Open Collections

 57th
ANNUAL REPORT
APRIL 1, 1977—MARCH 31, 1978
Province of British Columbia
LIQUOR DISTRIBUTION
BRANCH
MINISTRY OF CONSUMER AND CORPORATE AFFAIRS
Printed by K. M. MacDonald,
Printer to the Queen's Most Excellent Majesty
In Right of the Province of British Columbia
1979
By Authority of the Legislative Assembly
 ®!
Index
Letter of Transmittal    1
Personnel     2
Audit    2
Balance Sheet     3
Statement of Income    4
Statement of Changes in Financial Position    4
Notes to Financial Statement    5
Operating Expenses     6
Comparative Classification of Sales    8
Stores     9
List of Liquor Stores & Map 11
List of Agency Stores & Map 14
 Liquor Distribution Branch
Ministry of Consumer and Corporate Affairs
Vancouver, B.C.
February 28, 1979
The Honourable James A. Nielsen
Minister of Consumer and Corporate Affairs
Parliament Buildings
Victoria, B.C.
Sir:
I have the honour to transmit herewith the Fifty-seventh Annual Report of the
Liquor Distribution Branch, covering the fiscal year ended March 31, 1978.
I have the honour to be,
Sir,
Your obedient servant,
R. A. Wallace,
General Manager
Liquor Distribution Branch
 Personnel
The Liquor Distribution Branch acknowledges and appreciates the cooperation and
loyalty of staff members throughout the province during the year.
As of March 31, 1978, the number of employees of the Branch totalled 2578,
comprised of 1640 regular and 938 auxiliary employees. This included more than 500
temporary workers hired over the Christmas period in Lower Mainland stores. A total of
180 competitions for 295 positions were handled in this period. Over 60 employees
received formal training during this year, while some 120 of the staff utilized the
Occupational Health Services.
Audit
To and including the year ended March 31,1977, the balance sheet of the British
Columbia Liquor Distribution Branch and the statements of income and changes in
financial position were examined and reported on by the Comptroller-General.
With the proclamation of the Auditor General Act, these responsibilities were
undertaken by the Auditor General, who therefore performed the audit of the accounts
of the British Columbia Liquor Distribution Branch for the year ended March 31, 1978.
Since the Auditor General considers the most appropriate method of reporting on
the audit to be by inclusion in her report to the Legislative Assembly, a separate report
and opinion on the audit of the accounts of the Branch has not been issued.
 BALANCE SHEET as at MARCH 31,1978.
ASSETS
CURRENT ASSETS
Cash	
Accounts receivable  	
Inventories	
FIXED ASSETS, at cost (note 3)...
Less accumulated depreciation
1978 1977
$ 3,982,185 $ 4,827,328
1,206,884 467,546
31,760,013 18,949,098
36,949,082 24,243,972
8,232,809 8,002,869
6,698,505 6,164,889
1,534,304 1,837,980
$38,483,386 $26,081,952
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities
PROVINCE OF BRITISH COLUMBIA
Working capital advance	
Reserve	
$34,452,780
4,030,606
4,030,606
$20,128,661
4,902,791
1,050,500
5,953,291
$38,483,386 $26,081,952
Commitments (note 6)
The accompanying notes are an integral part of these financial statements.
TO Enemark
Acting General Manager
L.N. Dyer
Director of Finance
 1   \w
STATEMENT OF INCOME FOR THE YEAR ENDED MARCH 31,1978
1978
1977
Sales (note 4)	
$487,056,243
$472,145,997
Cost of merchandise sold	
276,694,094
269,301,013
210,362,149
202,844,984
Provincial Malt Levy (note 2)	
11,594,424
221,956,573
	
202,844,984
Operating expenses (Schedule)     	
51,367,000
44,100,246
170,589,573
158,744,738
Other income 	
1,901,524
851,769
Net Liquor Distribution Income 	
172,491,097
159,596,507
Transfer of prior years' reserve 	
Net Liquor Control and Licensing income (note 5) .
TRANSFERRED TO PROVINCE OF
BRITISH COLUMBIA   	
1,050,500
3,000,429
$173,541,597
$162,596,936
STATEMENT OF CHANGES IN FINANCIAL POSITION
FOR THE YEAR ENDED MARCH 31,1978
1978
1977
FUNDS DERIVED FROM OPERATIONS:
Net income 	
Add charges not involving an
outlay of funds
Depreciation 	
Loss on disposal of fixed assets ....
