Virginia ABC contributes $616M to the Commonwealth in FY 2021
The Virginia ABC reported gross revenue of $1.4 billion in fiscal year 2021, up $163 million over FY 2020, resulting in $616.4 million in revenues going to the state for designated programs and services.
The latter total reflects $237.3 million in profits from retail sales, $294 million in taxes and $85.1 million collected in wine and beer taxes.
“The resourcefulness and dedication of our ABC teammates, especially those in retail and distribution, enabled us to overcome tremendous challenges to achieve a record-breaking year,” said Chief Executive Officer Travis Hill. “Leveraging our flexibility as an independent authority and the creativity of our employees, we have become nimbler and more customer-focused, enabling us to better serve Virginians at the highest level for decades to come.”
During FY 2021, retail sales grew 14.7 percent, with six new ABC stores generating nearly $4.9 million in sales. ABC oversaw four store remodels and 10 store relocations to growing market areas, enhancing customer service and accessibility. Sunday sales also continued to play a role in the rising revenue, increasing by 11.8 percent in FY 2021 to $104.9 million.
An increase in online orders was a major contributor at the start of FY 2021 as customers used in-store pick-up, curbside pick-up and next day shipping to maintain social distancing. While the rate of online orders declined over the course of the year as customers returned to in person shopping, online transactions continued to be well ahead of pre-pandemic levels as ABC expanded availability of shipping and introduced same day delivery on a limited basis.
Sales to restaurant and hospitality businesses demonstrate the pandemic’s ongoing impact on these segments of our economy. After being heavily impacted late in FY 2020 as the pandemic started, sales to licensees returned over the course of FY 2021, ultimately reaching historic levels of spirits purchased in the final months of the fiscal year.
With the slow growth back to pre-pandemic levels, licensee sales finished FY 2021 at a 5.6 percent increase over the prior year.
According to FY 2021 sales, the top five brands purchased in Virginia ABC stores were:
- Tito’s Handmade – domestic vodka
- Hennessy VS – cognac/Armagnac
- Jack Daniel’s 7 Black – Tennessee whiskey
- Patron Silver – tequila
- Jim Beam – straight bourbon
Of the five top sellers, Patron Silver tequila saw the most impressive leap in sales, from $20.9 million to $28.9 million, a 38.1 percent increase, followed by Hennessy VS cognac from $46.9 million to $52.8 million, a 12.6 percent increase. Tito’s Handmade vodka sales also increased from $52.3 million to $57.9 million, a 10.5 percent increase over FY 2020.
The final, audited results will be released in the fall. For more information about Virginia ABC’s sales and revenue, visit www.abc.virginia.gov.