L CBO & V I NT AGE S T RADE S YMPOSI UM Ma y 14, 2012 W E - - PDF document

5/18/2012 1

L CBO & VI

NT AGE S

T

RADES YMPOSI UM

Ma y 14, 2012

WE

L COME

Bo b Do wne y Se nio r Vic e Pre side nt Sa le s & Ma rke ting Divisio n 416 365 5890 b o b .do wne y@ lc b o .c o m

5/18/2012 2

OVE

RARCHI NG

B

U SI NE SS RE VI E W

Sha ri Mo g k-E dwa rds Vic e Pre side nt, Me rc ha ndising 416 365 5872 sha ri.mo g k-e dwa rds@ lc b o .c o m

Annual Sale s Gr

• wth Rate s

2012 4.7% 2011 5.4% 2010 1.1% 2009 3.7%

5/18/2012 3

Cate go r y Sale s - Gr

• wth T

r e nds

2011/ 12 Gr

• wth

Ac hie ve d fr

• m

Gr

• wth

Ac hie ve d fr

• m

NE T SAL E S 2011/ 12 Ac tual Ac hie ve d fr

• m

2010/ 11 ($) Ac hie ve d fr

• m

2010/ 11 (% )

SPI

RI T S

$1,898M +$75M 4.1% WI

NE S

$1,244M +$52M 4.4% BE

E R/ C I DE R

$914M +$35M 4.0% VI

NT AGE S

$422M +$39M 10.2%

T OT AL $4,478M +$201M 4.7%

Mandate and Pur po se

T

• pro vide the b e st b e ve ra g e a lc o ho l

a sso rtme nt in No rth Ame ric a , while pro viding va lue to the c o nsume rs o f Onta rio a nd e ffe c tive ly ma na g ing L CBO a sse ts

5/18/2012 4

Go als and Visio n

De ve lo p a hig h pe rfo rma nc e te a m De ve lo p a hig h pe rfo rma nc e te a m a c ro ss a ll Busine ss Units with a c le a r fo c us o n pro duc t a sso rtme nt, ma na g ing inve nto ry a nd supplie r c o lla b o ra tio n

T

• p I

nitiative s

• 1. De ve lo p c le a r pe rso na litie s fo r e a c h Busine ss Unit

a nd VI

NT AGE S’ va rio us sa le s c ha nne ls, impro ve o n-

she lf e xpe rie nc e a nd e ng a g e c usto me rs in a se nse o f disc o ve ry

• 2. Suppo rt Go L
• c a l to g ro w VQA, Onta rio Cra ft

b e e r a nd Onta rio Cra ft distille rie s

3 Be c o me the first ma rke t in Ca na da fo r supplie rs to

• 3. Be c o me the first ma rke t in Ca na da fo r supplie rs to

la unc h ne w pro duc ts a nd to o ffe r o the r pro duc ts tha t a re e xc lusive to L CBO

• 4. I

nc re a se c usto me r a wa re ne ss a nd e ng a g e me nt with VI

NT AGE S

5/18/2012 5

K e y Str ate gie s

L a unc he d Ma y 7th 2012!

• 1. I

mple me nt upg ra de DCM 4.0 a nd Ce ntra l Allo c a tio ns mo dule fo r VI

NT AGE S

• L

a unc he d Ma y 7th, 2012!

• 2. Apply b e st-in-c la ss c a te g o ry ma na g e me nt

K e y Str ate gie s

pra c tic e s whe n purc ha sing ne w pro duc ts a nd de te rmining pro mo tio na l o ppo rtunitie s

• 3. Co ntinue to ma inta in o ptimum inve nto ry turns
• 4. Mitig a te pric e c o mpre ssio n b e twe e n VI

NT AGE S

a nd Me rc ha ndising a nd pro mo te a nd Me rc ha ndising a nd pro mo te pre miumiza tio n whe n po ssib le

• 5. F
• c us o n ma ximizing the c usto me r e xpe rie nc e

in-sto re

5/18/2012 6

Se pte mbe r 2011

VP Me rc ha ndising a ssume d ro le o f VP VI

NT AGE S

VINT

AGE S

Wine s $1,141M 1,621 Skus Be e r & Cide r $837M 929 Skus VINT

AGE S

$389M 5,133 Skus Spir its $1,745M 1,234 Skus Total Sales: $4.7B Skus: 8,917

• E

uro pe a n Wine s: +4.3%

WI

NE S Dr

ive r s in 2011-12

• Ne w Wo rld : +3.6%
• Onta rio +5.7%
• VQA +9 4%
• VQA +9.4%
• I

CB +3.6%

5/18/2012 7

S

PI RI T S Dr

ive r s in 2011-12

• Vo dka : +5.4%
• Spic e d Rum: +33.5%
• Whiske y: +3 9%
• Whiske y: +3.9%

B

E E R Dr

ive r s in 2011-12

• Sing le Se rve : +6.4%
• Onta rio Cra ft Be e r: +34.1%
• Cide r: +15 8%
• Cide r: +15.8%

5/18/2012 8

• Ca lifo rnia : +18.4%

VI

NT AGE S Dr

ive r s in 2011-12

Ca

• a :
• 8. %
• I

ta ly: + 10.9 %

• Pric e b a nds:
• +$15 up
• - $15 do wn
• VI

NT AGE S 25% impo rte d wine ma rke t sha re

I nve nto r y Dr ive r s

Cor por ate Inve ntor y T ur ns

F isc a l 2008-09 7.33 F isc a l 2009-10 7.75 F isc a l 2010-11 7.65 F isc a l 2011-12 7.71 F isc a l 2012-13 7.64 (pla n)

5/18/2012 9

Ave r age Wine Pr ic e

*Per

750 mL B

• ttl

e T abl e Wi ne(L CB O WI

NE S+ VI NT AGE S)

COUNTRY COUNTRY 2011 2011 2010 2010 % CHANGE % CHANGE

NEW ZEALAND $15 43 $15 35 0 50% NEW ZEALAND $15.43 $15.35 0.50% CANADA (B.C.) $14.90 $13.45 10.80% FRANCE $13.19 $12.49 5.60% ONTARIO VQA $11.90 $11.83 0.60% SPAIN $11.76 $11.47 2.50% AUSTRALIA $11.41 $11.27 1.30% UNITED STATES $11.35 $10.64 6.70% ITALY $10.11 $9.89 2.20% PORTUGAL $10 02 $9 88 1 40% PORTUGAL $10.02 $9.88 1.40% GERMANY $9.33 $9.21 1.30% OTHER $9.19 $8.77 4.80% SOUTH AFRICA $8.98 $8.89 1.00% ARGENTINA $8.65 $8.22 5.20% CHILE $8.21 $8.07 1.90% ONTARIO ICB $6.56 $6.50 0.90% Grand Total $9.83 $9.55 2.90%

Price Band Price Band Per 750 Per 750 mL mL 2011 2011 2010 2010 % CHANGE % CHANGE % SHARE % SHARE

L CBO WI

NE S Pr

ic e Band Analysis

Per 750 Per 750 mL mL

<$8.00 $352M $363M (3.0%) 28.3% $8.00 ‐ <$10.00 $287M $280M 2.7% 23.1% $10.00 ‐ <$12.00 $207M $198M 4.5% 16.6% $12.00 ‐ <$15.00 $252M $225M 12.1% 20.3% $15.00 ‐ <$20.00 $107M $88M 20.6% 8.6% $20.00 ‐ <$25.00 $6.8M $6,7M 1.8% 0.5% $25.00 ‐ <$30.00 $3.9M $4.4M (9.5%) 0.3% $30.00 ‐ <$35.00 $2.7M $2.2M 23.5% 0.2% $35.00+ $25M $25M 3.5% 2.0% Grand Total $1,244M $1,192M 4.4% 100.0%

5/18/2012 10

Price Band Price Band Per 750 Per 750 mL mL 2011 2011 2010 2010 % CHANGE % CHANGE % SHARE % SHARE

VI

NT AGE S Pr

ic e Band Analysis

Per 750 Per 750 mL mL

<$10.00 $5.0M $5.1M ‐3.0% 1.2% $10.00 < $15.00 $5.3.9M $67.1M ‐19.7% 12.8% $15.00 < $20.00 $167.3M $147.0M 13.8% 39.7% $20.00 < $25.00 $58.1M $48.3M 20.2% 13.8% $25.00 < $35.00 $41.8M $33.4M 25.0% 9.9% $35.00 < $50.00 $34.0M $26.4M 28.8% 8.1% $50.00 < $100.00 $33.1M $29.8M 11.0% 7.9% >=$100.00 $28.5M $25.5M 12.0% 6.8% Total $421.7M $382.6M 10.2% 100%

L CBO WI

NE S Mar

ke t Shar e

A ti South Afr ic a $36M 3% Sha re Spain $26M 2% Sha re Othe r $66.5M 5% Sha re Onta rio $341M 27% Sha re F ranc e Chile $79M 6% Sha re Arge ntina $65M 5% Sha re Italy $219M 18% Sha re Austra lia $183M 15% Sha re USA $119M 10% Sha re $111M 9% Sha re

5/18/2012 11

VI

NT AGE S Mar

ke t Shar e

USA $90M Spain $15M 4% Sha re Chile $14M 3% Sha re Othe r $46M 11% Sha re $90M 21% Sha re Italy N Z l d Onta rio $20M 5% Sha re Arge ntina $19M 5% Sha re Italy $80M 19% Sha re F ranc e $77M 18% Sha re Austra lia $31M 7% Sha re Ne w Ze a la nd $28M 7% Sha re

• Big g e st e xpa nsio n in the ne two rk e ve r!

Sto r e E xpansio n in 2012-13

• Big g e st e xpa nsio n in the ne two rk e ve r!
• T
• ta l o f 14 ne w sto re s
• F

ive in Otta wa a nd five in T

• ro nto
• 18 re lo c a tio ns
• T

hre e e xpa nsio ns e e e pa s o s

5/18/2012 12

Sto r e De ve lo pme nt in 2012-13

Hig hlig hts

• Big g e r VI

NT AGE S se c tio ns!

• Big g e r b e e r c o ldro o ms!

Sale s Channe l Summar y

Re ta il 84% T he Be e r Sto re 5.6% L ic e nse e 7.9% Othe r 2.2%

5/18/2012 13

Ontar ians and Be ve r age Alc o ho l

*2011, fr

• m Statistic s Canada
• Onta rio pe r c a pita c o nsumptio n o f a b so lute

a lc o ho l: 7.50 litre s vs. Ca na da : 8.2 litre s *

• Sto re Ave ra g e T

ra nsa c tio ns pe r we e k: $2.3M

• Ave ra g e numb e r o f visits to L

CBO sto re s a nnua lly b y Onta ria ns: 124 millio n tra nsa c tio ns o r 7 pe r c usto me r

Ave r age T r ansac tio n

5/18/2012 14

Air Mile s Custo me r s

• Ove r 50% o f L

CBO c usto me rs use Air Mile s

• 50% o f Air Mile s c usto me rs ma de se ve n

tra nsa c tio ns during the ye a r

• 16% o f a ll Air Mile s c usto me rs ma de o ne

tra nsa c tio n in the ye a r

Air Mile s Custo me r s

• We ha ve b e e n te sting initia tive s with

Air Mile s to le a rn wha t wo rks a nd wha t Air Mile s to le a rn wha t wo rks a nd wha t do e s no t

• We a re finding the rig ht b a la nc e
• VI

NT AGE S ha s de c re a se d the numb e r o f

L T O’ s, so b o nus Air Mile s is a so lid o ptio n L T O s, so b o nus Air Mile s is a so lid o ptio n

• Air Mile s o ffe rs a n o ppo rtunity to pro mo te

pro duc ts a nd no t disc o unt the m!

5/18/2012 15

T r ade I nvitatio ns

Ple a se se nd a ll invita tio ns to T ra de e ve nts fo r a ll me mb e rs o f my te a m to me fo r a ppro va l ………………T ha nk yo u!

E lsie s Awar ds: T hur sday, June 21, 2012

• T

ic ke ts to the E lsie s will b e a va ila b le a t the b re a ks a nd a t lunc h

• Ple a se visit the re g istra tio n de sk fo r de ta ils

5/18/2012 16

• Co rre spo nde nc e fo rthc o ming with de ta ils o f

F e e s fo r Ove r we ight and Pr

• pr

ie tar y Bo ttle s

p g ne xt ste ps

Ne w Sale s T ar ge ts

T

• Be I

ssue d L a te r T

• da y
• Ame ric a n a nd I

rish Pre mium/ Sta nda rd se ts ha ve Ame ric a n a nd I rish Pre mium/ Sta nda rd se ts ha ve b e e n c o mb ine d a s o ne sa le s ta rg e t g ro up

• A Supe r Pre mium Vo dka g ro uping ha s b e e n a dde d

due to the a dditio n o f this ne w pric e b a nd

• 50mL

ta rg e ts ha ve b e e n e limina te d b a se d o n the ne w F ro nt E nd Me rc ha ndise r stra te g y

• I

mpo rt a nd Do me stic c ide r se ts ha ve b e e n c o mb ine d a s o ne sa le s ta rg e t g ro up.

