W INNING AT HOME ROB SANDS WINNING AT HOME Unity in the Ontario - PowerPoint PPT Presentation

W INNING AT HOME ROB SANDS

WINNING AT HOME Unity in the Ontario wine industry is vital to our success Focusing on what we do best Keeping a global perspective 2

PARTNERSHIP IS VITAL TO SUCCESS One shared vision to create a healthy and growing Ontario wine industry. Working together we can: • Shape policy • Promote our region • Share best practices • Rise together There is a place for wineries of all sizes in our industry. Diversity is good. 3

TO GROW THE INDUSTRY NEEDS A DIVERSE GROUP OF PRODUCERS >$15 1% of sales (VQA) $10-15 19% of sales (VQA) Imported <$10 Ontario 80% of sales (ICB) Wines Wines 72% of LCBO Volume 28% of LCBO Volume Source: Winery and Grower Alliance of Ontario 4

COMPETING WITH REGIONS AROUND THE WORLD T otal Market Share by LCBO/Vintages Market Volume - 2010/2011* Share - 2010/2011 VQA VQA 6% 10% ICB 22% ICB Import 29% Import 61% 72% * On-site and off-site Winery Retail Stores and Direct Delivery increase Ontario market share Source: Winery and Grower Alliance of Ontario 5

WINNING AT HOME Our Advantages • Highest margins • Lowest distribution cost • Home-field advantage Focusing on what we do best • Icewine • Cool Climate Wines 6

ONTARIO WINE CONTRIBUTES FAR MORE TO ONTARIO’S ECONOMY THAN IMPORTED WINE 2010-2011 $400 $300 Millions $416 $200 $201 $100 $72 $0 ICB VQA Import Source: Wine and Grower Alliance of Ontario Source: Winery and Grower Alliance of Ontario 7

LESSONS FROM OTHER REGIONS • Keeping supply and demand in balance • Maintain margins • Taxation cannot be a business- inhibiting proposition • Providing consumers with a value proposition at all price points 8

GROWING AROUND THE WORLD: RECOGNIZING OPPORTUNITIES United Kingdom United States China 1995: 91 mn 9L 1995: 197 mn 9L 2005: 50 mn 9L 2010: 95 mn 9L 2010: 153 mn 9L 2010: 307 mn 9L (>1.5X) (>1.5X) Proj. 2015: 249 mn 9L (5X in 10 years) 9 Sources: Adams Handbook 2011 and 1996 for US, UK, Canada, IWSR for China

W inning a t Hom e UNITY IS VITAL TO OUR SUCCESS FOCUS ON WHAT WE DO BEST KEEP GLOBAL PERSPECTIVE 10