TRADE INFORMATION SESSION

AGENDA

Vintages Ecommerce

Updates

1

Wines of the Month

4

Events

5

Licensee Programs

6

Updated Essentials

Targets

3

Questions & Discussion

7

Vintages Brand Campaign, Essentials

Package, & Merchandising

Guide

2

E-COMMERCE UPDATE

Kathy Cannon, Director, Vintages

VINTAGES RELEASES ONLINE E-Commerce Update

Starting October 14th – Flagship Discoveries

Starting November 11th – A + B feature products

Quarter 4 – Full release!

Barcode printed in the release book

2 0 1 7 A W A R E N E S S C A M PA I G N

1. Increase Vintages awareness with a dedicated brand campaign.

2. Increase program awareness and broaden reach for Release Program with targeted tactics and regular cadence throughout the year.

3. Attract new customers to the category by making the brand more approachable and relevant to a younger, less experienced wine drinker. 4. Change perceptions about what the brand stands for to broaden its reach and appeal.

GLOBE AND MAIL ROP

OWNED PUBLICATIONS

NEW! PRINT ADVERTISING

+

+

NEW! DIGITAL ADVERTISING

BRAND CAMPAIGN

Knowledge & Expertise

Quality & Value Curation Newness & Discovery

NEW! BRAND AWARENESS

Knowledge & Expertise

Quality & Value

Newness & Discovery

Curation

BRAND AWARENESS

RELEASE AWARENESS

LCBO. COM ENHANCED “P.I.P.”

http://www.lcbo.com/content/lcbo/en/pages/wine/vintages-new-wines-EPP.html

UNCORK SUMMER JULY 13

Pre-Event: #uncorkvintages

Paid FB: June 16 – 30 #uncorkvintages content calendar

Post Event

Working Together

THIS IS VINTAGES SEPT. 21

• Walk-around tasting • Thursday, September 21st • 7-10 pm • Airship 37 (Distillery District)

• $45/person • 200 tickets

This is Vintages Event

This is Vintages Event • 40+ products (Release & Essentials) • Vintages brand highlight • Kim Crawford brand highlight • Food stations • DJ • Outdoor seating area • #thisisVintages

2 0 1 7 E S S E N T I A L S : PA I D S U P P L I E R PA C K A G E

To increase awareness for the Essentials Collection, Vintages is offering a new paid supplier opportunity that includes external media and an in-store display. • Opportunity is available starting in P12 • For two brands • Participating products must be on BAM or LTO offer • Brands will be featured together in promotional material and merchandised

together on display.

• Cost: $20,000 ($10,000 / supplier)

OVERVIEW

METRO NEWS Half page ad in Toronto on the 1st Thursday of the period Half page ad in Ottawa on the 1st Thursday of the period Reach: Metro Toronto: Circ. 198,198 / Readership 650,000 Metro Ottawa: Circ. 45,639 / Readership 124,000

PRINT ADVERTISING

FACEBOOK LINK ADS Utilize hyper targeted paid social media to engage target with Essentials message and drive traffic to lcbo.com for purchase.

Timing: 4 weeks Estimated Total Impressions: 2.9 million Targets: Paid posts will target people who are already more likely to be interested in wine. Niche targets - Wine, Winemaking, wine and food matching, wine tasting. Digital ads will link to PIP page on lcbo.com via “buy now” CTA.

PAID SOCIAL MEDIA

IN-STORE DISPLAY

“CUSTOMER FAVOURITES” 2 skus on front facing end aisle

30 – 50 stores (Toronto & Ottawa)

P12 start

Signage: backer card and shelf talkers

2 0 1 7 V I N TA G E S M E R C H A N D I S I N G G U I D E

The boutique merchant within the LCBO

Vintages takes the world of wine and delivers a diverse, hand selected ever-changing portfolio of

unique limited and highly sought after wines. Vintages experts deliver the total wine

experience, empowering customers to explore and shop the globe with confidence.

NEW! MERCHANDISING GUIDE

A resource that formalizes merchandising requirements and display best practices.

