Supply Chain Division Mandesh Dosanjh Grocery Quality Supply - - PowerPoint PPT Presentation

Supply Chain Division Mandesh Dosanjh

Logistics Grocery Operations Quality Assurance

Retail Service Centres

Supply Chain

Specialty Services Traffic & Customs Measurement & Analysis Space Management Quality Services Laboratory

New Programs, New Regulations, New Business Opportunities!

Specialty Services

• Products of the World
• Specialty Boutique Sections (in select LCBO stores)
• E-Commerce

Quality Assurance

• Updates on value and requirements

Durham London Ottawa Thunder Bay Toronto 5 RETAIL SERVICE CENTRES 1,500+ STORES/DEPOTS

Overseas

Domestic/US/Mexico

SUPPLY CHAIN NETWORK

SUPPLIERS FROM OVER 86 COUNTRIES

• Department Highlights
• Total Sales $236 Million
• Consignment/Private Orders - $125 Million
• Kegs - $111 Million

Highlights continued......

 Wholesale customers  Partnership and Collaboration with Agents  Unparalleled access to niche products  Infrastructure in place for rapid growth

Specialty Boutique Sections and E-Commerce

Products Of The World

Specialty BOUTIQUE Sections & e-Commerce

Increased Product Selection Increased Commercial Opportunities

SUCCESS

Products Of The World POTW E-Commerce POTW Boutique Sections Consignment Brands/Agents Non- Consignment Brands/Agents Consignment Brands/Agents Non- Consignment Brands/Agents

SYNERGY

POTW Boutique Sections and e-Commerce are connected.

Products Of The World: Specialty Boutique Sections

Opportunities:

• Expanded sales opportunities

for agents and suppliers

• More brand visibility
• Introduction of beer
• In store tastings
• On-line Marketing collaboration

Leverage Cultural

• ccasions and

festivals

Transit shelter ads, multicultural radio spots, in store enhanced signage, enhanced tastings

Support new store openings

In store signage, transit shelter ads, radio, lcbo.com, social for lcbo.com, name tags

Continued store enhancements and product expert support

Identify an expert, interview for lcbo.com, name tags, shelf talkers picks

Continue to drive mass awareness to designated stores and online

Radio, trade shows, integration into existing marketing materials, lcbo.com, digital THE CUSTOMER EXPERIENCE Build mass awareness and demand for the Products of the World program by promoting

• ur best in class product collections that allow the customer to enjoy unique products

from distinct locales around the world, available in-store and online.

Integration into Shopping guide Out of home advertising Community Ethnic papers Bag Stuffers Social media owned channels

Boutique Section Performance Summary

 Targeted sku levels have been exceeded in all stores

Brand Selection

Products of the World (POTW)

Country Initial Target Launch Today Difference

(target to current)

Greece 40 40 93 53 Portugal 55 55 89 34 Spain 60 38 78 18 Kosher 15 15 61 46 Argentina 30 30 57 27 New Zealand 20 40 45 25 East Asia 20 75 103 83 Chile 20 35 49 29 Australia 50 50 112 62 South Africa 20 70 72 52 Germany 10 45 55 45 Italy 220 450 413 193 California 150 150 153 3 Total 710 1093 1380 670

Next Steps:

• Review sales performance data to date
• E-commerce primary focus
• Shift to regional focus?
• Additional locations?

Products Of The World

Country Store Store Location Launch Date East Asia 703 Toronto May 11th

Looking Ahead

• Focus on diversified product mix and price points
• Maintain strong partnerships with boutique stores and store staff.
• What about sales to licensees?

Agent Opportunities

Continued evolution of this exciting program

• In-store tasting opportunities for POTW
• Pilot Programs
• Single bottle purchase
• Gift kits

New Opportunities

E-Commerce Sales

Products Of The World Only

Questions...?

• General Inquiries: Productsoftheworld@lcbo.com
• Products of the World Team:
• Retail Operations
• Supply Chain
• Sales, Marketing & Insights
• Store Development and Real Estate
• Corporate Communications

QUALITY ASSURANCE UPDATES AT A GLANCE

Quality and Safety

Quality Programs

Compliance Testing

Chemical analysis Sensory analysis Label review Packaging review

New Products & Annual Review

Testing Lifecycle

Submissions Customer Complaints Retail Investigations

2016-2017

• 17.4% - # of samples
• 14.3% - # of tests
• Lab turnaround: 3.5 days

Laboratory Testing

23,899 23,099 24,561 28,836

508,402 509,900 554,252 633,277 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000

20,000 22,000 24,000 26,000 28,000 30,000 32,000 13-14 14-15 15-16 16-17 Fiscal Year Samples Processed Number of Tests

New analyses introduced since 2013-2014:

• Metals: cadmium, cobalt
• Caffeine
• Artificial sweeteners

Laboratory Analyses

Alcohol analysis

• NIR Analyzers for wine,

beer testing

• Distillation units for

spirits

Investment in Technology

Effective July 10, 2017

• Wine/beer: $225
• Spirits: $200

Invoices posted on iSupplier

Laboratory Testing Fees

2016-2017

• 18% # label reviews
• 9% # packaging reviews

Label and Packaging Compliance Testing

14,061 17,267 24,114 28,550 6703 6344 6008 6551 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

13-14 14-15 15-16 16-17 Samples Processed Fiscal Year Label Reviews Packaging Reviews

2016-2017:

• 80,000 Product quality complaints
• 781 Flagged for investigation
• 216 Full investigation
• 29 Product Recalls

Product Quality and Safety

Durham RSC

• QA Expansion
• Non-compliant loads
• Corrective work
• Labelling
• Packaging
• 2016/2017
• 660,317 cases corrected
• 12 %

Quality Services Efficiencies

Effective June 1, 2017

• Product recall
• Re-work services
• Non-compliant pallets
• Packaging
• Labelling

Quality Services Fees

Regulatory Updates

 Food safety  Consumer protection  Fair and secure marketplace

Food Labelling Modernization Initiative

Safe Food for Canadians Act

 Clear, simple, concise, and easy to

understand language & format

 Improved legibility

 Ingredient lists  Common name

 Reveal ingredients in class names

Public Consultation

 Ingredient Lists

 Grouping sugars  Naming dyes  Readability  Format requirements

Changes

 Allergen declarations  Nutrition facts tables

 Nutrition claims  Artificial sweeteners

 Single serve sizes

Changes

Compliance Timelines



New regulation in force as of: December 14, 2016



Full compliance at point of sale/ retail: December 14, 2021



LCBO Implementation



A staged approach



Communication



Preparation



Label examinations against new requirements



Submission stage



Product-in-hand



Corrective work



CFIA - Food Labelling for Industry website



Food and Drug Regulations



Labelling Consultants

Resources

Modernized Beer Standard

CFIA Beer Canada

Food Labelling Modernization Initiative



Public consultation: 2014



Stakeholders review: 2016-2017

• Sugars: max. 4% w/v

Sugars analysis

• Elimination of separate standard

for:

• Stout
• Ale
• Porter
• Malt Liquor
• Addition of (under review):
• Herbs, spices
• Flavouring preparations – not

resolved

Changes

 LCBO Product Packaging Standards

& Guidelines for Chemical Analysis

 LCBO Product Packaging

Standards

 LCBO Chemical Guidelines

Other Updates

Thank you

dorina.brasoveanu@lcbo.com barb.chapple@lcbo.com quality.assurance@lcbo.com