LEANNE RHEE CATEGORY MANAGER, BEER & CIDER

BEER & CIDER

BEER & CIDER TEAM

KAREN CARTER ADMINISTRATOR

MARK WILSON PRODUCT MANAGER

LEANNE RHEE CATEGORY MANAGER

NEAL BOVEN PROJECT MANAGER

Buyer Net $ Sales Variance %

LCBO Beer & Cider $783,901,027 +6.7%

The Beer Store (Wholesale Shipments)

$269,528,842

+3.1%

TOTAL $1,053,429,869 +5.7%

NET $ SALES EXCEED

$1.0 BILLION

2014-15 Net $ Sales LCBO $784 MILLION +6.7% VS LY

3 2 1 ONTARIO CRAFT BEER • EXISTING BREWERY

GROWTH • NEW ENTRANTS • SEASONAL

RELEASES

ONTARIO BEER • BIG BRAND

GROWTH • 6 PACK SHRINK • TACTICAL

MARKETING

CIDER • SOLID GROWTH

EXISTING BRANDS • INCREASING

CONSUMER INTEREST

• LOCAL CRAFT OFFERINGS

2014-15 growth categories

2015-16 Net $ Sales Plan LCBO

$838 MILLION +6.9% VS LY

TOP CIDER AND

BEER INITIATIVES

3 2 1

EVOLVING ASSORTMENT

SUSTAINABLE FLAVOURS

LARGE & VARIETY PACKS

TEST SEASONAL PRODUCTS

NEW MERCHANDISING

BY SEGMENT

ONTARIO CRAFT FLAVOURED PERRY APPLE

INCREASED PROMOTIONAL

OPPORTUNITIES

ENHANCED BIN TICKET

INFORMATION

Traditional Dry

FLAVOUR - added 2014

STYLE - adding 2015

SUPPORT EMERGING

LOCAL INDUSTRY

TO BE THE BEST CRAFT BEER RETAILER IN CANADA

3 SEASONALS / ONE

SHOTS 2 1 BREWERY FEATURE

SEASONAL CRAFT

PROGRAM

ASSORTMENT UPDATES

2 1

CRAFT BEER PROJECTS

Craft Beer Destination Summerhill

Craft Beer Pilot

25 stores

25 STORES ACROSS

PROVINCE

ALL CRAFT BEER MERCHANDISED

TOGETHER

ONTARIO CRAFT BEER PROMINENT

MERCHANDISE BY

BEER STYLE

Lager Pilsner Ale IPA Belgian Stout/ Wheat Lagered Ale Porter Ale

ALE

Made with 100% Ontario ingredients; this easy-drinking ale is great with grilled meat

INFORMATIVE SIGNAGE

2 1

CRAFT BEER PROJECTS

Craft Beer Destination Summerhill

Craft Beer 25 store

Pilot

SUMMERHILL CRAFT BEER DESTINATION

GROWLER STATION

capped for freshness

fresh craft beer

reuseable & refillable

amber coloured

1.89 litres

WHAT IS A GROWLER?

WHAT IS A GROWLER STATION?

• Keg beer is dispensed into a growler

• Launch with 3 units with additional lines possible

• Fill on site • Pre filled growlers

available for sale • Sampling available

• Craft beer not available in packaged format

• Limited availability / seasonal craft beers

• Initially local Ontario craft beer

• Future expansion to other craft beer

WHAT’S ON

TAP?

• All craft beer together • Merchandise by region and beer style • Informative signage

MERCHANDISING &

SIGNAGE

• Best of Toronto • Rare and unique

products • Only available at…

TAILORED ASSORTMENT

• Brewmaster tutored tasting • Launch events • Product knowledge Sessions

SPECIAL EVENTS

• Enhanced/specialized training

• More than one Beer Ambassador

• Easily identified

BEER AMBASSADORS

SUMMERHILL OPENING

AUGUST 2015

3 2 1 TOP 3 TAKE-AWAYS

BEER & CIDER

CIDER OPPORTUNITY FOR LARGE PACK SIZES

CRAFT BEER BE THE BEST RETAILER IN CANADA

FUTURE SUPPLIER COLLBORATION TO NAVIGATE NEW RETAIL LANDSCAPE

EDISON YON

PLANNING & OPERATIONS

team

David Cacciottolo PRICING ADMINISTRATION

Pankaj Singh

PROJECT MANAGEMENT

Rosemary Canavan

IN-STORE TASTING

Jim Sheridan

RECEPTION

the

IN-STORE TASTING PROGRAM

ANOTHER SUCCESSFUL

YEAR!

# of Tastings 2014/15 32,220 # of Tastings 2013/14 29,982 # of Tastings increased + 2,238 or + 7.4% CHARITY DONATION $355,718 !!!

Reporting standards for Demonstrators Check-in Smart Serve

Dress Code, including name tag In-store Tasting Guidelines - eLearning Demonstrator Code of Conduct

OPPORTUNITY #1

Demonstrators

Functionality to cancel an approved tasting

Functionality to replace a product New products and delisted products Less manual intervention

OPPORTUNITY #2 Enhancing the

Automated Process

LOOKING AHEAD...

Agents are invited to participate in a

FOCUS GROUP, to improve the

program & its processes.

In-Store Tasting

Program

NISS ENHANCEMENTS EFFECTIVE MAY 24, 2015

New NISS Message Centre

Removing unnecessary information requirement

FAX

NUMBER

Ability to provide helpful product-based information

Improving means for communicating necessary

documents

PURCHASE ORDER Review

Non-compliance to PO Terms and Conditions Introduction of Vendor Debits Finalizing the processes Share details in a letter to trade Launch Q2

** NEW ** VENDOR DEBIT

System

CHANGES IN PRICING ADMIN

New mailbox fully operational Submission of supplier quotes and weekly

beer pricing (TBS) Confirmation Receipt will be sent Not for general inquiries

Pricing@LCBO.com

Price changes for products listed at TBS to be sent to Pricing Mailbox Standard template developed for beer price submissions will be sent out

shortly Schedule and deadline remains the same

BEER PRICE CHANGES

Quote calculator developed

Supplier quote is calculated based on retail price

Should be used to enter correct quote into NISS new products direct delivery invoices

ONTARIO BEER PRICING

3 2 1

TOP TAKE-AWAYS

Enhance systems and

improve efficiency We want to hear

from you! merchandising. support@lcbo.

com