GROW YOUR BUS I N E SS W I TH

V I N TA G E S

spring 2008

VINTAGES is an international leader in the buying,marketing and retailing of fine wines andpremium spirits. VINTAGES is a business unit ofthe LCBO (Liquor Control Board of Ontario).Our vision is to engage customers in the experienceof shopping, buying and collecting from our

ever-changing assortment of fine wines andpremium spirits — across all price points. In ourworld of continuous discovery, VINTAGES’ buyersshop the world for unique items and products ofexceptional value.

DISCOVER OUR LATEST!

In this guide, we introduce you to VINTAGES’Retail Programs, CLASSICS Collections,Direct Offers and Special Tasting Events, as wellas our comprehensive e-marketing channels:www.vintages.com, www.vintagesshoponline.comand VINTAGES Latest email newsletters. We alsoprovide information on how to grow your businesswith VINTAGES.

Inside, you will find details regarding ourprogram fees, purchasing process and resourcesavailable online. To ensure your products arereviewed and considered for purchase, it is veryimportant to understand these processes and utilizethe resources available.

We are very excited about our line-up of thematicreleases for 2008 (see page 6 for details). Indeed,VINTAGES has a number of programs and servicesthat can increase your product’s profile in ourmarketplace and maximize revenue.

For the fiscal year ending of March 31, 2007, theLCBO had total annual net sales of $3.9 billionconstituting growth of 6.4% over the previousyear. VINTAGES accounted for more than $260million in net sales, or 6.7% of the LCBO’s netsales. VINTAGES sales grew by 18.7% over theprevious year.

At VINTAGES we offer our customers a world ofcontinuous growth and discovery, and we inviteyou to be our partner. This guide shows you how.

We look forward to doing businesswith you.

Spring 2008 1

WELCOME TO VINTAGES!

2 Spring 2008

3 VINTAGES Retail Stores

3 LCBO/VINTAGES Summerhill Store

4 Retail Programs

4 Retail Release

5 Retail Release Themes

6 VINTAGES 2008 Release And

Promotional Calendar

7 Wines of the Month

7 Benchmark

7 Arrive In Style

8 VQA Wine of the Month

8 ON Tour

8 Food & Drink Discovery

9 VINTAGES ESSENTIALS Collection

10 Direct Programs

10 CLASSICS Collection

10 Bordeaux Futures

11 VINTAGES Online

11 VINTAGES Website

11 VINTAGES Latest

12 Virtual VINTAGES Offers

12 VINTAGES Shop Online

13 VINTAGES Events

14 Grow Your Business With VINTAGES

15 Agent Representation

16 VINTAGES Purchasing Process

16 Preliminary Selection

16 Other Ways VINTAGES Selects Products

16 Sales Performance Targets

16 VINTAGES Policy On Granting

Supplier Meetings

17 Purchase Orders

17 Payment Inquiries

17 Re-orders

18 Resources Available Online

18 New Item Submission System (NISS)

18 What’s Available at www.lcbotrade.com

19 Program and Fee Summary Chart

20 VINTAGES Sales

21 VINTAGES Contact Information

CONTENTS

Spring 2008 3

VINTAGES products are available through anetwork of 226 of the LCBO’s 600+ retail storesacross Ontario:

• 6 Specialized Stores (1,700-2,000 products).• 40 Boutiques (700-1,700 products).• 180 Corners (up to 700 products) .

LCBO’s Advantage: A highly trained team of180 Product Consultants in our Retail stores,whose expertise and knowledge of VINTAGESproducts provides an invaluable service to bothour suppliers and customers.

LCBO/VINTAGES SUMMERHILL STOREOpened in February 2003, LCBO’s flagship storeis a state-of-the-art Retail environment in anexquisitely restored former train station in down-town Toronto. The Summerhill location is thelargest store of its kind in Canada, with 31,000 sq.feet (2,880 sq. metres) in total space and 21,000 sq.feet (1,950 sq. metres) dedicated to retail space.For fiscal 2006-07, the store reported:

• Total LCBO/VINTAGES net sales: $40 million.• Total VINTAGES net sales: $16.4 million (41%of total store sales).

• Capacity to present 2,000+ VINTAGES products.• Eight highly trained Product Consultants.• A tasting room and four tasting stations.

VINTAGES RETAIL STORES

VINTAGES at Summerhill

4 Spring 2008

RETAIL RELEASEThe Retail Release program is the core ofVINTAGES’ business:

• 125+ new products released into the Retailnetwork every two weeks.

• Supported by the VINTAGES Retail Releasecatalogue (print & web).

• Includes major themes/spotlights on countries,wine regions, varietals, wine types, producers, etc.

• Our buyers and team of researchers provideinformation on each product, includingin-house tasting notes or reviews by RobertParker Jr., Wine Spectator, etc.

• Distribution: 42,500+ mail subscribers;15,000 copies distributed in LCBO storesevery two weeks.

• A web version of the catalogue is availableonline at www.vintages.com and promotedthrough VINTAGES Latest email marketingprogram (13,500 subscribers and growing).

• Selection of products promoted in the LCBO’saward-winning Food & Drink magazine.

RETAIL PROGRAMS

VINTAGESD I S C O V E R O U R L A T E S T

R E L E A S E D A T E : S A T U R D A Y , J U N E 2 3 , 2 0 0 7R E L E A S E D A T E : S A T U R D A Y , M A R C H 1 5 , 2 0 0 8

matchpoints

PERFECT FOOD AND WINE PAIRINGS FOR

EVERY PALATE

theallureof

BurgundySEDUCTIVE WINES, ANDSURPRISINGLYAFFORDABLE

VINTAGESD I S C O V E R O U R L A T E S T

R E L E A S E D A T E : S A T U R D A Y , J U N E 2 3 , 2 0 0 7R E L E A S E D A T E : S A T U R D A Y , M A R C H 1 , 2 0 0 8

Spring 2008 5

RETAIL RELEASE THEMESIn each Retail Release catalogue,VINTAGES features a country, region,varietal, winemaker or specialcollections/groupings of product.