• WI

NE S ta rg e ts ha ve shifte d fro m the se t to sub se t le ve l

to b e tte r re fine the po rtfo lio

5/18/2012 17

Mar gins Ne w F

e atur e s:

Ne w sto r e o pe nings

5/18/2012 18

T ake s yo u to a map - list o f sto r e s Go ing F

• r

war d

5/18/2012 19

• Suc c e ssio n Pla nning a nd L

e a de rship

T

• p 3 T

hings to Re me mbe r

De ve lo pme nt

• Re fine L

CBO WI

NE S a nd VI NT AGE S

purc ha sing Stra te g ie s

• I

mple me nt DCM

VI

NT AGE S S AL E S & PU RCHASI NG

Sha ri Mo g k-E dwa rds Vic e Pre side nt, Me rc ha ndising 416 365 5872 sha ri.mo g k-e dwa rds@ lc b o .c o m

5/18/2012 20

Ove r all Visio n Disc o ve r o ur la te st with VI

NT AGE S

Mandate

T

• pro vide o ur c usto me rs with the o ptimum

p p a sso rtme nt o f fine wine a nd pre mium spirits with a n inte nse q ua lity/ va lue fo c us a t e ve ry pric e po int a nd a t e ve ry c usto me r to uc h po int

5/18/2012 21

F isc al 2011-12 Re sults

F uture s $6.5M 2 5% Sha re Virtua l $5.4M 0 5% Sha re F rontline $243.7M 58% Sha re VSO $2.4M 1% Sha re Cla ssic s $8.4M 2% Sha re 2.5% Sha re 0.5% Sha re E sse ntia ls $155.3M 35% Sha re

$15 $1000+

Pro g ra m Pro duc t Stra te g ie s

$20 - $100 Nove l/ L imite d $75+ L imite d $15 Custome r F avor ite s $15-$100 Ic onic / Unique / Nove l $75 Ic onic / Supe r

• Pr

e mium $30+ Custome r F avor ite s Volume Dr ive r s

5/18/2012 22

• 1. Cle a r pro duc t stra te g ie s fo r e a c h pro g ra m
• 2. Driving sa le s o f ne w pre mium pric e po ints a t

Ho w is VI

NT AGE S g o ing to a c hie ve this?

• 2. Driving sa le s o f ne w pre mium pric e po ints a t

re ta il.

• 3. I

nc re a se d fo c us o n the o n-line b usine ss

2012 -13 T

• p T

hr e e I nitiative s

• 1. E

xit Stra te g y fo r a ll pro g ra ms

• 2. Ce ntra l Allo c a tio n Stra te g y Upda te
• 3. Upda te s to b usine ss pra c tic e s

5/18/2012 23

Mo re F

• c use d E

xit Stra te g y

• De ve lo p a nd e na c t a disc ipline d re vie w to

ide ntify slo w mo ving pro duc ts a t re ta il a nd h wa re ho use

• E

na c t re b a te s a nd sub se q ue nt ma rkdo wns ro utine ly

• Co nside r pro mo tio na l e xit pro g ra ms to flush o lde r

inve nto ry

Mo re F

• c use d E

xit Stra te g y

At Re ta il:

• Upda te d ma rkdo wn po lic y is mo re

stra ig htfo rwa rd a nd in line with L CBO

• Go a l to re duc e the a g e d inve nto ry b y

10% b y e nd o f fisc a l

5/18/2012 24

Ce ntr al Allo c atio n Mo dule U pdate

Wha t is it?

• A distrib utio n a nd a llo c a tio n push syste m

tha t g e ne ra te s c usto m sto re o rde rs b a se d o n fo re c a ste d sa le s fo r pro duc t se t/ sub se t/ pric e

Be ne fits

• Re ma ining sto c k is a uto -re ple nishe d to sto re s

with o ptima l se ll-thro ug h

• Co nside ra tio n g ive n to re spe c tive sto re

c a pa c ity a nd c urre nt a sso rtme nt

Ce ntr al Allo c atio n Mo dule U pdate

Sta tus

• Pre wo rk to de te rmine syste m re q uire me nts a nd sig n
• Pre wo rk to de te rmine syste m re q uire me nts a nd sig n
• ff c o mple te d
• Pro je c t kic k-o ff c o mme nc ing Q1 2012
• Co mple tio n a nd imple me nta tio n pla nne d fo r Q3/ Q4

Ne xt Ste ps

T d f ill b f d t k th h

• T

ra de fo c us g ro up will b e fo rme d to wo rk tho ug h future a llo c a tio n me tho do lo g y, a nd to e nsure fe e db a c k a nd sug g e stio ns c o lle c te d

• Co mmunic a tio n to T

ra de re g a rding pro g re ss a nd future pro c e sse s will b e g in Q2

5/18/2012 25

Upda te s to Busine ss Pra c tic e s

• 1. Bo ttle we ig ht c ha ng e s to 420g fo r

E sse ntia ls $15 a nd unde r Ja nua ry 2013 y

• L
• o king to VI

NT AGE S fo r a le a de rship

ro le

• 2. VI

NT AGE S E

sse ntia ls Sa le s T a rg e ts fo r fisc a l 2012-13 will re ma in the sa me . Ne xt re vie w c yc le with L CBO Spring 2013-14 y p g

• 3. I

nc re a se in pro mo tio na l fe e s

• 3-4%
• Ja nua ry 2013 imple me nta tio n

Upda te s to Busine ss Pra c tic e s

• 4. Shift in the F

OOD & DRI NK ta rg e t pric e fro m

$15 to $17 $15 to $17

• Be g a n with April E

ditio n o f F

• o d & Drink
• Ve ry suc c e ssful re sults
• 5. Re duc e d the numb e r o f sub missio ns fro m 25

to 20: a Re duc e time / re so urc e s fo r T ra de a . Re duc e time / re so urc e s fo r T ra de b . Hig he r q ua lity sub missio ns c . Gre a te r a b ility fo r VI

NT AGE S te a m to

re vie w e a c h sub missio n

• d. Mo re stre a mline d, a b ility to me e t re turn

de a dline s

5/18/2012 26

VI

NT AGE S One -o n-One Ope n Ca ll

• Ne e ds Ca ll c lo se d Ma y 10
• By Ma y 29 yo u will kno w if:
• Y

h ti

• Yo u ha ve a me e ting
• Wha t pro duc ts we ha ve se le c te d fo r

yo u to pre se nt

• T

he time o f yo ur me e ting

• T

his is a ye a r o f c o rre c tio n

T

• p 3 T

hings to Re me mbe r

• VI

NT AGE S a sso rtme nt is spe c ia l

• I

mple me nta tio n o f Ce ntra l Allo c a tio n Mo dule

5/18/2012 27

VI

NT AGE S E U ROPE AN WI NE S

Co lb y No rring to n Ca te g o ry Ma na g e r, E uro pe a n Wine s 416 365 5876 c o lb y.no rring to n@ lc b o .c o m

T Y T Y Plan Plan Var Var % Plan % Plan Var Var % L Y % L Y

E UROPE AN WINE S

$122.7M $130.1M

• 5.6%

8.0%

E SSE NT IAL S

$61 2M $60 7M 0 8% 8 4%

2011-12 Sale s Re sults

E SSE NT IAL S

$61.2M $60.7M 0.8% 8.4%

BORDE AUX F UT URE S

$2.3M $1.4M 70.5% 35.3%

T

• tal

$ 186.2M $ 192.1M

• 3.1%

8.4%

2012-13 Plan 2011-12 Sa le s % Chg

2012-13 Sale s Plan

2012-13 Plan 2011-12 Sa le s % Chg.

E UROPE AN WINE S

$127.1M $119.5M 9.1%

E SSE NT IAL S

$52.3M $48.7M 7.3%

BORDE AUX F UT URE S

$1.8M $2.3M

• 22.8%

T

• tal

$181.2M $167.6M 8.1%

5/18/2012 28

E ur

• pe an VI

NT AGE S Busine ss Br

e akdo wn

PORT UGAL $7.5M

• 10%

4% Shar e GE RMANY $1.8M 3% 1% Shar e GRE E CE $679K 19% 0 4% AUST RIA/ HUNGARY $881K 18% 0.5% Shar e IT AL Y $75.8M 11% 43% Shar e SPAIN $14.6M

• 1%

8% Shar e 4% Shar e 0.4% OT HE R $914K

• 37%

1% Shar e F RANCE $75.0M 9% 42% Shar e

E ur

• pe an VI

NT AGE S Busine ss Br

e akdo wn: Re gio nal

T OT AL Bor de aux 13% T OT AL Bur gundy T OT AL Bur gundy 6% T

• tal Ve ne to

10% T

• tal othe r

37% T

• tal T

usc any 14% Spain - Re d T

• tal

7% Rhone T

• tal

8% Champagne T

• tal

5%

5/18/2012 29

T

• p Busine ss T

r e nds

• 1. I

ta lia n Re d Wine s

• 2. F

re nc h Re d Wine s

• 3. E

uro pe a n Spa rkling Wine s

I talian Re d

Stro ng I ta lia n Re d sa le s - $41.0M, +13.1%

• Pie dmo nt Ba ro lo : 21%
• Ve ne to Ama ro ne : 36%
• Ve ne to Ripa sso : 12%
• T

usc a ny/ Chia nti: 23%

Ag g re ssive g ro wth pla nne d a g a in fo r this fisc a l

IT AL Y RE D PL AN T Y:12 4%

• IT

AL Y RE D PL AN T Y:12.4%

• Pie dmo nt Ba ro lo : 11%
• Ve ne to Ama ro ne : 22%
• Ve ne to Ripa sso :14%
• T

usc a ny/ Chia nti:14%

5/18/2012 30

I talian Re d

L

• o king fo r
• Ba ro lo a t $40 60
• Ba ro lo a t $40-60
• Gre a te r inve stme nt in pre mium Chia ntis:

$25-35

• Ama ro ne a t $40-70
• Mo de stly inc re a sing pre se nc e o f pre mium

i d A pric e d Ama ro ne : $70-100

F r e nc h Re d

• So lid F

re nc h Re d sa le s $30.0M, +7.4%

• Bo rde a ux – Me do c : 29%
• Bo rde a ux Po me ro l/ St. E

m: 30%

• Burg undy Co te de Nuits: 25%
• Rho ne So uth: 20%
• Ste a dy g ro wth pla nne d fo r this fisc a l
• F

RANCE RE D PL AN T Y:7.1%

• Bo rde a ux Me do c : 8%
• Bo rde a ux Me do c : 8%
• Bo rde a ux Po me ro l/ St. E

m: 7%

• Burg undy Co te de Nuits: 6%
• Rho ne So uth: 7%

5/18/2012 31

F r e nc h Wine

• $20- $35 Bo rde a ux

L

• o king fo r

$20 $35 Bo rde a ux

• $20+ fro m Co te s de Bo urg , Co te de Bla ye , F

ro nsa c , Co te de Ca stillo n, e tc

• $25+ fro m Me do c & St. E

millio n

• 2009 a nd 2010 vinta g e whe re ve r po ssib le
• Burg undy wine s fo c use d b e twe e n $30-60+

g y $

• Cô te s du Rhô ne , a nd CDR Villa g e s pric e

po ints will shift fro m $14-$20 to $18-$25

Spar kling Wine

• Spa rkling wine s ha d a n

unpre c e de nte d ye a r o f g ro wth: 21% unpre c e de nte d ye a r o f g ro wth: 21%

• Cha mpa g ne : 37%
• F

ra nc e : -7.5%

• I

ta ly: 33%

• Spa in: 29%
• Ag g re ssive g ro wth pla nne d a g a in

fo r this fisc a l: fo r this fisc a l:

• SPARKL

ING PL AN T Y:9.1%

• Cha mpa g ne : 9%
• F

ra nc e : 8%

• I

ta ly: 10%

• Spa in: 12%

5/18/2012 32

Spar kling Wine

L

• o king fo r
• Sma lle r Cha mpa g ne ho use s
• F
• c using o n the pre mium a nd supe r

se g me nt

• No n-vinta g e wine s in the $50-80

Othe r K e y I nitiative s

• Gro w Spa nish Wine Sa le s
• Gro w Spa nish Wine Sa le s
• Gro w Po rtug ue se Wine Sa le s
• Cla ssic s Ca ta lo g ue Mo ving Online
• I

nc re a se o f Virtua l Offe rs

5/18/2012 33

Gro w Spa nish Wine Sa le s

• Slo w ye a r L

Y -5.47%

• F
• c us fo r Re ds:
• Rio ja - $16-35
• Ye c c la - $15-22
• T
• ro - $16-25

J ill $15 22

• Jumilla - $15-22
• F
• c us fo r White s
• Rue da - $15-20
• NW Spa in - $15-22
• Slo w ye a r L

Y -29% fo r ta b le wine s, a nd +17% fo r Po rt F f R d Wi

Gro w Po rtug ue se Wine Sa le s

• F
• c us fo r Re d Wine s:
• Do uro – $15-25,
• Ale nte jo - $15-20
• F
• c us fo r White Wine s:
• Vinho Ve rde - $15-20
• We ll re vie we d wine s fro m le sse r kno wn re g io ns
• F
• c us fo r Po rts:
• $18-30 fo r pre mium Rub y, L

BV a nd T a wny style

• Va lue -pric e d, o lde r de c la re d vinta g e s >$100

5/18/2012 34

• Mo ve a wa y fro m c a ta lo g ue fo rma t

Mo re fre q ue nt pro duc t re le a se s

Cla ssic s Mo ving ONL I NE

• Mo re fre q ue nt pro duc t re le a se s
• I

nc re a se in numb e r o f wine s o ffe re d o ve r the spa n o f the ye a r

• I

nc re a se in pric e po ints

• F
• c us o n ic o nic supplie rs a nd b ra nds

F

• c us o n ic o nic supplie rs a nd b ra nds
• Mo nthly virtua l o ffe rs

I nc re a se F re q ue nc y o f Virtua l Offe rs

• y

ua o e s

• I

c o nic b ra nds a nd supplie rs a s we ll a s c o mpe lling uniq ue o ffe rs

• Ple a se pre se nt us with ide a s tha t fit this

c ha nne l, no pro duc t c a lls a re po ste d

5/18/2012 35

• Co lla b o ra te with us o n stra te g ie s to

T

• p 3 T

hings to Re me mbe r

• Co lla b o ra te with us o n stra te g ie s to

g ra dua te c usto me rs into the mo re pre mium pric e po ints

• L

a rg e r a llo c a tio ns fro m truly I CONI C supplie rs supplie rs

• I

nte re sting va rie ta ls a nd b le nds

VI

NT AGE S NE W WORL D

WI

NE S & S PI RI T S

Da vid Ca c c io tto lo Ca te g o ry Ma na g e r, Ne w Wo rld Wine s & Spirits Po rtfo lio 416 365 5908 da vid.c a c c io tto lo @ lc b o .c o m

5/18/2012 36

2011-12 Sale s Re sults

T Y T Y Plan Plan Var Var % % Plan Plan Var Var % % L Y L Y

NE W WORL D S $130.2M $132.1M

• 1.4%

9.2% WINE S $130.2M $132.1M 1.4% 9.2% E SSE NT IAL S $93.8M $88.2M 6.4% 16.1% T

• ta l

$224.0M $220.3M 1.7% 12.0%

2012 13 2011 12

2012-13 Sale s Plan

2012- 13 Plan 2011- 12 Sale s % Chg.

