CONTINUOUS IMPROVEMENTS

The Beer Store is engaged in a multifaceted approach to modernizing its operations.

Better customer service, streamlining system operations and improved environmental performance have all been key objectives in this effort.

The Beer Store has invested heavily in retail renewal, through store renovations, outlet relocations and information technology system upgrades.

Improved staff training and expanded marketing opportunities are also key components of modernizing The Beer Store shopping experience.

With respect to logistics, The Beer Store reconfigured its wholesale operations network enabling improved system performance and generating opportunities to improve service to wholesale customers such as bars and restaurants.

As The Beer Store has replaced and upgraded many of its retail and wholesale facilities, it has emphasized improved environmental performance as a key element of building design.

To accomplish its modernization objectives, The Beer Store made significant investments in new facilities and equipment. Accumulated capital spend since fiscal 2003 has surpassed $134 million, which was financed by The Beer Store's three owner brewers.

As The Beer Store moves forward, its commitment to enhancing retail service, improved environmental performance and system efficiencies will remain key in guiding capital projects.

Retail Renewal

A key component of retail renewal has been renovating and relocating existing locations and opening new stores.

The Beer Store's store network planning team has focused on identifying growth markets, filling gaps in service areas and seeking the best opportunities for both new locations and relocation of existing stores throughout its retail system.

The Beer Store's new Ice Cold Express format, which provides fast, efficient service through an easily accessible flow rack cooler, has scored high customer satisfaction ratings (85 per cent), as well as winning prestigious design awards such as the Outstanding Merit Award (Food Retailer category) at the 2005 National Association of Store Fixture Manufacturers Retail Design Awards.

Over the next five years The Beer Store will progress with its renewal process by continuing to upgrade store locations in selected markets. It will also experiment with new store formats and explore opportunities to improve service, such as its drive thru pilot locations in London and Hamilton.

Since renewal began in 2000, 89 per cent of stores in our priority markets have been renewed, and half of all stores in our system have been completed.

The Beer Store also distributes Chill Magazine available free to customers. Produced six times a year, Chill places a strong emphasis on humour and culture profiling the achievements of prominent Canadians in a number of fields including sports, music and arts.

The magazine also provides information on The Beer Store community initiatives, promotes responsible use and supplies beer cooking recipes and entertaining ideas. Brewers that sell at The Beer Store can also use the magazine for advertisements and promotions.

The Beer Store has also used online technology to enhance consumer knowledge and interaction. This includes redeveloping the website and adding a comprehensive location locator feature, as well as offering monthly promotional contests to customers who join The Beer Store's database.