The country/region release themes arethoroughly researched, richly illustratedand designed to transport the customerto the place through its wine andspirits, food, landscape and culture.

Varietal themes educate customersabout a specific grape variety and thedifferent styles of wine it produces.Educating customers encourages themto discover wines that they might not normallybuy and serves to build their confidence inshopping at VINTAGES.

VINTAGES also features profiles on specificwinemakers and their products within thecontext of a country/region or varietal theme.

Special collections/groupings of product haveincluded: Big & Small bottles, Organic wines, FoodMatching features and Grilling/Barbecue wines.

On the following page is the calendar of releasethemes for 2008.

For the VINTAGES schedule of application,submission and tasting of products for releases,please go to the LCBO Trade Resources website:www.lcbotrade.com.

VINTAGES 5

MADRIGAL VINEYARDSCalifornia, USAProprietors: Jess Madrigal and his sons Christopher, Matthew and MichaelWinemaker: Bruce Regalia

Love of the land is what binds three generations of Madrigals. Jess Madrigal’s fatherleft Mexico to settle in Calistoga, California in 1937 (after first mistakenly landing inKansas!). As an adult, Jess left Calistoga for a career in the armed forces, but a yearning to return to his hometown was ever present. After 20 years in the service,he retired and finally returned to start a vineyard business, supplying quality grapes to some of Napa’s best wineries. Over the years, the allure of making wines from hisown grapes became irresistible and, in 1995, he and his three sons started theirown winery. Today, the family vineyard business is still thriving with 500 acres (200ha) in Napa Valley and 300 acres (120 ha) in Alexander Valley, but it is the tiny 15 acres (6 ha) on the home property that is the Madrigal’s pride and joy. All NapaValley wines that bear the family name come exclusively from this little plot andthree small, nearby vineyards. Madrigal makes small lots of handcrafted wines fromunderrated grapes such as the Petite Sirah wine of the month in this release, to the more typical Cabernet Sauvignon and Merlot.

QUINTARELLIVeneto, ItalyProprietor: Giuseppe Quintarelli

Giuseppe Quintarelli, considered bymany to be the ‘Master of Veneto’, is the epitome of the artisan. Hiswinery? If you visit, you have tokeep an eye peeled for the ‘secondroad on the left’ as there is no sign.There’s no imposing castle orsprawling mansion either. The win-ery building looks like a farmhousebecause that is what it is. His labelsare reproductions of a hand-writtenone, and Quintarelli himselfpainstakingly attaches each to thebottles. He is both an ardent tradi-tionalist and the great experimenterwho pushes the traditions beyondtheir limits. He gives his legendarywines extended contact in seasonedbarrels, creating, for example,Valpolicellas that reflect their originsin Veneto, but taste nothing like the light-bodied, fruity, and crispwines that many producers release.He is also an innovator, creatingnew wines such as the Primofioreavailable in this release with its unusual blend of Cabernet Sauvignon, CabernetFranc and Corvina.

CHAMPAGNE J. LASSALLEChampagne, FranceProprietor: Olga & Chantal Lassalle

In the world of Champagne, a house founded in 1942 would be considered the new kid on the block. Nevertheless, the tiny gem Champagne J. Lassalle has garnered muchacclaim for its traditionally made Champagnes. What is rare about this ‘young’ Champagnehouse is that all of its wines are made with grapes grown on their 11 ha property (ratherthan buying from independent growers), thus guaranteeing all aspects of the productionprocess. They follow trusted Champagne winemaking traditions such as hand-riddlingthe bottles and using classic makeups like the 60/40 Pinot Noir and Chardonnay blend as used in the wine in this release. When founder Jules Lassalle died prematurely in1982, his widow, Olga, and daughter, Chantal, took over the operation of the property.Like other ‘champagne widows’ of the past (e.g., Madame Clicquot Ponsardin of VeuveClicquot), Olga (and Chantal) have proceeded to transform and elevate the quality of thehouse to the point where critics describe it as “one to keep your eye on” (RichardJuhlin, 4000 Champagnes, 2004).

three infocusMore and more producers are creating

unique wines suffused with pride of place and respect for tradition.

GiuseppeQuintarelli withhis nephew andfellow winemaker Marco TreviniBellini.

Co-proprietor Chantal Lassalle

Founder Jess Madrigal with son Christopherand winemaker Bruce Regalia.

A gaucho surveys thescene at a festival inSan Antonio de Areco. OPPOSITE: Autumnlight bathes a vineyardin Argentina’s Mendozaregion, with the Andesin the distance.

2 VINTAGES

rising to thechallengeArgentine winemakers, known mostly for theirexpertise with malbec, are broadeningtheir horizons in surprising and delicious directions.

APPELLATION/COMMUNE FLAVOUR PROFILE

Aloxe-CortonPinot Noir, Chardonnay

white – firm, full, masculine, rich, steely,honey, best need ageing; red – rich, powerful,tannic, firm, red and dark fruits, mouthfill-ing, plum, some earthy/truffle scents, bestexamples need ageing.

Chorey-les-BeaunePinot Noir

its supple, cherry- and plum-scented winesare charming and often a great place todiscover Burgundian Pinot as they are usu-ally quality wines at value prices.

