PER-2026-0710

The audit examined the performance of the North Carolina Alcoholic Beverage Control Commission (the Commission)’s vendor responsible for statewide liquor warehousing and distribution. The audit found that of the five contractually required key performance indicators (KPIs), LB&B Associates (LB&B) met requirements for cost metric, outstanding claims, and safety performance for all eight quarters reviewed. LB&B did not consistently meet the on-time delivery KPI or the Fill Rate KPI, with on-time delivery being the most persistent performance gap. The report recommended actions to address these performance gaps and strengthen oversight of the distribution contract.

Although the audit primarily focused on vendor performance, it also provided analysis of revenues generated through liquor sales which supported distributions exceeding a combined $1.4 billion for State Fiscal Years 2024 and 2025. Distributions were made to the State General Fund, local governments, law enforcement, alcohol education, rehabilitation, and the Department of Health and Human Services. Additional details, including local ABC board revenues, product sales, and rare product information, are included in the appendices.

The Commission agreed with the findings and recommendations, and its formal response is included in the report.