Spirits & Ready-to-Drink Stacee Roth, Director, Spirits, LCBO - - PowerPoint PPT Presentation

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Spirits & Ready-to-Drink Stacee Roth, Director, Spirits, LCBO - - PowerPoint PPT Presentation

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Spirits & Ready-to-Drink Stacee Roth, Director, Spirits, LCBO PSM Trade Symposium May 27, 2016 The Team Alanna Bailey Marijke McLean Courtney Allison Anton Muljadi Heather Valorzi Category Manager, Category Manager, Inventory

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Stacee Roth, Director, Spirits, LCBO

PSM Trade Symposium May 27, 2016

Spirits & Ready-to-Drink

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Alanna Bailey

Category Manager, White Spirits & RTD

Marijke McLean

Category Manager, Brown Spirits

Courtney Allison

Inventory Manager, Spirits & RTD

Heather Valorzi

Administrative Assistant

Anton Muljadi

Special Assignment – Merchandise Financial Planning Project

The Team

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$2.06 BILLION PLAN 2015/16

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$2.13 BILLION

+5.7% VS LY +3.7% VS PLAN

Spirits knocks it out of the park!!!

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2013-14 35.7%

Spirits stems market share decline

2013/14 39.9%

  • 27 bps

2014/15 39.3%

  • 63 bps

2015/16 38.9%

  • 39 bps
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VODKA WHISKY CANADIAN IMPORTED WHISKY RUM LIQUEURS RTD BRANDY/ COGNAC GIN TEQUILA

Spirits

Sales 3.7% $2.2B

+4.1% +8.3% +2.7%

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How do we generate increased traffic into the spirits section as we head into a changing marketplace? How do we make spirits drinks more appealing to consumers in and out of the store environment ?

More engaging Sampling Spirits Zone

1 2

Cocktail of the Month Enhanced in-store tastings

1 2

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Paradigm Shifts

Spirits as a lead Category

  • Exclusive
  • Drives Margin
  • KEY STRATEGIC PRIORITY
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SPIRITS Merchandising Strategy

“Play to Differentiate / Compete” Primary - “Play to Win”

SPIRITS +3.7% VINTAGES +6.1%

CRAFT BEER AND CIDER

+14% LCBO WINES +3.0% BEER +1.4%

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SPIRITS Merchandising Strategy

Key Drivers Own Drive Participate

  • Exclusively
  • Drive LCBO margin
  • Showcase

uniqueness/newness

  • Drive trial and trade up
  • Maximize brand equity

inherent in spirit

  • Keep in stock
  • Recruit new customers
  • Be cocktails experts,

leverage technology

  • Support local craft spirits

growth Whisky Vodka Coolers Craft Spirits Rum Liqueurs Cognac Gin 100% agave Tequila Standard Spirits Brandy Mixto Tequila Soju/Shochu

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SPIRITS

STRATEGIES

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8

SPIRITS

STRATEGIES

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INCREASE SPIRITS SHARE OF VOICE

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ELEVATE CANADIAN WHISKY

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INCREASE SUPPLIER COLLABORATION

4

ONTARIO CRAFT SPIRITS SUPPORT

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ENHANCED SPIRITS TRAINING

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OFFER AN ENVIOUS, SOUGHT- AFTER SPIRITS ASSORTMENT

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INCREASE VISIBILITY & EXCITEMENT AROUND SPIRITS IN-STORE

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BE ‘THE’ COCKTAIL EXPERTS

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INCREASE SPIRITS SHARE OF VOICE

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  • Provincial Program designed

internally

  • Offsite Workshop- including Product

Knowledge Segments – Spirits & Beer

  • All employees will experience

product tastings delivered by our Product Consultants

INCREASE SPIRITS SHARE OF VOICE

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  • 250 sessions held across the

province

  • Two Target Audiences

– Store Managers’ Day – Employee Day

  • Beginning of sustaining a Customer

First Culture

INCREASE SPIRITS SHARE OF VOICE

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ELEVATE CANADIAN WHISKY

Position as the beacon into Whisky Highlight quality, craftsmanship and authenticity Innovation: New, Exclusive, Prestigious

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INCREASE SUPPLIER COLLABORATION

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“When LCBO sent word they were looking for an exclusive Canadian whisky for Father’s Day (kudos to LCBO, by the way), current master blender, Don Livermore remembered Stanski’s “science experiment.”