BeaunePinot Noir, Chardonnay

reds – good, straightforward, red fruit, cherry,medium-full body, sturdy, muscular frame,yet with some finesse, can age; white –earthy, fruity, flavourful, spicy, early drinking.

MeursaultChardonnay

expressive bouquet, hazelnut, cardamon,buttery, round, full body, persistent flavour,minerally, rich, opulent, but can be elegantwith supportive acidity, oaky but not over-whelming, good ageing potential, but canbe approachable in their youth.

18 VINTAGES

CÔTE D’OR/CÔTE DE BEAUNEWhile Côte de Nuits is the reputed King of Pinot Noir, Côte de Beaune rightly holds the title of Queen of Chardonnay. Though the Pinot Noirs ofCôte de Beaune are also keenly sought-after.

Beaune•Aloxe-Corton•

Chorey-lès-Beaune •

Meursault •

JANUARY 2008

January 5A. New Year, New Wine

January 19A. Argentina B. Portugal

FEBRUARY 2008

February 2A. 90+ wines, 3rd Party Scores (e.g., Wine Spectator, Parker) B. Valentine’s Day

February 16A. Take a Cab Home

MARCH 2008

March 1A. Burgundy B. St. Patrick’s Day

March 15A. Wines & Food Match B. Kosher Wines

March 29A. Artisan Wines B. Organic Wines

APRIL 2008

April 12A. Southern Exposure

April 26B. California Regional Varietal Focus

MAY 2008

May 10A. Pinots (Red/White) B. Germany

May 24A. New Zealand (Reds) B. Rosés

JUNE 2008

June 7A. Champagne B. Father’s Day

June 21A. Wine Rivers of Europe B. Canada Day

JULY 2008

July 5A. Argentina Malbec B. Tuscany

July 19A. Summer Whites Fizz & Cider

AUGUST 2008

August 2A. South Africa B. Southern France (Midi)

August 16A. Chile B. Austria

August 30A. Iberia (Spain/Portugal) B. Champagne

SEPTEMBER 2008

September 13A. Ontario Wines B. IGT Wines (Italy)

September 27A. Burgundy B. California

OCTOBER 2008

October 11A. Australia B. Rhône

October 25A. Amarone/Ripasso B. Wines for Entertaining

NOVEMBER 2008

November 8A. Bordeaux B. Premium Spirits

November 22A. Premium Products

DECEMBER 2008

December 6A. Our Finest & Fizz

VINTAGES RETAIL RELEASE THEMES 2008Please note that these themes may change without notice. (Last updated January 2008)

A = Major Feature (~25 skus) B = Minor Feature (~10-25 skus)

6 Spring 2008

Spring 2008 7

WINES OF THE MONTHThe highly successful Wines of the Month(WOM) program features two products everyfour weeks and profiles them on the inside frontcover on the Retail Release catalogue and onour website.

Highlights of program:

• Products offer an exceptional quality-to-priceratio.

• High visibility/promotion within VINTAGESlocations – products placed on end-aisle displayswith full-colour point-of-purchase materials.

• Risk-free introduction for customers new toVINTAGES.

• Customers recognize these products as havingVINTAGES’ stamp of approval.

• WOM sales typically range from 1,000 to 2,000cases within each four-week promotional period,selling significantly more than non-featuredproducts of similar price points.

• Typical WOM retail price: $16-$25.

BENCHMARKLaunched in September 2005, this programeducates the wine consumer within the contextof a release theme or spotlight by focusing ona product that exemplifies a country, region,appellation, grape variety or style.

The Benchmark is profiled on the insidefront cover of the Retail Release catalogue(alternates with theWines of the Month) andon our website.

ARRIVE IN STYLEThe bi-weekly Arrive in Style program highlightsproducts suitable for gift-giving and entertaining,with a VINTAGES gift box or bag sold separately.Arrive in Style products are profiled on the insideback cover of the Retail Release catalogue and onour website.

This program is designed to give customersconfidence in selecting gifts as well as continuouslypositioning VINTAGES as the premier sourcefor gifting.

winesof themonth

VALPANTENA TORRE DEL FALASCOVALPOLICELLA RIPASSO 2005DOC, Italy – Veneto642421 (D) 750 mL $ 17.95

This ‘baby Amarone’ is a consistentfavourite with VINTAGES customers andalways delivers with loads of plum, cherry, chocolate, leather and licoricecharacteristics. It’s dry and supple with a medium-body and substantial finish. Try with gnocchi in a gorgonzola-walnutsauce or bacon-wrapped filet mignon.

PLANTAGENET OMRAH SHIRAZ2004Western Australia021360 (XD) 750 mL $ 16.95

TASTING NOTE: The 2004 OmrahShiraz is more deeply colored and moreperfumed than [Plantagenet’s] HazardHill. It exhibits aromas of spice box,pepper, blueberry, and blackberry. Thisleads to a structured wine with excellentdepth of flavor and a long, pure finish.It can be enjoyed now but will evolve forseveral years. Score – 90. (Jay Miller,www.erobertp arker.com, Oct. 2007)

OUR BENCHMARK

EL PORTILLO ELEVADO RESERVE MALBEC 2005Uco Valley, Mendoza, Argentina(Bodegas Salentein)055418 (XD) 750 mL $ 17.80

A Silver-Medal winner at the 2007 Hyatt Wine Awards.

