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H O W T O S TA R T D O I N G B U S I N E S S W I T H L C B O
O C T O B E R 1 9 , 2 0 1 7
LCBO TODAY
- $5.9 billion Net Sales
- $2.1 billion Dividend
- 654 Retail stores
- 210 Agency stores
- 5 Distribution Centres
H O W T O S TA R T D O I N G B U S I N E S S W I T H L C B O O - - PowerPoint PPT Presentation
H O W T O S TA R T D O I N G B U S I N E S S W I T H L C B O O - - PowerPoint PPT Presentation
H O W T O S TA R T D O I N G B U S I N E S S W I T H L C B O O C T O B E R 1 9 , 2 0 1 7 LCBO TODAY $5.9 billion Net Sales $2.1 billion Dividend 654 Retail stores 210 Agency stores 5 Distribution Centres LCBO BEER
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LCBO BEER SALES
1,450,000 1,500,000 1,550,000 1,600,000 1,650,000 1,700,000 1,750,000 1,800,000 1,850,000 1,900,000 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 $800,000,000 $900,000,000
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
Net $ Sales Volume Sales (hl)
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LCBO ONTARIO CRAFT BEER SALES
- 35,000
70,000 105,000 140,000 175,000 $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
Net $ Sales Volume Sales (hl)
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ONTARIO CRAFT BREWERIES AT LCBO 2010-2017
25 50 75 100 125 150
2017 2016 2015 2014 2013 2012 2011 2010
# OF ONTARIO CRAFT BREWERIES AT LCBO
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CATEGORY MANAGEMENT
A process that involves managing product categories as business units and customizing them on a store-by-store basis to satisfy customers needs
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PRODUCT LIFE CYCLE PROCESS
Presentation of Product Evaluation Approval Process Procurement Product Release & Promotion Discontinuation
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A LITTLE HOMEWORK GOES A LONG WAY…..
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SPEAK WITH ONTARIO CRAFT BREWERIES
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WWW.DOINGBUSINESSWITHLCBO.COM
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PRODUCT MANAGEMENT POLICY AND PROCEDURE MANUAL
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TALK TO STORE MANAGERS AND STAFF
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CONTACT US TO PRESENT YOUR PRODUCT Brand Beer Style Format
Packaging
Price
Marketing
Distribution
Sales History
Licensee Plans
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PRODUCT CALLS
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PRODUCT CALLS FOR ONTARIO CRAFT BEER
Ongoing
Spring/Summer Release (March) Autumn/Winter Release (September)
Seasonal
Spring (March) Summer (May) Autumn (September) Winter (December)
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ONTARIO CRAFT BEER PRODUCT CALL HIGHLIGHTS
NISS CALL ID Product Category Price Range Product specs Pre-sub Deadline Call back Deadline Sample Deadline Tasting Date Max # Subs. Target Launch Date 2344 Ontario Craft Beer - New Suppliers Various Product from craft breweries new to LCBO (i.e., do not have a current listing). Should have year-round appeal and be positioned as the flagship brand. Apr 28, 2017 May 5, 2017 May 26, 2017 Jun 1, 2017 2 Oct 2017
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ACCESS NEW ITEM SUBMISSION SYSTEM (NISS)
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LISTING PROCESS OVERVIEW
Meeting with LCBO Submit to NISS Pre-submission Evaluation Category Tasting & Evaluation Initial Lab Analysis Issue Notice to Purchase (NTP) Packaging Review Purchase order
- r final sample
Final Lab Analysis Pricing Communication to Stores Release to Stores
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LISTING PROCESS TIMELINES
WEEK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 NI SS SUBMI SSI ON DEADLI NE ACCEPTED FOR CATEGORY TASTI NG TASTI NG SAMPLE DEADLI NE CATEGORY TASTI NG AND EVALUATI ON I NI TI AL LAB ANALYSI S LABEL REVI EW CARTON REVI EW (if warehouse) I SSUE NOTI CE TO PURCHASE FI NAL LAB AND PRI CI NG
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LISTING PROCESS DECISIONS
Assortment decisions for new breweries
- ~50% success rate
- Why have products been declined?
