The LCBO Category Management Department
The
Category Management Department of the LCBO
operates within the Merchandising area
in the Sales & Marketing Division and
is responsible for managing beverage alcohol
Products that are sold by the LCBO in LCBO
stores. There are three major Product categories
that are managed as distinct Business Units.
Each one is headed by a Business Unit Director,
who is responsible for the achievement
of sales, profit and inventory objectives
for their Business Unit.
Reporting to the Business Unit Directors are Category Managers. The Category Managers' responsibilities include evaluation, selection, purchasing, promotion, and merchandising for a specific category of Products within their respective Business Unit.
Also reporting to the Business Unit Directors are Inventory Managers. They are responsible for effectively managing the Product flow and the warehouse inventory levels for a specific category of Products within their respective Business Units.
Products sold in LCBO stores are divided by type amongst the three LCBO Business Units, which are:
- Spirits : includes domestic and imported spirits, and Duty Free products.
- Wines : includes domestic and imported wines, and kosher products.
- BRTD : includes beers, ciders, coolers, sake, flavoured wine drinks, cocktails to go, and bar accessories.
VINTAGES Products are categorized under a separate Business Unit.
Selling for Resale in LCBO Stores
Table of Contents
Purchase
of Product for Resale in LCBO Stores
How to Apply to Sell Product
to the LCBO
Product Sizes
Purchase of Product for Resale in LCBO Stores
The LCBO purchases Product for resale in its stores through various types of purchase arrangements including seasonal purchases, gifts, limited distribution purchases, ethnic purchases, etc. In all cases the purchase is subject to all conditions set out in the LCBO Commitment Letter in which the LCBO agrees to purchase the Product from the applicant Supplier. These purchases are also subject to all conditions set out in this document and in the LCBO Purchase Order. The LCBO Commitment Letter sets out, among other conditions, the Sales Targets that the Product must meet and the price at which the Product will be sold by the LCBO.
How to Apply to Sell Product to the LCBO
An Application to sell a Product to the LCBO for resale in LCBO stores should be made to the applicable Category Manager within each Business Unit. The LCBO publishes letters annually or as required, setting out the types of Products that will be of interest to the LCBO at various periods throughout the year. These letters known as "needs letters" also include the respective dates by which applications must be submitted to the LCBO for consideration. Care should be taken to submit applications within the required time. Additionally, from time-to-time the LCBO will issue a call for special Products e.g. Nouveau Wines. Suppliers and Agents are encouraged to familiarize themselves with these expressed needs of the LCBO in submitting Product applications, as the LCBO will focus on these needs in reviewing applications.
Application Documents Required
The following must
be submitted to the LCBO:
- A signed copy of your Product Review Application, which is generated by the New Item Submission System (NISS).
- A single page marketing plan
- FOB or Ex-cellar quotations. (Suppliers are responsible for paying any export fees required by the country of origin.)
- One bottle of each Product (750 mL equivalent), as a sample for review with the above documentation (a second, identical bottle may be needed for laboratory analysis and should be kept on-hand by the Agent).
How the Product Submissions are
Evaluated
The LCBO is committed to bringing the best
Products available to the consumers of Ontario
by constantly enhancing its large, diverse
portfolio. Sound business principles are
considered in evaluating Product submissions
including the following:
- A review of category needs
- The price/quality ratio of the Product
- Packaging
- Marketing and Promotional Plans
- Sales and Marketing Data from other markets
- Tasting. An LCBO Grading Panel tastes and grades all Product submissions. (Organoleptic Assessment)
- Inventory availability/forecasts
- Payment terms
- Marketplace demand and trends
Communicating the Decision
The Supplier or its appointed Agent will
be informed in writing of the LCBO's decision
either to accept or reject a Product submission.
Product Rejection
If the LCBO decides to decline the product submission, the agent or
supplier will receive notification by e-mail with a reason for the product
rejection.
Product Acceptance for Continued
Review
If the Product submission is accepted,
the LCBO will complete and return the bottom
portion of the Product Review Sheet indicating
initial approval and will require the Supplier/
Agent to submit a fully completed Product
Profile and Marketing Plan for
review.
Product Profile and Marketing Plan
The LCBO will review the applicant's Product
Profile and Marketing Plan and
will then decide whether or not to purchase
the Product. If the Product is rejected
at this point, the LCBO will issue a letter
to the Supplier or its appointed Agent
giving reasons for rejection. If the LCBO
decides to proceed with the purchase of
the Product, it will issue a Commitment
Letter setting out conditions that must
be met.
The LCBO, in accordance with all applicable laws, will make the determination of an acceptable size or package type for any beverage alcohol Product that it wishes to purchase.