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2026 <br />4 <br />•Gen Z and Millennial consumers are increasingly <br />moderating alcohol consumption – approximate 74% <br />planned to drink less in 2025. <br />•62% of adults under age 35 say they drink compared to <br />72% just 20 years ago <br />•58% of Americans in 2024 said they drink beer, liquor or <br />wine; down from 67% in 2022 and a high of 71% in 1970s <br />•Cannabis use increased from 8% in 2013 to 15% in 2022 <br />•Non-alcoholic beverage market is experiencing significant <br />growth, overall volume rising by 29% in 2023 over 2022 <br />CONSUMPTION TRENDS & OUTLOOK <br />Shifting Demographics & Consumption <br />•Sales declined in 2025 over 2024 : Spirits, Beer (-6%) and <br />Wine (-2%) <br />•Shift to THC/CBD products has taken market share from <br />Spirits, Wine and Beer even though gross profit <br />percentages in those categories remain unchanged <br />•THC/CBD is highest gross profit percentage category <br />in our stores <br />•In 2025, we experienced a 22% increase in THC/CBD <br />product sales compared to same period in 2024 (avg. <br />$36K monthly) <br />Sales Outlook <br />MARKET OUTLOOK <br />•Growth in the non-alcoholic beverage market <br />continues, with THC sales up nearly 25% from 01/01 to <br />12/31/2025. <br />•Wine sales show only a slight decline of 2.3% compared <br />to 2024. <br />•Spirit sales are down 6.3% year-over-year. <br />•Beer sales have decreased 5.8% year-over-year. <br />•Overall net profit is down 5.2 % year-to-date compared <br />to 2024. <br />•Opening of our Cannabis store should have positive <br />impact on overall store revenue in 2026. <br />Sales performance stronger than mid-year projection BRIGHT SPOT: Spirits-based <br />ready-to-drink cocktails sales <br />surged over 16% nationally in 2025 <br />BRIGHT SPOT: Spirits-based <br />ready-to-drink cocktails sales <br />surged over 16% nationally in 2025 <br />SERVING OUR COMMUNITY: <br />Municipal Liquor Operations <br />reported 247,600 transactions <br />in 2025