Post on 29-Aug-2020
Kathy Cannon Director, Vintages
Moving Forward Together
Wines Strategy
• Create excitement • Increase visits • Assortment and exclusivity • Showcase premium
• Growth from big categories • Drive foot traffic • Big volume • Focus on local
40%, -0.3%
23% +0.9%
37%, -0.4%
SPIRITS BEER & CIDER WINES
Total Wines $1.97B
Wines Sales = 37% Share
$1.45B +4.7%
Wines: $1.97B
$512M +7.6%
Vintages (26%)
LCBO Wines (74%)
Vintages Share
WHITE -0.02%
RED -0.39%
ROSE +0.14%
SPARKLING/CHAMPAGNE +0.26% 6% 2%
36%
56%
Everything’s Rosie and Sparkling
Ontario +1.0%
New World -0.3%
Wines Vintages
European -0.7%
Ontario -0.3%
New World +0.4%
European -0.1%
30%
39%
31%
5%
50%
45%
“Different Blend”
50% Share ↑ $19m
45% Share ↑ $18m
5% Share ↓ $2.6m
Vintages Retail Programs Strong!
Top Growth Drivers Canada (Ontario) $456M ↑8.0%
Italy $340M ↑4.8%
USA (California) $308M ↑15.5%
New Zealand $68M ↑9.0%
Spain $63M ↑15.2%
PNW $17M ↑28.2%
EUROPEAN WINES
We Have Different DNA
France 25%
Italy 56%
Spain 8%
France 39%
Italy 43%
Spain 13%
(+0.6%)
(+0.3%)
(-0.7%)
(-0.4%)
(+0.2%)
(-0.2%)
ITALY
An Upward Trend
$270
$280
$290
$300
$310
$320
$330
$340
$350
2011/2012 2012/2013 2013/2014 2014/2015 2015/2016
Mill
ions
Net $ Sales +5%
+3%
+2% +4%
Consumers Shifting to Premium
Vintages, $93M, (+9%)
LCBO Wines, $250M, (+3%)
Vintages aggressive sales growth
Growth Strategy - LCBO Wines Re-engaging Customers
Primitivo Familiar Premium Producers
Ripasso & Chianti
Modern Packaging
Growth Strategy - Vintages Premiumize
$15-$20 Tuscany Emerging Regions
Italian Whites
Ultra Premium
FRANCE
-3.0% +3.6%
France Losing Share
Total Sales $1.97M +1.3%
Vintages Gaining from LCBO Wines
Vintages, 41% (+0.9%)
LCBO Wines, 59% (-0.9%)
Portfolio shift to lower pricing in Vintages
Growth Strategy - LCBO Wines Reversing the Trend
Fill Portfolio Gaps
Refresh high volume red & white blends
‘Affordable France’ Mini
Thematic
Growth Strategy - Vintages Shift the Portfolio
From Classics to Front Line
Southwest: South of France
Entry Bordeaux
Rhone Burgundy
SPAIN
Spain is on Fire
$0
$10
$20
$30
$40
$50
$60
$70
2011/2012 2012/2013 2013/2014 2014/2015 2015/2016
Mill
ions
Net $ Sales
+15% +13% +8 % +10%
+12%
+20%
Spain is on Fire
Total Sales: $6.2M
+15.2%
Customers are Shopping Premium
Vintages (44%)
LCBO Wines (56%)
Largest growth $14+ Price Bands
Growth Strategy - LCBO Wines Focus on Current Portfolio
Strengthen Existing Brands
Refreshing White Wines
Growth Strategy – Spain Vintages Education & Premiumization
Highlight lesser known
Regions
Releases $14.95 - $40
Build Collaborative
SKUs
NEW WORLD WINES
Our DNA is Different
Australia 11%
California 50%
Chile 6%
New Zealand
18%
Australia 28%
California 34%
Chile 16%
New Zealand
5%
-0.2%
+0.3%
-0.6%
+0.7%
+0.4%
+0.3% -0.1%
-0.3%
Top Growth Areas Vintages
California +6.5% New Zealand +11% PNW +30.8%
Chile +21.9% Australia +6.3% Argentina +3.4%
LCBO Wines California 10% New Zealand 24% PNW 32%
CALIFORNIA
California the Superstar!
