TRADE INFORMATION SESSION AGENDA 5 6 1 2 3 4 7 Vintages - - PowerPoint PPT Presentation

TRADE INFORMATION SESSION

AGENDA

Vintages Ecommerce Updates

1

Wines of the Month

4

Events

5

Licensee Programs

6

Updated Essentials Targets

3

Questions & Discussion

7

Vintages Brand Campaign, Essentials Package, & Merchandising Guide

2

E-COMMERCE UPDATE

Kathy Cannon, Director, Vintages

VINTAGES RELEASES ONLINE

E-Commerce Update

• Starting October 14th –

Flagship Discoveries

• Starting November 11th – A + B

feature products

• Quarter 4 – Full release!
• Barcode printed in the release

book

2 0 1 7 AWA R E N E S S C A M PA I G N

• 1. Increase Vintages awareness with a dedicated brand campaign.
• 2. Increase program awareness and broaden reach for Release Program with

targeted tactics and regular cadence throughout the year.

• 3. Attract new customers to the category by making the brand more

approachable and relevant to a younger, less experienced wine drinker.

• 4. Change perceptions about what the brand stands for to broaden its reach

and appeal.

GLOBE AND MAIL ROP

OWNED PUBLICATIONS

NEW! PRINT ADVERTISING

+

+

NEW! DIGITAL ADVERTISING

BRAND CAMPAIGN

Knowledge & Expertise Quality & Value Curation Newness & Discovery

NEW! BRAND AWARENESS

Knowledge & Expertise

Quality & Value

Newness & Discovery

Curation

BRAND AWARENESS

RELEASE AWARENESS

• LCBO. COM ENHANCED “P.I.P.”

http://www.lcbo.com/content/lcbo/en/page s/wine/vintages-new-wines-EPP.html

UNCORK SUMMER JULY 13

Pre-Event: #uncorkvintages

Paid FB: June 16 – 30 #uncorkvintages content calendar

Post Event

Working Together

THIS IS VINTAGES

• SEPT. 21

• Walk-around tasting
• Thursday, September 21st
• 7-10 pm
• Airship 37 (Distillery District)
• $45/person
• 200 tickets

This is Vintages Event

This is Vintages Event

• 40+ products (Release & Essentials)
• Vintages brand highlight
• Kim Crawford brand highlight
• Food stations
• DJ
• Outdoor seating area
• #thisisVintages

2 0 1 7 E S S E N T I A L S : PA I D S U P P L I E R PA C K A G E

To increase awareness for the Essentials Collection, Vintages is offering a new paid supplier opportunity that includes external media and an in-store display.

• Opportunity is available starting in P12
• For two brands
• Participating products must be on BAM or LTO offer
• Brands will be featured together in promotional material and merchandised

together on display.

• Cost: $20,000 ($10,000 / supplier)

OVERVIEW

METRO NEWS Half page ad in Toronto on the 1st Thursday of the period Half page ad in Ottawa on the 1st Thursday of the period

Reach:

Metro Toronto: Circ. 198,198 / Readership 650,000 Metro Ottawa: Circ. 45,639 / Readership 124,000

PRINT ADVERTISING

FACEBOOK LINK ADS Utilize hyper targeted paid social media to engage target with Essentials message and drive traffic to lcbo.com for purchase. Timing: 4 weeks Estimated Total Impressions: 2.9 million Targets: Paid posts will target people who are already more likely to be interested in wine. Niche targets - Wine, Winemaking, wine and food matching, wine tasting. Digital ads will link to PIP page on lcbo.com via “buy now” CTA.

PAID SOCIAL MEDIA

IN-STORE DISPLAY

“CUSTOMER FAVOURITES”

• 2 skus on front facing end aisle
• 30 – 50 stores (Toronto & Ottawa)
• P12 start
• Signage: backer card and shelf talkers

2 0 1 7 V I N TA G E S M E R C H A N D I S I N G G U I D E

The boutique merchant within the LCBO Vintages takes the world of wine and delivers a diverse, hand selected ever-changing portfolio of unique limited and highly sought after wines. Vintages experts deliver the total wine experience, empowering customers to explore and shop the globe with confidence.

NEW! MERCHANDISING GUIDE

• A resource that formalizes merchandising requirements and

display best practices.

