“Worlds Best” @ World Whiskies Awards
As regards Covid19 our Senior Leadership Team and Board of Directors are meeting regularly to assess and respond. Tourism and bar sales are down due to the social distancing and in response we’ve temporarily laid off these staff. However, our take-away beer and whisky sales and BC liquor store sales across BC and AB are up 36-42%, which is in line with BC government data of 40% growth in liquor sales during Covid19.
Our Strategic Leadership
Team and independent Board of Directors has been continually monitoring the quickly evolving COVID-19 pandemic. We are taking the situation very seriously and are adjusting our operations accordingly. Our conclusions from last night’s Board of Directors meeting
is that although we have noticed a decline in sales, we have implemented a range of counter-measures that will position us well to overcome this crisis.
We are following
the advice of our provincial and federal health authorities and as a result we have suspended all tourism and bar service. This has led to a decline in revenue for this portion of our business and unfortunately we have had to temporarily lay-off a portion
of this staff. We are aligning our expenditures to support our remaining operations and intend to rehire our incredible team members when we are in a financial position to do so.
The Strategic Leadership
Team have reworked our financial planning models to account for the loss of revenues. We presented our revised budget to our Board of Directors yesterday and it is the opinion of both the Strategic Leadership Team and the Board of Directors that our business
is well positioned to come through this with a cash positive position as well as a robust business foundation to build off.
We are fortunate
to have multiple independent revenue streams. While one revenue stream may be seeing a decline in sales, we have others that continue to support our business. The Visitor Centre’s sales of packaged beer and whisky (product meant for drinking at home) continue
to stay strong. In fact recent ‘off-premise’ beer sales in the Visitor Centre are up 36%. We are now taking phone orders and offering free deliveries in the Victoria area so locals can continue to enjoy our products without having to leave the safety of their
homes. Our online store has also seen an increase in orders recently. Distributed sales have increased 42% in liquor stores across BC in the last few weeks. This is mirrored for the industry in general with BC liquor sales for the industry up 40% since Covid19.
Our on on-line sales via our website (https://victoriacaledonian.com/) have also taken off to the extent that we may have to bring some of the tourism staff back soon to assist with deliveries.
It is also worth
noting that the liquor industry has been deemed an essential service in BC, Ontario and Quebec despite those provinces having put in place lockdowns on most other businesses. So, the old adage that liquor sales are consistently good, whether in good times
or bad, seems to be true.
We are continuing to distill more whisky as we know that demand for our award-winning whiskies continues to grow. As an investment our maturing whisky inventory will be critical to the future valuation of the company (and resultant ROI for investors). In the last few months, we have produced the equivalent of another 32,600 bottles and plan to continue distilling to the end of the regular distilling season. By then we will have added $1.97 million of whisky stock this year. This will position us well for rapid growth in the coming years. Picture below shows more maturation casks delivering from Europe for our on-going distilling campaign.
From an equity financing
perspective, we are also well positioned. The private equity market does not experience the same levels of volatility as the public exchanges have shown in recent years, prior to and including COVID-19. More importantly however, our traunched investment structure
(which many investors have taken advantage of) ensures that we have a continuous source of equity financing exceeding $915,000 over the next two years. In previous economic downturns, the liquor industry has also tended to out-perform other industries.
Thanks For Your Continued Support
As you can see,
our Board, Strategic Leadership Team, and staff are proactively adapting. We are confident that our business will remain cash positive and be positioned to grow rapidly once the world returns to normalcy. If you have any questions related to our investment
opportunity please email me at
We look forward to you joining us as a fellow brewery-distillery owner, and trust you will continue to enjoy our beers and whiskies!
Slàinte Mhath (Good Health)!