Rocky Mountain Liquor Inc. (“Rocky Mountain Liquor”) is incorporated under the Canada Business Corporations Act, and is a tier one issuer with its common shares listed on the TSX Venture Exchange (under the initials “RUM”).
The Company’s sole investment is in Andersons Liquor Inc. Rocky Mountain Liquor owns 100% of Andersons Liquor Inc. (“Andersons”) headquartered in Edmonton Alberta, which owns and operates private liquor stores in that province. Alberta is the only province in Canada that has a fully privatized retail distribution system for adult beverages.
The product mix generally offered by Andersons at its retail stores includes beer, spirits, wine and ready to drink liquor products, as well as ancillary items such as juice, ice, mix and giftware.
Andersons currently owns and operates 24 liquor stores in Alberta. The primary drivers of liquor store sales are price, location and convenience. Management believes that the range of product selection and service also play a role in the competitive market and focuses on providing customers with a positive in-store experience while offering a wide array of products at competitive pricing. Andersons is focused on store operations and optimizing its operating margin. Andersons previously pursued an acquisition strategy that closely analyzed the location of retail operations, including the location of any competition. The Company focused on locations largely outside of the major urban centers (Edmonton and Calgary) and on specific sites with maximum traffic and minimal competition.