• Easy to use guide provides staff with tools to make merchandising

decisions specific to their location.

• Deliver a consistent shopping experience.
• Invite new customers to shop Vintages by making the section

easier to navigate.

• Brand awareness & clarity

IN-STORE EXPERIENCE

CONTENT OVERVIEW

• All About Vintages
• Merchandising Standards
• Signage
• Building Effective Displays
• Operational & Inventory Details
• General & FAQ’s

IMPLEMENTATION

• Timing: P6
• Introductory letter from Retail, Sales & Marketing to accompany

Merchandising Guide.

• Launch video on the portal.
• Section re-set with VM support.
• Fixture enhancements in Flagship stores.

MAINTAINING THE EXPERIENCE

• Quarterly Audit by Visual Merchandising
• District Manager Top 5 Checklist
• Ongoing Refinement of Guidelines

MEASURING SUCCESS

• Exit Surveys
• Customer Engagement
• Customer Acquisition
• Retail Feedback

UPDATED ESSENTIALS TARGETS

Colby Norrington, Vintages Category Manager, New World Wines

Updated Essentials Package

VINTAGES NET SALES SKU TARGET - ESSENTIALS

• Based on Subset’s

performance when composed by 4 SKUs or more.

• Based on Set’s performance if

less than 4 SKUs

• SKUs cumulative share of the

Subset / Set in order to protect 90% of net sales.

Updated Essentials Package

VINTAGES NET SALES SKU TARGET - ESSENTIALS

• Minimum net sales SKU target: $450K.
• Maximum net sales SKU target: $1.5M.
• In the example below the new target is $1,200,000:

Set Set Subset Essential Desc. Net Sales Rolling 13 TY Share Cum.

Share ITALY RED TUSCANY OTHER Essential 1 5,000,000 $ 52% 52% ITALY RED TUSCANY OTHER Essential 2 2,500,000 $ 26% 77% ITALY RED TUSCANY OTHER Essential 3 1,200,000 $ 12% 90% ITALY RED TUSCANY OTHER Essential 4 1,000,000 $ 10% 100%

WINES OF THE MONTH

Colby Norrington, Vintages Category Manager, New World Wines

WINES OF THE MONTH Wines of the Month

• Eliminating the Benchmark Program as of P9
• Expanding the WOM to a bi-weekly program
• Additional spots will focus on products only over $22.95
• The products will:

‒ Have a wide customer appeal ‒ Over deliver for the price ‒ Provide a trade up opportunity

HOW IT FITS IN

Wines of the Month

• Implementation is effective for the last release of P9

The $17 solution is an approachable price point focus program WOM are wines with broad appeal $19.95 – $22.95 AIS are wines suited to gifting

EVENTS

Greg Tranah, Director of Operations, Vintages

OVERVIEW

Events

• Updates on new initiatives from April Trade Day

– Data – Social Media – Brand Booths

• Event Tenders for February – August 2018

– Product / Themes – Partnerships – Occasions and Locations

DATA

Events

• Long Form ‘ON-LINE’ survey (July 2017) – Access customer attitudes &

preferences – Supports development of future experiences and designing the marketing mix

• On-Site Customer Satisfaction Forms (June – forward)

– Anonymous, Brief, Supports Metric Development (Ex. 4.5/5)

• Measuring Recruitment and Retention (July – forward)

– # of New VSO Accounts per Event

SOCIAL MEDIA

Events

• Event specific tactics (July, September)
• Pre promotion (develop content), during (fun hooks), post (sharing,

community), etc.

• Will integrate with larger Vintages marketing and brand campaigns

where appropriate

BRAND BOOTHS

Events

GOALS

• CLEAR TOUCH-POINT AT EVENTS
• ONBOARD NEW CUSTOMERS
• ENGAGING ACTIVITIES
• EXPLAIN THE BRAND

ACTIVATIONS

• UNCORK SUMMER – VINTAGES KIOSK (July)

– Facilitate long form survey – Register new customers as Vintages Insiders

• ROM CANADA 150 – VINTAGES KIOSK (August)

– Register new customers as Vintages Insiders

• RECRUITMENT EVENT – VINTAGES WALL (September)

– Explain Vintages and Program Wines – Register new customers as Vintages Insiders

