Serving Ontarians and the Environment: Responsible ... · glass bottle re-use by brewers clear glass recycled into new clear glass bottles aluminum cans recycled into new aluminum

Serving Ontarians and the Environment: Responsible Stewardship 2012-2013

Page 1 2012-2013 Stewardship Report

Table of Contents

23479

111315

Summary reSultS

preSident’S meSSage

the Beer Store’S (Beer) packaging management SyStem

ontario depoSit return program (wine & SpiritS) reSultS

comBined diverSion reSultS

the Beer Store’S promotional and educational activitieS 2012-2013

ontario depoSit return program promotional and educational activitieS 2012-2013

report on the Beer Store’S reSponSiBle StewardShip 2012-2013

* technical appendix available on request

2012-2013 Stewardship Report Page 2

Summary Results:beer containers

1.72 billion containers collected

Over 333,000 tonnes of packaging diverted from Ontario landfills

92% of all beer containers sold are collected for re-use or high-end value-added recycling

glass bottle re-use by brewers

clear glass recycled into new clear glass bottles

aluminum cans recycled into new aluminum

coloured glass recycled into new glass bottles or other glass products.

corrugated cardboard and boxboard recycled into paper products

Summary Results:Wine & SPirits containers

Over 300 million containers collected

Over 112,000 tonnes of packaging diverted from Ontario landfills

80% of wine and spirits containers collected for high-end value-added recycling

924 tonnes

1,031tonnnes

35,173tonnes

249,615tonnes

35,196tonnes

75,125tonnes

15,042tonnes8,389

tonnes

24,007tonnes

clear glass recycled into new clear glass bottles

coloured glass recycled into new glass bottles or other glass products

aluminum cans recycled into new aluminum

pet plastic recycled into felted automotive parts and other plastic products

wine & spirits container diversion outcomes

2012-13

2008-09

2009-10

2010-11

2011-12

2008-09

2010-11

2011-12

2012-13

2009-10

Beer container diversion outcomes


President’s Messagewelcome to the Beer Store’s 2012-2013 responsible Stewardship report.

as the title of this year’s report highlights, whether one considers environmental performance, contribution to government revenues, community engagement, consumer prices, product selection or community safety, the Beer Store serves ontario and our consumers very well.

our environmental leadership – which saves ontario taxpayers over $40 million annually – is just one example of how the Beer Store works for ontario consumers. our award-winning deposit return system is a part of our business and one of our five core values as a retailer. we are very proud of our environmental record and the benefits that record delivers for ontarians.

thanks to the involvement of ontario consumers, the Beer Store and the brewers who use our system are able to:

• reuse refillable glass beer bottles an average of 15 times (something that wouldn’t be possible in the Blue Box program);

• raise millions of dollars through bottle drives for local community groups and major ontario charities (like the $1.7 million raised in 2013 for the leukemia & lymphoma Society of canada);

• reuse or recycle an average of 4,000 containers every minute of every day, every year.

our deposit return system is a fully integrated part of both our retail and wholesale operations (delivery to bars and restaurants). it’s a system that works to ensure our industry’s packaging is diverted from landfills and from being a burden on the ontario taxpayer. it’s an environmental commitment unmatched by other retailers, in ontario or elsewhere.

thank you for choosing to read this year’s responsible Stewardship report. we hope you enjoy it and come away with a greater appreciation for how the Beer Store serves not just ontarians, but the environment as well. and, as always, my thanks to the Beer Store employees who work so hard every day to make us environmental leaders.

Ted MorozPresident


Continuing an Environmental Legacy: The beer store’s (beer)

packaging management system Since 1927, the Beer Store (tBS) has managed a deposit return system that collects beer containers and their associated secondary packaging. refundable deposits of 10 and 20 cents (on containers of less than 1 litre in volume and containers over 1 litre in volume, respectively) provide an economic incentive to consumers to return the containers they purchase. as a result, tBS recovers the vast majority of the beer containers, as well as the secondary packaging, it sells. the Beer Store’s deposit return system for beer containers is 100% industry driven and funded. there is no provincial legislation mandating it or taxpayer dollars paying for it. this is a legacy that has been in place in ontario since the end of prohibition in 1927.

as a result of our system, we now recover more paper (corrugated cardboard and boxboard) and plastic packaging than the beer industry generates. our program is actually net positive for ontario landfills.

