RD832 - Virginia Alcoholic Beverage Control Authority, a Component Unit of the Commonwealth of Virginia, Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2021
The lingering COVID-19 pandemic and the impact it had on our lives made fiscal year 2021 feel like a very long road trip. Fortunately, for Virginia ABC, we made it to our waypoints on several occasions during the year, largely due to the resilience of ABC’s employees and their ability to adapt to the demands of changing environments. We became stronger as an organization because we overcame these challenges together.
Completion of the new headquarters and distribution center in Hanover County in June 2021 was one important waypoint. The Commonwealth’s investment in these state-of-the-art facilities enabled ABC to continue to grow as a modern retailer.
As the Authority saw opportunity in the challenges of its changing landscape, its gross revenues grew, reaching $1.4 billion, up $161.3 million over fiscal year 2020. We contributed a total of $616.4 million in fiscal year 2021 to the Commonwealth for designated state programs and services, an increase of $71.1 million over the previous year. This reflected $237.3 million in profits from retail sales, $294 million in taxes (retail) and $85.1 million collected in wine and beer taxes.
Retail sales also grew in fiscal 2021 by 14.7%, with six new ABC stores generating nearly $4.9 million in sales. ABC oversaw four store remodels and ten store relocations to growing market areas, enhancing customer service and accessibility. Customers more frequently chose to purchase online and our efforts to meet the demand with curbside pickup and home delivery options provided increased accessibility and convenience for our customers.
The Bureau of Law Enforcement remained a key player throughout the Commonwealth’s response to the pandemic, issuing guidance to licensees, adopting regulations to give greater flexibility to businesses and streamlining processes to address rapidly changing circumstances. Additionally, Virginia ABC partnered with other state and local organizations, including the Department of Health to assist licensees in complying with COVID-19 safety measures.
Adapting to new pandemic driven restrictions, other ABC teams kept moving forward. Human Resources continued to hire, often conducting interviews online. Education and Prevention modified existing programs for online use such as the Youth Alcohol and Drug Abuse Prevention Project (YADAPP).
ABC took great strides to develop a purpose-built technology infrastructure including moving to a digital phone service and shifting core technology systems to an independent Virginia ABC domain. These changes enable ABC to have greater flexibility over our information technology resulting in solutions specifically developed for us, with cost savings and enhanced services in the long run.
These incredible feats did not go unnoticed. The Authority received numerous statewide and national awards.
If the accomplishments of this past fiscal year are any indication, the future is promising for the Authority and all Virginians who benefit from Virginia ABC, whether you are a customer or not. I am proud to be a part of such an unparalleled retailer, wholesaler, and regulator of the sale of distilled spirits.
Maria J. K. Everett