Christmas in March: NSLC sales spiked 22% when pandemic began in Nova Scotia

Nova Scotians worried about the NSLC closing during the early days of the COVID-19 pandemic caused a Christmas-like rush beginning in mid-March, helping to push up the year's sales.

The Crown corporation alcohol released its year-end financial results on Tuesday for April 1, 2019, to March 31, 2020, where they reported total sales of $726 million, up 9.7 per cent from the year before.

NSLC spokesperson Beverley Ware said the pandemic is one factor that led to the spike.

From the day the first COVID-19 cases were diagnosed in Nova Scotia on March 15 to the end of the fiscal year on March 31, there was a 22 per cent increase in sales ($6.35 million) compared to the year before.

"There was a lot of concern among customers that we would be closing," Ware said.

During that time people were buying more than usual, she said, including boxed wines and packages of liquor rather than single-serve items.

"Sales did return to more regular patterns in April, and of course in May, as customers became reassured that our stores would be staying open," Ware said.

March brought 'sudden influx' of sales

The NSLC hadn't previously seen an increase in sales like that outside of a holiday, Ware said, saying a 22 per cent jump is on par with the Christmas period. 

But, in the lead up to Christmas and New Year's, Ware said they are able to plan ahead and get more products in their distribution centre to prepare for the annual rush.

"In this situation, it was a sudden influx of demand," Ware said, adding their employees in the distribution centre and stores did an incredible job of meeting that demand under such stressful conditions.

"It was really an unprecedented experience for everybody all the way around," Ware said.

Besides the bump in March, Ware said overall sales were also driven by the first full fiscal year of cannabis sales, the introduction of new categories like edibles, and "phenomenal" growth in local products, but especially in the ready-to-drink sector.

Big bump in cannabis sales

Cannabis sales were $71 million (an increase of 113.9 per cent) while the ready-to-drink products increased by 101.4 per cent to $16 million.

The sector has been growing steadily over the past five years, Ware said, but in the past, cider has been the driving force. This year, Ware said vodka coolers and seltzers including Blue Lobster from Nova Scotia Spirit Company and Coldstream products are leading the way.

Ready-to-drink has bypassed Nova Scotia spirit sales, which were $9.4 million (up 22.2 per cent), and Nova Scotia wine at $12.5 million (up eight per cent).

But Nova Scotia craft beer sales tops all local beverage sectors — growing by 21.5 per cent to $20.1 million this past year. The NSLC now lists products from 30 local breweries, up from five breweries five years ago.

People also spent more on liquor this year: the average dollar value of each beverage alcohol transaction grew by 4.6 per cent to $32.08, according to the NSLC.

The profit for the NSLC totalled $247.3 million, which was up $9.9 million or 4.2 per cent from last year.

Private stores also saw sales spike

Although the COVID-19 pandemic brought a huge hit to private operations like Bishop's Cellar, where 60 per cent of their business is supplying bars and restaurants that closed due to health restrictions, president Matt Rogers said their retail sales have shot up.

When the pandemic began in March, Rogers said they closed their retail store in downtown Halifax but shifted completely online for home delivery as many other breweries and wineries did, with a limited selection of cases coming out once a week.

Since then, Rogers said they have slowly added various products back online, and sales were 25 to 30 per cent above average in April and May.

While they originally laid off about half of their 40 or so employees, Rogers said they have been steadily bringing people back to help with customer service or deliveries as online sales have picked up. They're even now in a hiring phase since the summer months are among their busiest.

Rogers said he's always believed people would be interested in getting their liquor online, but the pandemic has really brought that to the forefront.

Like the NSLC, Rogers said vodka spritzers have become a huge seller for them, and as the weather warms up rosé wine is in high demand.

Bishop's Cellar plans to open its retail store again next week and will continue to offer more products online. Rogers hopes sales don't take too much of a hit without the usual waterfront tourist crowds this year.

But he's been inspired by how many local businesses have figured out creative ways to sell to customers in a difficult time.

"It's still a long road ahead for many. But you know, being on hopefully on somewhat of the other side of this first wave, there were some learnings and it's created some new opportunities," Rogers said.

"Hopefully we can all just keep moving forward."