There are 835 locations where consumers can redeem their beer, wine and spirits containers for a refund (as of April 30, 2013).

448: Beer Store locations

52 on-site Brewery Stores (beer containers only)

4: lcBo Stores

141: tBS retail partner Stores

75: lcBo northern agency Stores

115: tBS-contracted empty Bottle dealers

835: total Beverage alcohol container redemption locations

In 2012-2013, the Beer Store recovered more containers than it sold! The Beer Store sold 1.52 billion beer containers, but recovered 1.72 billion beer containers.

There are 19,626 locations where consumers can buy beer, wine and/or spirits (as of April 30, 2013).

450:Beer Store locations (includes 2 Beer Boutique locations that do not accept

empty returns)

52: on-site Brewery Stores

635: lcBo Stores

141: tBS retail partner Stores

75: lcBo northern agency Stores

479: ontario winery retail Stores*

7: ontario distillery retail Stores*

17,787: licensed establishments (bars and restaurants)

19,626 total Beverage alcohol Sales locations

*As of March 31, 2013.


Table 1: tBS Container Sales and Recovery by Container Type

Container Type tBS Sales (units)

LCBO Sales

(units)

Return(units)

System Recovery

Rate2012-2013

SystemRecovery

Rate2011-2012

All Glass Bottles (Refillable & Non-Refillable)

1,064,669,974 141,087,954 1,179,967,701 97.9% 99.1%

Refillable Bottles: Industry Standard Bottle (ISB) and Non-Standard 946,941,989 98,619,492 1,026,348,158 98.2% 99.1%

Non-Refillable Bottles 117,727,985 42,468,462 153,619,543 95.9% 99.5%

Metal Cans 451,339,283 204,800,336 538,408,313 82.1% 83.1%

Kegs 1,393,286 - 1,410,796 101.3% 100.9%

PET Bottles 39 - 0 0.0% 0.0%

TOTAL (By Units) 1,517,402,582 345,888,290 1,719,786,810 92.3% 94%

Tables cover the period April 30, 2012 - April 28, 2013, except for cans which cover the period May 6, 2012 - May 4, 2013.

tBS collects containers and packaging on behalf of 91 brewers that sell through its retail and wholesale systems (as of April 30, 2013).

23 brewers selling products at the Beer Store use the ISB, with 19 of those brewers located in Ontario.

In 2012-2013, brewers using refillable bottles sold 1.05 billion bottles of beer, while only purchasing about 96 million bottles.


In 2012-2013, the Beer Store recovered more paper (corrugated cardboard and boxboard) and plastic packaging than we generated!

Table 2: Secondary Packaging

Packaging Type

tBS (tonnes sold*)2012-2013

LCBO (tonnes sold*)2012-2013

Recovered (tonnes)

2012-2013

Recovered (tonnes)

2011-2012

Corrugated/Boxboard 19,925 3,413 24,007 25,450

Metal 2,293 365 253 329

Plastic 458 121 747 715

*Note: Tonnes sold reported at both tBS and the LCBO is the packaging associated with the sale of beer only. Tonnes recovered, however, reflects all packaging returned to tBS, including non-beer packaging.

A portion of funds from the sale of plastic bags at the Beer Store goes to the Conservation Council of Ontario.

12 brewers have proprietary refillable beer bottles collected by the Beer Store.

45 brewers (imports) sell their beer in non-refillable bottles.

54 brewers sell beer in cans at the Beer Store.

The Beer Store also manages an industry standard keg, as well as collecting proprietary kegs for 29 import and domestic brewers.

