Here is the presentation "Destination Canada, a chance for Italian wines. A meet-up with the Canadian trade monopolies" during VINITALY 2018 @ wine2digital, Verona, Italy.

1. The Nova Scotia Liquor
Corporation

2. PRESENTATION TITLE
The Nova Scotia Market
About our Wine Category
A look at the Italian Category
Opportunities
The Italian Wine Consumer

3. The Nova Scotia Market
2
Nova Scotia – East Coast Canada
• One of Canada’s major seaports and a
gateway to the Atlantic Ocean
• Population 1 million people
The NSLC is Nova Scotia’s largest retailer
• 100 retail stores
• 64 agency stores
• 4 private wine & specialty stores
• More than 2,000 bars and restaurants
• A team of more than 1400 employees
• Provincial Crown Corporation
• Annual revenue over $625 million

4. Information about the Nova Scotia Market
Spirits
$165,729,072
1.6%
• 27% Share of total
revenue
• 548,448 9L cases
• + 0.9% vs LY
• 1,000 total listings
• 600 total # GLs
• 400 total specialty
Wine
$144,489,411
4.7%
• 23% Share of total
revenue
• 1,115,047 9L cases
• + 3.2% vs LY
• 3,000 total listings
• 1,000 total GLs
• 2,000 total # specialty
Beer
$ 278,082,152
0.8%
• 44% Share of Total
Revenue
• 6,520,215 9L cases
• 0.1% vs LY
• 286 total listings
• 242 total GLs
• 44 total OTO’s
RTD
$ 37,218,530
7.7%
• 6% Share of Total revenue
• 576,089 9L cases
• 6.0% vs LY
• 111 total listings

5. About Our Wine Category
4
• The NSLC carries 3,000 wines from 106 locations.
• 1,000 automatically replenished and 2,000 specialty listings.
• FY18 Sales totaled over $144M (net)
• Volume surpassed 1.1M 9L cases.
Pack Size Share of Vol* Avg 750ml Sold
Red 47.9% $ 15.58
Rose 2.7% $ 14.64
White 49.2% $ 15.12
Pack Size Share of Vol Avg Unit Sold
750 57.1% $ 15.34
4000 22.3% $ 42.54
1500 14.3% $ 20.00
3000 3.1% $ 35.37
1000 2.5% $ 12.17
2000 0.7% $ 22.50
Country Share of Vol* Avg 750 Sold
Canadian Wine 28.8% $ 11.40
Australian Wine 14.1% $ 13.77
Italian Wine 9.8% $ 15.95
American Wine 9.5% $ 16.57
Chilean Wine 7.7% $ 12.79
Nova Scotia 5.7% $ 18.77
Argentinian Wine 4.7% $ 14.18
French Wine 4.0% $ 17.93
Sparkling/ Champagne 3.8% $ 17.93
South African Wine 2.2% $ 13.36
Spanish Wine 2.2% $ 15.21
New Zealand Wine 2.1% $ 19.49
Fortified Other 1.8% $ 11.67
German Wine 1.6% $ 14.85
Portugese Wine 0.8% $ 11.81

6. What’s Hot & “Not” This Year in Wine
Italy
• +7% in sales & +5% in volume with higher than avg price/750 ml
• Success at our flagship store ‘The Port’: event strategy & education
Sparkling
• +9% in sales & +5% in volume with Prosecco +8%
Local (Nova Scotia produced)
• +11.5% volume & +13.3% in $ with 2nd highest avg/750ml ($14.65)
Rose
• Increase: selection, average price point and leverage seasonality
• Provence style leads the success
4L
• 4L represents 21.4% share of category volume and is growing 5% in $
• Successful strategy to encourage premiumization
Specialty Releases
• Release of small quantities, one time only releases: now 8% share
Hot Not
Australia
• Dropped 1 share point in both volume & dollars
• -1% volume
• Our second largest category in volume and dollars
• Consumers have moved away from big Aussie Shiraz
USA
• Declining 5.7% in volume and 3.3% in $
• Our third largest category in volume and dollars
• Decline in US is driven by declining category brand leader.
• Still opportunity – we are not moving away but ramping up intensity.
Focus on premium, Washington/Oregon
Germany
• -4% in sales & -4% in volume

7. A LOOK AT THE ITALIAN CATEGORY
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• F18 budget: $14,129,649.09, +7% over year ago
• Moves between our #3 & #4 volume country with USA
• Italy plays key role in both premiumization and volume
• Breadth of: regions, varietals, price points, formats: 7 Brand families act as pillars

8. Share of Italian vs. All Other countries by 750ml retail price points
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0%
10%
20%
30%
40%
50%
60%
$9.99 - $11.49 $11.50 - $13.99 $14.00 - $16.99 $17.00 - $19.99 $20.00 - $24.99 $25.00 - $29.99 $30+
Italian Wine All Other Share of Italian SKU
32,139 Three-Peat Collectors
34% Conversion Rate

9. Interacting Countries for Italian Three-Peat Customers – Volume GL 750ml
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- 5,000 10,000 15,000 20,000 25,000 30,000 35,000
German Wine
ICB
South African Wine
Spanish Wine
Sparkling
New Zealand Wine
Local
French Wine
Chilean Wine
Argentinian Wine
American Wine
Australian Wine
Italian Wine
9L Cases

10. Top Varietal/Style Performance
Region SKU Count Share Shelf MAT Sales Share of Sales MAT volume Share of
Volume
Pinot Grigio 20 20% $3.957,000 35% 24,760 33%
Sangiovese 18 18% $2,145,000 18% 15,530 21%
Valpolicella 6 6% $746.4K 6% 4,754 6%
Ripasso 5 5% $670k 6% 3,186 4%
Primitivo 5 5% $183K 1.5% 1,212 1.6%
Moscato 4 4% $228k 2% 1,343 1.8%
NW/Blends 9 9% $592k 5% 4,000 5%
Shelving opportunity/sales:volume growth to put regional players together

11. Regional Performance
Region SKU Count Share of Shelf MAT Sales Share of Sales MAT volume Share of
Volume
Central 39 39% $4m 35% 29.4K 29%
North East 41 41% $5.9m 50% 36.7K 49%
North West 5 5% $273k 2.5% 1400 2%
South 14 14% $842k 7.5% 6900 9%

12. A look at our Italian Category:
Premium 750mls & 1.5L
• Over $18 for 750 ml and over $25.00 for 1.5L
Innovation from South Italy
• Up and coming regions: Puglia,
• Quality reds over $15 with approachable/modern labels
Reds from North East
• Ripasso style wines at $18+ retail
• Amarone DOCG
Specialty and One Time only buys
• Showcase of region, producers and award-wining wines
• Flagship store carries nearly 300 Italian wines continuously
Italian White’s continue to drive volume
• 8 of top 10 volume are white wines (Pinot Grigio & Orvieto)
Hot Opportunities
Italian White’s continue to drive volume
• Expand breadth of offerings from seasonal releases
Evolution of education plan
• Retail Product Specialist eager to learn more
• Roadshow style education tours
Producer Representation
• Opportunity for smaller producers that deliver quality: price
Partnership with ICE to build on experiences & events
• Appropriate timelines to support buying opportunities
• Engagement plan to build licensee events
• NSLC marketing timelines and ‘how to’ to be shared
.

13. QUESTIONS?