− Inadequate information − Distribution/capacity issues − Faulted samples − Liquid or positioning does not target a craft customer- usually a taste profile close to a macro lager
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LISTING PROCESS DECISIONS
- Quality and value are a focus
for both OCB and LCBO
- Maintain growth by providing
the customer with a great experience
- Avoid US experience of lower
quality impacting the whole market
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LISTING PROCESS DECISIONS
Product Quality
- With the fast growth of the industry we have seen an
increase in product quality issues
- LCBO’s Quality Management program is currently being
reviewed
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STORE DISTRIBUTION
Direct Delivery
- Supplier controls distribution and delivers product direct to
LCBO stores
LCBO Warehouse System
- Product is received at LCBO warehouse and distributed to LCBO
stores by their supplying warehouse
The Beer Store (TBS) Distribution System
- TBS distributes product to LCBO stores
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STORE DISTRIBUTION
- Customers are loving local
- Local can be a strong seller – 5x
per store sales
- Grow from your base with
support
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SALES TARGETS
Sales Targets
- How ongoing listings are evaluated
- Current target is 20 litres/store per 4-week period
- Target re-set annually, products reviewed semi-annually
- Falling below that measure means the product will be
considered for delist
- This measure is used when considering line extensions
and seasonal products
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SALES TARGETS
Sale of Data Program
- Receive weekly sales and inventory data
- Free for unformatted data on your own products
www.doingbusinesswithlcbo.com/tro/Web-Systems/Sale-of-Data.shtml
Liquor Control Board of Ontario (LCBO) OPTION 1A / PACKAGE E: AGENT SPECIFIC PRODUCTS Units Sold and Inventory On-Hand in LCBO Stores and Depots Listing these Products Store Sales Depot Sales Agent LCBO# Product Retail $ Set/ Subset Start Date End Date Regular Agency License Regular Agency License # of STORE Units On- Hand STORES Units On- Hand DEPOT Units On- Hand WHSES 1234 11111 BEER A 2.85 417865 2015/09/ 2015/10/1 8553 82 3 24 6 447 2995 26 1234 22222 BEER B 2.85 417865 2015/09/ 2015/10/1 8444 60 5 24 2 511 5679 45 1234 33333 BEER C 2.85 417865 2015/09/ 2015/10/1 8280 60 3 47 9 432 15891 169 1234 44444 BEER D 2.85 417865 2015/09/ 2015/10/1 8040 28 24 265 4074 58 1234 55555 BEER G 2.85 417865 2015/09/ 2015/10/1 7739 67 2 3 72 7 464 7556 80
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GROCERY
Grocery
- LCBO has established a Wholesale Operations Group to
facilitate business with Grocery
- Your decision on whether you want to sell to this channel
- For LCBO listed products, identify you want them made
available
- For non-LCBO products, submit in NISS through
Grocery calls
- Streamlined process, no category management
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PRODUCT PRICING
Pricing Administration:
- Pricing calculators available on trade website
- Contact:
David Cacciottolo, Manager T: 416-365-5869 F: 416-864-2424 E: david.cacciottolo@lcbo.com
http://www.doingbusinesswithlcbo.com/tro/Forms- Documents/Documents/Documents.shtml
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B E S T P R A C T I C E S
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PRODUCT SUBMISSIONS
NISS Access
- Apply as “Agent” not “Supplier”
- Allow 5-7 days
Grocery and LCBO?
- Only one NISS submission needed
- Indicate “Beer & Cider Grocery Catalogue” on Product tab
SLIDE 31 E-mail
PRODUCT SUBMISSIONS
- Concise
- Include NISS submission # or
LCBO # Sample Labelling
- Always with NISS submission # or
LCBO #
- Purpose and to whose attention
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PRODUCT SUBMISSIONS
Consumer Labels
- Review standards on LCBO Trade Resources
- http://www.doingbusinesswithlcbo.com/tro/Packaging-
Quality/ProductPackagingStandards.shtml
- Potential issues
– Single field of vision – Common name – Allergens – mL not ML
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PRODUCT SUBMISSIONS
NISS Submissions
- Upload 1-pager on brewery/beer/marketing plan and label if
available on Product tab
- Validate submitted retail price and costing
– Uniform pricing – Two markups increase per year
- Data integrity is crucial
– Pickup point or direct delivery – Case pack – UPC / SCC codes
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STORE LISTING TIPS
Circular
- Issued to all stores
- Info requested in template prior to
release Grocery SKU’s
- Can be visible to stores in system
- Only ship LCBO approved
products
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STORE LISTING TIPS
Key Retail Personnel
- Store Manager, Beer Ambassador, Product Consultant
Information
- Brief and concise
- Geographical / Trending style / Diverse portfolio
Timing
- Don’t approach stores more then 1-2 weeks in advance of
listing
- Avoid peak hours
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STORE STAFF TASTINGS
Staff Tastings
- Schedule with store manager
– Brief and insightful
- Provide:
– Sample cups – Spittoons – Food pairing – Sell sheet
- Comparable product
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GROWLERS
Growler Stations
- Store #10 Summerhill in
Toronto and Store #500 Lansdowne Park in Ottawa
- Beers not currently available
at LCBO
- Needs a lab test
- Contact Neal Boven
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CONTACT INFORMATION - LCBO BEER & CIDER
Mark Wilson, Category Manager mark.wilson@lcbo.com T: 416-365-5879 Neal Boven, Product Manager neal.boven@lcbo.com T: 416-365-5690 Karen Carter, Category Administrator karen.carter@lcbo.com T: 416-864-2425 John Tyler, Product Manager john.tyler@lcbo.com T: 416-365-5868
www.doingbusinesswithlcbo.com
Chris Robertson, Director Beer & Cider chris.robertson@lcbo.com T: 416-365-5886
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CONTACT INFORMATION - WHOLESALE OPERATIONS