TASTING NOTE: Deep ruby/opaque, almost blackin colour. The aromas are black-fruit driven andalmost sweet smelling (plum and blackberry), plusa hint of seasoned leather. The nose pays off inunexpected, exciting ways. It is dry with a goodfruit core almost perfectly balanced by racy acidityand ripe tannins. The fruit is not under or overripe,just right. It is medium full-bodied with a verylong, balanced finish. This will reward cellaringfor 2-4 years, or enjoy it tonight with a roast leg oflamb with rosemary and garlic. (VINTAGES panel,Nov. 2007)

THE DETAILS

Traditionally a mere blending grape in Bordeaux,Malbec found fame and fortune after taking upresidence in Argentina where it has become thenation’s premier variety. At 1,300 metres abovesea level and 34 degrees south of the equator, the Mendoza region’s Uco Valley enjoys an unusualcombination of altitude and latitude. While mostliving things would find the extreme swings intemperature here quite inhospitable, the regionhas proven to be an ideal niche for Malbec. Thelong growing season gives the grape time to fullydevelop its intense fruit flavours and the tempera-ture variation allows it to achieve the proper balancebetween sugars and acids while softening thegrape’s naturally firm tannins. These factors com-bine to produce powerful yet elegant wines thatare deeply coloured, with delicious, forward fruitand fine tannins. Bodegas El Portillo ElevadoReserve is a superlative example of Argentina’strademark grape.

argentina malbec

For fifty years, MacMurray Ranch inthe heart of Sonoma was where thelate great Fred MacMurray of TV’s‘My Three Sons’ fame lived with hisreal family. Today, the star of theranch is Pinot Noir. Here’s somefatherly advice: take this charmingPinot to your next dinner party and it will become an instant classic.

MACMURRAY RANCH PINOT NOIR2006Sonoma Coast, California048207 (XD) 750 mL $ 21.95

TASTING NOTE: Medium-ruby in colour,this silky Pinot displays attractive aromas ofsour and black cherry, beets, bramble,smoke and a touch of oak spice. It’s dry,medium-bodied and very fruity with silkytannins and a nice seam of acidity providingstructure. Toasty oak and spice are featured on the lingering finish. This is ready-to-drink now with roasted chicken, pasta primavera or blackened salmon. (VINTAGES

panel, Jan. 2008)

VINTAGES SINGLE BOTTLE BAG923599 $ 1.95

www.vintages.com

arriveinstyle

with an instant classic

8 Spring 2008

RETAIL PROGRAMS (CONT’D)

VQA WINE OF THE MONTH• The VQA (Vintners Quality Alliance) Wine ofthe Month program features a different OntarioVQA product 12 times per year priced in therange of $15-$20.

ON TOURON Tour profiles an Ontario VQA producer,their history, winemaking philosophy and wines.It is featured 12 times per year.

FOOD & DRINK DISCOVERYThis highly successful program is designed toreach new customers via LCBO’s award-winningFood & Drink magazine.

Highlights of program:

• Launched every two months, this programfeatures one product that was discovered bya member of the VINTAGES buying team.

• Products are selected based on high quality-to-price ratio.

• 2,000 to 3,000 cases per product are purchased.

• Typical retail price ranges from $15-$20.

• Products are promoted in the Retail Releasecatalogue, on our website and in stores withlarge displays and signage.

For a copy of our bi-weekly release catalogue or to finda VINTAGES location near you, visit vintages.com or call usat 416-365-5767 or toll-free at 1-800-266-4764.Prices are subject to change without notice. Not all products available at all stores.

NEW DISCOVERYFROM CALIFORNIA

We found it!VINTAGES

TANGLEY OAKS MERLOT 2003Napa Valley, California068155 (XD) 750 mL 2

$17.95

Toast the daywith a Napa Valley classicTasting note: An excellent choice forgrilled meat or vegetables, this Merlot isloaded with black cherry, blueberry, cassisand vanilla aromas and flavours. It’s dry,smooth, very fruity, and will continue todrink nicely over the next few years.(VINTAGES panel, Dec. 2007)

AtVINTAGES, we love the NapaValley, birthplace ofCalifornia’s greatest Cabernets and Merlots.That’s

why we’re excited about Tangley Oaks, a Merlot madewith passionate attention to quality. Every year, grapesfrom several vineyard lots are separately vinified, andonly the finest of these lots is selected for bottling asTangley Oaks.The result is a classic Napa Merlot: softand ripe, a perfect balance of pure fruit flavours and spice.Delicious on its own, food-friendly, and an outstandingvalue. Enjoy.

A NapaMerlot forunder $20

26 VINTAGES

VQA choiceMALIVOIRE PINOT GRIS 2006VQA Beamsville Bench591305 (D) 750 mL $ 19.00 1

TASTING NOTE: Mediumstraw with lightly oxidizedgreen tint in colour. Lime,lemon, red apple, tangerineand minerals on its nose.Light to medium bodied withunder-ripe tropical fruit andtart apple flavours, greatacidity and a lingering, freshlime pulp finish. Match itwith tomato marinated porkkebabs. Great value.Score – ���� (out of 5).(Zoltan Szabo, www.zolta-nszabo.ca, July 2007)

wineof the

month

acobson, Funk, Douglas and Willms may sound likea law firm but they are the founding partners of theremarkable Thirteenth Street Winery. 2008 marks thetenth anniversary of the boutique-sized winery whichhas grown from a labour of love into one of Niagara’smost sought-after cult wineries. Each partner has a suc-cessful professional career outside of the winery; yet,amazingly, they have managed to craft some of theregion’s best small-batch wines while running the win-ery on a strictly part-time basis. Nestled away inJordan Station, the winery has won countless awards,wowed wine enthusiasts as well as critics and raised thebar for quality winemaking in Niagara.

Gunther Funk and Erv Willms are seasoned growers whotend two of the region’s most celebrated vineyards, namelythe Funk and Sandstone vineyards respectively. Willmsplanted the Sandstone vineyard with Gamay, Rieslingand Chardonnay in the early 1980s and a decade later hebought 3 ha of neighboring land and added CabernetSauvignon and Cabernet Franc to his repertoire. Plantedin 1976, the Funk vineyard is famous for its Riesling andPinot Noir vines, but it is also planted with Nebbiolo,Sauvignon Blanc and Chardonnay.