NE W WORL D WINE S $150.7M $137.1M 10.0% E SSE NT IAL S $114.6M $105.4M 8.8% T

• ta l

$265.4M $242.5M 9.4%

Ne w Wo r ld Wine s Sale s Br e akdo wn

Califor nia $81.6M +18.4% 36% Shar e Spir its $25.9M 14.5% 4.9% Shar e South Afr ic a $6.6M 9.1% 2.9% Shar e Othe r $21.7M 28.6% 9.6% Shar e 36% Shar e Spe c ialty $14.8M 23.3% 6.5% Shar e Chile $13.9M 10.4% 6% Shar e Austr alia $30.6M

• 4.2%

13.5% Shar e Ne w Ze aland $27.8M +18.3% 12.3% Shar e Ar ge ntina $18.8M

• 2.1%

8.3% Shar e

5/18/2012 37

T

• p Busine ss T

r e nds

1 Ca lifo rnia

• 1. Ca lifo rnia
• 2. Pino t No ir
• 3. Sa uvig no n Bla nc

Califo r nia

T

• p VI

NT AGE S se t: $81M o r 20% o f VI NT AGE S

p $ sa le s Gro wth Ra te : 18%; re d 18%, white 19%

• Ca b e rne t Sa uvig no n - $41M,+22.5%
• Cha rdo nna y - $16M,+23.1%
• Zinfa nde l - $9M,+19%

5/18/2012 38

Califo r nia

Pre mium Pric e b a nds (re d)

• $30-40:

+41%

• $40-50:

+65%

• $50-100:

+42%

• $100+:

+32% Oppo rtunitie s

• Pino t No ir
• Co o l c lima te re g io ns
• Alte rna tive va rie ta ls – e .g . Pe tit Ve rdo t,

Pe tit Syra h

Pino t No ir

Annua l sa le s: $13.0M, +31% I nc re me nta l sa le s we re $3 millio n

• I

nc re me nta l sa le s we re $3 millio n Be st Pe rfo rma nc e

• Ne w Ze a la nd: +47%
• Ca lifo rnia : +15%
• Ore g o n: +115%

Oppo rtunitie s Oppo rtunitie s

• E

nha nc e d a sso rtme nt fro m re g io ns whic h spe c ia lize in Pino t No ir

• Gro w the >$40 se g me nt

5/18/2012 39

Sauvigno n Blanc

Annua l sa le s: $22 millio n, +15%

• T

he to p white va rie ty in te rms o f inc re me nta l g ro wth: $2.9 millio n

Be st Pe rfo rma nc e

• Ne w Ze a la nd +17%
• Chile + 19%
• Ca lifo rnia +20%

Ca lifo rnia 20%

Oppo rtunitie s

• Gro w hig he r pric e b a nds,

e .g . Ne w Ze a la nd >$20; Chile , So uth Afric a >$15

T

• p 2012-13 I

nitiative s

• 1. Gro w Austra lia n Wine s

2 De ve lo p Ne w Ze a la nd Be yo nd Sa uvig no n

• 2. De ve lo p Ne w Ze a la nd Be yo nd Sa uvig no n

Bla nc

• 3. Gro w Spirits
• 4. E

nha nc e Spe c ia lty Po rtfo lio

5/18/2012 40

Gr

• w Austr

alian Wine s

Annua l Sa le s: $30.6 millio n

• Ca te g o ry in de c line , e spe c ia lly white s
• Gro wth pla nne d fo r 2012-13

De ve lo p Ne w Ze aland be yo nd Sauvigno n Blanc

Annua l sa le s: $28M $ 8 T re nd: +18% Sa uvig no n Bla nc : 71% o f sa le s, Gro wth 17% Stra te g y

• E

nha nc e a sso rtme nt o f Pino t No ir, re d b le nds a nd

• the r white va rie ta ls
• the r white va rie ta ls
• Hig hlig ht the se wine s to c usto me rs thro ug h re le a se

c a ta lo g ue

5/18/2012 41

Gr

• w Spir

its

Annua l sa le s: $11M T re nd: +15% Sc o tc h: 20% E a u de Vie : 11%

• Offe r a n e nha nc e d a sso rtme nt
• Gre a te r visib ility in re le a se c a ta lo g ue s
• Mo re VI

NT AGE S e ve nts

Oppo rtunitie s

• Bo urb o n
• I

rish Whiske y

• L

iq ue urs

E nhanc e Spe c ialty Po r tfo lio

Annua l sa le s: $15M T re nd: 23%

Stra te g y

• F
• c us o n the ne e ds o f dive rse c o mmunitie s in

Onta rio

• T

a rg e t spe c ific re lig io us a nd c ultura l o c c a sio ns

• Offe r c o nsiste nt a va ila b ility o f hig h de ma nd ite ms

O t iti Oppo rtunitie s

• I

de ntify pro duc ts tha t a re in de ma nd a nd no t c urre ntly a va ila b le

• I

mpro ve se rvic e le ve ls a nd a va ila b ility, e spe c ia lly le a ding up to ke y c ultura l e ve nts

5/18/2012 42

• 1. L

a rg e r a llo c a tio ns o f hig h de ma nd

T

• p 3 T

hings to Re me mbe r

• 1. L

a rg e r a llo c a tio ns o f hig h de ma nd Ca lifo rnia wine s

• 2. Pino t No ir fro m re g io ns a nd supplie rs who

spe c ia lize in the g ra pe

• 3. Alte rna tive va rie ta ls a nd inte re sting b le nds

VI

NT AGE S OPE RAT I ONS

Ca ro lyn O’ Gra dy-Go ld Dire c to r, VI

NT AGE S Ope ra tio ns

416 864 7639 c a ro lyn.o g ra dy-g o ld@ lc b o .c o m

5/18/2012 43

Ope r atio ns

• Pub lic a tio ns
• L

ic e nse e

• Dire c t Sa le s
• Spe c ia l E

ve nts

DI RE CT SAL E S - ONL I NE

5/18/2012 44

Dir e c t Sale s Online

• Dire c t Sa le s On-line : Ne w sa le s pla tfo rm fo r a ll

dire c t pro g ra ms dire c t pro g ra ms

• L

a unc h Da te : E a rly F a ll

Pr

• gr

ams

• VI

NT AGE S Sho p Online ;

No w: Online Co lle c tio n

• Cla ssic s
• Bo rde a ux F

uture s

• Virtua l Offe rs
• VI

NT AGE S E

ve nts T ic ke ts

• Bin E

nds

5/18/2012 45

Online Co lle c tio n

• Offe r tre ndy, e me rg ing style s, va rie ta ls a nd

upc o ming / ne w re g io ns a nd sub re g io ns upc o ming / ne w re g io ns a nd sub -re g io ns

• Ha rd to g e t, limite d a va ila b ility wine s
• F

ills g a ps fo r nic he pro duc ts tha t c a nno t b e a c hie ve d a t Re ta il: e .g . full ra ng e o f de sse rt wine s

• De stina tio n fo r pro duc ts tha t a re to o uniq ue

fo r F ro nt L ine b ut no t ic o nic e no ug h fo r Cla ssic s

• Pric e Ba nd: $25 - $85

Classic s

• Mo ving a wa y fro m c a ta lo g ue a s o f the

Oc to b e r c o lle c tio n Oc to b e r c o lle c tio n

• Ne w mo nthly fo rma t, sma lle r c o lle c tio ns
• De fining ‘ c la ssic s’ a nd e nsure a ll purc ha se s

me e t the de finitio n to q ua lify

• Ma inta in pre mium ima g e while a ttra c ting a

p g g la rg e r a udie nc e

• Mo ving to a lmo st e ntire ly first-c o me -first-

se rve d b a sis

5/18/2012 46

Bo r de aux F utur e s

• 2012 c a mpa ig n will la unc h o n-line

2012 c a mpa ig n will la unc h o n line

• Re sidua l 2010’ s a nd 2011’ s will g o o n-line

upo n the la unc h

• Mo ving a lmo st e ntire ly to first-c o me -first-

se rve d

• E

xtre me ly sma ll lo ts a nd/ o r hig h de ma nd wine s will ma inta in a llo c a tio n pro c e ss

• E

a sie r a c c e ss a nd mo re visib ility to a la rg e r a udie nc e

Vir tual Offe r s

• Dyna mic unusua l/ uniq ue o ffe rs

L i it d ti h t ti t d d b

• L

imite d time - sho rt time to re spo nd a nd b uy – 30 da y turna ro und

• Ma y o r ma y no t b e re la te d to a n e ve nt
• Sho rte ne d time line to c o mme rc ia liza tio n a nd

inc re a se e xc ite me nt a nd e ng a g e me nt in g g pro g ra ms

5/18/2012 47

VI

NT AGE S E

ve nt T ic ke ts

• Ca n b e o rde re d o n-line
• Printe d a t ho me b y the c usto me r
• Printe d a t ho me b y the c usto me r
• I

n so me insta nc e s, tic ke ts will b e a va ila b le fo r purc ha se rig ht up until the sta rt o f the e ve nt

• Sc a nna b le b a rc o de s fo r tra c king
• Mo re visib ility to mo re c usto me rs

Bin E nds

• E

xit stra te g y fo r slo w mo ving wine s

• Auto ma te d syste m to hig hlig ht hig h
• Auto ma te d syste m to hig hlig ht hig h-

inve nto ry, slo w mo ving wine s with re duc e d pric e s to c usto me rs

5/18/2012 48

Mo r e T r aditio nal Custo me r s

• Custo me rs no t c o mfo rta b le with b uying o nline will still

ha ve the o ptio n to use the VI

NT AGE S Co nta c t Ce ntre

ha ve the o ptio n to use the VI

NT AGE S Co nta c t Ce ntre

to ma ke the ir purc ha se s

Ne w – Mar c h 5, 2012

• 25% no n-re funda b le de po sit re q uire d fo r virtua l o ffe rs

a nd Bo rde a ux F uture s

Advantage s o f Dir e c t Sale s Online

• A c o nso lida te d c ha nne l will e nc o ura g e c ro ss-

sho pping a nd a wa re ne ss o f a ll o ur pro g ra ms sho pping a nd a wa re ne ss o f a ll o ur pro g ra ms

• Minimizing the ne e d fo r a n a llo c a tio n pro c e ss

witho ut c o mpro mising e q ua l o ppo rtunity o rde ring (first-c o me -first-se rve d)

• Puts c o ntro l in the ha nds o f c usto me rs – 24/ 7

sho pping

• A b uying pla n tha t is stra te g ic b y c ha nne l
• E

nc o ura g e s b ro wsing

• Pro viding a mo re po we rful se a rc h c a pa b ility
• Co nsta ntly a dding ne w pro duc ts

5/18/2012 49

Advantage s o f Dir e c t Sale s Online

• Ma ny mo re c usto me r-frie ndly fe a ture s to e ntic e

mo re sho pping

• Be tte r c usto me r o rde r visib ility a nd c o mmunic a tio n
• A mo re e ng a g ing site using ima g e s a nd o nline style

writing

• Ca pa b ility to inc lude pro duc ts with virtua l inve nto ry
• Co nso lida te s a ll no n-re ta il pro g ra ms into o ne

c ha nne l, inc luding VI

NT AGE S e ve nt tic ke ts

• I

nc o rpo ra te s L ic e nse e sa le s

T r ade Pr e se ntatio n

• Ca n pre se nt the we b site to the T

ra de a t a Drinks Onta rio me e ting o nc e the site is live - Drinks Onta rio me e ting o nc e the site is live

• ve rvie w o f the site , ho w do e s it wo rk fo r

lic e nse e s e tc .

5/18/2012 50

SPE CI AL E VE NT S

Spe c ial E ve nts

L

• o king fo r e ve nts tha t
• T

a rg e t a ne w a udie nc e

• E

duc a te o ur c usto me rs

• Are I

c o nic / Pre stig io us

• Offe r ‘ inside r a c c e ss’ to wine s o r wine

pe rso na litie s pe rso na litie s

• Va ry in size – fro m ve ry la rg e wa lk-a ro und

ta sting s to sma ll, intima te dinne rs

5/18/2012 51

Ple ase Co nside r

Diffe re nt ide a s!