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INSERT CLIP FOR DRAKE VIDEO

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INCREASE SUPPLIER COLLABORATION

Working smarter – we need your help!

Accuracy of supplier forecasts in MPTS Correct NISS information for new products Improved inventory communication

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ONTARIO CRAFT SPIRITS SUPPORT

Create IN-SECTION call outs for all designated Ontario Craft Spirits products

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ENHANCED SPIRITS TRAINING

2016

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OFFER AN ENVIOUS, SOUGHT- AFTER SPIRITS ASSORTMENT

EXPAND ENHANCED SHOP TO STORE #38 &

#217

SCOPE ADDITIONAL STORES FOR

2017

Expand to Store #38 & #217

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A S S O R T M E N T

OFFER AN ENVIOUS, SOUGHT- AFTER SPIRITS ASSORTMENT

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OFFER AN ENVIOUS, SOUGHT- AFTER SPIRITS ASSORTMENT

Evaluate assortment

  • pportunities for ecommerce
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INCREASE VISIBILITY & EXCITEMENT AROUND SPIRITS IN-STORE

Leverage key occasions & supplier partnerships with BIG BRANDS

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INCREASE VISIBILITY & EXCITEMENT AROUND SPIRITS IN-STORE

Captivating, engaging fun!

Spirits Zoning

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SPIRITS SPIRITS SPIRITS

SECTIONS TO ZONES

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SECTIONS TO ZONES WINE ZONE VINTAGES ZONE BEER

ZONE

SPIRITS SPIRITS SPIRITS

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INCREASE VISIBILITY & EXCITEMENT AROUND SPIRITS IN-STORE

Enhanced In-Store Tasting Program

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INCREASE VISIBILITY & EXCITEMENT AROUND SPIRITS IN-STORE

Execute enhanced value messaging

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BE ‘THE’ COCKTAIL EXPERTS

Bitters @ LCBO

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BE ‘THE’ COCKTAIL EXPERTS

Spirits Summit winner – ‘Taking the Fear out of Cocktailing’ Bringing cocktails to life

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BE ‘THE’ COCKTAIL EXPERTS

Shari’s Cocktail

  • f the Month
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Karen McGee, Assistant Manager, Marketing Special Events

PSM Trade Symposium 2016 May 27, 2016

Special Events

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Supplier Enhanced Tastings Program

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  • Cross-departmental working group
  • Establishment of:
  • 1. Program guidelines
  • 2. Application and approval process
  • 3. Retail communication strategy

Program status

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  • Presentation of program guidelines – July/August
  • Program roll out – P8

Next steps

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GUIDELINES OVERVIEW

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Tier 1 – Option 1

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Tier 1 – Option 2

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Larger ad hoc activations requiring a larger footprint; i.e. special events.

Tier 2

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…In-store Tasting Program schedule expansion: 7 days per week!

More good news…

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Marijke McLean, Category Manager, Brown Spirits & Duty Free, LCBO

May 27, 2016

Brown Spirits

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The Team

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Canadian Whisky ………… +4.1% Imported Whisky …………. +8.3% Brandy/Cognac ……………. +3.9% Liqueurs ……………………….… +1.8% Tequila …………………………... +10% Total ……………………………….. +4.8%

We have some big plans

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3 Key strategies…

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CANADIAN WHISKY

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Build on the positioning of Canadian whisky as a premium category and grow consumer confidence in its quality and craftsmanship.

The Vision

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THE PLAN

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$59.95 $156.45

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Because on the inside

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Deluxe expressions

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Rye

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CRAFT

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INNOVATION

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Capture the hearts

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IMPORTED WHISKY

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Be the envy of all other Canadian beverage alcohol retailers, from assortment to merchandising to customer service.

The Vision

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THE PLAN

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1. Crown Royal Northern Harvest Rye 2. Global Alcool 94% 3. Blanton’s Gold Label Bourbon 4. Eagle Rare – 10 Year Old Kentucky Bourbon 5. Blanton’s Original Bourbon 6. Yeni Raki 7. Hibiki Japanese Harmony – Suntory Whisky 8. Black Velvet - Toasted Caramel Whisky 9. Nikka Taketsuru Pure Malt Japanese Whisky 10. 1792 Port Finished Bourbon

Top 10 product inquiries

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  • continue to source a

best in class assortment.

