The Company sources wine, spirits, and imported beer from Connect Logistics Services Inc. (CLS), which operates a main warehouse in St. Albert, Alberta. Domestic beer is obtained from three licensed Alberta warehouse companies: Brewers Distributor Ltd. (distributing for Molson Canada and Labatt Brewing Company Limited), Big Rock Breweries Inc., and Sleeman Breweries Ltd., all with warehouses in Alberta. The Alberta Gaming, Liquor and Cannabis Commission (AGLC) manages a consignment inventory system whereby manufacturers or their agents handle ordering, shipment, and ownership of inventory. Manufacturers must use an AGLC-registered liquor agent to import liquor into Alberta. The AGLC enforces a single wholesale price per product and prohibits retailers from negotiating discounts. The Company utilizes cash flow and warehousing capabilities to purchase larger volumes during limited time offers (LTOs). Warehouse storage, handling, order processing, and distribution charges are paid to warehouse operators, with minimum order quantities and delivery charges applied.
Sndl Inc's Comment on Supply Chain
The Company sources wine, spirits, and imported beer from Connect Logistics Services Inc. (CLS), which operates a main warehouse in St. Albert, Alberta. Domestic beer is obtained from three licensed Alberta warehouse companies: Brewers Distributor Ltd. (distributing for Molson Canada and Labatt Brewing Company Limited), Big Rock Breweries Inc., and Sleeman Breweries Ltd., all with warehouses in Alberta. The Alberta Gaming, Liquor and Cannabis Commission (AGLC) manages a consignment inventory system whereby manufacturers or their agents handle ordering, shipment, and ownership of inventory. Manufacturers must use an AGLC-registered liquor agent to import liquor into Alberta. The AGLC enforces a single wholesale price per product and prohibits retailers from negotiating discounts. The Company utilizes cash flow and warehousing capabilities to purchase larger volumes during limited time offers (LTOs). Warehouse storage, handling, order processing, and distribution charges are paid to warehouse operators, with minimum order quantities and delivery charges applied.
Sources:
Sndl Inc 's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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