By the Numbers: beer Packaging


0

60

80

100%

2012-13

80.1%76.3% 77.9% 80.2%

Achieving Targets, Exceeding Goals:The Ontario Deposit Return (Wine & Spirits) Results

Environmental performance goals(Target recovery rate for all containers)

program performance(actual recovery rate for all containers)

ODRP Performance Goals*Note: Graph shows ODRP performance goal vs. program performance, based on a February - February period. As a result, there are slight differences between data in this graph and in Table 4 on the next page.

the ontario deposit return program, which brought wine and spirits containers into the Beer Store’s deposit return system, began in 2007.

the government of ontario had 3 primary goals for introducing the ontario deposit return program in 2007:

• increase the recovery rate for wine and spirits containers (relative to collection through the Blue Box)• increase diversion of glass from landfill (target of 25,000 additional tonnes per annum and no containers sent to landfill)• achieve high-value recycling of materials recovered

the program’s results to date speak for themselves:

recovery rate for wine and spirits containers increased from an estimated 55% (when these containers were recovered in the Blue Box) to over 80% today

approximately 1.8 billion wine and spirits containers recovered since 2007

Between odrp and the Blue Box, an estimated 66,000 additional tonnes of glass is being diverted from ontario landfills

all containers recovered being used for high-value recycling – new glass containers, fiberglass and new aluminum cans

The Ontario Deposit Return Program is an initiative of the Ontario Government – and a great example

of how the private sector can work with government to reach successful outcomes.

In just 6 years, the Ontario Deposit Return Program has increased recovery of wine and spirits containers from an estimated 55% (when wine and spirits containers went in the Blue Box) to over 80% today.


ODRP Container Deposit ($)

Sales (units)

Sales Distribution**

Sales by Material

Type

Glass containers less than or equal to 630ml 0.10 76,176,118 20.2%

Glass containers over 630ml 0.20 190,332,780 50.5% 71%

Aluminum or steel cans less than or equal to 1L* 0.10 72,563,490 19.2%

Aluminum cans over 1L* 0.20 0.0% 19%

Tetra Pak (polycoat) and Bag-in-Box less than or equal to 630ml 0.10 159,617 0.0%

Tetra Pak (polycoat) and Bag-in-Box over 630ml 0.20 7,820,764 2.1% 2%

Polyethylene Terephthalate (PET or plastic) containers less than or equal to 630ml 0.10 18,913,553 5.0%

Polyethylene Terephthalate (PET or plastic) containers over 630ml 0.20 11,281,539 3.0% 8%

TOTAL 377,247,861 100% 100%

SALeS IN UNITS ReTURNS IN UNITS RECOvERy RATE

Container Type Small Containers

Large Containers

Small Containers

Large Containers

Small Containers

2013

Small Containers

2012

Large Containers

2013

Large Containers

2012

Combined 2013

Combined 2012

GLASS 76,176,118 190,332,780 56,324,655 168,689,888 74% 74% 89% 90% 84% 85%

PET 18,913,553 11,281,539 8,212,140 7,379,831 43% 44% 66% 63% 52% 51%

TETRA/BIB 159,617 7,820,764 79,902 2,327,981 50% 108% 30% 31% 30% 32%

SUBTOTAL 95,249,288 209,435,083 64,616,697 178,397,700 68% 68% 85% 86% 80% 81%

CANS* 72,563,490 59,542,613 82.1% 83%

GRAND TOTALAnnual Rate

377,247,861 302,557,010 80.2% 80.7%

Table 4: ODRP Containers: Sales and Recovery

Table 3: ODRP sales, deposit value by container type and share of market (2012-2013).

April 30, 2012 – April 28, 2013, Except for cans which cover the period May 6, 2012 – May 4, 2013.

April 30, 2012 – April 28, 2013, Except for cans which cover the period May 6, 2012 – May 4, 2013.

* Sales data for large and small cans are combined. **Note: Figures may not sum to 100% due to rounding.

*ODRP can returns are not tracked separately. Rather, their return rate is based on the total rate of return for all cans (cans collected under the TBS program and cans collected under ODRP).


Achieving Significant Environmental Results: Combined Diversion Results

Combined, the Beer Store’s return program for beer containers and the Ontario Deposit Return Program for wine and spirits containers represent the largest beverage container diversion system in Canada.

Combined, these programs diverted over 446,000 tonnes from Ontario landfills.

Combined, these programs diverted materials equivalent to almost 50% of all materials collected through the Blue Box program.

Combined, these programs avoided 200,460 tonnes of GHG emissions – equivalent to taking over 41,700 cars and trucks off Ontario roads!