Summe r c a sua l e ve nts

• Summe r, c a sua l e ve nts
• E

ve nts tha t use E sse ntia ls o r wine s a lre a dy sc he dule d fo r re le a se

• Spe a ke rs se rie s – Wha t? Who ? Ho w?
• E

duc a tio na l e ve nts

• L

a rg e pa rtne rships with T ra de Org a niza tio ns I i / lt d f ll t

• I

c o nic / c ult pro duc e rs fo r sma ll e ve nts

• Wo me n-fo c use d e ve nts
• Nic he e ve nts ta rg e te d a t a spe c ific de mo g ra phic
• E

ve nts o utside o f T

• ro nto

NI SS

5/18/2012 52

NI SS

• Ope ning up visib ility to ‘ L

ife c yc le ’ T ime line : June

• T

ime line : June

T RANSI T I ON

5/18/2012 53

Dir e c to r , Ope r atio ns T r ansitio n

• Re pla c e me nt:

K e lly T a ylo r, Mar keti ng Communi c ati

• ns
• T

ra nsitio n sta rt da te : Ma y 28th, 2012 My la st da y:

• My la st da y:

June 15th, 2012

T

• p 3 T

hings to Re me mbe r

1

So me o ne fro m Drinks Onta rio to c o nta c t

• 1. So me o ne fro m Drinks Onta rio to c o nta c t

Sha ri o r me (K e lly T a ylo r) to a rra ng e fo r a pre se nta tio n a b o ut DSO in the fa ll

• 2. All Dire c t Sa le s pro g ra ms mo ving to o ne

pla tfo rm = mo re e xpo sure a nd po te ntia l fo r sa le s! sa le s!

• 3. E

ve nts – c o me to us with yo ur ide a s! We wa nt to he a r fro m yo u!

5/18/2012 54

I

NVE NT ORY B U SI NE SS

DE

VE L OPME NT

E diso n Yo n I nve nto ry Busine ss De ve lo pme nt Ma na g e r 416 864 6886 e diso n.yo n@ lc b o .c o m

2012-13 I nitiative s

• De ma nd Cha in Ma na g e me nt (DCM)

Mi ti Mig ra tio n

• Sa le o f Da ta E

nha nc e me nts

• I

n-Sto re T a sting s Cha ng e s

• He lpful T

ips!

5/18/2012 55

DE MAND CHAI N MANAGE ME NT (DCM)

DCM Migr atio n

Ba c kg ro und

• Sinc e e a rly 90’ s, se ve ra l ve rsio ns
• F
• re c a sting a nd Re ple nishme nt c o re func tio ns
• Cre a te s sug g e ste d o rde rs
• L

a st ve rsio n:

• Allo c a tio n – F
• rc e s VI

NT AGE S Re le a se s

• Allo c a tio n – F
• rc e s, VI

NT AGE S Re le a se s

• Sug g e ste d tra nsfe rs b e twe e n wa re ho use s
• We b sto re – Re ta il Sto re s pla c e o rde rs
• He a vily c usto mize d

5/18/2012 56

DCM Migr atio n

Ja n 2009:

no lo ng e r suppo rte d b y de ve lo pe r De c ’ 11

Mig ra tio n Adva nta g e s

• Ne w func tio na lity to furthe r IMPROVE

fo re c a sts a nd in-sto c k po sitio n M i f t i d i t b

• Mo ving fro m c usto mize d ve rsio n to b a se

ve rsio n wo uld me a n ta king a dva nta g e o f ne w ve rsio ns q uic ke r

• Ne w pla tfo rm e na b le s sc a la b ility: a s L

CBO g ro ws, mo re c o mple x a na lytic s, q uic ke r

DCM Migr atio n

Suc c e ssfully mig ra te d ne w ve rsio n Ma y 7!

Sc o ping o ut o ppo rtunitie s

• Co mpre he nsive re c o ve ry fro m o ut-o f-

sto c k po sitio n

• Utilizing lo ng ra ng e vie w – da ily a nd

g g g y we e kly

• Syste m c a lc ula te d Pro mo Uplifts

5/18/2012 57

SAL E OF DAT A E NHANCE ME NT S

Sale o f Data E nhanc e me nts

Ba c kg ro und: 2010 – 2011

Co ntinuo us fe e db a c k fro m Ag e nts o n pro g ra m o ppo rtunitie s

Aug ust 2011

• Cre a te d T

ra de F

• c us g ro up

Sc o pe d o ut da ta pro g ra ms to T ra de fro m

• Sc o pe d o ut da ta pro g ra ms to T

ra de fro m inte rna l de pa rtme nts

Se pte mb e r 2011

• Additio na l me e ting s with T

ra de F

• c us g ro up

5/18/2012 58

Sale o f Data E nhanc e me nts

I n a dditio n to e xisting sa le s a nd inve nto ry, YOU a ske d fo r

Ob je c tive

“Re ta il shipme nts, ple a se ” “Daily, weekly, period?”

Ob je c tive

Cre a te a VAL UE

• ADD da ta pro g ra m, E

ASI L Y a c c e ssib le , to me e t the ne e ds o f DI VE RSE tra de me mb e rs

Sale o f Data E nhanc e me nts

I ntro duc e d 6 mo nth sub sc riptio n, April 1, 2012

Cha ng e s Pha se d:

F a ll 2012

• I

n a dditio n to e xisting pa c ka g e s, intro duc ing I n a dditio n to e xisting pa c ka g e s, intro duc ing fo rma tte d ve rsio ns o f the re po rts 2013/ 14

• I

ntro duc ing a dditio na l pa c ka g e s

• Sing le po rta l fo r sub sc riptio ns a nd da ta

5/18/2012 59

CHANGE S T O I N-ST ORE T AST I NGS

I n-sto r e T astings SPE

CI ALE VE NT S T AST I NGS

• I

n-sto re T a sting Re q uire me nts e xist, with Spe c ia l E ve nts T a sting s pig g y-b a c king to the se re q uire me nts

• E

xpe rie nc ing c ha lle ng e s re g a rding c o nduc t

• f De mo nstra to rs in o ur sto re s

5/18/2012 60

Change s to I n-sto r e T asting

I ntro duc ing

• Unifie d I

n-sto re T a sting Re q uire me nts fo r L CBO Sto re s a nd L CBO Spe c ia l E ve nts

• De mo nstra to r Co de o f Co nduc t

I nfo rma tio n Se ssio ns

• We dne sda y, Ma y 23, 2-4pm
• We dne sda y, Ma y 30, 10 – no o n
• We dne sda y, June 6, 2-4pm
• We dne sda y, June 13, 10 – no o n

HE L PF UL T I PS!

Did yo u kno w….

5/18/2012 61

He lpful T ips!

Did you know….

Yo u c a n he lp g e t pro duc ts to ma rke t so o ne r! Yo u c a n he lp g e t pro duc ts to ma rke t so o ne r! HE L PF UL T I PS:

F

ill o ut the full name o f the pro duc t in NI SS; e g . ‘ Cha te a u Gre g Cha rdo nna y’ , no t ‘ Cha rdo nna y’

I

f the re is limite d quantity, ple a se le t us kno w

Se nd sample s on- time Ve ndor

Pr

• file fo rms c o mple te d fully & a c c ura te ly

Administra to rs fo r We b PO must ha ve le gal

author ity to b ind the c o mpa ny

He lpful T ips!

Did you know….

Yo u c a n he lp g e t pro duc ts to ma rke t so o ne r! p g p HE L PF UL T I PS:

 F

• llo wing L

CBO Produc t Pac kaging Standards,

spe c ific a lly:

 All lo a ds must b e 12” c le ar

• f the to p o f the

c o nta ine r

 F

loor loade d c o nta ine rs re q uire d fo r a ll no n

 F

loor loade d c o nta ine rs re q uire d fo r a ll no n-

c o ntine nta l No rth Ame ric a n lo a ds

 40” x 48” Ca na dia n Pa lle t Co unc il (CPC) or

e quivale nt palle ts fo r c o ntine nta l No rth Ame ric a n

lo a ds

5/18/2012 62

He lpful T ips!

Did you know….

Yo u c a n he lp with o rde ring e ffic ie nc y! Yo u c a n he lp with o rde ring e ffic ie nc y! HE L PF UL T I PS:

Must use We b PO to a dvise whe n “Re ady to Ship” L

e t us kno w c ar

ton size c hange s so tha t we c a n

c a lc ula te the c o rre c t T i-Hi fo r o rde rs!

L

e t us kno w o f pr

• duc tion issue s a nd po te ntia l

ina b ility to fill o rde rs!

L

e t us kno w if a pro duc t is not available fo r

• rde ring

T

• p 3 T

hings to Re me mbe r

• De ma nd Cha in Ma na g e me nt (DCM)

Mig ra tio n

• Sa le o f Da ta E

nha nc e me nts

• I

n-Sto re T a sting s Cha ng e s

5/18/2012 63

S

PI RI T S & B E E R

Chris Ro b e rtso n Dire c to r, SPI

RI T S & BE E R

416 365 5886 c hris.ro b e rtso n@ lc b o .c o m

Sale s Plan fo r F isc al 2012-13

Ne t Sale s 2012- 13 Plan 2011- 12 Sale s % Chg.

Do me stic Spirits $923 9M $910 0M 1 5% Do me stic Spirits $923.9M $910.0M 1.5% I mpo rte d Spirits $820.2M $779.1M 5.3% RT D $184.4M $184.6M 0.0% T

• ta l Spirits*

$1,928.7M $1,873.7M 2.9% L CBO Be e r** $658.9M $637.0M 3.4% Cide r $24 1M $21 0 15 1% Cide r $24.1M $21.0 15.1% T

• ta l Be e r & Cide r

$683.0M $657.9M 3.8%

T

• ta l Spirits & Be e r

$2,611.6M $2,531.6M 3.2%

*E xc lude s Duty F re e **E xc lude s T BS

5/18/2012 64

Busine ss Br e akdo wn – Ne t Sale s

Whisky $575.6M 21% Sha re T BS $250.9M 9% Sha re +1.7% +3.9% Vodka $452.1M 16% Sha re +5 4% L CBO Be e r $657.9M 23% +4.9% +5.4% Rum $251.9M 9% +5.2% RT D $184.6M 7% +3.3% Othe r $206.5M 7% +4.8% L ique urs $226.8M 8% +0.8%

F ive -Ye ar Be e r Mar ke t Shar e

Volume (L) 18 1 18.9 19.6 20.8 21.8

81.9 81.1 80.4 79.2 78.2

40 60 80 100

ket Share % 18.1 18.9

20 2006-07 2007-08 2008-09 2009-10 2010-11

Mark

LCBO TBS

L CBO Mar ke t Shar e at the e nd of Pe r iod 13 (F 11- 12): 22.56% (21.85 L Y)

5/18/2012 65

SPI RI T S & BE E R Visio n

T

• inspire , g uide a nd de lig ht o ur

c usto me rs with a wo rld-c la ss a sso rtme nt

• f spirits, b e e r a nd re a dy-to -drink

c o c kta ils

Wo r ld-Class Asso r tme nt

“L

• o king a ro und … yo u wo uld ne ve r kno w tha t we ha d a la c k o f

b e e r in the pro vinc e ” b e e r in the pro vinc e Jo hn S

• t. Jo hn No v. 2011

“Um, wo w? ! T his is a da mn fine re le a se with lo ts o f b e e rs fo r e ve ryo ne ,” wro te o ne b lo g g e r whe n de sc rib ing the 2012 spring c ra ft b e e r re le a se ” A Ye ar o f Be e r Jan. 2012 “I ’ ve b e e n luc ky to a tte nd pre vio us Whisky Sho p ta sting s, a nd I ha ppily re po rt tha t the ir se le c tio n ke e ps g e tting b e tte r with e a c h turn o f the se a so n” S po tlig ht T

• ro nto Jan. 2011

5/18/2012 66

Asso r tme nt Pr io r itie s

• E

nha nc e the L CBO’ s re puta tio n fo r wo rld- c la ss spirits a nd b e e r c la ss spirits a nd b e e r

• F
• c us spirits a sso rtme nt de c isio ns o n

pro duc ts tha t pro mo te tra de up a nd re c ruit ne w c usto me rs

• Gro w b e e r sa le s with a diffe re ntia te d

t t th t ff l d t ft a sso rtme nt tha t o ffe rs va lue a nd g re a t c ra ft b e e r

Asso r tme nt Pr io r itie s

• Bring pro duc ts to ma rke t mo re q uic kly
• Se c ure limite d a llo c a tio ns (i.e . whiskie s)
• Offe r first-to -ma rke t a nd e xc lusive s
• Suppo rt lo c a l pro duc e rs, inc luding b o th c ra ft

b re we rie s a nd mic ro distille rs

5/18/2012 67

Sale s T ar ge ts 2012-13

• Ne w ta rg e ts will b e pub lishe d this we e k

No ma jo r c ha ng e s to mo st g ro uping s

• No ma jo r c ha ng e s to mo st g ro uping s
• Pro duc ts ra nke d in the to p 95% in te rms o f

c umula tive sha re b y pro duc t g ro uping

• Ca te g o ry le a de r do mina nc e ha s b e e n

minimize d b y ha lving a ny SK U with 20% o r mo re sha re sha re

B

E E R & CI DE R

K a thy Me sse rsmith Ca te g o ry Ma na g e r, BE

E R & CI DE R

416 365 5889 ka thy.me sse rsmith@ lc b o .c o m

5/18/2012 68

Busine ss Br e akdo wn – Ne t Sale s

OUT OF PROVINCE BE E R $15M CIDE R $21M +15.8% 3% Shar e IMPORT E D BE E R – E UROPE $180M +2.3% 27% Shar e IMPORT BE E R $15M +21.8% 2% Shar e IMPORT BE E R - USA/ ME XICO $50M +6.5% 8% Shar e IMPORT BE E R - OT HE R IMP $9M

• 1.0%

2% Shar e ONT ARIO BE E R $382M +5.0% 58% Shar e

2011-12 Sale s Re sults

ACT UAL L AST YE AR VARIANCEVARIANCE BE E R & CIDE R

$657.9M $627.2M $30.7M 4.9%

2012-13 Sale s Plan

ACT UAL L AST YE AR VARIANCEVARIANCE BE E R & CIDE R

$682.9M $657.9M $25.0M

3.8%

5/18/2012 69

BE E R & CI DE R Highlights

1

Po pula rity o f Cra ft Be e r

• 1. Po pula rity o f Cra ft Be e r
• 2. Do mina nc e o f Sing le Se rve Ca ns
• 3. Gro wth o f the Cide r Ca te g o ry

g

T r e nd # 1: Cr aft Be e r

• Custo me rs mo re e duc a te d a b o ut b e e r

a nd de ma nding wide r ra ng e o f style s

• Sa le s o f the Cra ft Be e r pro g ra m ha ve

inc re a se d o ve r 200% in the la st 5 ye a rs

• Onta rio Cra ft Be e r se t is the fa ste st g ro wing

se g me nt +26% in litre s (4% sha re )

“T he b e e r se le c tio n ke e ps impro ving … kudo s to the L CBO.”