The overriding philosophy at Thirteenth Street is that greatwine begins in the vineyards so it’s not surprising thatFunk and Willms work closely with their winemakingpartners Herb Jacobson and Ken Douglas. Recently, twomore partners, John Mann and Doug Witty, joined theteam. Mann has been a grape grower for the past 40 yearsand also brings a wealth of retail strategy and marketingexperience to the winery. Witty is a third generationgrower whose family has farmed the Creek Shores sub-appellation for a century. This new union has alreadymore than doubled the winery’s vineyards to well over20 hectares and promises more exciting developments.

The enterprising vineyard expansion plan means thewinery will also be moving locations from its namesakeThirteenth Street to a larger facility around the corner onFourth Ave. (Don’t worry, there won’t be a name change.)The direction and focus of the winery will also remain thesame with Jacobson and Douglas concentrating on thewinery’s proven strengths.

VINTAGES is thrilled to bring you three superb wines fromthe original cellar door on Thirteenth Street: the racyand refreshing Riesling 2005, the intensely aromaticSandstone Vineyard Déchêné Chardonnay Musqué2006 and the elegantly balanced Cabernet Merlot 2004.These acclaimed wines leave us anxiously anticipatingthis unique winery’s next ten years.

J

22 VINTAGES

TOP: Winemakers Ken Douglas (kneeling) &Herb Jacobson examining the vines.

BOTTOM LEFT: Stainless steel tanks preservefresh fruit characteristics of Riesling.

BOTTOM RIGHT: Chardonnay grapes approachingripeness.

Thirteenth StreetWinery

ON Tour:

D I S C O V E R O N T A R I O V Q A

$ 18.00(056564, Page 25)

$ 19.00(066209, Page 26)

$ 20.00(056598, Page 26)

Spring 2008 9

VINTAGES ESSENTIALS COLLECTIONThe ESSENTIALS Collection is a portfolio ofproducts that is continuously available throughour retail locations. It consists of 95 core productsthat are proven VINTAGES customer favourites.ESSENTIALS products are world-renownedbrands, each having demonstrated a great quality-to-price ratio and success in our market.

This is a highly successful program, representing$71 million or 27.3% of VINTAGES’ total sales,an increase of 20.2% over last year.

Sales performance of VINTAGES ESSENTIALSproducts is reviewed on a continuous basis.

VINTAGES promotes the ESSENTIALS Collectionwith a full-colour glossy, catalogue in boththe spring and autumn. This publication isdistributed with our Retail Release catalogues,reaching 42,500+ customers directly. An additional20,000 copies are distributed through ourRetail network.

A rotating selection of ESSENTIALS productsis also featured in our Retail Release catalogue.

ESSENTIALS products receive an additionalboost through the successful VINTAGES SummerStore program. This program provides customerswith access to VINTAGES products in 75 speciallyselected cottage-country stores during the busysummer holiday months.

The VINTAGES ESSENTIALS Collectionis also promoted on VINTAGES’ websitewww.vintages.com, at special events and inadvertising supplements.

10 Spring 2008

DIRECT PROGRAMS

CLASSICS COLLECTIONThe CLASSICS Collection offers a selection ofthe world’s greatest fine wines and premiumspirits. Primarily a VINTAGES direct marketingprogram, the CLASSICS Collection focuses onthe latest limited allocations from some of themost prestigious, sought-after estates andproducers in the world, as well as acclaimedolder vintages and other rare selections.

Each CLASSICS Collection presents approximately150-200 new and unique products and islaunched five times per year: January, March,May, August, and November. Customers orderthrough the VINTAGES Sales Centre via email, faxand telephone.

Catalogues are mailed to 14,000 subscribers anddistributed in stores. Products are featured onour website and highlighted through theVINTAGES Latest email marketing program.

BORDEAUX FUTURESThis program began with the 1989 vintage, andeach year offers a broad selection of the finest cruclassé wines including all First Growths, and suchRight Bank luminaries as Pétrus, Cheval Blancand Ausone, to name just a few.

Sales volume in the Bordeaux Futures programdepends on the quality of the vintage. Competitionfor the products is fierce, especially with highdemand vintages.

VINTAGES has developed excellent relationshipswith major Bordeaux négociants and producers.This aids as in securing outstanding assortmentand supply.

For fiscal 2006-07, total annual sales forCLASSICS Collection, Bordeaux Futures andother direct programs represented 7.9% of totalVINTAGES sales, or $20 million.

F I N E W I N E & P R E M I U M S P I R I T S

The ClassicsCollection

January 2008

Spring 2008 11

VINTAGES WEBSITEVINTAGES’ website (www.vintages.com) providesour customers with comprehensive informationon VINTAGES products and services: RetailReleases, Wines of the Month, Food & DrinkDiscovery products, CLASSICS Collection,Bordeaux Futures, special offers andVINTAGES events.

As with all VINTAGES publications, this highlypopular website is offered in English and French.The Product Search engine allows customers tosearch for VINTAGES products 24 hours a day,7 days a week. The search engine provides dailystore inventory, store listings and product notes.

VINTAGES LATESTVINTAGES Latest – VINTAGES’ email marketingbulletin service – updates our 14,000+ subscriberson product releases, special offers, events andother news.

VINTAGES Latest is a very successful mediumfor communicating special offers, the latestproducts available at our retail locations and thelaunches of our direct marketing programs suchas the CLASSICS Collection, Bordeaux Futures,Virtual Offers and VINTAGES events.