$173,541,597
546,261
17,767
$162,596,936
624,162
16,083
174,105,625
163,237,181
FUNDS APPLIED TO:
Acquisition of fixed assets	
260,352
175,464,282
509,590
Cash payments to the Provincial Treasury.	
168,372,730
175,724,634
168,882,320
DECREASE IN WORKING CAPITAL	
1,619,009
4,115,311
5,645,139
Working capital at beginning of year	
9,760,450
WORKING CAPITAL AT END OF YEAR	
$    2,496,302
$    4,115,311
WORKING CAPITAL
Current assets 	
$ 36,949,082
34,452,780
$ 24,243,972
Current liabilities	
20,128,661
WORKING CAPITAL AT END OF YEAR	
$    2,496,302
$    4,115,311
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^_               ^^^^^^^^^^^^^^^^^_ ^^^^^^^^^^^—
 w
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31,1978
1. SIGNIFICANT ACCOUNTING POLICIES:
a) Revenues and expenses are reflected on an accrual basis.
b) Merchandise inventory is valued at its latest landed cost. Customs and excise
taxes are not included in the value of inventory where payment is due upon
shipment from the bonded warehouse.
c) Expenditures for buildings, leasehold improvements, furniture, fixtures, and
equipment are capitalized and are subject to depreciation on a straight line basis
as follows:
Buildings — 71/2% per annum
Leasehold Improvements — a minimum of 10% per annum
or a rate sufficient to write
off the cost over the remaining
life of the respective lease.
Furniture, fixtures and equipment    — 25% per annum
2. CHANGES IN ACCOUNTING POLICY:
a) In September, 1977, a new procedure was implemented for Domestic Beer
delivered directly to Licensed Establishments by Pacific Brewers Distributors
Ltd. Commencing September 6,1977 the domestic Brewers' wholesale
distributor was authorized to accept orders and payment from Licensees within
prescribed guidelines. During the year ended March 31, 1978 Pacific Brewers
Distributors Ltd. recorded sales to Licensed Establishments amounting to
$37,051,208. Had these sales, as in prior years, been reflected in the Statement
of Income, the total sales figure would have been $524,107,451. Income was
maintained by instituting a Provincial Malt Levy based on established mark-up of
domestic malt products.
b) In-Transit merchandise ordered from foreign suppliers amounting to $5,031,041
has been included as inventory as at March 31, 1978. This merchandise
became the property of the Liquor Distribution Branch on loading at the port of
embarkation. A comparable amount at March 31, 1977 cannot be determined.
This change does not affect the Statement of Income in either 1978 or 1977.
1978 1977
Accumulated Accumulated
3. FIXED ASSETS: Cost Depreciation Cost Depreciation
Land  $    450,752 $       — $    450,752 $       —
Buildings  4,461,352 3,836,779 4,457,500 3,586,442
Leasehold
Improvements   .. 31,519 6,352 42,359 3,402
Furniture, fixtures
and equipment .. 3,289,186 2,855,374 3,052,258 2,575,045
8,232,809      $6,698,505        8,002,869      $6,164,889
NET BOOK VALUE ..       $1,534,304 $1,837,980
4. SALES:
Included in sales are non-alcoholic items amounting to $786,371
(1977—$743,684).
5. LIQUOR CONTROL AND LICENSING BRANCH:
The 1977 Financial Statements included Income and Expenses of the Liquor
Control and Licensing Branch to March 31, 1977. With the proclamation of the
Liquor Control and Licensing Act, S.B.C. 1975, chapter 38 assented to June 26,
1975 which took effect on December 31, 1976, the Income and Expenses of the
Liquor Control and Licensing Branch for the fiscal year ended March 31, 1978 are,
and in future will be, reported in the Public Accounts, Ministry of Consumer and
Corporate Affairs.
 6.    COMMITMENTS:
a) Employees of the Branch contribute to the Public Service Superannuation Fund
6% of their salaries for basic pension purposes, plus 1/2% of salaries for
cost-of-living indexed increases in pension benefits. The contributions shown in
the Schedule include in addition to matching employee contributions,
supplementary assessments paid by the Branch to fund any deficiency in
pensions for employees who retired during the year. This supplementary
assessment was $1,210,423 in 1978 ($483,191—1977).
