2012 Vancouver Playhouse Wine Festival

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Preliminary report on benchmarking study of BC private sector wine stores. presented at 2012 Vancouver Playhouse International Wine Festival

Text of 2012 Vancouver Playhouse Wine Festival

1. In the span of 10 years, Canadas wineconsumption will have grown 6 times fasterthan the world averageCanada now ranks as the worlds5th biggest wine importing countryBetween 2010 and 2014, wine sales volumesare expected to grow by a further 19%domestic wines will see a 26%increase, meaning that Canadians will consume 14.6million cases of locally-produced wine VinExpo, Montreal, Feb 2011 c. Paul Rickett, 2012 2. Enhancing the Retail ExperiencePaul RickettVARKETING!/Bowen Island Beer and Wine Cellar c. Paul Rickett, 2012 3. Data collection & analysis in progressNumbers will Wobble c. Paul Rickett, 2012 4. The current patchwork quilt of licensetypes, conditions and discounts plus themoratorium on new stores leads to:Unfair competitionMarket distortionsUnder-served consumersDistribution inefficienciesDespite often working with one hand tied behind itsback an ecosystem has evolved thats not beenunsuccessful in serving the larger needs of the marketas a whole....not perfect and still finding its feet c. Paul Rickett, 2012 5. British Columbia rd Highest per capita wine3rd Highest per capita wine3consumption growthconsumption in Canada since 2003After Saskatchewan Yukon, PEIAfter Quebec and & =AB,1.6 Growth Since 2003 200%1.4 180%1.2 160% 140% 1 120%0.8 100% 80%0.6 60%0.440% 20%0.2 0% 0 c. Paul Rickett, 2012 6. 2002-2004 Pivotal Years for distribution in BCGovernment Flip-Flop on PrivatizationPrivate reseller expansion in both LRS & RAS Spirits added to product mix Store size limits removed (05) Separation from LP (09)BC Wine industry gets to #2 category Marking the start of the 2nd Growth Phase c. Paul Rickett, 2012 7. By the Numbers 2003-2011 -27% change in GLS market share 18% growth in Licensee sales $ 61% growth in Wine consumption litres (18%+ BC) 97%+ growth in BC wine sales by litre 107% growth in wine sales $ 133%+ growth in BC wine sales $ 171%+ growth in LRS sales $ BC wines (from 05) 177%+ growth in LRS sales $ c. Paul Rickett, 2012 8. CinderLRSa is going to the Ball c. Paul Rickett, 2012 9. 2012 LRS WineProfile Survey Early Results c. Paul Rickett, 2012 10. GLSLRSRASVQAIWS c. Paul Rickett, 2012 11. Sample Population per Store Region Population per store (All types) BC 3,300 AB 1,600 (Class D)-2,300 (Retail) Metro Vancouver 7,300 Abbotsford 6,800 Greater Victoria 4,500 Courtenay/Comox 4,000 Nanaimo 3,300 Kelowna 4,000 Kamloops 3,800 Prince George 2,700 Bowen Island 1,500Benchmark: Kentucky legislation permits one retail alcohollicense per 1,500 people in ruralRickett, 2012 c. Paul and 2,300 in cities 12. In Pursuit of the 15.9LTotal Wine by Channel G B By Net $ to L C BCwineries S W L I C L L R R S G S L L I S C V Q B A C I W W R R I A V A W S S Q S S A c. Paul Rickett, 2012 13. LRS