Customers sign up for VINTAGES Latest emailbulletins at www.vintageslatest.com.

VINTAGES ONLINE

12 Spring 2008

VIRTUAL VINTAGES OFFERSThroughout the year we partner with suppliersto offer rare, older vintages and large formats toour customers, often direct from the producers’cellars. Recent offers have included: ChâteauMouton-Rothschild, Michel Rolland, Krug,Château Conseillante, Masi, Château LynchBages, Guigal, Fontanafredda and Montecillo.VINTAGES orders stock to match customerdemand and to meet its own requirementsthereby eliminating surplus inventory.

Like CLASSICS, customers order via fax,email and telephone from the dedicatedVINTAGES Sales Centre.

VINTAGES SHOP ONLINECurrently in development this exciting newonline merchandising program will affordcustomers the opportunity to shop online forpremium and ultra-premium wines and spirits,24 hours a day, 7 days a week. Over 300 exclusiveproducts will be available when the programlaunches and every 4 weeks a new assortment ofproducts will be released. Product inventory willbe shown on the site in real time for bothindividual bottle and case purchases. Orders willbe confirmed at the online checkout stage anddelivered to the customer’s LCBO store of choicefor pickup.

Spring 2008 13

VINTAGES events play an integral part indeveloping customer relationships and buildingour brand. These range from small structuredtastings/winemaker’s dinners to medium-sizedtastings (50-200 people) to large-scale, taste-and-buyevents (500+ people).

VINTAGES’ Taste Our Latest events offer customersan opportunity to taste and pre-order 50+premium wines on-site. These are held regularlyin Toronto and rotate through other cities inOntario such as Ottawa, London and Kitchener-Waterloo.

VINTAGESWINE 101 is aimed at new customerswho are just getting into wine and are eagerto learn. These innovative educational eventspresent a variety of wines and spirits in aninteractive, approachable and fun way.

In January 2008, VINTAGES will again partnerwith the Union des Grands Crus de Bordeaux topresent a taste-and-order event showcasing theexceptional 2005 vintage with 99 châteauowners/winemakers in attendance.

More intimate are our structured tastings andwinemaker’s dinners, with such notables as: RémiKrug, John Shafer, Christian Moueix, PaulPontallier of Château Margaux, Frédéric Engererof Château Latour, Pierre Lurton of ChâteauCheval Blanc and Château d’Yquem, andFrançois Perrin, Château de Beaucastel to namea few.

VINTAGES EVENTS

14 Spring 2008

The market for fine wines and premium spiritsin Ontario is very competitive. Suppliers fromaround the world vie for shelf space and presencein VINTAGES’ various programs. Our customersare becoming increasingly sophisticated, educatedand enthusiastic to try new products. They arealso demanding more quality for their money.

How do you promote and grow brands in suchan intensely competitive market?

• Offer exceptional price/value ratio – Ontarioconsumers are very savvy and are aware ofinternational wine prices.

• Work with a solid agent and sales team to focuson Retail and On-premise sales and execution.

• Develop and execute a strong marketing planthat promotes products through advertising,media and partnerships.

• Provide purchasing incentives such as BonusAIR MILES™ (a loyalty program) for afour-week period.

• Take advantage of VINTAGES’ new TastingBar initiative. Offering samples to customersin stores is a proven method of effectivelyintroducing new products and supportingexisting products.

• Food & Drink offers excellent advertisingopportunities. The LCBO publishes thishighly acclaimed magazine that features wine,spirits, beer and other alcohol beverageproducts alongside food and entertaining ideas.Food & Drink is produced six timesper year and is available free of charge toLCBO customers.

• Use in-store Point of Purchase materials suchas neck tags, value-adds and contests. Note:these must be negotiated with the VINTAGESCategory team in advance.

• Partner in VINTAGES Events.

• Increase your exposure in the variousVINTAGES participation programs: Winesof the Month, Arrive in Style, Benchmark,VQAWine of the Month, Food & DrinkDiscovery, cover positions of VINTAGES

publications and advertisements, etc.

GROW YOUR BUSINESS WITH VINTAGES

Spring 2008 15

AGENT REPRESENTATIONWorking with a strong agent in Ontario shouldbe a supplier’s top priority. The agent should notonly know the Ontario beverage alcohol market,they should be aware of global trends and how tosuccessfully market products they represent.

Here are a few qualities that a supplier shouldlook for in an agent:

• Thorough knowledge of the beverage alcoholmarket in Ontario, especially the VINTAGESmarket segment.

• Primary contacts at VINTAGES, such asCategory and Product Managers.

• A list of the brands that the agent currentlyrepresents and are sold through VINTAGES.

• Sales performance of each brand: length of timein market and percentage sell-through by theend of the third month. VINTAGES’ target is75% sell-through in 75 days.

• The number of sales representatives workingwith the VINTAGES portfolio and how many areassigned to the Licensee (on-premise) channelto promote VINTAGES products.

• Comprehensive knowledge of how VINTAGESprocures their products, including how tosubmit a listing application through NISS.

• Knowledge of LCBO packaging standards,including the primary information that mustbe on a bottle label (e.g., percentage alc./vol.,country of origin, wine type, metric size).

• Knowledge of VINTAGES programs, i.e.,Retail Releases, ESSENTIALS Collection,CLASSICS Collection, Bordeaux Futures,VINTAGES Latest email bulletins, Events, etc.

• Knowledge of promotional offers available topromote products in VINTAGES, i.e., BonusReward Miles through AIR MILES™ Loyaltyprogram, Limited Time Offers (LTO),advertisements in LCBO’s Food & Drinkmagazine, catalogue cover pages, etc., and howto apply for each program.