2.8 million gigajoules=$49 million of

oil

Combined, these programs avoided over 2.8 million gigajoules of energy – equivalent to over $49 million of oil!

These results for Ontario could only be achieved through the Beer Store’s deposit return system combined with the participation and dedication of Ontario consumers.


2012-2013

Glass Reuse

Clear Glass Bottle

Recycling

Coloured Glass Bottle

Recycling

Aluminum Recycling

Steel Recycling

PETRecycling

Mixed Plastic

Recycling

Total Diversion

tBS Tonnes Diverted 249,615 15,042 35,196 8,389 253 - 934 309,429

ODRP Tonnes Diverted - 35,173 75,125 924 - 1,031 - 112,253

TOTAL Tonnes Diverted

249,615 50,215 110,321 9,313 253 1,031 934 421,682

Table 5: tBS and ODRP Landfill Diversion 2012-2013*

Table 6: tBS & ODRP avoided GHG emissions and avoided energy consumption 2012-2013

2012-2013 Glass Reuse

Clear Glass Bottle

Recycling

Coloured Glass Bottle

Recycling

Aluminum Recycling

Steel Recycling

PET Recycling

Total Diversion

TOTAL Tonnes Diverted 249,615 50,215 110,321 9,313 253 1,031 420,748*

Avoided GHG Emissions (MTC02E)

94,854 5,524 6,068 89,964 301 3,753 200,462

Avoided Energy (Gigajoules)

1,697,382 84,361 120,250 813,584 3,190 87,955 2,806,722

*Note: Only includes diversion associated with beverage alcohol containers. Does not include secondary packaging diversion reported in Table 2 on pg 6.

*Note: This number does not include “mixed plastic”, so the number does not exactly match the diversion total in Table 5 above.


The beer store Promotional and Educational Activities 2012-2013

In-Store Messaging

Every Container Counts Campaign

In support of Earth Day and the environmental benefits of returning your beer, wine and spirits containers to The Beer Store, we would like to show you how every container counts!

94% of all beer containers sold are collected for re-use or high end, value-added recycling.

RE-Use & Recycle

TAKE OUR GREEN CHALLENGE!

Visit www.thebeerstore.ca/about-us

to learn more about The Beer Store’s

committment to being green and to

test your green knowledge.

EVERY CONTAINER COUNTS!

IN 85 YEARS, THE BEER STOREHAS RECOVERED aN ESTIMATED

75 BILLION BEER BOTTLES

Donate your empties at

The Beer Store in April & May.

is the average

industry standard bottles (isbs) are re-used

60 daysis the time it takes for a can to be recycled and back on the shelf as a new can.

1.81 billion beer containers were recovered by The Beer Store in 2011-2012.

EVERY CONTAINER COUNTS!RETURNING MADE EASY

15 times

Separate & Sort: by container by colour

BEERWINE

& SPIRITS TETRA PLASTIC OTHER CANS

in 2013, the Beer Store featured a campaign during earth month (april) entitled “every container counts”. the infographic-styled campaign presented facts about the Beer Store’s successful world class deposit return system (shown below). material could be found throughout stores and online at thebeerstore.ca. as a part of this campaign, there was also signage in-stores near the returns area with helpful instructions for customers on how to sort empty containers. the campaign was in stores and on thebeerstore.ca website throughout the months of april and may. online users could participate in a trivia game to test their knowledge of recycling and the Beer Store’s deposit return system. the “every container counts” campaign not only encouraged the return of empty beverage alcohol containers, but supported the 2013 returns for leukemia Bottle drive. donations of empty beer, wine and spirits containers were being welcomed during this time.

Better returns brochure was developed by the Beer Store as a customer aid when returning empties. the brochure outlines ways to sort empty beverage alcohol containers that allows for high-end recycling. the brochure acts as an educational tool for customers and employees, with facts pertaining to how many containers tBS recycles, how much energy is saved and how many containers are refunded annually through tBS channels.

empties are Full of opportunities brochure is an instructional tool developed by the Beer Store for anyone wishing to organize a charity bottle drive. inside the brochure are instructions on how to run a safe and effective bottle drive, including tips on how to spread the word about the event as well as safely collecting and sorting empty containers.


