Canadian Vintners Association Grocery Stores Landscape July, 2016 - - PowerPoint PPT Presentation

Canadian Vintners Association

Grocery Stores Landscape

July, 2016

Do you believe that wine will be available in every grocery store in 20 years?

Present Day

4,060 Points of Distribution

20 Years from Now

11,938 Points of Distribution

Wine Retailers Per 1000 People < 0.25 > 0.25

3 X MORE POINTS OF DISTRIBUTION BY 2036

AB BC NL NB ON MB SK PE NS QC

Provinces with planned wine-in-grocery reforms Provinces with mature wine-in-grocery market

BC

40+ licences coming

NB

3 store pilot expanding to 18 stores

ON

300 grocery licences by 2025

Grocery represents an emerging channel for future wine opportunity

As wine sales and volume continue to grow, nationwide wine-in-grocery reforms provide increased access and opportunity to further grow the category

Wine is seeing a move towards increased premiumisation Wine is the fastest growing major alcohol category in Canada Canadians vastly under index in consumption of wine

Canadian Wine Industry at a Glance National Wine-on-Shelf Grocery Reforms

Grocery can deliver unparalleled exposure and access to large populations

Grocery stores can drive traffic in a socially responsible way.

Wine-in-grocery reforms would expose the wine category to 120 M additional customers/year by 2017 The grocery channel has experience in socially responsible growth of controlled categories

Customer need for convenience is redefining the grocery store

Grocers are offering creative occasion solutions and omnichannel retail options to meet the increasing customer need for a convenient shopping trip.

Sobey’s Extra banner makes meal preparation more convenient Grocery retailers are experimenting with delivery and click-and-collect models

Customers value local, sustainable and healthy food choices

Grocers are bringing healthy options to stores by working with high-quality and local suppliers.

Organic foods are growing at 10% / Year Almost 50% of organic food sales are locally sourced

Innovations in experience-based retailing are increasing customer traffic

52% of shoppers cite in-store experience as the primary reason they return to the store

Corks Beer and Wine Bar restaurants inside Longo’s stores invite customers to pair Longo’s foods with craft beer or local wine Eataly marries grocery shopping with a high-end experience

Unique and diversified category offerings are driving growth

As the grocery channel grows at a modest rate, retailers looks to introduce unique categories to help grow the business through differentiation

Artisanal bakery Première Moisson acquired by Metro provides a diversified offering Specialty foods are outpacing market growth in food & beverage by 2-3 X due to differentiated assortments

2.64% 0.94% 3.64%

Alcohol Stores Supermarkets Specialty Stores

Food and Beverage Store Sales Growth (2010 – 2015 CAGR) 1

Premium and unique products drive impulse purchases

The rise of upscale grocery stores and premium product lines create opportunity to boost wine sales and product discovery.

Rise of the premium private label brand Loblaw’s PC Black Label is a highly differentiated offering that drives 42% impulse purchases through at-shelf engagement Partnership with luxury retailers Premium retailer Saks Fifth Avenue chose to partner with Pusateri’s to deliver a luxury food experience in their Canadian stores

Customer trends highlight the perfect pairing between wine and grocery

A customer-centric approach has redefined the grocery channel, making it a natural fit to grow the wine category. 10

Social responsibility Increased Education Health Consciousness Desire to Buy Local Premiumisation

WINE TRENDS

Interest in Variety Trusted community partner History of local sourcing Strategic positioning Organic food pairings In-store product ambassadors On-shelf marketing National experience with controlled categories Immersive experience Premium product pairings Product discovery At-shelf engagement Cross-promotions