Easy to use guide provides staff with tools to make merchandising

decisions specific to their location. Deliver a consistent shopping experience. Invite new customers to shop Vintages by making the section

easier to navigate. Brand awareness & clarity

IN-STORE EXPERIENCE

CONTENT OVERVIEW

All About Vintages

Merchandising Standards

Signage

Building Effective Displays

Operational & Inventory Details

General & FAQ’s

IMPLEMENTATION

Timing: P6

Introductory letter from Retail, Sales & Marketing to accompany Merchandising Guide.

Launch video on the portal.

Section re-set with VM support.

Fixture enhancements in Flagship stores.

MAINTAINING THE EXPERIENCE

Quarterly Audit by Visual Merchandising

District Manager Top 5 Checklist

Ongoing Refinement of Guidelines

MEASURING SUCCESS

Exit Surveys

Customer Engagement

Customer Acquisition Retail Feedback

UPDATED ESSENTIALS TARGETS

Colby Norrington, Vintages Category Manager, New World Wines

Updated Essentials Package

VINTAGES NET SALES SKU TARGET - ESSENTIALS

Based on Subset’s performance when composed by 4 SKUs or more.

Based on Set’s performance if

less than 4 SKUs

SKUs cumulative share of the Subset / Set in order to protect 90% of net sales.

Updated Essentials Package

VINTAGES NET SALES SKU TARGET - ESSENTIALS

Minimum net sales SKU target: $450K. Maximum net sales SKU target: $1.5M. In the example below the new target is $1,200,000:

Set Set Subset Essential Desc.

Net Sales Rolling 13 TY Share

Cum. Share

ITALY RED TUSCANY OTHER Essential 1 5,000,000$ 52% 52%ITALY RED TUSCANY OTHER Essential 2 2,500,000$ 26% 77%ITALY RED TUSCANY OTHER Essential 3 1,200,000$ 12% 90%ITALY RED TUSCANY OTHER Essential 4 1,000,000$ 10% 100%

WINES OF THE MONTH

Colby Norrington, Vintages Category Manager, New World Wines

WINES OF THE MONTH Wines of the Month

Eliminating the Benchmark Program as of P9

Expanding the WOM to a bi-weekly program

Additional spots will focus on products only over $22.95

The products will:

‒ Have a wide customer appeal

‒ Over deliver for the price

‒ Provide a trade up opportunity

HOW IT FITS IN Wines of the Month

Implementation is effective for the last release of P9

The $17 solution is an approachable price point focus program

WOM are wines with broad appeal $19.95 – $22.95

AIS are wines suited to gifting

EVENTS

Greg Tranah, Director of Operations, Vintages

OVERVIEW Events

Updates on new initiatives from April Trade Day – Data – Social Media – Brand Booths

Event Tenders for February – August 2018 – Product / Themes – Partnerships – Occasions and Locations

DATA Events

Long Form ‘ON-LINE’ survey (July 2017) – Access customer attitudes & preferences – Supports development of future experiences and designing the

marketing mix

On-Site Customer Satisfaction Forms (June – forward) – Anonymous, Brief, Supports Metric Development (Ex. 4.5/5)

Measuring Recruitment and Retention (July – forward) – # of New VSO Accounts per Event

SOCIAL MEDIA Events

Event specific tactics (July, September) Pre promotion (develop content), during (fun hooks), post (sharing,

community), etc. Will integrate with larger Vintages marketing and brand campaigns

where appropriate

BRAND BOOTHS Events

GOALS CLEAR TOUCH-POINT AT EVENTS ONBOARD NEW CUSTOMERS ENGAGING ACTIVITIES EXPLAIN THE BRAND ACTIVATIONS UNCORK SUMMER – VINTAGES KIOSK (July)

– Facilitate long form survey – Register new customers as Vintages Insiders

ROM CANADA 150 – VINTAGES KIOSK (August) – Register new customers as Vintages Insiders

RECRUITMENT EVENT – VINTAGES WALL (September) – Explain Vintages and Program Wines – Register new customers as Vintages Insiders

