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

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2012 Vancouver Playhouse Wine Festival

  1. 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. 2. Enhancing the Retail ExperiencePaul RickettVARKETING!/Bowen Island Beer and Wine Cellar c. Paul Rickett, 2012
  3. 3. Data collection & analysis in progressNumbers will Wobble c. Paul Rickett, 2012
  4. 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 it’sback an ecosystem has evolved that’s not beenunsuccessful in serving the larger needs of the marketas a whole....not perfect and still finding its feet c. Paul Rickett, 2012
  5. 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. 6. 2002-2004 Pivotal Years for distribution in BC•Government Flip-Flop on Privatization•Private 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. 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. 8. CinderLRSa is going to the Ball c. Paul Rickett, 2012
  9. 9. 2012 LRS WineProfile Survey Early Results c. Paul Rickett, 2012
  10. 10. GLSLRSRASVQAIWS c. Paul Rickett, 2012
  11. 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. 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. 13. LRS <1800 $ 1,300GLS 4100 $ 1,259 Includes sales to channels?IWS c.3,250 $ c.900 =$1M sales p.a. c. Paul Rickett, 2012 =$200K/FTE
  14. 14. Benchmarks Liquor Stores NA $1.9M per Canadian store p.a. 24.8% GPM, •Only publicly traded liquor retailer in Canada. •Owns 35 IWS and LRS stores in BC, 172 in AB and 29 in USA, •overall GPM is lower due to wholesale and US stores Annual Report 2010 BC same-store sales decreased 1% in 2011 to date MD&A 9 months to Sept 11 US Beer and Wine stores Net 27% GPM (equiv to a 37% markup after discounts) US census 2009 for NAICS 4453 c. Paul Rickett, 2012
  15. 15. Benchmarks Sales per Square Foot Walmart Canada - $340-440 (GPM 26.9%) Undated Project & Development impact study for City of Vancouver Costco – $800-$950 Revenue per employee/GPM Starbucks - US$60K/57%, Costco - US$530K/13.4% From web c. Paul Rickett, 2012
  16. 16. Sample Key Indicators LRS GLS (Excluding Signature Stores)Wine SKUs/Store 750 (median) 850 (mean)Shelf space dedicated to 52% N/Awine% wine sales $ of total 26% c. 36%Wine Shelf efficiency 54% (median) N/ABC wine SKUs/Store 200 (mean) 102 (mean)BC wine SKU as % of total 24% 12%wine SKUBC wine revenue as % of 16% 11%total wine sales c. Paul Rickett, 2012
  17. 17. Report Outputs •Regional differences •Differences between small, medium, large LRS •Regional by size differences •High volume wine vs rest•Store size •Wine Sales %•Linear feet of shelving for wine and BC wine •BC wine sales %•Performance of imports vs BC wine •Sales per Square Feet•Wine SKU counts •Sales per FTE•BC wine SKU counts•Spec vs Listed•Cooler doors and cooler doors for wine•Shelf efficiency Plus•Wine to other products ratio •Comparisons to VQA, IWS, GLS•Product density•# BC wine brands •Useful benchmarks •Background industry info esp. On BC wine c. Paul Rickett, 2012
  18. 18. Final Report April Input cut-off 31st MarchPlease contribute your dataAgents: Encourage response Contact Paul Rickett (604) 947-2729 pdrickett@hotmail.com Twitter: @paulrickett LinkedIn: Paul Rickett c. Paul Rickett, 2012