• Awareness of VINTAGES’ various programsincluding the new Tasting Bar program andknowledge of how to apply.

• Newspaper/magazine advertisements featuringproducts from the agent’s portfolio.

• Published newsletters (via mail or email) toinform and educate product consultants, storemanagers and licensees in order to stimulatesales – the supplier might want to ask forsamples.

• Proactive media coverage through tastings ofrelease products to kindle media attention.

• Excellent knowledge of LCBO practices andpolicies.

16 Spring 2008

PRELIMINARY SELECTIONVINTAGES issues a ‘needs letter’ to the tradethree times per year that outlines what typesof products we are looking to purchase in thecoming months. The letter and a tasting scheduleof product requirements (which specifies producttypes, submission deadlines, sample deadlines,tasting dates and contact information) are postedon the LCBO Trade website, ww.lcbotrade.com,in PDF format.

OTHER WAYS VINTAGES SELECTS PRODUCTSVINTAGES selects products in many ways including:

• Direct Offers: from suppliers and agents;this requires the pre-approval of a CategoryManager.

• Allocations: VINTAGES negotiates for largerallocations of established products with highglobal demand.

• Proactive Purchasing: VINTAGES seeks out newand interesting products from quality-mindedproducers.

• Trade shows, business trips, wine fairs.

SALES PERFORMANCE TARGETSVINTAGES’ expectation is that a product willachieve a minimum of 75% sell-through twomonths from release and 100% sell-through bythe end of the third month. If the product failsto achieve a 75% sell-through within threemonths of release then the supplier or the agentmust provide a 20% rebate for all inventoriesthat are remaining. The price of the productwill subsequently be marked down for fastersell-through.

Sample only. Visit www.lcbotrade.com for complete details.

VINTAGES POLICY ON GRANTINGSUPPLIER MEETINGS

Agents and suppliers should be aware that meetingsto discuss supplier portfolio opportunities willbe granted only if there is a current interest inpurchasing products from this supplier. Agentsmust submit a brief outline of what will bediscussed at the meeting (i.e., specific productsof interest, promotional plan) to allow the buyeran opportunity to evaluate the value of a face-to-face meeting. Requests for meetings must bemade at least three weeks in advance.

VINTAGES PURCHASING PROCESS

Spring 2008 17

PURCHASE ORDERS

A purchase order is typically issued within sixweeks after the “Letter of Commitment” letteris transmitted. Once all the conditions in the“Commitment Letter” have been satisfied andagreed to in writing, a purchase order will befaxed to the Supplier. The Agent will receive adetailed report of the purchase the week followingthe issuance of the purchase order. Full terms ofpurchase are set out on the reverse side of thepurchase order. Once the purchase order isissued, the terms of purchase are to be strictlyadhered to or the order will be cancelled.

PAYMENT INQUIRIESPayment inquiries should be directed to ourFinance Division at 416-365-5723 or faxed to416-365-5766.

RE-ORDERSOnce a product has sold out, it is generally notre-ordered. However, from time to time whensales are spectacular or there is an ongoingdemand, a re-order may occur. A decision tore-order a product will be based on availability,price, sell-through and market demand. An agentmay request that a product be re-ordered bysubmitting a written request to the appropriateVINTAGES Category Manager.

Complete guidelines for submissions canbe found at www.lcbotrade.com.

18 Spring 2008

NEW ITEM SUBMISSION SYSTEM (NISS)LCBO launched the New Item SubmissionSystem in November 2005 to replace the manual,time-consuming process of submitting productsfor purchasing consideration.

NISS is an easy-to-use, web-based tool that allowsagents and suppliers to:

• Submit products for review.• View LCBO Product Needs letters online.• Track a product submission online.

LCBO staff use NISS to log, track and approveor decline submissions. This new tool speedsup the application process and reduces turn-around times.

Agents and suppliers must become familiar withNISS as the paper version of the item submissionprocess is no longer in effect.

Agents and suppliers must apply for access beforethey can use NISS.

To use NISS, agents must fill in all mandatoryfields of the Application for Access to NISS form,and then print, sign and fax it to the appropriateLCBO Business Unit: Wines, Spirits, Beers andSpecial Markets, or VINTAGES.

You must include your Agent number on thisform. If you do not know your Agent number,then please contact the appropriate LCBOBusiness Unit for this information. If you area new agent who is not currently doing businesswith the LCBO, then you may submit anapplication without an agent number.Simply leave this area of the form blank.

GETTING STARTED WITH NISS

Go to www.lcbotrade.com to download the NISSUser Guide in PDF format. The website’s FAQsection also provides helpful information.

In order to save and print NISS submissioninformation, you will need Adobe Reader 6.0or higher.

WHAT ’S AVAILABLE AT

WWW.LCBOTRADE.COM• Release Themes• Product Needs Letters• Product Requirements• Program and Fee Summary Chart• Sales Reports• Packaging Standards• Guidelines for Chemical Analysis

RESOURCES AVAILABLE ONLINE

WWW.LCBOTRADE.COM

Spring 2008 19

PROGRAM AND FEE SUMMARY CHART

VINTAGESPROGRAM

FREQUENCYCOMMUNICATIONVEHICLE

MERCHANDISINGIN-STORE (P.O.P.)