Jo sh Rubin, T

• ro nto S

tar

5/18/2012 70

T r end # 2: S i ngl e S er ve Cans

• Sa le s ha ve triple d in vo lume o ve r the la st six

p ye a rs

• T

his fo rma t a c c o unts fo r 36% o f a ll b e e r sa le s

• Ove r ha lf the e ntire c a te g o ry’ s g ro wth la st
• Ove r ha lf the e ntire c a te g o ry s g ro wth la st

ye a r

T r e nd # 3: Cide r

• Sa le s g re w +16% la st ye a r

g

• Sing le c a ns a c c o unt fo r 75% o f sa le s a nd

a lmo st a ll o f the g ro wth

• A numb e r o f ne w pro duc ts a re sla te d to b e
• A numb e r o f ne w pro duc ts a re sla te d to b e

re le a se d during this fisc a l ye a r

5/18/2012 71

K e y 2012-13 I nitiative s

• 1. Co ntinue to e xpa nd the L

CBO’ s se le c tio n o f c ra ft b e e r thro ug h ta rg e te d purc ha se s a nd c ra ft b e e r thro ug h ta rg e te d purc ha se s a nd pro g ra m e nha nc e me nts

• 2. Ca pita lize o n the po pula rity o f b e e r sa mple r

pa c ks

• 3. Drive vo lume a nd ma rg in b y stra te g ic a lly

di l l ti d th i e xpa nding va lue se le c tio n a nd o the r uniq ue

• ffe ring s

I nitiative # 1: Cr aft Be e r

Cra ft Be e r Pro g ra m & Bre we ry F e a ture s: F e a ture s:

• F
• c us o n fe a turing the b e st b e e rs fro m the

mo st inno va tive a nd ic o nic c ra ft b re we rie s

• Must c o ntinue to e vo lve to e ng a g e the

b e e r e nthusia st a nd c re a te e xc ite me nt

• Wo rking to c o ntinuo usly impro ve e xe c utio n

“ T he re a re a numb e r o f g re a t b e e rs in this re le a se whic h sho uld, in my

• pinio n, thrill Onta rio b e e r drinke rs.”

Gre at Canadian Be e r Blo g F e b 2012

5/18/2012 72

B: Onta rio Cra ft Be e r

I nitiative # 1: Cr aft Be e r

: O a o C a e e

• Po pula rity c o ntinue s to g ro w
• I

nno va tio n is impo rta nt – se a so na ls, sa mple r pa c ks, g ifting

• T

he re will b e mo re pro mo tio na l

• T

he re will b e mo re pro mo tio na l

• ppo rtunitie s a va ila b le so ple a se c o ntinue

to inve st

• Sa le s ta rg e ts will b e fo rma lize d this fisc a l

ye a r

C: Ame ric a n Cra ft Be e r

I nitiative # 1: Cr aft Be e r

• Hig hly so ug ht a fte r b y b e e r e nthusia sts:
• Go a l to e nha nc e the e xisting se le c tio n o f

Onta rio a nd inte rna tio na l pro duc ts

• Pre fe re nc e fo r fla g ship b ra nds fro m to p-tie r

pro duc e rs pro duc e rs

• T

he re a re c ha lle ng e s a sso c ia te d with so urc ing the se pro duc ts

5/18/2012 73

• Sa le s +15% ve rsus la st ye a r, with inc re a se d

SK U se le c tio n

I nitiative # 2: S ampler Pac ks

SK U se le c tio n

• Gre a t vo lume drive rs tha t pro vide g o o d

ma rg in

• Oppo rtunitie s fo r c ra ft a s we ll a s ma instre a m

b ra nds

• Will b e g ive n mo re pro mo tio na l
• ppo rtunitie s a nd a tte ntio n during the

Pe rio d 5 Be e r pro mo tio n, ho lida y a nd o the r g ifting o c c a sio ns

I nitiative # 3: Oppo r tunitie s to Dr ive Vo lume Sale s

Stra te g ic a lly e xpa nd the va lue se g me nt

• Stra te g ic a lly e xpa nd the va lue se g me nt
• Co ntinue to purc ha se sing le c a ns whe n it

ma ke s se nse

• L

a rg e b o ttle s, sa mple r pa c ks L k f i t iti t

• L
• o k fo r mo re uniq ue o ppo rtunitie s to

drive vo lume – ma ximizing L T Os, o ffe ring stra te g ic pric e po ints, b undle d BAMs

5/18/2012 74

2012-13 Pr

• duc t Call Highlights

One -time purc ha se o ppo rtunitie s

• Ro ta tio na l c ra ft b e e r pro g ra m

S ifti d l k

• Summe r g ifting a nd sa mple r pa c ks
• Ha llo we e n/ Oc to b e rfe st/ Ha rve st
• Ho lida y g ifts

Ye a r-ro und purc ha se o ppo rtunitie s

• Glute n-fre e
• Ame ric a n Cra ft
• OOP Cra ft
• Onta rio Cra ft – Spring / Summe r

No t inc lude d

• I

nte rna tio na l Be e r o r Cide r

WHI

T ES PI RI T S

Sta c e e Ro th Ca te g o ry Ma na g e r, WHI

T E SPI RI T S & RE ADY T O DRI NK

416 864 6347 sta c e e .ro th@ lc b o .c o m

5/18/2012 75

2011-12 Sale s Re sults

ACT UAL L AST YE AR VARIANCE VARIANCE

WHIT ESPIRIT S $765.8M $727M $38.8M

5.3%

RE ADY- T O- DRINK $184.9M $178.2M $6.7M

3.7%

T OT AL

$950.7M $905.2M $45.5m

5.0%

2012-13 Sale s Plan

ACT UAL L AST YE AR VARIANCE VARIANCE WHIT E SPIRIT S

$793.8M $765.8M $28.1M 3.7%

RE ADY- T O- DRINK

$184.5M $184.9M ($0.4M) ‐0.3%

T OT AL

$978.3M $950.7M $27.6M 2.9%

Busine ss Br e akdo wn – Ne t $

COOL E RS $139M +5.0 15% Shar e ONE POUR COCKT AIL S

$13M

• 21.1%

VODKA $452M +5.4% 48% Shar e RUM $252M +5.2% 27% Shar e COCKT AIL S T O GO $33M +12.5% 3% Shar e

1% Sha re

AL COHOL $0.32M

• 79.7%

0% Shar e GIN $59M +5.6% 6% Shar e SOJU/ SHOCHU $2M +11.3% 0% Shar e 27% Shar e

5/18/2012 76

Vo dka

• +5.4% o ve r L

Y

White Spir its Highlights

• 24.1% sha re o f the Spirits ma rke t
• +100M o ve r the pa st five ye a rs
• L

a rg e st sing le spirits se t

Ma in Sa le s Drive r

• Pre mium se t ho lds 67 6% se t sha re

Pre mium se t ho lds 67.6% se t sha re

• +5.4% in ne t sa le s g ro wth o ve r L

Y

F a ste st Gro wing

• De luxe +14.7% inc re a se o ve r L

Y

• F

la vo ure d +7.4% inc re a se o ve r L Y

Spic e d Rum

White Spir its Highlights

• +33.5% vs L

Y

• L

a unc he d fo ur ne w b ra nds within pa st ye a r

• I

nno va tio n fo c use d o n diffe re ntia tio n

De luxe Rum

12% L Y

• +12% vs L

Y

• Custo me rs lo o king fo r mo re c o mple xity
• T

ra ding up within b ra nd fa milie s

5/18/2012 77

Re a dy-to -Drink

• +3.7% vs L

Y

• Co o le rs & Co c kta ils-to -Go se g me nts dro ve $9 5M in

White Spir its Highlights

• Co o le rs & Co c kta ils to Go se g me nts dro ve $9.5M in

a dditio na l sa le s, +5.9% vs L Y

K e y Sa le s Drive rs:

Ca n fo rma ts +53%, 22% ma rke t sha re Gre a t Pric e / q ua lity I nno va tio n Simple Mixe s

T

• p 2012-13 I

nitiative s

• 1. De ve lo p Supe r-Pre mium Vo dka se g me nt

Wha t we a re se e ing Wha t we a re se e ing ….

• Custo me rs tra ding up

in vo dka

• Po la rize d pric ing
• Hig h sa le s ta rg e t

impe ding inno va tio n impe ding inno va tio n a t hig he r ‘ pre mium’ pric e s

• Gro wth in b ra nds

pric e d $30-$40

5/18/2012 78

T

• p 2012-13 I

nitiative s

• 1. De ve lo p Supe r-Pre mium Vo dka se g me nt

Pr Prem emium 375 $13 70 $14 80

T he o ppo rtunity…

• Ne w ‘ Supe r Pre mium’

pric e b a nd: $26.95-$29.95

• Re duc e d sa le s ta rg e t

Pr Prem emium 375 $13.70 $14.80 750 $24.90 $26.90 1140 $37.00 $39.90 1750 $54.95 $59.40 375 $14.85 $17.95 Sup Super 750 $26.95 $29.95 Pr Prem emium 1140 $39.95 $49.80

• Pre mium she lf pla c e me nt
• Pre fe re nc e fo r

pro mo tio na l

• ppo rtunitie s

1750 $59.45 $75.85 De Deluxe xe 375 $18.00 750 $30.00 1140 $49.85 1750 $75.90

T

• p 2012-13 I

nitiative s

2.

Ne w RT D Pric e Struc ture

• Pric e b a nds intro duc e d Pe rio d 1 2012.
• Ob je c tive : inc e nt c o nsume r tra de -up ma inta in the va lue o f the
• Ob je c tive : inc e nt c o nsume r tra de -up, ma inta in the va lue o f the

RT D b usine ss.

• T

wo pric e tie rs: Va lue o r Ma instre a m/ Pre mium

• Va lue = L

T O a nd Displa y re stric tio ns

Description Price per mL Format Min Retail 6x330 11.76 $ 6x341 12.15 $ 6x355 12 65 $ 6‐pack, ≥1L containers and < $0.594 per 6x355 12.65 $ 473 2.81 $ 1000 5.94 $ 4x330 9.03 $ 4x341 9.33 $ 4x355 9.71 $ 4x400 10.94 $ containers, and ≥473mL single serve per 100ml 4‐pack < $0.684 per 100ml

• Pro duc ts a t o r b e lo w the minimum re ta il will fa ll into the Va lue c a te g o ry
• Ba se d o n re g ula r re ta il

5/18/2012 79

T

• p 2012-13 I

nitiative s

2.