  • streamline listing, re-

listing and release process

  • collaboration on

allocations

  • speed to market
  • E-commerce

Assortment

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Enhanced Whisky Shop Store 38 and 217 coming this fall.

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Education around products is our greatest asset, we have a 7000 strong sales force just waiting to sell your product

Education

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COCKTAILING

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Have customers feel as comfortable mixing a cocktail as they do opening a bottle of wine.

The Vision

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THE PLAN

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  • Online
  • Social media
  • Food and Drink
  • Enhanced tastings
  • Staff training
  • On shelf info
  • Cocktail descriptors

Promote in everything we do

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Education

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Create an easy one stop shop for consumers to fulfill their cocktailing needs.

Products and tools

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  • Invest in meaningful innovation in Canadian whisky
  • Fight for more allocations of sough after imported

whiskies

  • Invest in education, both for our staff and customers

Three key priorities for you to action

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Alanna Bailey, Category Manager, White Spirits & RTD, LCBO

May 27, 2016

White Spirits & RTD

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PRODUCT MANAGER, WHITE SPIRITS

  • VODKA
  • GIN
  • RUM
  • SOJU
  • ALCOHOL

CATEGORY BUYING TEAM

PRODUCT MANAGER, RTD & ACCESSORIES

  • COOLERS
  • PREMIXED COCKTAILS
  • SPIRITS HOLDAY GIFTS
  • ACCESSORIES

CHRISTINA BELLOTTI-RAMZAM JERYCA DILLAS

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FINANCIAL OBJECTIVES 2016/17

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Vodka $495.5M 3.7% Rum $265.3M 1.7% RTD $203.1M 9.2% Gin

$76.8M +11.9%

Net Sales by Set $1.048B, +5.1% 2015/16

Main Drivers

  • Coolers +$20M
  • Vodka +$17M
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Vodka $513.5M 2.6% Rum $269.8M 1.0% RTD $204.2M 2.0% Gin

$85.8M +9.8%

Plan Sales by Set $1.076, +2.6% 2016/17

Main Drivers

  • Coolers
  • Premium Vodka
  • Spiced & Deluxe Rum
  • Premium & Deluxe Gin
  • Craft Spirits
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TOP PRIORITIES

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VODKA

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“Raise the Profile of Vodka”

  • regular promotional

features in-store

  • customer education
  • leveraging big brands

Vodka Working Group: Rise the Profile

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  • Modernize packaging
  • Target ‘value’ consumer
  • Brand awareness
  • Licensee business

Refresh Standard

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RUM

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ENHANCED ASSORTMENT

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AGE STATEMENTS

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LEVERAGE BIG BRANDS

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COOLERS

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ONTARIO LOCAL CRAFT SPIRITS

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Assortment Opportunities

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  • Flavoured Vodka
  • Coolers
  • Spiced Rum

Be on top of NEW

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HOLIDAY

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Authentic Story + Sense of Place

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Pre-mixed

  • Lack of Innovation
  • Too high price points
  • Increased consumer

interest in cocktails

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SEASONAL ASSORTMENT

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Merchandising & Promotional Initiatives

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Value Savings

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PLANOGRAM UPDATES

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THEFT DETERRENT

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PRODUCT NOTES REVAMP

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Thank you!

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INVENTORY SPIRITS & RTD

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  • Inventory Manager

– Courtney Allison

  • Inventory Replenishment Manager

– Matthew O’Sullivan

  • Order Specialists

– Nelia Arruda – Chris Carter – Terri McGowan

  • Expeditor

– Widad Abdosh

Spirits and RTD Team Who we are and what we do

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Spirits/RTD Inventory What we do?

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Spirits/RTD Inventory Strategies

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Supplier/LCBO Collaboration

How you can help our partnership flourish!

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Communication Strategies Clear, Concise and to the point!

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Spirits/RTD Inventory Together we can be better!

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Delays On time, every time, all of the time

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  • Three Key Take Away’s

– No more delays

  • Production
  • Transportation
  • Rework

– Reduce your Lead Time – P-L-A-N

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