The Chief Executive Officer of the New Brunswick Liqour Corporation recently released a report outlining the future of the Crown corporation.
NB Liquor CEO and President Daniel Allain shared the report, titled 2011 Report to Cabinet: A Strategic Review of NB Liquor, with the New Brunswick government on February 29th.
The provincial administration has not ruled out privatizing the Crown-owned booze dealers. But Allain says this report has outlined what NB Liquor needs to do to be more inclusive towards the private sector.
"In short, it is not our focus or our intent to privatize NB Liquor at this time," Allain said in a press release published by Communications New Brunswick (CNB). "However, more private sector involvement in the asset is required."
"To make NB Liquor the most efficient and profitable asset in the province, we have to change the way we do business. A transition to a more entrepreneurial form of governance is necessary and will benefit NB Liquor's valuation for future opportunities."
In October of 2010, Premier David Alward assigned Allain and the Crown corporation's board of directors to the task of reviewing the way NB Liquor provides service to the people of New Brunswick.
The goal of the review was to find ways to strengthen new retail methods, generate more revenue and profit, and find new ways to improve the administration of NB Liquor.
Two recommendations were outlined in the report, and ways to achieve the goal were identified.
The first recommendation analyzed things to do within the next eighteen to 36 months, such as improve the overall customer experience, expand and reorganize the retail network and invest in technology that will add to the efficiency and security of NB Liquor.
Consideration of cost reduction methods, internal opportunities and pricing strategies to allow more of a contribution from the provincial administration was also mentioned in the report, along with a review of NB Liquor's administration. The report mentioned how the culture could be changed to focus on long-term investment returns.
Possible changes which could be made to the legislative process and to help improve NB Liquor's relationship with other government department's was also outlined.
Recommendation number two focused on how NB Liquor could partner with third parties. The corporation could explore strategic alliances or regional cooperation with other liquor corporations.
The company could also find ways to continue to be a profitable organization while still being owned by the provincial government.
It appears that NB Liquor will look into the report's first recommendation for the short and medium term, while further researching and studying the opportunities to work with third parties, as mentioned in the second recommendation.
New Brunswick's Minister of Finance, Blaine Higgs, also serves as the minister responsible for NB Liquor. Higgs is committed to a quick response to the ideas presented in the report.
A series of stakeholder consultations was held between the government and licensees, agents, suppliers, brewers and employees of NB Liquor. The Department of Finance also did an online survey to hear New Brunswickers' thoughts on the sale of publicly-owned assets.
Allain was pleased with the report.
"I am proud to say that this is the first strategic review of NB Liquor made public in the 35-year history of this important government asset," Allain said in the CNB press release.
The NB Liquor report can be found online and it was co-authored by Rick Smith, who serves as the senior vice-president and secretary of NB Liquor's board of directors.
With files from CNB
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