Events

Letter has been issued for February – August tenders – Check Trade Resources

Website Specific Product/Themes

for Event Partnerships between other

brand categories Continue to create new

opportunities Occasions (eg. Brunch) Place (eg. Muskoka,

Collingwood, New Venues)

2018 EVENT TENDERS

LICENSEE PROGRAMS

Julie Hauser, Senior Planner, Vintages Licensee Programs

OVERVIEW Licensee Programs

Vintages Licensee Sales Trends

Vintages Licensee Programs Overview

Licensee Only Portfolio Overview

Licensee Only Portfolio Sales Trends

New Licensee Portal

VINTAGES LICENSEE SALES TRENDS

Licensee Programs

Data as of Period 03 2017/2018

VINTAGES LICENSEE SALES $35M +7.90% Over LY VINTAGES LICENSEE MARKET SHARE 6.43% +7% Over LY

VINTAGES LICENSEE SALES TRENDS

Licensee Programs

Top Ten Sets by Net Sales

GROWTH CALIFORNIA RED +10.32% SPARKLING OLD WORLD +25.88% NEW ZEALAND WHITE +11.69% ITALY RED +6.00% SPECIALITY PORTFOLIO +10.92% WASHINGTON +66.98% ROSE OLD WORLD +75.60% KOSHER +73.93% SAKE +10.09% FRANCE WHITE +10.48%

LOSS ARGENTINA RED -9.25% PORTUGAL -24.01% EMERGING EURO WHITE -46.79% FRANCE RED -2.80% WHISKY -11.02% CALIFORNIA WHITE -1.94% AUSTRALIA RED -3.87% CENTRAL&S. AMERICA RED -81.27% FORTIFIED OLD WORLD -2.84% ONTARIO RED VQA -6.51%

Data as of Period 03 2017/2018

VINTAGES LICENSEE SALES TRENDS

Licensee Programs

Top Three Sets by Net Sales

Under $30

Over $30

CALIFORNIA RED +6.14%

NEW ZEALAND WHITE +11.70% WASHINGTON +71.43%

CALIFORNIA RED +22.02%

SPARKLING OLD WORLD

+24.96%

ITALY RED +8.60% Data as of Period 03 2017/2018

VINTAGES LICENSEE SALES TRENDS

Licensee Programs

Top Three Sets by Case Volume

Under $30

Over $30

CALIFORNIA RED +3.03%

NEW ZEALAND WHITE +12.20% ITALY WHITE -0.88%

CALIFORNIA RED +10.35%

ITALY RED +10.12% SPARKLING OLD WORLD

+23.89% Data as of Period 03 2017/2018

VINTAGES LICENSEE PROGRAM Licensee Programs

Services to Licensees Pre-order from upcoming releases Licensee tasting opportunities Product Consultation and advice Focus on education and customer service How you can work with us Partner on product tastings

Proposal to Julie Hauser 6 months in advance Refer customers who would like to pre-order Contact Julie Hauser to discuss ways we can work together to sell VINTAGES products E: julie.hauser@lcbo.com

LICENSEE ONLY PORTFOLIO Licensee Programs

LCBO collaborates with suppliers to develop and promote the Licensee Only Portfolio Requirements to Participate Sales Target: Minimum $80,000 net per year Requirements: Provide proven sales history and

upfront commitments from on premise customers Expectations: Sales driven by agents Sales Tools Portfolio available on new licensee portal Existing skus can participate in LTO’s

LICENSEE ONLY PORTFOLIO SALES TRENDS

Licensee Programs

Set Net Sales Growth vs LY

Net Volume Growth vs LY

Old World +15% +7%

New World +18% +10%

Data as of Period 03 2017/2018

LICENSEE ONLY NET SALES $5.54M

+17% Over LY

LICENSEE PORTAL Licensee Programs

LICENSEE PORTAL Licensee Programs

Website https://hellolcbo.com/app/licensee/home

Features All licensee FAQ migrated to this site Licensee specific content. Requires Login.

– Licensee Only Portfolio – Licensee price lists – Licensee price breakdown and calculator