Events

• Letter has been issued for

February – August tenders – Check Trade Resources Website

• Specific Product/Themes

for Event

• Partnerships between other

brand categories

• Continue to create new
• pportunities
• Occasions (eg. Brunch)
• Place (eg. Muskoka,

Collingwood, New Venues)

2018 EVENT TENDERS

LICENSEE PROGRAMS

Julie Hauser, Senior Planner, Vintages Licensee Programs

OVERVIEW

Licensee Programs

• Vintages Licensee Sales Trends
• Vintages Licensee Programs Overview
• Licensee Only Portfolio Overview
• Licensee Only Portfolio Sales Trends
• New Licensee Portal

VINTAGES LICENSEE SALES TRENDS

Licensee Programs

Data as of Period 03 2017/2018

VINTAGES LICENSEE SALES $35M +7.90% Over LY VINTAGES LICENSEE MARKET SHARE 6.43% +7% Over LY

VINTAGES LICENSEE SALES TRENDS

Licensee Programs

Top Ten Sets by Net Sales GROWTH

CALIFORNIA RED +10.32% SPARKLING OLD WORLD +25.88% NEW ZEALAND WHITE +11.69% ITALY RED +6.00% SPECIALITY PORTFOLIO +10.92% WASHINGTON +66.98% ROSE OLD WORLD +75.60% KOSHER +73.93% SAKE +10.09% FRANCE WHITE +10.48%

LOSS

ARGENTINA RED

• 9.25%

PORTUGAL

• 24.01%

EMERGING EURO WHITE

• 46.79%

FRANCE RED

• 2.80%

WHISKY

• 11.02%

CALIFORNIA WHITE

• 1.94%

AUSTRALIA RED

• 3.87%

CENTRAL&S. AMERICA RED

• 81.27%

FORTIFIED OLD WORLD

• 2.84%

ONTARIO RED VQA

• 6.51%

Data as of Period 03 2017/2018

VINTAGES LICENSEE SALES TRENDS

Licensee Programs

Top Three Sets by Net Sales Under $30 Over $30 CALIFORNIA RED +6.14% NEW ZEALAND WHITE +11.70% WASHINGTON +71.43% CALIFORNIA RED +22.02% SPARKLING OLD WORLD +24.96% ITALY RED +8.60%

Data as of Period 03 2017/2018

VINTAGES LICENSEE SALES TRENDS

Licensee Programs

Top Three Sets by Case Volume Under $30 Over $30 CALIFORNIA RED +3.03% NEW ZEALAND WHITE +12.20% ITALY WHITE

• 0.88%

CALIFORNIA RED +10.35% ITALY RED +10.12% SPARKLING OLD WORLD +23.89%

Data as of Period 03 2017/2018

VINTAGES LICENSEE PROGRAM

Licensee Programs

Services to Licensees

• Pre-order from upcoming releases
• Licensee tasting opportunities
• Product Consultation and advice
• Focus on education and customer service

How you can work with us

• Partner on product tastings
• Proposal to Julie Hauser 6 months in advance
• Refer customers who would like to pre-order

Contact Julie Hauser to discuss ways we can work together to sell VINTAGES products E: julie.hauser@lcbo.com

LICENSEE ONLY PORTFOLIO

Licensee Programs

LCBO collaborates with suppliers to develop and promote the Licensee Only Portfolio Requirements to Participate

• Sales Target: Minimum $80,000 net per year
• Requirements: Provide proven sales history and

upfront commitments from on premise customers

• Expectations: Sales driven by agents

Sales Tools

• Portfolio available on new licensee portal
• Existing skus can participate in LTO’s

LICENSEE ONLY PORTFOLIO SALES TRENDS

Licensee Programs

Set Net Sales Growth vs LY Net Volume Growth vs LY Old World +15% +7% New World +18% +10%

Data as of Period 03 2017/2018

LICENSEE ONLY NET SALES $5.54M +17% Over LY

LICENSEE PORTAL

Licensee Programs

LICENSEE PORTAL

Licensee Programs

Website https://hellolcbo.com/app/licensee/home Features

• All licensee FAQ migrated to this site
• Licensee specific content. Requires Login.

– Licensee Only Portfolio – Licensee price lists – Licensee price breakdown and calculator