Grocery Operations Wine in Grocery April 25, 2017 Chris Dini - - PowerPoint PPT Presentation
Grocery Operations Wine in Grocery April 25, 2017 Chris Dini Director of Grocery Operations Team and the Players Program Overview Agenda Tranches Authorization Types Boutiques Definitions & Display Requirements
Wine in Grocery
April 25, 2017 Chris Dini – Director of Grocery Operations
Agenda
Team and the Players Program Overview
The Numbers Recalls Pain Points & Adding Value Resources Available
LCBO:
Mandesh Dosanjh – SVP Supply Chain Chris Dini – Director Leanne Rhee – Account Management & Vendor Relationships Jamie Fazekas – Policy & Operations IT Cross Functional team Logistics QA – Barb Chapple
AGCO
Grocery Operations Team
Mandesh Dosanjh Supply Chain
Supply Chain Division Mandesh Dosanjh
Logistics Retail Service Centres Traffic & Customs Specialty Services Supply Chain Space Management Measurement & Analysis Grocery Operations Quality Assurance Laboratory Quality Services
Regulatory Framework
https://www.ontario.ca/laws/regulation/160232
Responsibilities
– Business-to-Business wholesale transactions – Access between suppliers and grocers – Listing and order flow – Financial processing – Fulfillment facilitation
– Targeted consumer marketing – Product category management – Grocer sales & marketing plans – LCBO sales and promotions – Determining wholesale product mix
service and consumption of alcohol
Government Stores 232/16 as per but not limited to the following – Types of products eligible – Shelf space requirements – Hours of operation – Advertising rules – Trade spend restrictions – Sampling rules
Responsibilities
Authorization Rollout By tranche
Beer
authorizations
June 24th, 2016
Wine
allocation of 70 beer & wine authorizations
Beer & Cider
allocation of 80 beer & cider authorizations
+ bonus beer
2015
2016 Summer 2017
Grocer B&C B,C&W
19 18 U, 2 R 15 8 U, 7 R 9 13 R 3 2 R 3 4 U, 3 R 2 2 R 1 3 U 2 1
Grocer B&C B,C&W
1 U 1 1 1 1 U 1 R 2 R 2 R 1 R
TOTAL 58*
35 U, 35 R
Grocer B&C B,C&W
1 U 1 1 1 1 U 1 R 2 R 2 R 1 R
TOTAL 58*
35 U, 35 R
Tranche #3 Beer & Cider
East West North GTA Total Large 14 19 6 26 65 Independent 3 2 10 15 Total 17 21 6 36 80
Wine Authorization Types
from SINGLE COUNTRY
using grapes from SINGLE COUNTRY that at any time during the 3 year period is a MID-SIZED winery
Wine Boutiques Bonus Beer
OWNERS
manufactured by non-
GROCERS
least 20% small brewers & 20% small cideries
Wine Boutiques Sampling Program
Wine Boutiques & Bonus Beer
Current Locations
# of locations Maximum under regulation
Wine Definitions QUALITY ASSURANCE WINE
Wine (other than cider) that is designated as meeting the quality control standards of a statutory appellation of origin regime that certifies, in the aggregate, < 50M litres of wine (excluding cider) annually Small Winery
small winery
Mid sized Winery
mid-sized or small winery
Wine Grocery Floor Price
Size (ml) Floor Price
375 $5.90 500 $7.60 720 $10.65 750 $10.95 1000 $14.05 1500 $20.15 2000 $25.90 2250 $28.75 3000 $37.90 4000 $49.35
https://www.ontario.ca/laws/regulation/160232
Wine Grocery Floor Price
Size (ml) Floor Price
375 $5.90 500 $7.60 720 $10.65 750 $10.95 1000 $14.05 1500 $20.15 2000 $25.90 2250 $28.75 3000 $37.90 4000 $49.35
If price falls below floor → product
RECALLED
at supplier expense
Display Requirements
https://www.ontario.ca/law s/regulation/160232
is BEER
is WINE
SMALL winery
indicating availability of VQA wines
Display Requirements
https://www.ontario.ca/law s/regulation/160232
is BEER
is WINE
winery
wine produced using grape from single country & ONE
WCC
Wine Catalogue Committee
Quality Assurance Wine Appellation Regime Governing Body
Country Production Gov’t Institution OR Independent auditor Producer Size (winery size) Gov’t Institution OR Independent auditor
Issued By: Requirement
The Numbers Fiscal 16/17
Cases Received Net Sales Beer 1,056,992 $48,139,171 Cider 60,605 $3,638,974
WINE
VQA 42,019 $6,209,720 ON non-VQA 1,129 $132,104 Imports 46,903 $7,006,112 TOTAL WINE 90,051 $13,347,937
GRAND TOTAL 1,207,648 $65,126,082
Wine Market Share In dollars
VQA 47% ON non- VQA 1% Import 52%
Wine 20% Beer 74% Cider 6%
Product Type Wine
Fill Rates
Fiscal 16/17
Ontario 95.7% Vintages 91.9% Imports 92.9%
Total 94.0%
Product Type Cases Ordered Cases Shipped Ontario 40,081 38,339 Imports 48,558 45,091 Vintages 2,782 2,557 Total 91,421 85,987
Making Products Available
The Process Existing eligible wine products:
Product Need #2427 Existing Eligible Wines - Grocery Channel
New Ontario wine products:
Product Need #2426 Ontario Wines – Grocery/Wine Boutique
Product Recalls Record Year
CLASS 1 CLASS 2
Product Recalls Impact on your Business
1) Out of market for days to weeks or longer 2) Impact to Brand 3) Fees for:
Vendor Experience $1,000 - $200,000
Product Recalls What happens?
1. Product is withdrawn from all sales channels 2. Grocery inventory is Repatriated to LCBO for destroyal 3. Retail stock destroyed 4. Warehouse stock returned or destroyed 5. Investigation launched with CFIA
Sensory Evaluation Risk Mitigation
To identify faults only and prevent defective product from going to market
1. SKU Changes → minimum two weeks notice required
Grocer Top 3 Pain Points
1.
Education
How to add value in the channel
suppliers and grocers
through IT enhancements
enhancements
enhancements
LCBO’s commitment for continuous improvement
Enabling a smooth transaction
Grocery Website
Regulation 232/16
Grocery Operations team
Available Resources
LCBO Resources Available to You
Email: wholesaleservice@lcbo.com
Contingency plan for grocery