Ne w RT D Pric e Struc ture – I MAGE Guide line s:

Pr ic e Band Pr ic e Band L T Os L T Os Display Display p y p y

Va lue

• 2 pe rio ds b e twe e n L

T O’ s o n individua l SK U’ s

• 1 L

T O pe r pe rio d pe r Bra nd

• ma x. 2 a nnua lly pe r SK

U

• ma x. 10 a nnua lly pe r Bra nd
• ma x disc o unt o f 10%
• no Supe r Sa le s
• No E

nd Aisle s, Po ds

• r He ro displa ys
• No DOC’ s
• Blo c kpile a nd She lf

E xte nde r pe rmitte d p Ma instre a m a nd Pre mium

• Sta nda rd g uide line s

– no b a c k to b a c k – ma x. 4 a nnua lly pe r SK U – ma x disc o unt o f 20%

• Sta nda rd

g uide line s

T

• p 2012-13 I

nitiative s

• 3. Se a so na l F

la vo ure d Vo dka Pro g ra m

D i d t it li h t

• De sig ne d to c a pita lize o n ho t

tre nds in fla vo ur: ‘ He re fo r a limite d time ’

• E

ntic e ne w c usto me rs

• Drive inc re a se d tra ffic into

c a te g o ry

2011/ 12 Ne t 2012/ 13 F c st 2012/ 13 Re fc st % Var . T

• L

Y

Se a so na l F la vo ure d Vo dka Pro g ra m $787.1K $1.2M $2.5M 222%

5/18/2012 80

2012-13 I nitiative s

• 4. F

ro nt E nd Me rc ha ndise r: Ne w Stra te g y T he issue : T he issue :

• Prime lo c a tio n in the sto re

c urre ntly la c ks e xc ite me nt

• I

nc o nsiste nt me rc ha ndising a nd a sso rtme nt a c ro ss the c ha in

T he o b je c tive : T he o b je c tive :

Cre a te a me rc ha ndising stra te g y tha t…

• E

nc o ura g e s disc o ve ry o f ne w pro duc t

• Me e ts re ta il o pe ra tio na l e ffic ie nc ie s a nd is c o nsiste nt

a c ro ss the c ha in

• Ge ne ra te s inc re me nta l pro fits

2012-13 I nitiative s

Be g inning Pe rio d 3 2012

• 4. F

ro nt E nd Me rc ha ndise r: Ne w Stra te g y Be g inning Pe rio d 3, 2012…

• 50mL

spirits disc o ntinue d

• So ld Spa c e pro g ra m to fe a ture NE

W (P1- 8,11-13)

• So ld Spa c e pro g ra m to fe a ture 375mL

Spirits (P9/ 10) (P9/ 10)

• T
• p 10 Co re 200mL

Spirits pro g ra m b y PPG

• Sta nda rdize d Sta ff Pic k me rc ha ndising
• A re vita lize d 200mL

spirits a nd 375mL wine a sso rtme nt

5/18/2012 81

2012-13 Pr

• duc t Call Highlights

Rum:

P i S P i

Vodka:

P i D l F l d

• Pre mium, Supe r- Pre mium,

De luxe , F la vo ure d

• F
• c us o n fulfilling Supe r-Pre mium

pric e b a nd, $26.95-$29.95

• Oppo rtunity to ta rg e t a ne w

c usto me r (i.e . fe ma le )

• I

nno va tive pa c ka g ing

• Stro ng ma rke ting suppo rt

re q uire d

• Pre mium, De luxe , F

la vo ure d

• Co nside ra tio n fo r Spic e d Rum

will b e limite d

• Oppo rtunity to de ve lo p

pre mium white rum c a te g o ry

• Pre fe re nc e fo r

uniq ue / re no wne d rums pric e d $26-$32.95

• Bro a de n re pre se nta tio n o f rum

re q uire d

• F

irst to ma rke t o ppo rtunitie s

• Ho t/ E

me rg ing fla vo urs to suppo rt the Se a so na l F la vo ure d Vo dka Pro g ra m

• L
• c a l, a rtisa na l, c ra ft
• Bro a de n re pre se nta tio n o f rum

pro duc ing c o untrie s

• De luxe : the b e st o f the b e st,

hig hly a wa rde d a nd so ug ht a fte r

• Oppo rtunity fo r Ca c ha ç a

2012-13 Pr

• duc t Call Highlights

RT D:

S l/ O h t

Gin:

C id h i

• Se a so na l/ One -sho t
• Uniq ue pro po sitio ns tha t ta rg e t

25-39 – yr o ld c o nsume r

• F
• c us o n pro duc ts tha t furthe r

de ve lo p the c a te g o ry a nd b ro a de n the a ppe a l o f g in

• Stro ng pa c ka g ing a nd

ma rke ting suppo rt

• Gins tha t a ppe a l to the
• Co nside r c o nsume r c ha ng e in

ta ste pro file s (le ss swe e t, lo w c a lo rie , na tura l ing re die nts)

• E

nviro nme nta lly frie ndly pa c ka g ing pre fe rre d

• Ca pita lize o n po pula rity o f c a n

fo rma ts

• Oppo rtunity to de ve lo p ne w

spirit b a se s

• Gins tha t a ppe a l to the

c o nno isse ur spirit b a se s

• Oppo rtunity to ta rg e t the b e e r
• c c a sio n/ ma le c o nsume r
• OPC: ne w fo rma ts, a lc o ho l

c o nte nt – fo c us o n e nte rta ining

• c c a sio ns
• Pre mium pre fe rre d – stro ng

pric e / q ua lity

5/18/2012 82

1 Re a lize ne w tra de up o ppo rtunitie s in

T

• p 3 T

hings to Re me mbe r

• 1. Re a lize ne w tra de -up o ppo rtunitie s in

Supe r-Pre mium Vo dka in o rde r to c o ntinue driving spirits sa le s

• 2. Cre a te e xc ite me nt in-sto re thro ug h

inno va tio n

• 3. Ra ise the pro file o f the Rum a nd Gin

c a te g o rie s

B

ROWN S PI RI T S

Ma rijke Mc L e a n Ca te g o ry Ma na g e r, BROWN SPI

RI T S & DUT Y-F RE E

416 365 5873 ma rijke .mc le a n@ lc b o .c o m

5/18/2012 83

2011-12 Sale s Re sults

ACT UAL L AST YE AR VARIANCE

Br

• wn Spir

its T OT AL

$923.9M $895.8M 3.1%

• Sp

s O

2012-13 Sale s Plan

ACT UAL L AST YE AR VARIANCE

Br

• wn Spir

its T OT AL

$950.3M $923.9M 2.9%

L IQUE URS SIPPE RS COCKT AIL MIXE RS $34M +0.7% T r e nd 4% Shar e E XOT IC MIXE RS $17M - 8.0% 2% Shar e T E QUIL A $38M +12.7% 4% Shar e WHISKY SHOP $5M +90.2% 0% Shar e

Busine ss Br e akdo wn - Ne t $

WHISKY CANADIAN $388M +2.3% T r e nd 42% Shar e L IQUE URS CL ASSICS $112M - 0.7% 12% Shar e BIT T E RS $62M +6.4% 7% Shar e WHISKY SCOT CH $136M +3.5% T r e nd 15% Shar e WHISKE Y IRISH $12M +18.3% 1% Shar e WHISKE Y AME RICAN $33M +13.8% 4% Shar e BRANDY/ COGNAC $82M +0.5% 9% Shar e

5/18/2012 84

Br

• wn Spir

its Highlights

Ca na dia n Whisky

• + 2.3% o ve r L

Y

• 21% sha re o f the Spirits ma rke t

Pre mium

• +3.3% in Ne t Sa le s o ve r L

Y

• Ha s g ro wn in ma rke t sha re to 51% o f the c a te g o ry

De luxe

• F

a ste st g ro wing sub se t in the c a te g o ry

• +104 o ve r L

Y e q ua ling +7.8M in a dditio na l sa le s

• Gro wth fro m ne w inno va tive pro duc ts a ttra c ting ne w

c usto me rs

• Re viving the c o nve ntio na l pe rc e ptio ns a b o ut Ca na dia n

whisky

Br

• wn Spir

its Highlights

Ame ric a n Whiske y

S l +14% L Y

• Sa le s +14% o ve r L

Y

Pre mium

• +16 in sa le s
• 81% o f the se t sha re
• Adde d six ne w listing to the po rtfo lio
• I

nc re a se d e xpo sure in the me dia

• Gro wing b a se o f e nthusia sts a nd c o nno isse urs
• Attra c ting ne w c o nsume rs into the whiske y ma rke t

5/18/2012 85

Br

• wn Spir

its Highlights

T e q uila : +13% o ve r L Y Pre mium: +84% o ve r L Y, +2.3% g ro wth in se t ma rke t sha re De luxe

• +25% in sa le s o ve r L

Y

• 21% o f se t ma rke t sha re
• Adde d 11 ne w se a so na l a nd pe rma ne nt

p pro duc ts to the a sso rtme nt

• Will b e upda ting me rc ha ndising o f 100%

a g a ve pro duc ts to de sira b le she lf spa c e

Whisky Sho p

• $4.9M in re ve nue , +92% o ve r L

Y

• Sa le s ta rg e t o f $8.8M fo r 2012/ 13
• F

e a ture d in 101 lo c a tio ns a c ro ss the pro vinc e

• 93 ne w pro duc ts liste d in the first

p ye a r

• 73 ne w pro duc ts c o nfirme d fo r this

ye a r

5/18/2012 86

L ique ur s I nitiative

Curre nt Sta te

• Sa le s de c line

Co mpe titio n

• Co mpe titio n
• Se a so na l

Our Pla n

• Re se a rc h
• Re vie w
• Pla n
• T

e st

• Ro ll o ut

Our Go a ls

• Re ne w
• Re ve rse
• I

nc re a se

• Hig hlig ht

Ne w and Se aso nal Pr

• duc t F

ixtur e

T he g ift fixture s

P i l t t i 166 l ti

• Prime re a l e sta te in 166 lo c a tio ns
• I

nc o nsiste nt me rc ha ndising fro m sto re to sto re

• L
• w sa le s vo lume in no n ho lida y se a so n

Custome r insight

• 44% of c ustome r

s do not fe e l that we c onsiste ntly offe r ne w pr

• duc ts of inte r

e st

5/18/2012 87

Ne w and Se aso nal Pr

• duc t F

ixtur e

So lutio n – Ne w a nd Se a so na l pro duc t fixture

• Pe rio ds 9-11
• Ho lida y g ifts
• Pe rio ds 12-8
• Ne w re le a se s
• Summe r ro se pro g ra m
• Se a so na l spirits

“Gre e n” c e ntre

• 7 T
• ro nto lo c a tio ns
• F

e a turing susta ina b le pro duc ts

2012-13 Pr

• duc t Call Highlights

E a ux-de -vie

• F

ill g a ps in the c urre nt a sso rtme nt

• I

nvig o ra te a sso rtme nt with ne w b ra nds

• Suc c e ssful b ra nds fro m fo re ig n ma rke ts
• Ob vio us use o c c a sio ns

5/18/2012 88

2012-13 Pr

• duc t Call Highlights

Sc o tc h

• L
• o king fo r b le nds a nd sing le ma lts
• o

g o b e ds a d s g e a s

• Co mme rc ia l b ra nds tha t do n’ t fit into the whisky

sho p mo de l

• Suc c e ssful b ra nds fro m fo re ig n ma rke ts
• Stro ng ma rke ting suppo rt

2012-13 Pr

• duc t Call Highlights

Ame ric a n & I rish Whiske y

• Ca pita lize o n c urre nt sa le s tre nds
• Ca pita lize o n c urre nt sa le s tre nds
• Answe r c o nsume r de ma nd fo r ne w pro duc ts
• F
• c us o n hig h vo lume c o mme rc ia l b ra nds
• Re ta il pric e within the pre mium o r de luxe

b a nds

• Stro ng ma rke ting suppo rt

5/18/2012 89

T

• p 3 T

hings to Re me mbe r

1 Wo rk with o ur tra de pa rtne rs to g ro w

• 1. Wo rk with o ur tra de pa rtne rs to g ro w

Ca na dia n whisky c a te g o ry to its b e st sa le s re sult in five ye a rs

• 2. Re a lize a n a c tio n pla n to sta b ilize a nd

g ro w the liq ue urs c a te g o rie s

• 3. L

e ve ra g e pro duc t c a ll to a dd e xc ite me nt a nd inno va tio n to the po rtfo lio a nd b e st se rve the ne e ds o f o ur c usto me rs

WI

NE S

K a thy Ca nno n Dire c to r, WI

NE S & VI NT AGE S

416 365 5907 ka thy.c a nno n@ lc b o .c o m

5/18/2012 90

E UROPE AN WINE S $406.2M ( 4 3% ) ONT ARIO WINE S $340.1M (+5.7% ) 520 SKUs

Sale s Br e akdo wn

(+4.3% ) 574 SKUs 520 SKUs

27.4% Shar e

+0.3%

32.6% Shar e

0.0% )

40.0% Shar e

NE W WORL D WINE S $497.2M (+3.6% ) 515 SKUs

(- 0.3% )

PT13, YTD

2011-12 Sale s Re sults

Buye r T Y L Y Chg % Chg y g % g

E UROPE AN WINE S

$406M $389M $16,631 4.3%

NE W WORL D WINE S

$497M $480M $17,229 3.6%

ONT ARIO WINE S

$3401M $322M $18,264 5.7%

Gr and T

• tal

$1,244M $1,192M $52,125 4.4%

Onta rio VQA Wine Sa le s g re w b y 9.6%

5/18/2012 91

Ne w Pr

• duc ts Dr

iving Gr

• wth

# of Pr

• duc ts

$ Gr

• wth

% of T

• tal

Gr

• wth

Ne w Pro duc ts 309 $42,7M 82% E xisting Bra nds 1,305 $9,340M 18% Bra nds T

• ta l

1,614 $52M 100%

Buye r T Y L Y Chg . % Chg . E UROPE AN WI NE S $9.17 $8.99 $0.18 2.0% NE W WORL D

PT13, YTD

NE W WORL D WI NE S $8.99 $8.72 $0.27 3.1% ONT ARI O WI NE S $7.39 $7.29 $0.10 1.4% Gra nd T

• ta l

$8.53 $8.36 $0.18 2.1%

5/18/2012 92

• Avg. Pr

ic e Pe r 750 mLBo ttle By Co untr y

Countr y T Y L Y Chg. % Chg.