An actuarial evaluation of the Public Service Superannuation Fund was made at
March 31,1977. Details of the unfunded liability are described in the Public
Accounts of British Columbia. The portion of the unfunded liability attributable to
the Liquor Distribution Branch was not determined by the actuary.
OPERATING EXPENSES FOR THE YEAR ENDED MARCH 31,1978
Wareho
Salaries and wages        $2,422,i
Superannuation fund    183,:
Unemployment Insurance   29,
Canada Pension   24,
B.C. Medical  14,
Workers' Compensation Board  9,
Group insurance   5,
Rents  125,
Sundries  280,
Store wrapping supplies	
Depreciation  254,
Light, water and fuel  82,
Property charges  181,
Vendors' relief expenses 	
Alterations and repairs  42,
Telephone and telegraph	
Postage and express 	
Travelling	
Staff benefits 	
Printing and stationery. 	
Agency commissions 	
Litter Act—container disposal cost	
Mechanical maintenance  73,
Insurance and fidelity. 	
Bank charges	
Dental and extended health  17,
Employee transfer expenses       	
Total Distribution Branch expenses        $3,746
 b) The Branch maintains inventory in its bonded warehouse for which Customs
and Excise tax has neither been paid nor recorded. As at March 31, 1978 the
future liability for these taxes approximate $8,000,000.
c) Total commitments to March 31, 1978 for lease of premises amount to
$18,617,000. Of this total $2,741,000 becomes payable during the year ending
March 31, 1979.
7.
COMPARATIVE FIGURES:
Certain of the 1977 figures [
Drovided for purposes
of comparison have been
restated to conform with the classifications used in the current year. These
changes have had no effect
on the net income.
SCHEDULE
1978
1977
ietail Store
Administrative
Total
Total
13,203,964
$2,903,300
$38,529,883
$33,680,538
2,519,852
219,572
2,922,645
1,917,556
401,725
35,005
465,940
530,762
337,954
29,448
391,975
346,404
195,792
17,061
227,089
195,059
126,283
11,004
146,469
113,661
75,904
6,614
88,037
70,439
2,807,475
2,933,415
2,639,578
915,240
212,118
1,407,560
1,212,480
559,611
559,611
624,716                                         I
233,379
58,854
546,261
570,076
632,226
714,385
564,253                                          b
50,088
231,240
199,436                                         !
211,898
211,898
174,708                                         !
54,276
5,411
102,386
77,713
90,673
136,113
227,782
179,121
35,784
8,034
43,818
56,593
113,111
113,111
105,382
98,080
98,080
83,534
243,450
243,450
223,681
165,279
165,279
170,207
126,947
126,947
151,541
75,443
10,925
159,695
116,215
32,675
32,675
34,166
35,132
35,132
20,730
239,832
20,898
278,168
364,069
$4,853,100
364,069
$51,367,000
41,697
$44,100,246
2,767,399
7
 COMPARATIVE CLASSIFICATION OF SALES
1978
1977
Spirits
Canadian         $190,318,833       $181,549,999
Imported    71,957,906 66,000,010
Wines
British Columbia	
Other Canadian 	
Imported Wines 	
Malt Liquor
Canadian (includes sales by PBD: see below)
Imported  	
Cider
Canadian	
Imported   	
TOTAL LIQUOR SALES 	
Non-Alcoholic Sales  	
ALL SALES—TOTAL	
less Pacific Brewers Distributors
sales to licensees (see Notes
to Financial Statement #2a)    37,051,208 —
LIQUOR DISTRIBUTION BRANCH SALES
(per Financial Statement)         $487,056,243      $472,145,997
262,276,739
247,550,009
35,791,079
1,464,237
35,740,624
1,632,497
37,255,316
37,373,121
45,191,708
34,417,100
82,447,024
71,790,221
164,653,162
10,359,757
143,308,180
6,330,895
175,012,919
149,639,075
3,433,855
150,543
2,266,996
156,012
3,584,398
2,423,008
523,321,080
786,371
471,402,313
743,684
524,107,451
472,145,997
 Stores
There were 205 Branch operated retail liquor stores in either Branch owned or
leased premises as of March 31, 1978.
In addition, 21 Agency liquor stores in remote and isolated areas, operated by
proprietors of "general stores" were under contract to the Branch to provide services
where it was not practical for the Branch to establish and operate retail stores.
