Ontario Market Sectors
There are various sectors where Beverage Alcohol Products are sold within the Ontario Market each with its own risks at varying levels.
Assessing which sector(s) to focus on depends on a supplier’s product portfolio.
- LCBO Vintages (Vintages.com)
– Focus on premium wines with landed retails 15+, however, since the recession of 2008 and pandemic (2019…), some releases have been as low as $12.
– Focus on products with Key Accolades such as Robert Parker, Wine Enthusiast, Wine Spectator, etc… See LIST HERE.
– Depending on the landed retail, orders are usually in the range of 200 to 500 cases, however, for a Wine of the Month, or Vintages Essentials list, an order can be in the range of 800-1200 cases.
– Orders usually are on a one-time basis, however, if the product is well received, repeat orders will be made.
– Some products may be chosen as part of a “Essentials List”. A product on this list will enjoy yearly repeat orders.
-All offers are done via the NISS system. - LCBO General List / Regular Sector (LCBO.com)
– This sector focuses on products that are always available. The Regular list sales currently account for 90% of the LCBO’s total revenue, however, the Vintages sector continues to grow with its continuous releases of new products. The General sector seem to be moving in the same direction, where the consumer is demanding more and more variety.
-All offers are done via the NISS system. - LCBO Private Ordering (Direct Link)
– This sector is generally very small, however, gives our consumers access to products they can not purchase at the LCBO’s retail outlets.
– Please note that the published Freight Rates, which strongly affects the landed retail, are usually much less. The rates can be obtained from the LCBO before an order is placed. - Grocery Store Operations
The Wynne Liberals opened up this sales channel to offer more buying options for consumers. The system is still quite restrictive, however, changes will come coming soon to make the system more lenient. Entry into this channel is also done via the tender process (NISS) - LCBO e-Commerce
This is a newer sector which opened up in 2016. While its debut took time, it has gained traction with the addition of contracts with carriers which offer reasonable shipping rates to homes. More info HERE.
Lacey Cellars’ focus is on the above sectors, however, there are other sectors such as the LCBO Consignment Warehouse system, domestic winery retail outlets and the Beer Store Retail outlets which are also all overseen by the LCBO.
A summary of opportunities/needs on our site can be found here.
Tags: e-commerce, ecommerce, general list, grocery store, markets, ontario, private ordering, regular, sectors, vintages