RD847 - Virginia Alcoholic Beverage Control Authority, a Component Unit of the Commonwealth of Virginia, Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2022


Executive Summary:

Finding the silver lining is often the best way to cope during difficult times. For the third year in a row, Virginia ABC navigated challenges brought on by the pandemic. Our fiscal year 2022 annual report focuses on the people who helped us overcome the pandemic-related disruptions tour business as the state’s sole retailer of distilled spirits.

Like other retailers and government entities, ABC made permanent changes because of the global and societal adjustments that COVID-19 required. Early in the fiscal year, we partnered with DoorDash to pilot same-day delivery to customers in the Richmond area. The initial success of the program enabled us to expand service throughout the state by fiscal year end. Significant process changes in the distribution center as part of the Authority’s “One Team, One Goal" initiative enabled distribution center employees and retail staff to work together to address product shortages, shipment delays and employee absenteeism which increased efficiencies and boosted morale.

In many ways, we benefitted from innovative solutions to serve our customers, even if those projects were prompted by changing industry conditions. The adjustments we made resulted in a 24th consecutive record-breaking fiscal year for the Authority.

Retail sales grew in fiscal year 2022 by 3.49%. Gross revenues reached $1.4 billion, up $45.5 million over the previous year.

Virginia ABC’s fiscal success can be directly attributed to the efforts of more than 4,694 teammates at the Authority. In fiscal year 2022 we recognized the value of our employees with programs that addressed pay and retention. The Authority engaged an independent third party to procure a classification and compensation study that allowed us to set competitive pay scales that accurately reflect work done within our organization. Adjustments to retail and distribution compensation put into place at the start of the pandemic were made a permanent part of base pay.

Diminishing COVID-19 infection and hospitalization rates across the Commonwealth in the latter part of the fiscal year brought more opportunities to engage with employees. HR held service award luncheons; divisions participated in team building outings. Headquarters and distribution center employees brought their loved ones to Mechanicsville to see the new facilities for Family Day. We brought back the ABC softball team and launched employee resource groups. Coming back together after two years apart was critical to our wellbeing as individuals and as an organization.

ABC’s ability to not only stock the bar, but also to set the bar makes our organization one of the best places to work. Despite the setbacks we all endured these last couple of years, some larger than others, ABC is in a better place today as an organization. I am proud to call myself a part of the Virginia ABC team!

/s/ Maria J. K. Everett
Virginia ABC Chair