Ten new premises were opened, including 4 replacement stores for existing liquor
stores, and 6 new stores in new locations, as follows:
Name and Address of Store
Williams Lake
267 Borland Street
Williams Lake, B.C. V2G 1R4
Como Lake
1972 Como Lake Road
Coquitlam, B.C. V3J 3R3
Cranbrook Tamarack
#187-1500 Cranbrook St. N.
Cranbrook, B.C. V1C 3S8
Capilano Mall
#7 - 935 Marine Drive
North Vancouver, B.C. V7P 1S3
Lumby
Box 246
Shuswap Avenue
Lumby, B.C. VOE 2G0
Nakusp
Box 689
87 - 5th Avenue West
Nakusp, B.C. VOG 1 RO
Richmond Lansdowne
#102-4940 No. 3 Road
Richmond, B.C. V6X 3A5
Trafalgar Square
#8 - 7103 West Saanich Road
P.O. Box 520
Brentwood Bay, B.C. V0S 1A0
Prairie Mall
1436 Prairie Avenue
Port Coquitlam, B.C. V3B1S9
Radium
P.O. Box 68
Radium, B.C. V0A 1M0
Opening Date
Replacement       April 21,1977
New
New
New
New
New
New
May 26, 1977
June 15, 1977
September 16,1977
Replacement       October 7, 1977
Replacement       October 28, 1977
December 14, 1977
December 15, 1977
February 24,1978
Temporary March 1,1978
Replacement
Trailer
 Three stores were upgraded and/or converted to self-serve:
Name and Address of Store Completion Date
Ocean Falls April 30, 1977
Box 220
Ocean Falls, B.C. V0T1P0
Saanich September 30, 1977
1087 McKenzie Avenue
Victoria, B.C. V8P 2L5
Sidney March 31, 1978
2343 Beacon Avenue
Sidney, B.C. V8L 3S3
As of March 31, 1978, there were 116 self-serve stores in the province.
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Liquor Stores of British Columbia
as at March 31,1978
14. Castlegar*
1. Abbotsford (s)                                        15. Chase (s)
2. Agassiz*                                                16. Chemainus
3. Aldergrove (s)                                        17. Chetwynd*
4. Alert Bay*                                              18. Chilliwack (s)
5. Armstrong                                              19. Clearbrook (s)
6. Ashcroft                                                 20. Clearwater (s)
7. Atlin*                                                        21. Clinton*
8. Barriere                                                 22. Comox (s)
9. Bella Coola                                            23. Courtenay (s)
10. Burns Lake*                                                Cranbrook—2 Stores
11. Cache Creek*                                        24. Cranbrook (s)
12. Campbell River (s)                                 25. Cranbrook-Tamarack (s)
13. Cassiar                                                 26. Creston
11
 r®
27. Cumberland
80. New Denver
28. Dawson Creek (s)
81. Ocean Falls*
29. Duncan (s)
82. Oliver
30. Elkford
83. 100 Mile House (s)
31. Enderby
84. Osoyoos
32. Fernie (s)
85. Parksville
33. Fort Nelson
86. Pemberton
34. Fort St. James
Penticton—2 Stores
35. Fort St. John (s)
87. Penticton (s)
36. Fraser Lake
88. Penticton Plaza (s)
37. Fruitvale
Port Alberni—2 Stores
38. Gabriola Island
89. Port Alberni (Northport) (s)
39. Ganges (s)
90. Port Alberni (10th) (s)
40. Gibsons (s)
91. Port Alice
41. Gold River
92. Port Edward
42. Golden (s)
93. Port Hardy
43. Grand Forks
94. Port McNeill
44. Granisle
95. Powell River (s)
45. Greenwood
Prince George—4 Stores
46. Hazelton
96. Prince George (Hart) (s)
47. Hope
97. Prince George (6th)*
48. Houston
98. Prince George (10th) (s)
49. Hudson Hope*
99. Prince George (20th) (s)
50. Invermere