Community & Business Involvement

New employees

40 additional trucks delivered with my Beer Store messaging “green before green was cool” as well as other environmental messages: “more empties returned means less in our landfills” and “Bring back your empty beer, wine and spirits containers”.

TBS Trucks

Sponsorship

Returns 4 Leukemia Bottle Drive in Support of the Leukemia & Lymphoma Society of Canadareturns for leukemia is an annual fundraiser by the united Food & commercial workers local 12r24 in partnership with the Beer Store to raise funds for the leukemia & lymphoma Society of canada. the 2013 bottle drive was held on the weekend of may 25th and 26th and raised over $1.7 million.

Rogers House Bottle Drivethe Beer Store in the eastern region of ontario held a bottle drive to raise funds in support of rogers house on the weekend of September 7th and 8th, 2013. over 200 stores and numerous volunteers contributed to raising an amazing $87,732.28.

2013 Canadian Stewardship Conferencethe Beer Store was proud to attend the 3-day canadian Stewardship conference. attendees from across the country attended seminars and discussions on recycling and updates on developments in the industry. the Beer Store participated as an exhibitor along with interesting manufacturers and leaders in innovation on reduction, reuse and recycling.

Recycling Plus by the Beer Storein January of 2013, the Beer Store, in cooperation with orange drop and SimS recycling Solutions, launched recycling plus in the Junction area of toronto. recycling plus is a pilot project for the Beer Store. at this facility customers are encouraged to not only return their beverage alcohol containers for a full deposit refund, but they can also return items such as household paint, batteries and electronics for an environmentally safe disposal.

Plastic Bagsthe Beer Store charges 5-cents per plastic bag at the point of sale. a portion of the proceeds goes to the conservation council of ontario to promote conservation solutions and raise public awareness about the conservation movement.

the Beer Store is a proud sponsor of the recycling council of ontario.

all new employees are fully trained and informed of the importance of the Beer Store’s core value of environmental leadership before they begin their first shift. employees are trained online, tested, and then must demonstrate knowledge and competence in the area of returns and recycling.

BOTTLEDR VELEUKEM A

RETURNS FOR


Ontario Deposit Return Program promotional and Educational activities for 2012-2013

lcBo continues to build on its successful support of the ontario deposit return program (odrp) through multiple communication and marketing channels. the organization is leveraging the results of its positive initial advertising campaign that built consumer awareness and support for odrp and has moved to a program of reinforcement that is cost-effective, primarily web-based and environmentally friendly.

Environmental Sustainability Report 2011-2012

lcBo’s annual online environmental Sustainability report continues to promote odrp. the environmental Sustainability report is highlighted for the public on lcBo’s web site through a new corporate Social responsibility section on the corporate web site landing page. the report is also featured on the lcBo intranet as an educational and reference tool for lcBo employees. For frontline employees without easy access to the intranet, as well as for interested consumers, printed copies of the report are available in lcBo stores throughout the province.

the online environmental Sustainability report details how lcBo has reduced energy consumption in its retail stores and other buildings, as well as technologies the lcBo has implemented to lessen the carbon footprint of its operations and other sustainability initiatives.

Recycling Across Ontario

lcBo sales of wine, beer and spirits result in over 400 million waste containers every year. through lcBo funding of odrp and municipal curbside Blue Box programs, the lcBo ensures that over 93 per cent of the bottles and cans generated are kept away from landfill and recycled. lcBo-generated recycling efforts don’t stop there. the lcBo also recycles almost all of its cardboard, plastic shrink wrap, paper, defective alcohol, batteries and electronic waste. lcBo support of Blue Box programs also ensures that the vast majority of marketing and promotional materials that they produce, like Food & drink magazine, are recycled across the province. lcBo’s comprehensive waste management program reflects a commitment to helping every community across the province reduce waste and ensure class-leading recycling.

