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Carolyn O’Grady-Gold
Director, Wines
Trade Day 2017: Wines & Vintages Carolyn OGrady-Gold Director, - - PowerPoint PPT Presentation
Trade Day 2017: Wines & Vintages Carolyn OGrady-Gold Director, - - PowerPoint PPT Presentation
Trade Day 2017: Wines & Vintages Carolyn OGrady-Gold Director, Wines $1.499B +3.4% $538M +5.0% Total Wine growth = $74.8M Fiscal 2016/17 Wines: $2.04B $1.56B +4.0% $566M +4.9% 2017/18 Forecast Total Wines: $212.5B $88.0M more
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$1.56B +4.0%
Total Wines: $212.5B
$566M +4.9% $88.0M more wine!
2017/18 Forecast
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1. Headquarters for learning 2. Increase brand presence and customer base 3. Improve efficiencies in product flow 4. Enhance and promote flagship stores 1. Headquarters for learning 2. Continue to support the growth of Ontario Wines 3. Compete to win on assortment including exclusive wines, wines under $10.95 and customer favourites 4. Support e-commerce with exclusive
- pportunities
Growth Strategies
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Trade Day 2017: Wines
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Growth vs. LY – LCBO Wines $1.499B +3.4%
NWW +1.8% EW +1.2% ON +5.1% Grocery $12M
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Market Share – LCBO Wines
EUROPEAN
31% ( -0.42%)
NEW WORLD
38% (-0.3%)
ONTARIO
30% (+0.72%)
Grocery Sales $ Net 1%
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Growth Drivers – LCBO Wines
New World
California +2.7% Chile +8.1% New Zealand +11.5%
European
Sparkling +14.4% Spain +11.8%
Ontario
VQA +1.1 ICB +6.6% Rosé +6.24%
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Fiscal 2017/18 Forecast - LCBO Wines
NWW +1.6% EW +0.9% ON +5.2% Grocery $35.9M
+4.0%
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Grocery Licenses
450 Beer & Cider
End State:
300 Wine 124 Beer & Cider
Current State:
56 Wine 80 Summer 2017
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Grocery Sales
Total Sales $64M
2017/18:
Beer & Cider $51.2M
2018/19
Wine $12.5M Projected Sales $181M Beer & Cider $143.5M Wine $37.7M
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Grocer Sales Projections (in $millions)
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Grocer Sales Projections (in $millions)
Note: Shipments to grocers are used as proxy for sales
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Successes
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Successes
New Product Guide
- Launched in P3 2016/17
- P3, P6, P8, P11 & P13
- Positive feedback from Retail and Trade
- Continue to improve and seek feedback
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Successes
Mini-Thematic Programs
- Retail training for staff
- Telling stories
- Consistent wines location – some spanning
two periods
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New This Year
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New This Year:
Bag in Box! $135K (Sales YTD)
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New This Year:
Cans!
$1.37M (Sales YTD)
P3-P4 mini thematic
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New This Year:
House Wine Program
- Launching P2 2017/18
- Online exclusive
- By the case only
- Great price: $100/case
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Opportunities
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Opportunities:
Exclusive Wine Launches
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Opportunities:
Compelling Offers and Wines Under $10.95
- Driving foot traffic with compelling offers
and wines under $10.95
- Value wines product call
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Opportunities:
Seasonal Buys
- Rosé Program
- Seasonal Wines
- Holidays (Valentines Day
& Halloween)
- Gifting - Holiday
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Opportunities:
Wine Wednesdays
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Opportunities:
Curated Customer Boxes
- Online exclusives
- Times with specific
- ccasions or promotions
- Pulsed through the year
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Opportunities:
Trade Organization Investment
- Come talk to us!
- Natural occasions (i.e.
Malbec World Day, Sauvignon Blanc Day)
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Questions? Concerns?
Contact Us!
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Kathy Cannon
Director, Vintages
Trade Day 2017: Vintages
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Growth vs LY – Vintages
NW Essentials +7.7% EW Releases +4.2% NW Releases +5.4% Direct Programs
- 0.6%
EW Essentials +4.5%
$538M +5.0%
$251M
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2017/18 Plan Vintages
NW Essentials +7.2% EW Releases +4.3% NW Releases +3.7% Direct Programs +7.2% EW Essentials +6.6%
$566M +4.9%
$262M
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Growth Strategies
- 1. Headquarters for learning
- 2. Increase brand presence and
customer base
- 3. Improve efficiencies in product flow
- 4. Enhance and promote flagship stores
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Today’s Lessons…
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Assist Customers with Incremental Purchases
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Increase Vintages brand presence and attract new customers
G
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More Vintages Online
- Residual release for sale on
LCBO.com (Fall)
- Online exclusive products (Q4)
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Include Vintages Essentials in the LCBO CRM Program
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Enhanced Vintages Presence – P2 Mother’s Day
Cello wrap gift-tag
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Improve the efficiency in product flow
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$260M = non replenished product
We purchase to hit the sales targets
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Period 1 Period 2 Period 3
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Impact of increased residual inventory
- Stores full
- New release push ↓ (70-85%)
- Product gets stuck in the warehouse
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How do we adjust?
- Reforcasted sales down
- Purchased less than the forecast
- Correction = 6 months
P10 = inventory on plan
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The coming year
- 4% growth target
- 90 – 95% push
Investigating a secondary push of residual inventory
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Enhance and promote the shopping experience in Vintages flagship stores
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Roll out new THC units
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Trade Info Session
Tuesday June 21, 2017
- Sales Targets
- More details on the Merchandising Guide
- Licensee program
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Greg Tranah
Director, Vintages Operations
Trade Day 2017: Vintages Operations
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Trade Info Session
NEW VINTAGES.COM – Q4 F ‘17/18
- Design, Navigation & Content
NEW Vintages Shop Online – F ‘18/19
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Staff & Trade Guides
Vintages Merchandising Guide Growing Your Business with Vintages Launch June 2017 Launch April 2017 Resource for Retail Resource for new suppliers Define standards that are scalable Context & Explanations for VINTAGES Follow Up JUNE Vintages Trade Session Quick Reference Tool
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Events – Recruiting New Customers
Initiatives/Tactics:
- Data
- Social Media
- Vintages Engagement Booth
New Event Concepts:
- Partnerships
- Accessible price points
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