PARTICIPATIONFEES*

VINTAGESRETAIL RELEASE

Retail Release:every 2 wks;Release Catalogue:Bi-weeklyPublication

Release Catalogue,VINTAGES website,VINTAGES Latest emails

Shelf Talkers:(For selected products)

Feature Promotions:Primary Thematic Highlight:Jan.-Sept. $2,000;Oct.-Dec. $3,300 per productSecondary Thematic Highlight:Jan.- Sept. $1,600;Oct.-Dec. $2,300 per productArrive in Style Highlight:$2,000 per product

WINES OFTHE MONTH

Every 4 wks Release Catalogue,VINTAGES website

Backer Cards, Pricer Cards,Shelf Talkers

Jan.- Sept. $3,500;Oct.-Dec. $4,000 per product

BENCHMARK Every 4 wks Release Catalogue,VINTAGES website Shelf Talkers $2,000 per product

FOOD & DRINKDISCOVERY

6 per year FOOD & DRINK magazine,Release Catalogue

Backer Cards, Pricer Cards,Shelf Talkers $5,000 per product

VQA WINE OF THEMONTHON TOUR

AlternatesEvery 2 wks

Release Catalogue,VINTAGES website

Backer Cards, PricerCards, Shelf Talkers 1% of total value of Purchase Order Payment

ESSENTIALSCOLLECTION

AlwaysAvailable

VINTAGES ESSENTIALSCollection Catalogue pack-aged together with RetailRelease Catalogue in Mayand October,VINTAGES website, Events.

Backer Cards,Pricer Cards,Shelf Talkers

1.5% of total value of Purchase Order PaymentOpportunity:Consult with respective Product Manager.

CLASSICSCOLLECTION

5 per yearCatalogue.VINTAGES Latest emails,VINTAGES website

Shelf Talkers(for selected products)

Opportunity:Consult with respective Product Manager.

HOLIDAY GIFTING One per yearHoliday CatalogueInsert in Release Catalogue,FSIs, VINTAGES website

Backer Cards, PricerCards, Shelf Talkers

2% of total value of Purchase Order Payment.Opportunity: Feature position

BONUS AIR MILES(BAM) & LIMITEDTIME OFFERS (LTO)

Per LCBO Promotionperiod In-Store; Release Catalogue Release Catalogue,

Shelf Talkers

Submit a completed IMAGE applicationto the appropriate Product Manager.Applications are due 3 months beforethe Promotional period.**

TASTING EVENTS 25 per yearDirect mail, ReleaseCatalogues, VINTAGES website,VINTAGES Latest emails

N/AOpportunity:Consult with respective Product Manager.

VINTAGES LATEST WeeklyCross-promoted throughRelease Catalogue &VINTAGES website

N/AOpportunity:Consult with respective Product Manager.

VINTAGESSHOP ONLINE

Every 4 wksCross-promoted throughRelease Catalogue &VINTAGES website

N/AOpportunity:Consult with respective Product Manager.

Last Updated: February 2008NEW Opportunities: Tasting Bar Program – Contact Dave Smith, In-Store Tasting Program Administrator at dave.smith@lcbo.com.*Fees: Participation fees are under review and subject to change.**IMAGE Applications: Applications may be obtained online at www.lcbotrade.com/resources_forms.htm but MUST be submited in hard copy.IMAGE rates and rules for the VINTAGES business unit are the same as the criteria outlined in the LCBO Support Program Guidelines found in theMerchandising Programs 2007/08 book.

20 Spring 2008

VINTAGES SALES

2008-09forecast

2007-08forecast

2006-072005-062004-052003-042002-03

$154,6405.7%

$176,05313.9%

$189,6137.7%

$305,00017.3%

$345,00013.1%

$260,00018.7%

$218,00011.5%

0

50000

100000

150000

200000

250000

300000

350000

0

1000

2000

3000

4000

5000

6000

7000

8000

3,000 3,156

4,4644,879

6,927

4,997

2007-08forecast

SKUs

2005-06 2006-072004-052003-042002-03

VINTAGES NET SALESDOLLARS & PERCENTAGE GROWTH

VINTAGES NUMBER OFPRODUCTS RELEASED

VINTAGES SALESBY SEGMENT

VINTAGES SALESBY COUNTRY

VINTAGES WHITE WINE$62,400,000 20.9%

VINTAGES RED WINE$194,200,000 65.2%

NET SALES AND MARKET SHAREMarch 2007 - February 2008, Total Net Sales $301,600,000

Spring 2008 21

Tom J. WilsonVice President,VINTAGES416-864-6750tom.wilson@lcbo.com

Kathy CannonCategory Manager,VINTAGES New World Wines & Spirits416-365-5907kathy.cannon@lcbo.com

Tony D’AlessioProduct Manager,VINTAGES New World Wines & Spirits416-864-6801tony.dalessio@lcbo.com

Tami KarakasisProduct Manager,VINTAGES New World Wines & Spirits416-864-7635tami.karakasis@lcbo.com

Rose HolnessSupervisor,VINTAGES Events416-365-5928rose.holness@lcbo.com

Shari Mogk-EdwardsDirector,VINTAGES Sales & Purchasing416-365-5872shari.mogk-edwards@lcbo.com

Greg DunlopCategory Manager,VINTAGES EuropeanWines416-365-5876greg.dunlop@lcbo.com

Igor Ryjenkov, MWProduct Manager,VINTAGES EuropeanWines416-864-6984igor.ryjenkov@lcbo.com

Bob DavioInventory Manager,VINTAGES416-864-6973bob.davio@lcbo.com

Susan WheelerAssociate Manager,VINTAGES Programs416-864-6754susan.wheeler@lcbo.com

Laurie HarveySupervisor,VINTAGES Sales Centre416-365-5812laurie.harvey@lcbo.com

VINTAGES CONTACT INFORMATION

VINTAGES55 Lake Shore Boulevard EastToronto, Ontario, Canada M5E 1A4

Reception: 416-365-5863 • Fax: 416-864-2540www.vintages.com

55 Lake Shore Boulevard EastToronto, Ontario, Canada

M5E 1A4

www.vintages.com

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