Trade Day 2017: Wines & Vintages Carolyn OGrady-Gold Director, - PowerPoint PPT Presentation

Trade Day 2017: Wines & Vintages Carolyn O’Grady-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 wine!

Growth Strategies 1. Headquarters for learning 1. Headquarters for learning 2. Continue to support the growth of 2. Increase brand presence and customer Ontario Wines base 3. Compete to win on assortment 3. Improve efficiencies in product flow including exclusive wines, wines under 4. Enhance and promote flagship stores $10.95 and customer favourites 4. Support e-commerce with exclusive opportunities

Trade Day 2017: Wines

Growth vs. LY – LCBO Wines ON NWW EW Grocery +5.1% +1.2% $12M +1.8% $1.499B +3.4%

Market Share – LCBO Wines NEW WORLD 38% (-0.3%) EUROPEAN 31% ( -0.42%) ONTARIO 30% (+0.72%) Grocery Sales $ Net 1%

Growth Drivers – LCBO Wines New World European Ontario California +2.7% Sparkling +14.4% VQA +1.1 Chile +8.1% ICB +6.6% Spain +11.8% New Zealand +11.5% Rosé +6.24%

Fiscal 2017/18 Forecast - LCBO Wines ON NWW EW Grocery +5.2% +0.9% $35.9M +1.6% +4.0%

Grocery Licenses 450 300 End State: Beer & Cider Wine 80 124 56 Current State: Summer Beer & Cider Wine 2017

Grocery Sales Beer & Total Sales Wine 2017/18: Cider $64M $12.5M $51.2M Beer & Projected Wine 2018/19 Cider Sales $37.7M $143.5M $181M

Grocer Sales Projections (in $millions)

Grocer Sales Projections (in $millions) Note: Shipments to grocers are used as proxy for sales

Successes

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

Successes Mini-Thematic Programs • Retail training for staff • Telling stories • Consistent wines location – some spanning two periods

New This Year

New This Year: Bag in Box! $135K (Sales YTD)

New This Year: Cans! P3-P4 mini thematic $1.37M (Sales YTD)

New This Year: House Wine Program • Launching P2 2017/18 • Online exclusive • By the case only • Great price: $100/case

Opportunities

Opportunities: Exclusive Wine Launches

Opportunities: Compelling Offers and Wines Under $10.95 • Driving foot traffic with compelling offers and wines under $10.95 • Value wines product call

Opportunities: Seasonal Buys • Rosé Program • Seasonal Wines • Holidays (Valentines Day & Halloween) • Gifting - Holiday

Opportunities: Wine Wednesdays

Opportunities: Curated Customer Boxes • Online exclusives • Times with specific occasions or promotions • Pulsed through the year

Opportunities: Trade Organization Investment • Come talk to us! • Natural occasions (i.e. Malbec World Day, Sauvignon Blanc Day)

Questions? Concerns? Contact Us!

Trade Day 2017: Vintages Kathy Cannon Director, Vintages

Growth vs LY – Vintages NW EW $251M Releases Releases +5.4% +4.2% NW EW Direct Essentials Essentials Programs +7.7% +4.5% -0.6% $538M +5.0%

2017/18 Plan Vintages NW EW $262M Releases Releases +3.7% +4.3% NW EW Direct Essentials Essentials Programs +7.2% +6.6% +7.2% $566M +4.9%

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

Today’s Lessons…

Assist Customers with Incremental Purchases

Increase Vintages brand presence and attract new customers G

More Vintages Online • Residual release for sale on LCBO.com (Fall) • Online exclusive products (Q4)

Include Vintages Essentials in the LCBO CRM Program

Enhanced Vintages Presence – P2 Mother’s Day Cello wrap gift-tag

Improve the efficiency in product flow

$260M = non replenished product We purchase to hit the sales targets

Period 3 Period 1 Period 2

Impact of increased residual inventory • Stores full • New release push ↓ (70 -85%) • Product gets stuck in the warehouse

How do we adjust? • Reforcasted sales down • Purchased less than the forecast • Correction = 6 months P10 = inventory on plan

The coming year • 4% growth target • 90 – 95% push Investigating a secondary push of residual inventory

Enhance and promote the shopping experience in Vintages flagship stores

Roll out new THC units

Trade Info Session Tuesday June 21, 2017 • Sales Targets • More details on the Merchandising Guide • Licensee program

Trade Day 2017: Vintages Operations Greg Tranah Director, Vintages Operations

Trade Info Session NEW VINTAGES.COM – Q4 F ‘17/18 • Design, Navigation & Content NEW Vintages Shop Online – F ‘18/19

Staff & Trade Guides Growing Your Business with Vintages Merchandising Guide Vintages Launch June 2017 Launch April 2017 Resource for Retail Resource for new suppliers Define standards that are Context & Explanations for scalable VINTAGES Follow Up JUNE Vintages Trade Quick Reference Tool Session

Events – Recruiting New Customers Initiatives/Tactics: • Data • Social Media • Vintages Engagement Booth New Event Concepts: • Partnerships • Accessible price points

Licensee Program Consolidated Team