The Liquor Control Board of Ontario says “product shortages” were up by close to $1 million to $6.5 million for the last year.

Fumbled inventory counts, broken bottles and short shipments from warehouses are partly to blame, but the LCBO has also seen a rise in thefts that may be linked to a downturned economy.

“Tougher economic conditions, as we started to experience in 2008-2009, can lead to increased incidents of shop theft and break and enters,” said LCBO spokesman Chris Layton.

“Increased shrinkage resulting from such activities would be most noticeable at our largest stores.”
According to internal reports obtained by The Canadian Press through Ontario’s freedom-of information legislation show stock shrinkage increased in the 2008-2009 fiscal year to 0.18 per cent of net sales from 0.16 per cent the year before. Layton said that marks the highest level over the last decade.

The LCBO introduced a new policy in 2007 to combat liquor thefts, which resulted in improved training and the installation of higher-quality surveillance cameras. Layton says the measures have helped to reduce violent robberies, such as break and enters, but have also significantly increased the number of thefts being reported.

The agency anticipates a dip in its net sales by 2.5 per cent in current fiscal year because of the weak economy.