Bag it Back

By may 2013, 1.6 billion containers had been returned under odrp since its inception. the return rate was 80 per cent in 2012-13, amounting to more than 640,000 tonnes (as much as 93,000 truck loads) of glass as well as cans, plastic and other containers.

in addition, the lcBo provides funding through Stewardship ontario to municipal Blue Box systems for the curbside collection of beverage alcohol containers that are not returned for a deposit refund. with odrp and municipal Blue Box systems combined, ontarians are recycling 93 per cent of their lcBo beverage containers.

the success of lcBo involvement in the odrp program is reflected in the $48 million for deposits refunded to customers in 2012-13.

lcBo is encouraging its suppliers to source more environmentally sustainable packaging options, such as lightweight glass, to further reduce its environmental footprint. large glass bottles account for about 50 per cent of all beverage alcohol containers sold by the lcBo and private retailers— and have a return rate of 89 per cent.


www.bagitback.ca remains the lcBo’s key educational tool for environmentally-motivated individuals and businesses.

created in 2007, the dedicated site offers a wide range of information in english and French to both commercial and residential users about the most effective ways to work with the odrp. lcBo promotes www.bagitback.ca through in-store signs, the lcBo public website as well as the organization’s intranet. it is also one of five messages on all poS screens in the more than 620 lcBo stores across the province. the organization’s internal employee newsmagazine, the exchange, also provides regular reminders to employees of the need to actively promote the Bag it Back program to customers.

For new employees, information on the Bag it Back program is part of the orientation process.

Promoting ODRP to the Media

in 2012-2013, 22 province-wide lcBo news releases actively promoted the container deposit return program. the key phrase below reminds media and the ontario public of the availability of the program that returns beverage alcohol containers to the recycling stream.

« please bring a reusable bag when shopping at the lcBo and take your empty beverage alcohol containers (large and small glass bottles, pet plastic, tetra pak cartons, bag-in-box and cans) to the Beer Store for a full deposit refund. »


PricewaterhouseCoopers LLPPwC Tower, 18 York Street, Suite 2600, Toronto, Ontario, Canada M5J 0B2T: +1 416 863 1133, F: +1 416 365 8215, www.pwc.com/ca

“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

January 20, 2014

Mr. Sung LeeDirector of FinanceBrewers Retail Inc.5900 Explorer DriveMississauga, ON L4W 5L2

Dear Mr. Lee:

As specifically requested by Brewers Retail Inc. (tBS), we have performed the following procedureson certain information in “Serving Ontarians and the Environment: The Beer Store ResponsibleStewardship 2012 - 2013” (the Report). The procedures were performed solely to assist tBS in thepreparation of the Report to meet the reporting requirements of tBS under Section 35 (3) of The WasteDiversion Act 2002, S.O. 2002, c.6 (the Act) for the period from April 30, 2012 to April 28, 2013(except for data relating to Metal Cans which has been prepared for the period from May 6, 2012 toMay 4, 2013).

The following procedures were completed with respect to the recovery rates for the following containertypes: All Glass Bottles (Refillable & Non-Refillable), Refillable Bottles: Industry Standard Bottle (ISB)and Non-Standard, Non-Refillable Bottles, Metal Cans, Kegs and PET Bottles (the Container Types), asset out in Table 1: tBS Container Sales and Recovery by Container Type (Table) of the Report.

A. Information in the Report and Table 1: tBS Container Sales and Recovery byContainer Type

1. We compared the units for tBS sales, LCBO sales and Returns by Container Type (except All GlassBottles (Refillable & Non-Refillable)) in the Table to detailed working tables A.2.1 Standard and Non-Standard Refillable Bottles, A.3.1 Non-Refillable Bottles, A.4.1 Metal Cans (aluminum & steel), A.5.1Kegs and A.6.1 PET (the Supporting Summary tables) prepared by tBS (not included in the Report)and found the units to be in agreement.

2. We recomputed the units for tBS sales, LCBO sales and Returns by All Glass Bottles (Refillable & Non-Refillable) in the Table by totalling the units in the Supporting Summary TablesA.2.1 Standard andNon-Standard Refillable Bottles, and A.3.1 Non-Refillable Bottles, prepared by tBS and found theunits to be arithmetically correct.

3. We recomputed the System Recovery Rate (2012- 2013) for each container type in the Table bydividing the respective Return units by the sum of the respective tBS sales and LCBO sales units andfound the percentages to be arithmetically correct.


2

The following procedures were completed with respect to the Supporting Summary Tables prepared bytBS which serve as the source data to the Table contained in the Report. These Supporting SummaryTables are not contained in the Report.