100. Prince Rupert (s)
Kamloops—5 Stores
101. Princeton (s)
51. Kamloops (North) (s)
102. Qualicum*
52. Kamloops (Sahali) (s)
103. Queen Charlotte City*
53. Kamloops (Seymour) (s)
104. Quesnel (s)
54. Kamloops (Valleyview) (s)
105. Radium
55. Kamloops (Westsyde) (s)
106. Revelstoke (s)
56. Kaslo*
107. Rossland*
Kelowna—4 Stores
108. Rutland (s)
57. Kelowna (South) (s)
109. Salmo
58. Kelowna (Leon)*
110. Salmon Arm*
59. Kelowna (Capri) (s)
111. Sayward (s)
60. Kelowna (Westbank) (s)
112. Sechelt
61. Keremeos
113. Sicamous
62. Kimberley (s)
114. Smithers*
63. Kitimat
115. Sparwood
64. Ladysmith*
116. Squamish (s)
65. Lake Cowichan
117. Stewart*
66. Lillooet
118. Summerland
67. Logan Lake
119. Tahsis
68. Lumby (s)
120. Terrace (s)
69. Lytton
121. Texada Island
70. McBride
122. Tofino
71. Mackenzie
123. Trail (s)
72. Madeira Park
124. Ucluelet
73. Masset
125. Valemont
74. Merritt (s)
126. Vanderhoof*
75. Mission (s)
127. Vedder Crossing (s)
76. Nakusp (s)
Vernon—2 Stores
Nanaimo—2 Stores
128. Vernon (s)
77. Nanaimo (Cavan)*
129. Vernon (Poison Pk) (s)
78. Nanaimo (Terminal Pk.) (s)
130. Whistler (s)
79. Nelson (s)
131. Williams Lake (s)
19
 GREATER VANCOUVER AREA
North Vancouver—5 Stores
Vancouver City—22 Stores
171. Capilano Mall (s)
132. Arbutus (s)
172. Dollarton (s)
133. Broadway & Maple (s)
173. Lynn Valley (s)
134. Bute Street (s)
174. 2nd Street*
135. Cambie& 18th (s)
175. Westview Shopping Ctr. (s)
136. Cardero(s)
Port Coquitlam—2 Stores
137. Central Licensee
176. Port Coquitlam (s)
138. Commercial Drive (s)
177. Prairie Mall (s)
139. 18th & Dunbar (s)
178. Port Moody (s)
140. 4th & Alma (s)
Richmond—4 Stores
141. Hastings Street*
179. Brighouse (s)
142. Hastings & Slocan (s)
180. Lansdowne (s)
143. Kingsgate Mall (s)
181. Seafair
144. Kerrisdale (s)
182. Shellmont(s)
145. Mandarin Centre (s)
Surrey—6 Stores
146. Marpole (s)
183. Cloverdale (s)
147. Robson Street (s)
184. Guildford (s)
148. Senlac(s)
185. North Surrey (s)
149.13th & Granville (s)
186. Scottsdale
150. Thurlow & Alberni (s)
187. Ocean Park (s)
151. 28th & Main
188. Whalley (s)
152. Victoria Drive (s)
West Vancouver—2 Stores
153. West Pender*
189. Park Royal (s)
Burnaby—6 Stores
190. 16th Street
154. Brentwood (s)
191. White Rock
155. Kensington (s)
VICTORIA AREA—14 Stores
156. Middlegate (s)
157. North Burnaby (s)
158. Royal Oak & Rumble (s)
192. Cedar Hill (s)
193. Colwood(s)
194. Esquimalt*
195. Fort Street (s)
196. Gorge & Tillicum (s)
197. Government St. Licensee
159. South Burnaby (s)
Coquitlam—2 Stores
160. Austin Road (s)
161. Como Lake (s)
Delta—4 Stores
162. Kennedy Heights (s)
163. Ladner (s)
164. Scottsdale (s)
165. Tsawwassen (s)
198. James Bay (s)
199. Langford (s)
200. Nootka Court (s)
201. Saanich (s)
202. Sidney (s)
203. Sooke
166. Fort Langley
167. Langley (s)
168. Maple Ridge (Haney) (s)
204. Trafalgar Square (s)
205. Yates Street (s)
New Westminster—2 Stores
*  LD.B.-Owned
169. 8th & McBride (s)
(s) Self-Serve
170.10th Street
All others—Conventional
13
 Agency Stores of British Columbia
as at March 31,1978
1. Blind Channel
2. Blue River
3. Boswell
4. Canal Flats
5. Crawford Bay
6. Dawson Landing
7. Edgewood
8. Goldbridge
9. Hixon
10. Kemano
11. Likely
12. Mayne Island
13. Minstrel Island
14. Mile 175—Alaska Hwy.
15. Refuge Cove
16. Saturna Island
17. Sheridan Lake
18. Squirrel Cove
19. Surge Narrows
20. Wells
21. Zeballos