is really special, and I want to thank everyone who participated in the annual Gift of Giving Campaign this year.”

PEILCC is committed to the communities it serves, and this campaign gives back to organizations that provide important support and assistance to Islanders.

Full list of Charities:

MADD Canada, The Salvation Army Bedford MacDonald House, Blooming House, West Prince Caring Cupboard, Summerside Salvation Army, Charlottetown Salvation Army, Upper Room Soup Kitchen & Food Bank, Southern Kings & Queens Food Bank, Souris Food Bank, Make-A-Wish, PEI Chapter (Unified with Children’s Wish), and Canadian Mental Health Association – PEI Division.

PEILCC 2021-2022 Annual Report

Strategic Goal 4 • People & Culture

Goal Build a customer-focused, high-performance work environment that results in greater employee involvement, development, innovation and creativity. Objectives 1. Always recruit, retain, and develop the best people. 2. Foster a culture of performance, communication, and engagement. 3. Rigorously establish and promote a healthy, safe, and respectful workplace.

Actual 2020-2021

Target 2021-2022

Actual 2021-2022

Target % 2021-2022

Target 2022-2023

Training Hours per Employee - FTE

6.27

6.05

60.5%

EMPLOYEE EXCELLENCE Plan

72.73%

90%

100%

90%

Employee Wellness Rate

98.17%

98%

100%

98%

Lost-Time Frequency

8.82

8.0

3.31

41.4%

Performance Highlights

The PEILCC continued to re-invest in its employees training and development by providing them with a range of developmental opportunities over fiscal 2022.

The PEILCC training hours per employee were down over last year from 6.27 hours to 6.05 hours for fiscal 2022. We continue to adjust our training hours target as a result of COVID-19 and refocused training efforts.

We continue to offer Wine and Spirit Education Trust (WSET) training and PEILCC/PEICMC Development & Training Fund continues to be utilized by staff along with the Union of Public Sector Employee and Public Service Commission Development & Training Fund. These funds are allocated to developmental opportunities that assist employees in achieving their personal career objectives, while simultaneously bridging individual performance gaps that collectively lead to increased levels of organizational success. The PEILCC had continued success in fostering high levels of workplace wellness and safety over fiscal 2022. In addition to efforts in employee engagement and the provision of OH&S training, new disability management initiatives and decreases in workplace accidents leading to lost time. A healthy workforce is extremely important to the PEILCC, particularly given the physically demanding work involved in many operational processes. Continued effort in this regard will be an ongoing priority moving forward.

Opportunities and Challenges Ahead:

The PEILCC HR and Employee Wellness division continued to implement the objectives of the People & Culture section of the annual report. The objectives are to foster an engaged workforce that is aligned with the strategic objectives of the organization. Through effective implementation the PEILCC has the opportunity to enhance its ability to accomplish these goals.

PEILCC 2021-2022 Annual Report

FEATURED PRODUCER LOCATED AT GATEWAY VILLAGE - 103 ABEGWEIT BOULEVARD, BORDEN-CARLETON PE

Please Don’t Drink & Drive

What is your process when deciding on new beers? Is the whole team involved?

How did Lone Oak Brewing Co. get started?

Lone Oak Brewing Co. got started with three young entrepreneurs that wanted to get into the craft brewing industry. After years of meeting, we were able to finally get the doors open in November 2019. We have developed a forward thinking craft brewery that focuses on quality service and products, innovation and using local ingredients.

Before deciding on new seasonal beers Lone Oak will brew, it is important to do a bit of market research to see what beers are performing well in other markets. We focus on creating new beers and flavours that are not currently present in our own local markets all while staying within our core styles; hoppy beers, lagers, and mixed fermented (farmhouse) beer. Brewing staff will consult other departments of the brewery before executing new beers - after all, we want to make beer that we all enjoy!

What was behind the decision to showcase local ingredients, and what are the benefits?

A main focus of our business is supporting local. We are extremely fortunate to have two local Malthouses right here on PEI. There is also a brand new hop farm being developed on PEI as well. As a new brewery we were able to create our flagship beer recipes with the use of local malt. We also donate all of our spent grain back to a local farmer in the area that uses it as feed for cattle and swine. A huge benefit of using local ingredients are the accessibility, and the opportunity to work with local suppliers to tailor ingredients to fit our needs. Whether it be malt, hops, fruit or honey - it’s amazing to see these local ingredients shine in our beers.

With your menu, do you pair the food with the beer on tap?

With the addition of The Abby Restaurant into our space we now have food on a year-round basis. We have done food and beer tasting events in the past but we have yet to really dive into it. This is definitely something that we plan to do in the near future.

PEILCC 2021-2022 Annual Report

What trends are you seeing in the craft brewing industry?

The craft beer industry is constantly evolving, which can be exciting, yet make it difficult for breweries to land on core/flagship beers. When we selected our core beers - they were the styles that seem to have always excelled in any market. Since 2010, there has seemed to be a lot of buzz around gimmicky beers with brewers adding crazy ingredients - such as smoothie beers or milkshake IPAs, luckily it doesn’t seem like those stick around. We are delighted to see a resurgence in more classic styles and traditional lagers. They have been around for hundreds of years and there is no wonder - they are delicious! Our Fixed Link Pilsner is a great example of a traditional German style Pilsner. Sounding like a broken record here - but we like to stay focused on our 3 main categories of beer styles. We are excited to be brewing low ABV hoppy beers like our Noble (0.7%) and Modest (3.5%). These beers are very flavorful yet don’t pack a boozy punch. In addition to these, our brewing staff love experimenting with oak fermented fruited beers such as Rouge. A bit of a beer/wine hybrid that takes both beer and wine strategies into consideration. Lastly, who doesn’t love clean, crisp lagers. We are hoping to add a few new cold fermented beers to our lineup of beers! What styles are you excited to be brewing right now, or would like to brew in the future?

Stay tuned!

PEILCC 2021-2022 Annual Report

CHALLENGES AND OPPORTUNITIES AHEAD

The Prince Edward Island Liquor Control Commission continues to identify opportunities and challenges, while meeting the expectations of adverse and discerning customer base.

Updated store premises and merchandising strategies work together to improve the customer experience. This work will continue while managing the investments required to ensure standards are maintained.

Ensuring essential technical and human resources are necessary to fulfill the strategic plan. Additional, capital planning is required to provide for future needs.

The Commission has set its monetary transfer goal to $45.3 million for the 2022-2023 fiscal year, to continue investments in our province. While it appears the major impacts of COVID-19 have passed, the PEILCC continues to explore opportunities for new innovation, distribution, and operational efficiences. The Commission’s commitment to social responsibility presents ongoing opportunities to communicate and reinforce the message of responsible use and public safety to a wide range of audiences. Underlying all of these challenges and opportunities is the vision of excellence in management. Being prepared to capitalize on new opportunities in the marketplace and continuing to integrate and streamline operations is key.

Please Don’t Drink & Drive

The PEILCC is confident that it is building an organization which is internally more efficient and will continue to be publicly accountable.

PEILCC 2021-2022 Annual Report