Wines, Vintages & Destination Collection Strategic Direction

Kathy Cannon, Director, European Wines & Destination Collection

Marie Cundari, Director, New World & Ontario Wines

Moving Forward Together

Wines, Vintages & Destination Collection

Three Separate Buying Teams

Destination Collection

LCBO Wines Vintages

Save $4.00

Save $4.00

Save $4.00

Save $4.00

Destination Collection

LCBO Wines Vintages LCBO Wines

Vintages Destination Collection

Vintages Wines

Destination Collection Become One Team

September 2018

Marie CundariDirector

Ontario and New World Wines416-365-5882

David CacciottoloActing Category Manager

Australia, New Zealand, Chile, Argentina416-864-2572

Greg MacDonaldActing Category Manager

USA, South Africa, BC416-365-5876

Astrid BrummerCategory Manager

Ontario and Flavoured Wines416-864-6340

Laura RuffoloProduct Manager

Ontario and Flavoured Wines416-864-6743

Vincent FilholProduct Manager

Australia, New Zealand, Chile, Argentina416-365-5860

Aaron PothierProduct Manager

USA, South Africa, BC416-864-6868

O S S UC U

Ontario & New World Wines

Kathy CannonDirector

European Wines and Destination Collection

416-365-5907

Igor Ryjenkov MWCategory Manager

Italy, Spain, Portugal, Fortified, Holiday Gifting416-864-6642

Ann PatelProduct Manager

Italy416-864-6649

Paul FarrellCategory Manager

France, Germany, Greece, Rose, Sparkling, Emerging Europe

416-864-6984

Courtney DawsonCategory Manager

Destination Collection, Kosher, Ecommerce Exclusives

416-864-6342

Adam CaputoActing Product Manager

Spain, Portugal, Fortified, Holiday Gifting416-365-5692

Lisa ChapmanProduct Manager

France416-365-5908

Bobby PanchuProduct Manager

Greece, Germany, Rose, Sparkling, Emerging

Europe416-864-6801

European Wines & Destination Collection

1 Buyer

Classics Vintages Essentials Vintages LCBO Wines

Portfolio Planning

One Meeting

LCBO Wines & Essentials A mass market portfolio that drives traffic, conversion and inventory turns. We invest in customer favourites, affordable prices, and local wines that are continuously available. We augment sales performance and customer engagement with exciting promotions.

Wines Channel Strategies

Vintages Releases A point of differentiation for the organization, Vintages targets engaged S&S and E&E customers by offering an exciting range of exclusive products with limited availability. We deliver on our mandate to be the headquarters for learning through the release circular and events.

Wines Channel Strategies

Destination Collection A niche portfolio of products that caters to the

unique needs of specific communities. We work

with our trade partners to curate a very broad

selection of low volume products not offered in

LCBO Wines and Vintages.

Wines Channel Strategies

Strategic Alignment to Date

• Physically moved • Product call aligned • Holiday gifting timelines aligned • Brands shifting channels • Better promotional planning • Essentials considered in promotional planning • Developed a strategy and growth plan for the Destination Collection

Destination Collection • Low volume • Niche/unique products and brands • Available online and in the destination store • Some online exclusives • Curated and endorsed in collaboration with agents and trade association

LCBO and Essentials • High volume/high turns • Customer favourites – commercial brands • Always available/high store distribution/online • Approachable price points • Curated and endorsed

Vintages Releases • Lower volume • Changing selection & Premium customer favorites • Limited store distribution /online • Unique, premium and allocated products/Emerging trends • Premium priced • Curated and endorsed

There is Still Work to be Done

Destination Collection Objectives • Partner with the trade to curate a

selection of products that our customers want and that fill gaps in the overall portfolio

• Generate incremental sales

• Entice customers to try new and interesting products/brands

• Create an exciting and friendly experience online and in store

The Move Forward Plan • Move Destination Collection into the Merchandising systems and utilize NISS

for new products

• Manage the portfolio in conjunction with selection in Wines/ Vintages / Spirits/ Beer

• Create product plans and targets

• Develop an assortment and a buying schedule to coincide with demand and space allocation in the destination store

Destination Collection

LCBO

Vintages

Right Product Right Channel

Create Compelling

Stories "…I invite you to experience our Destination

Collection; an enhanced selection of products from around the world. You’ll find a collection of unique international products –

more than any store could carry…"

Calendar of Activity January

July August September October November December

February March April May June

Orthodox Easter

Malbec Day

Octoberfest

Instore Experience

Vintages Spirits Integration

A re-alignment of Spirits purchasing enables us to increase agility, collaboration and customer-centricity to

effectively grow our business.

Stacee Roth, Director, Spirits

(416) 864-6347

Peter Cloutier, Category Manager,

Brown Spirits (416) 365-5864

Mike Hodgson, Product Manager,

Whisky (416)365-5873

Kevin Ethier, Product Manager, Tequila, Liqueurs, Brandy/Cognac (416) 864-7655

Colby Norrington, Category Manager,

White Spirits (416) 864-4080

Christina Bellotti-Ramzan,

Product Manager, White Spirits

(416) 864-3425

Spirits Team Org. Structure

Vintages Spirits Structure Transition

2018/19 Sales Total Vintages=$605M Vintages Spirits=$30M • Destination Collection=$25M • Reg. Spirits=$5M 481 Vintages Spirits SKUs • Destination Collection=240 • Reg. Spirits=241

$575M, 95%

$5M, 1% $25M , 4%

Wines

Spirits

DestinationCollection

Spirits purchasing moving forward SPIRITS

• Priority categories: Whisky, Rum, Gin, Tequila ALL

SKUs will transition to spirits ‘shops’.

• Other priority categories: Vodka, Brandy/Cognac (Calvados, Armagnac, Grappa), Liqueurs SELECT SKUs will transition to full/seasonal/one-time buys.

• SKUs transitioning either meet/exceed current sales targets OR serve to raise the profile and total sales of priority categories.

• Broader demand opportunities.

• Merchandised in spirits section AND/OR on-line.

Apply to Spirits

Product Calls

Spirits purchasing moving forward

Apply to ‘Destination Collection’

Product Calls

DESTINATION COLLECTION • Previously ‘Specialty Spirits’: Majority of skus to transition to Destination Collection, SELECT skus moving to Spirits

• Low volume SKUs and/or limited distribution

• Primarily from Asia, Europe, the Middle East, and

South America

• Niche demand, servicing ethnic communities

• Merchandised in spirits section OR within Destination Collection stores OR exclusively on-line

Spirits Purchasing Moving Forward

• On-going transition throughout 2019/20-the teams will continue to work collaboratively to ensure customer needs are met

• Review both ‘Regular spirits’ & ‘Destination Collection’ product calls

• If uncertain, submit to both calls and advise the Category Manager(s)/Product Manager(s) in advance

Updates

Essentials End Aisle First sold space program in Vintages! • Top 50 stores • Designated end • 2 period promotion 1st Period LTO 2nd period on display with no LTO • Double digit sales lifts in both periods

Vintages Merchandising Guide Rollout

• 2018 Pilot demonstrated a positive impact on customer shopping experience with a greater consistency in merchandising between locations and formats.

• Phased roll-out for 2019 to all locations

underway!

Vintages Release Online

CAN you feel the Excitement of Summer?

This Year

Relaunch Wine Style Descriptors

New Product Launch Package

Wines Subscription Box

Q&A

Thank You