+9.1% +13.8%
+12.5% +19.0%
$0
$50
$100
$150
$200
$250
$300
$350
2015/20162014/20152013/20142012/20132011/2012
Mill
ions
Brand Dominant Category
Wines Top Ten Brands
Vintages Essentials
71% Share
60% Share
California Market Share
Vintages 40% (-1%)
LCBO Wines 60% (+1%)
Share over-indexed in Vintages
Growth Strategy - LCBO Wines Continue Driving Growth
Expand Portfolio
Innovative Seasonal Listings
Core SKU Promotion
Growth Strategy - Vintages Maintain Interest in Retail Release Program
Premium & Iconic
Canadian Dollar – Reduce
Quantities
Zinfandel Diversity in White Wines
AUSTRALIA
1.3%
5.7%
Total Australia
Australia Market Share
Vintages 15% (+0.9%)
LCBO Wines 85% (-0.9%)
Indexed higher to LCBO Wines and Big Brands
Growth Strategy - LCBO Wines
Re-engage Customer with Australia
Revitalization of Portfolio
Core SKU Promotion
Growth Strategy - Vintages
Re-engage Customer with Australia
Classic Varietals & Diversity of
Wines
Promote as Trendy &
Fashionable
Strategic Pricing
($15-$25)
ONTARIO
Ontario Market Share
Vintages 5% (-0.3%)
LCBO Wines 95% (+0.3%)
Share Shift to LCBO Wines
+6.5%
Strongest Growth in VQA
+8.5% +8.6%
Non VQA VQA ICB
Growth Strategy – LCBO Wines VQA
Continue Growth Momentum
Local Signature Varietals
Increased Access
Engaged Staff
Growth Strategy – Vintages VQA
World Class Cool Climate Producer
Showcase Quality
Signature Varietals
Strong Sell-Through
Growth Strategy - Non VQA
Everyday Great Value:
ICB
Innovation: Non-VQA
K E L LY TAY L O R Director, VINTAGES Operations
VINTAGES MERCHANDISING UPDATE
• All products merchandised by country
• Releases, Essentials and residual all in one section
• Dedicated ends for program wines and features
What’s New?
55
New Releases
Residual
Essentials
56
Should I move this super premium Amarone from the last release to the bottom of
the shelf?
57
I don’t have room above the release products to merchandise all my
Essentials. Should I delist some?
58
Should all Essentials be double merchandised?
Feature End Priorities
• A & B feature
Feature End Priorities
• Program Wines – Wine of the Month – $17 wine
Inline On-Shelf Signage
Inline On-Shelf Signage
Generic Thematic Backer Card
• 200+ store managers and Product Consultants
• Fully implemented in-store June 14
The Rollout
• Additional stores (sections in smaller stores)
• Rollout complete by August 2016
Next Steps
Vintages Merchandising Guide Fall 2016: • Merchandising with varying
levels of inventory
• Merchandising Program Wines
• Displays during peak occasions
Next Steps
Carolyn O’Grady-Gold Director, Wines
New Wines Release Guide
New Products Today
What Works?
New Products Today
What Doesn’t?
New Products Today
Opportunities
• 5 releases/year
• Ignite passion for what’s ‘NEW’
• Retail focused catalogue
• Set products up to succeed
• Integration of delists
The Idea
Buying Approach
Needs Assessment
Tender/ Selections
Develop Launch Plans
Communicate/ Activate
Measure, Review, Adapt
12+ months advance
Needs Assessment
8-10 months advance
Tenders / Selections
6-8 months advance
Develop Launch Plans MUST TRY
BUYER’S PICK
TACTICAL RELEASES
1 month in advance
Communicate / Activate
Communicate / Activate
Continuous
Measure, Review, Adapt
Benefits
Timelines
FISCAL 2016-17 # of Products P03 – SUMMER 40
P06 – FALL 35 P08 – HOLIDAY &
WINTER 65
P11 - WINTER 10 P13 - SPRING 45