B. Information in the Supporting Summary Tables

1. We compared the units for tBS sales, LCBO sales and Returns in the table A.2.1 Standard and Non-Standard Refillable Bottles, A.3.1 Non-Refillable Bottles, A.4.1 Metal Cans (aluminium and steel),A.5.1 Kegs, and A.6.1 PET to the supporting schedule “Appendix A – Sales by Package Fiscal 2013”prepared by tBS (not included in the report) and found the units to be in agreement.

C. tBS sales units

1. We recomputed the total sales units for each Container Type in Appendix A – Sales by Package Fiscal2013 as the sum of the sales units for the respective size names within each Container Type scheduleand found the units to be arithmetically correct. We recomputed the total sales units in Appendix A –Sales by Package Fiscal 2013 (i.e., number of bottles or cans sold) of the respective size names bymultiplying the number of packages of each size name sold by the number of units in the package andfound the total sales units to be arithmetically correct. We compared the sales for the respective sizenames in Appendix A – Sales by Package Fiscal 2013 to the tBS schedule of sales volume by size andname (the F13 tBS Package Sales and Volume by Type of Sale Schedule) and found the units to be inagreement.

2. We compared the total tBS sales units in hectolitres from the F13 tBS Package Sales and Volume byType of Sale Schedule prepared by tBS to the Appendix A – Sales by Package Fiscal 2013 prepared bytBS and found the units to be in agreement. We recomputed the total TBS sales units in hectolitres byadding the units of hectolitres sold directly by tBS and by tBS to the LCBO from the Container TypeSchedules, and compared such units to the total sales units in hectolitres from the F13 tBS PackageSales and Volume by Type of Sale Schedule and found the units to be in agreement.

D. LCBO sales units

1. We compared the LCBO sales units in Appendix A – Sales by Package Fiscal 2013 to the supportingschedule Appendix B – LCBO Sales of tBS Products Fiscal 2013 prepared by tBS (not included in theReport) that sets out the calculation of tBS sales (net of tBS sales direct to the Liquor Control Board ofOntario (LCBO)) and LCBO sales and found the units to be in agreement.

2. We recomputed the total sales units for each Container Type on the respective Appendix B - LCBO Sales oftBS Products Fiscal 2013 as the sum of the sales for the respective size names in hectolitres divided bythe size of the respective containers within each Container Type and found the units to bearithmetically correct. We compared the sales for the respective size names on the Appendix B -LCBO Sales of tBS Products Fiscal 2013 to schedules of LCBO sales volume for import and domesticsales by size and name (the LCBO Sales Schedules) prepared by tBS management (not included in theReport) and found the units to be in agreement.


Mr. Sung LeeBrewers Retail Inc.

3

E. Return units

1. On the respective Container Type Schedules (except Metal Cans which was on the ODR Return RatesReport) included in Appendix A - Sales by Package Fiscal 2013, we recomputed the total number ofunits returned of each size name by multiplying the number of packages returned by the number ofunits in the package and found the units to be arithmetically correct. We recomputed the total returnsby Container Type by adding the number of units of individual size names and noted no exceptions.

2. We compared the total number of packages returned from the Container Type Schedules (exceptMetal Cans which was on the ODR Return Rates Report) to the total number of packages returned ona schedule prepared by tBS (Empty Returns F2013) and found them to be in agreement.

These procedures do not constitute an audit of the Report, the Table, or the Supporting Summary tablesand therefore we express no opinion on the Report, the Table, or the Supporting Summary tables. Had weperformed additional procedures or had we made an examination of the Report, the Table, or SupportingSummary tables other matters might have come to our attention that would have been reported to you.

This letter is for use solely in connection with the Report provided by tBS to Waste Diversion Ontario.Consequently, the letter should not be used by other parties. Any use that a third party makes of this letter,or any reliance or decisions made based on it, are the responsibility of such third party. We accept noresponsibility for any loss or damages suffered by any third party as a result of decisions made or actionstaken based on this letter.

Chartered Professional Accountants, Licensed Public Accountants

Documents

Serving Ontarians and the Environment: Responsible ... · glass bottle re-use by brewers clear glass recycled into new clear glass bottles aluminum cans recycled into new aluminum