VQA $10.88 $10.75 $0.13 1.2% I T AL Y $8.70 $8.53 $0.17 2.0% AUST RAL I A $10.70 $10.56 $0.14 1.3% CAL I F ORNI A $8.50 $8.09 $0.41 5.1% F RANCE $10.32 $9.98 $0.34 3.4% ARGE NT I NA $7.69 $7.40 $0.30 4.0% SPAI N $10.29 $10.08 $0.22 2.2%

Fiscal 11/12

Var ie tal/ Re gio n Plano gr am T e st

• By va rie ta l/ re g io n pla no g ra ms te ste d in 16

sto re s a ll WI NE S se c tio ns – pre mium pro duc t sto re s a ll WI NE S se c tio ns pre mium pro duc t

• n to p she lf
• Co nsume rs tra ding up
• Pre mium Wine sa le s up 8.4%
• I

nc re a se d ma rg in

• Ro llo ut b e g a n Ja n 2012
• All sto re s c o mple te d b y Ma rc h 2013

5/18/2012 93

What is Pr e mium?

Pre mium thre sho lds va ry b y c o untry a nd style o f wine

• I

ta lia n White Ble nds $11.00

• Ripa sso $15.95
• Ca lifo rnia Cha rdo nna y $14.95

T ra de We b site

F lighte d E nd Aisle s

T e ste d a ne w pro mo tio na l stra te g y in P2 fo r T e ste d a ne w pro mo tio na l stra te g y in P2 fo r Austra lia tha t a llo we d fo r mo re ne w b ra nds to b e pro mo te d o n E nd Aisle s witho ut e no rmo us inve nto ry c o mmitme nts:

• F

lig hte d the sto re s a nd ta ilo re d the b ra nds

• F

lig hte d the sto re s a nd ta ilo re d the b ra nds

• Re pe a te d fo r Onta rio Wine s a nd I

ta ly pro mo tio n suc c e ssfully

5/18/2012 94

Obje c tive s 2012-13

• 1. Build e xc ite me nt a nd sa le s g ro wth thro ug h ne w

pro duc ts

• T

urn 10 – 15% o f po rtfo lio (150 – 225 pro duc ts pe r ye a r)

• 2. Ma ke sho pping fo r wine e a sie r a nd le ss intimida ting

fo r c usto me rs

• 3. E

nha nc e the q ua lity I ma g e o f VQA wine s a nd e nc o ura g e sta ff to re c o mme nd the m

• Gro w VQA sha re thro ug h the L

CBO

• 4. E

nc o ura g e c usto me rs to tra de up the ir e ve ryda y purc ha se s

Sale s Plan fo r 2012-13

Buye r 2011/ 12 Sale s $ Ne t 2012/ 13 F

• r

e c ast % Chg.

E UROPE AN WI NE S $406.2M $419.2M 3.2% NE W WORL D WI NE S $497.3M $523.6M 5.3% ONT ARI O WI NE S $340 7M $356 3M 4 6% ONT ARI O WI NE S $340.7M $356.3M 4.6% T OT AL WI NE S $1,244.2M $1,299.2M 4.4%

5/18/2012 95

K e y I nitiative s

• I

mple me nt style de sc ripto rs o n e a c h d t i t t i pro duc t in sto re to g ive c o nsume rs a b e tte r ide a o f the fla vo r pro file o f the wine b e fo re the y purc ha se :

• All WI

NE S ha ve b e e n c la ssifie d into o ne o f o ur e ig ht style de sc ripto rs St l d i t ill b th b i t

• Style de sc ripto rs will b e o n the b in ta g s

Style De sc r ipto r s

Wine Style De sc r iptor s Wine Style De sc r iptor s R d Whit Re d White

L ig ht b o die d a nd fruity L ig ht a nd c risp Me dium b o die d a nd fruity Off dry a nd fruity F ull b o die d a nd smo o th Aro ma tic a nd fla vo urful fla vo urful F ull b o die d a nd firm F ull b o die d a nd ric h L a unc hing a pe rma ne nt to o l in P2 – Ma y 2012 “Wine Sho pping Ma de E a sy”

5/18/2012 96

P2 – Ne w Bin T ags K e y I nitiative s

I mple me nt a So ld Spa c e pro g ra m in the p p p g Wine F ridg e :

• Minimum 50% re ma ins disc re tio na ry
• Add c o nsiste nc y to the fridg e se le c tio n
• Oppo rtunity to try pro duc ts in a g re a t

Oppo rtunity to try pro duc ts in a g re a t numb e r o f sto re s

5/18/2012 97

De ve lo p a “ Sig na ture Se rie s” o f pro duc ts tha t wo uld inc lude “must ha ve s” in a ll c a te g o rie s to

K e y I nitiative s

e nsure a wo rld c la ss po rtfo lio .

• Be nc hma rks o f the re g io n
• No ta b le b ra nds
• No b le g ra pe va rie ta ls



E nc o ura g e tra de -up



E nc o ura g e tra de up



F ill a pric e g a p

Sale s T ar ge ts

Se t le ve l Austra lia n Re d Sub se t le ve l Austra lia n Shira z Austra lia n Ca b e rne t Austra lia n Pino t No ir Austra lia n Re d Ble nds

5/18/2012 98

Sale s T ar ge ts

• Pro te c t 90% o f Gro ss Ma rg in
• Bra nd do mina nc e re mo ve d b y c utting

sa le s o f la rg e vo lume skus in ha lf

• Bra nd do mina nt if 25% o f sub se t

Winte r / Summe r Wine Pr

• gr

am

Go a ls

E ti t t thi

• E

ntic e c o nsume rs to try so me thing ne w b y e ndo rsing o ne wine fo r the se a so n

• Cre a te e xc ite me nt a nd a se nse o f

urg e nc y to purc ha se thro ug h its limite d time a va ila b ility

Ho w we b uy

• Wine s to ma tc h the se a so n
• Po pula r wine style s a nd pric e po ints
• I

ntro duc e c o nsume rs to so me thing ne w

5/18/2012 99

Winte r / Summe r Wine Pr

• gr

am

Ove rvie w

• Pro g ra m c o st: $30,000
• L

isting fo r fo ur Pe rio ds

• A fo rc e d distrib utio n to a ppro xima te ly 250 sto re s,
• Oppo rtunity fo r displa y spa c e in the pa rtic ipa ting

sto re s,

Ma rke ting suppo rt

• E

nd a isle b a c ke r c a rd a nd pre printe d pric e r c a rd

• E

nd a isle b a c ke r c a rd a nd pre -printe d pric e r c a rd to suppo rt the displa y a nd a b ra nde d she lf ta lke r.

• A do ub le pa g e fe a ture in the F
• o d & Drink,
• T
• ta l o rde r q ua ntity o f 5,000 – 8,000 c a se s
• Any re sidua l inve nto ry a t the e nd o f the fo ur-

mo nth pe rio d will b e sub je c t to a 25% re b a te

Ontar io WI

NE S Buying T

e am

Kathy Cannon

Busine ss Unit Dire c to r L CBO WI

NE S

T amar a Jake s

Ca te g o ry Ma na g e r Onta rio WI

NE S/ VI NT AGE S

A t id B

Onta rio

Astr id Br umme r

Pro duc t Ma na g e r Onta rio WI

NE S/ VI NT AGE S

L uc y Ske ar d

Ca te g o ry Administra to r Onta rio WI

NE S/ VI NT AGE S

5/18/2012 100

Ontar io Str ate gy (VQA)

E le va te the Qua lity I ma g e o f Onta rio Wine s

• I

nc re a se c o nsume r c o nfide nc e

Ho w?

• Hig hlig ht Pino t No ir, Cha rdo nna y, Rie sling , Spa rkling

a nd Ca b e rne t F ra nc a s sig na ture va rie ta ls L ti ti t b “l l” t

• L

e ve ra g e c o nsume rs mo tiva tio n to b uy “lo c a l” to inc re a se tria l o f Onta rio Wine s

• L

e ve ra g e the 3rd pa rty a c c o la de s tha t the wine s ha ve re c e ive d

ONT

ARI O WI NE S

T a ma ra Ja ke s Ca te g o ry Ma na g e r, O NT

ARI O WI NE S

416 365 5882 ta ma ra .ja ke s@ lc b o .c o m

5/18/2012 101

Sale s Br e akdo wn

VQA

$108.9M 30.3% Sha re

NON- VQA

$38.3M 10.6% Sha re +7.8% 30.3% Sha re +9.0% 7.8%

ICE

WINE $6.1M 1.7% Sha re +2.6%

ICB

$206.6M 57.4% Sha re +3.6%

2011-12 Sale s Re sults

2011- 12 Sa le s $ Ne t 2012- 13 Pla n Sa le s $ Ne t % Chg.

VQA T a b le Wine $109M $120M 10.2% I CE WI NE $6.M $6M 5.9% VQA T

• ta l

$115M $127M 10.0% I CB $207M $209M 1.3% NON-VQA $38M $41M 7.6% Gra nd T

• ta l

$360M $377M 4.8%

5/18/2012 102

2011-12 Cate go r y Dr ive r s

Ne w Pro duc ts

Ac c o unte d fo r 70% o f to ta l ne t $ g ro wth

• Ac c o unte d fo r 70% o f to ta l ne t $ g ro wth

(L CBO wine s)

• VI

NT AGE S F

ro ntline sa le s (+10.3%) drive r o f VI

NT AGE S g ro wth

VQA Wine s VQA Wine s

• Driving fo rc e b e hind sa le s g ro wth o ve ra ll
• 49% c o ntrib utio n to to ta l g ro wth (+8.1M)

2011-12 Cate go r y Dr ive r s

I CB/ No n-VQA

• Ba g in Bo x la rg e st drive r; 38% ma rke t
• Ba g in Bo x - la rg e st drive r; 38% ma rke t

sha re , +9.1% (+6.5M)

• Spe c ia lty Wine s - le a d b y inc re a se s in

fla vo ure d wine s +30%(+3.2M)

Pre mium Pric e Po ints Pre mium Pric e Po ints

• $12-$15 wine s dro ve VQA sa le s (+15%)
• 80% o f sa le s g ro wth

5/18/2012 103

2011-12 T r e nds: White s

Rie sling

• Gro wn to ta ke o ve r the to p spo t fo r VQA white s
• Drive r o f sa le s in b o th c ha nne ls
• T

re nd ve rifie s Onta rio ’ s a b ility to ma ke wo rld c la ss Rie sling

Sa uvig no n Bla nc

• No n-tra ditio na l va rie ta l
• Co ntrib ute d 40% o f the inc re me nta l white sa le s g ro wth

Co nsume rs a re inte re ste d in va rie ty fro m Onta rio

• Co nsume rs a re inte re ste d in va rie ty fro m Onta rio

White Ble nds

• Co ntinue to g ro w sig nific a ntly +19.9%,
• Ra nke d # 2 in white wine sa le s

2011-12 T r e nds: Re ds

Re d Ble nds

• A do mina nt re d style tha t c o ntinue s to g ro w in

A do mina nt re d style tha t c o ntinue s to g ro w in po pula rity

• K

e y c o ntrib uto r to g ro wth

Sing le Va rie ta ls

• E

.g . Ba c o No ir, Ca b e rne t Sa uvig no n a nd Shira z

• Ge ne ra te d mo st o f the ne t sa le s fo r Onta rio VQA

re ds re ds

Pino t No ir

• Drive r o f pre mium re d wine sa le s in VI

NT AGE S

• 33% ma rke t sha re a nd g ro wing a t 24%

5/18/2012 104

2012-13 I nitiative s

1 L

e ve ra g e the ho listic a ppro a c h to

• 1. L

e ve ra g e the ho listic a ppro a c h to ma na g ing the b usine ss, to ma ximize sa le s a nd pro mo tio na l o ppo rtunitie s fo r Onta rio wine s

2012-13 I nitiative s

• 2. Build e xc ite me nt a nd inc re a se

e ffe c tive ne ss o f Onta rio pro g ra ms b y e ffe c tive ne ss o f Onta rio pro g ra ms b y simplifying a nd c re a ting stro ng e r e ng a g e me nt with sta ff a nd c usto me rs

5/18/2012 105

2012-13 I nitiative s

• 3. Re fre sh the VI

NT AGE S E

sse ntia ls tf li f i th i d po rtfo lio , fo c using o n the wine s a nd style s whe re Onta rio ha s e xpe rtise (Pino t No ir, Rie sling , Cha rdo nna y)

2012-13 Pr

• duc t Call Highlights

I nc re a se ma rke t sha re in pre mium pric e po ints

• I

CB - $10+ $

• VQA - $15+
• VI

NT AGE S - $20+

• “Sig na ture ” se rie s

Are inno va tive a nd NE W

• Offe r e xc e ptio na l q ua lity

C titi i i t

• Co mpe titive pric e po ints

F ue l g ro wth o f sing le va rie ta ls

• Re fre sh re d a nd white wine po rtfo lio s
• Style s a nd va rie ta ls whe re Onta rio ha s e xpe rtise

5/18/2012 106

• 1. We a re lo o king to g ro w ma rke t sha re in

pre mium pric e po ints

T

• p 3 T

hings to Re me mbe r

pre mium pric e po ints

• 2. VQA – We will fo c us o n wine s tha t

re pre se nt wha t Onta rio e xc e ls a t (Cha rdo nna y, Rie sling , Pino t No ir, Ca b e rne t F ra nc )

• 3. We a re re vie wing a ll Onta rio pro g ra ms

to simplify, a nd inc re a se e ffe c tive ne ss

E

U ROPE AN WI NE S

Gre g Dunlo p Ca te g o ry Ma na g e r, E

UROPE AN WI NE S

416 864 6642 g re g .dunlo p@ lc b o .c o m

5/18/2012 107

2011-12 Sale s Re sults

T Y L Y Chg Chg % E UROPE AN

$406.2M $389.6M $16.6M

+4.3% PL AN L Y Chg

2012-13 Sale s Plan

PL AN L Y Chg E UROPE AN

$419.2M $406.2M

3.2%

Sale s Br e akdo wn

GE RMANY $22.1M PORT UGAL $20.7M 5.1% Shar e E AST E RN E UROPE $7.2M 1.8% Shar e 0 1% IT AL Y SPAIN $25.9M 6.4% Shar e

