Montréal, October 4, 2010 – SAQ president and CEO Philippe Duval today expressed satisfaction that the government issued an order-in-council allowing it to acquire shares in a limited partnership authorized to do business outside of Québec. The government action paves the way for the SAQ to fully implement its 2010–2012 Strategic Plan in which the crown corporation states its commitment to maintaining its strategic positioning in the global wine industry in order to better serve Quebecers.
Mr. Duval also confirmed that the order-in-council allows the SAQ to combine its expertise with that of the Fonds de solidarité FTQ and Fondaction CSN to ensure the success of its projects. Specifically, the SAQ will hold a 50% share of the limited partnership to be created, while each of the funds will hold 25%.
A realistic business plan
Mr. Duval explained that creating the limited partnership will enable the SAQ to take advantage of business opportunities and give itself the tools it needs to:
- maintain its purchasing power;
- increase its access to products sold on an allocation basis;
- realize economies of scale on its transportation, logistics and distribution costs;
- make Québec and Montréal a hub of the alcoholic beverage trade;
- maintain and create quality jobs in the alcoholic beverage trade.
The activities of the limited partnership will focus on the alcoholic beverage trade and the delivery of related services to clients in markets outside Québec. These services will include product selection, analysis, quality control, purchasing, distribution, marketing, merchandising and sales network management.
A realistic business plan estimates that the limited partnership could generate sales of between $50 million and $100 million after three or four years.
The SAQ’s chief executive mentioned that the corporation has undeniable strengths that are already attracting future business partners. “The SAQ is routinely approached and solicited,” Mr. Duval said. “Its international business network, efficient procurement chain, state-of-the-art laboratory, large sales network and marketing strategies are often held up as an example. Here in Québec, we’ve developed an integrated expertise that is unique in the world and that today enables us to be a partner in a new company that can offer a full range of services to other retailers and parties.”
Promoting Québec expertise
The imminent signing of a partnership agreement with the Fonds de solidarité FTQ and Fondaction CSN will provide the limited partnership with the venture and development capital necessary to achieve its business objectives. In addition, the partnership will do much to promote Québec’s expertise.
“We are proud once again to join forces with the SAQ, a Québec icon, as we have done in the past with our shared investment in Maison des Futailles,” said Yvon Bolduc, President and Chief Executive Officer of the Fonds de solidarité FTQ. “This new project will make profitable use of our patient capital and the expertise of our investment teams. Strengthening the SAQ’s position outside Québec will result in positive economic spinoffs for all Quebecers.”
“We see this project as a sign of trust by the government toward labour-sponsored investment funds and as recognition of their expertise in development capital. Fondaction will work enthusiastically with the SAQ, a government corporation that is both a source of pride for Quebecers and a leader in sustainable development,” said Léopold Beaulieu, President and Chief Executive Officer of Fondaction CSN.
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Sources:
Isabelle Merizzi Suzanne La Ferrière
Director, Public Affairs Communications Coordinator
Société des alcools du Québec Fondaction CSN
514 254-6000, ext. 6574 514 525-7041
Josée Lagacé
Senior Advisor, Press Relations and Communications
Fonds de solidarité FTQ
514 850-4835