• 1.8%

$22.1M 5.5% Shar e +6.3%

• 0.7%

0.1% $219M 54.0% Shar e +8.7% F RANCE , $111M 27.3% Shar e

• 1.5%

5/18/2012 108

E ur

• pe an Wine s - Cate go r

y Dr ive r s

• Wine s o f I

ta ly

• Re ds: $111M + 7.2%
• White s: $80M + 10.5%
• Spa rkling : $16.5 M + 11.3%
• Cha ng ing o f a sso rtme nt – F

illing g a ps

• 40 ne w pro duc ts

My I taly Re sults – P13

Buye r T Y L Y Chg % Chg

IT AL Y RE D

$12.5M $7.8M $4.7M 60.8%

IT AL Y WHIT E

$7.9M $5.1M $2.8M 54.5%

SPARKL ING

$1.1M $0.8M $0.3M 35.1%

T

• tal

$22.4M $14.5M $7.9M 54.8%

5/18/2012 109

My I taly Pr

• mo tio n – P13
• Ne t Sa le s inc re a se d b y 55% o r $8 M
• Ne t $ L

itre inc re a se d b y $.067 fro m $11.13 to $11.80

• Ne w pro duc ts c o ntrib ute d $2.2 in Ne t sa le s o r

28% o f the to ta l ne t g ro wth

• T

he $16- $18 b a nd ha d the la rg e st inc re a se in

• T

he $16 $18 b a nd ha d the la rg e st inc re a se in sha re +2.9%

• Did no t c a nnib a lize o the r wine c a te g o rie s

Pr

• duc t T

r e nds

• 1. I

ta ly Re d

• 2. I

ta ly White

• 3. F

ra nc e Re d

• 4. F

ra nc e White

• 5. Spa in Re d

5/18/2012 110

Pr

• duc t T

r e nds - I taly Re d

Pre mium I ta lia n Re d

• Ripa sso : $12M, + 19%
• Chia nti: $15M, +23%
• Ba ro lo , Brune llo , Ba rb a re sc o : $1.8M, + 26%

Pr

• duc t T

r e nds - I taly White

Pino t Grig io

$46M +13%

• No t lo o king to a dd ne w e ntrie s a t this

time

5/18/2012 111

Pr

• duc t T

r e nds – F r anc e Re d

Are a s o f Gro wth

• Re d Burg undy Pino t No ir; $3.1M, + 15.7%
• So uth F

ra nc e Pino t No ir; $3.3M, + 8.7%

• Cha te a une uf du Pa pe : $1.8M, + 5.1%
• So uth Ma lb e c : $0.5M, +10.6%

Pr

• duc t T

r e nds – F r anc e White

Are a s o f Gro wth

• Bo rde a ux: $1.1M, +8.4%
• Rho ne : $2.5M, +11%
• L
• ire : $0.75M, +29%

5/18/2012 112

Pr

• duc t T

r e nds – Spanish Re d

Are a s o f Gro wth

• Rio ja $4.4M +17.5%
• Ble nds $2.9M +7.1%

K e y 2012 – 13 I nitiative s

• 1. Pla ns fo r F

ra nc e : I nc luding ta c tic s to d tif de mystify

• 2. I

ta ly: On-g o ing re vie w a nd ma king c ha ng e s whe re ne c e ssa ry

• 3. Co lla b o ra tio n with VI

NT AGE S to

e nha nc e o ve ra ll a sso rtme nt e nha nc e o ve ra ll a sso rtme nt

• 4. De -se a so nlize spa rkling wine s

5/18/2012 113

I nitiative s - F r anc e

• I

de ntify a nd fill g a ps - Simila r a ppro a c h a s I ta ly I ta ly

• Curre ntly ha ve a g o o d c o re b a se
• Oppo rtunitie s to inc re a se o ur a sso rtme nt o f

AOC wine s

• T

e rrio r, se nse o f pla c e T e rrio r, se nse o f pla c e

• E

sta te Wine s, Do ma ine b o ttle d

• Bra nd F

a milie s

Bo r de aux Mini T he matic

Sale s $ Ne t Sale s $ Ne t Se t Subse t Sale s $ Ne t L Y T Y- L Y %

BORDE AUX BL E ND

$722.8K $281.8K 156%

ST E MIL L ION/ POME ROL

$233.3K $96.6K 142%

ME DOC

$20.2K $32.6K

• 38%

BORDE AUX WHIT E

$169.3K $58K 192%

T

• tal

$1.1M $469.2K 144% $ $

5/18/2012 114

Mini T he matic Oppo r tunitie s

• Ga ma y P8

S kli P12

• Spa rkling P12

I nitiative s - F r anc e

T e st info rma tio n sig ns in the F re nc h g Wine se c tio n to he lp simplify the se wine s o n a n o ng o ing b a sis

• Ca pita lize o n the suc c e ssful F

re nc h L e sso ns c o nc e pt

• T

e st c o nc e pt in a do ze n sto re s a nd surve y p y c usto me rs

5/18/2012 115

I nitiative s - I taly

• K

e y drive r o f the E uro pe a n Wine s c a te g o ry B t i l t t

• Be st in c la ss a sso rtme nt
• Co ntinue to mo nito r a nd ma ke c ha ng e s

whe re re q uire d with a n e ye o n pre mium

• L
• o k fo r a ppro pria te pro duc ts fro m e me rg ing

re g io ns suc h a s We ste rn T usc a ny

Co llabo r atio n with VI

NT AGE S

• Wo rk to g e the r mo re c lo se ly to e sta b lish

c le a re r line s o f pro duc t re spo nsib ility

• Re duc e o ve rla p in a sso rtme nt
• F
• c us o n ke y re g io ns suc h a s Ve ne to ,

Bo rde a ux, e tc . A id “t t t tt ” ff t

• Avo id “te e te r-to tte r” e ffe c t
• Go a l to pro vide o ur c usto me rs with a “Wo rld

Cla ss” a sso rtme nt

5/18/2012 116

I nitiative s – Spar kling Wine

• De -se a so nlize the sa le s o f

Cha mpa g ne / Spa rkling Wine Cha mpa g ne / Spa rkling Wine

• F
• ur a dditio na l c ha mpa g ne pro duc ts in the

Ho lida y Pro g ra m

• Mini T

he ma tic in P12

• Stra te g ie s to inc lude e nc o ura g ing purc ha se

Stra te g ie s to inc lude e nc o ura g ing purc ha se fo r we dding s, g ra dua tio ns, e tc a s we ll a s mo ving c usto me rs fro m spa rkling to c ha mpa g ne

2012-13 Pr

• duc t Call Highlights
• Oppo rtunitie s fo r F

ra nc e R d B d E t t Wi

• Re d Bo rde a ux, E

sta te Wine s

• Re d Burg undy, Co te de Be a une Villa g e
• Va lue Cha mpa g ne
• Sig na ture Se rie s (o ne pe r a re a )

P i C d B d

• Pre mie r Cru re d Burg undy
• Pre mium white Burg undy
• L
• ire Va lle y - Sa nc e rre
• Re d Bo rde a ux – Pe tit Cha te a u

5/18/2012 117

• 1. Oppo rtunitie s with AOC Wine s fro m

T

• p 3 T

hings to Re me mbe r

pp F ra nc e

• 2. Mini T

he ma tic s – T he y re a lly wo rk!

3

Shift to pre mium

• 3. Shift to pre mium

NE

W WORL D WI NE S

Ja c kie Mc Askill Ca te g o ry Ma na g e r, NE

W WORL D WI NE S

416 864 6340 ja c kie .mc a skill@ lc b o .c o m

5/18/2012 118

2011-12 Sale s Re sults

T Y L Y Chg Chg % g g Ne w Wor ld

$497.2M $480M $17.2M

3.6%

2012-13 Sale s Plan

PL AN L Y Chg % NE W WORL D

$523.7M $497.3M

5.3%

Ne w Wo r ld Wine s Busine ss Br e akdo wn

SOUT H AF RICA $35.9M 7.2% Shar e 1 5% NE W ZE AL AND $12.7M 2.6% Shar e 25.8% CANADA (B.C.) $2.9M 0.6% Shar e

• 13.1%

OT HE R USA $3.1M 0.6% Shar e +9.1% AUST RAL IA $182.9M 36.8% Shar e +4.5% ARGE NT INA $64.7M 13% Shar e

• 12.3%
• 1.5%

CAL IF ORNIA $115.7M 23.3% Shar e +10.9% CHIL E $79.1M 15.9% Shar e +6.9%

5/18/2012 119

2011-12 Cate go r y Dr ive r s

F

• c us o n Austra lia
• Cha ng e to po rtfo lio a sso rtme nt a dding

inte re st thro ug h ne w pro duc ts.

• P2 Austra lia the ma tic sho wc a se d ne w

a sso rtme nt

• During P2, ne t sa le s inc re a se d b y 37.6% vs.

L Y

2011-12 Cate go r y Dr ive r s

P12 Ca lifo rnia Mini T he ma tic

• Sta rting po int fo r a shift to wa rds pre mium
• 12 Pa rtic ipa ting pro duc ts a c hie ve d $925k in

Ne t Sa le s

Chile a n Ha lo e ffe c t Chile a n Ha lo e ffe c t

• Pro mo te d Chile in P13 2011
• Po st-pro mo tio n, sa le s c o ntinue to g ro w a t

+6.9%

5/18/2012 120

Pr

• duc t T

r e nds

• 1. Gro wth o f White Wine s
• 2. Ble nds
• 3. Ne w Ze a la nd
• 4. Ca b e rne t Sa uvig no n

Gr

• wth o f White Wine s
• T

he re is a tre nd to white wine s

• Re d +2.5% - Re pre se nt 61% o f NWW

b usine ss

• White +7.7% - Re pre se nt 31% o f NWW

b usine ss

• Co ntinue fo c us o n de -se a so na liza tio n o f

white wine s

• E

ig ht Pro duc t Ne e ds ha ve b e e n ide ntifie d fo r 2012/ 13

5/18/2012 121

Ble nds

• Custo me rs lo ve this a ppro a c ha b le wine style
• Bo th re d a nd white b le nds a re e xpe rie nc ing
• Bo th re d a nd white b le nds a re e xpe rie nc ing

sig nific a nt g ro wth

• Ca lifo rnia – +26% & +$3.5M
• Austra lia – +24% & +$3M
• Chile – +9% & +$1.6M

Chile 9% & $1.6M

Ne w Ze aland

• Ne w a nd la rg e r b re a dth o f a sso rtme nt

ha s a c hie ve d fa vo ra b le re sults ha s a c hie ve d fa vo ra b le re sults

• Ove ra ll g ro wth +26%
• Sa uvig no n Bla nc is up 27% & $2.34M
• Pino t No ir is up 35% & $240K

5/18/2012 122

Cabe r ne t Sauvigno n

• T
• ta l re pre se nta tio n (15.7% o f b usine ss)
• T
• p Se lle rs
• T
• p Se lle rs
• Ca lifo rnia $26M
• Austra lia $24
• Chile $18.4M

T

• p Gro we rs
• T
• p Gro we rs
• Arg e ntina +25% & +$1.4M
• Ca lifo rnia +23% & +4.8M
• 1. Ca lifo rnia

K e y 2012-13 I nitiative s

• 2. Austra lia
• 3. Org a nic Wine s
• 4. So uth Afric a

5/18/2012 123

• F

illing g a ps in the po rtfo lio

• F
• c us o n pre mium pro duc ts with AVA

Califo r nia

• F
• c us o n pre mium pro duc ts with AVA

re fe re nc e

• T

a rg e ting 13-16 ne w pro duc ts

• P13 Ca lifo rnia T

he ma tic

• Pro mo te Austra lia n b ra nds thro ug ho ut the

Austr alia

g ye a r

• Wo rk with the Wine s o f Austra lia & ke y

supplie rs to inte g ra te e xte rna l pro g ra mming in sto re

• Re fre sh the c a te g o ry with a fe w ne w
• Re fre sh the c a te g o ry with a fe w ne w

pro duc ts

5/18/2012 124

• Sta rt with Chile

Or ganic Wine s

• F

irst o rg a nic pro duc t c a ll

• E

xplo ring o ppo rtunitie s to hig hlig ht o n she lf

• P2 Mini the ma tic – “Va rie ty”

So uth Afr ic a

y

• Co ntinue to o ffe r a n a sso rtme nt a nd suppo rt

a lig ning with this re fre shing me ssa g e

• Ma ny ne w pro duc ts e nte ring the ma rke t in

e a rly 2012

5/18/2012 125

2012-13 Pr

• duc t Call Highlights
• Re g io na l Appe lla tio n o r AVA

De sig na tio n De sig na tio n

• Ca lifo rnia & Austra lia (no te d)
• Chile a n Org a nic
• Ce rtifie d Org a nic pro duc ts
• Sig na ture Se rie s
• Ne w Ze a la nd – Sa uvig no n Bla nc
• Austra lia - Shira z
• Ca lifo rnia – Ca b e rne t Sa uvig no n a nd

Cha rdo nna y

• 1. Big o ppo rtunity in Ca lifo rnia

T

• p 3 T

hings to Re me mbe r

• 1. Big o ppo rtunity in Ca lifo rnia
• 2. White Wine s
• 3. Org a nic