- The document discusses wine sales performance at the NSLC. Canadian wine represents 25.1% of wine sales, growing at 6.8%. Nova Scotia wine is the 5th highest selling "country" and growing at 10.7%. - The focus for wine is on penetration, frequency, and premiumization. The listing process and mandatory labeling requirements are outlined. Key dates for Nova Scotia listings in 2012 are provided. - Opportunities for marketing support and vendor programs are discussed. Consumer insights show less than half of Canadians drink wine and Nova Scotia consumption is middle of the pack among provinces. The highest spending customers represent 26% of customers but 50% of wine profits.

1. WANS
PRESENTATION
December 6, 2011

2. NSLC Performance -
MAT Gross Sales
$676.8 $134.1 $187.1 $355.6
800
700
600
$ Millions 500
400
300
200
100
0
Total Wine Spirits Beer / RTD
• Wine Category represents 20% of total sales and growing

3. Wine Sub Category Performance -
MAT
Net Sales*
Current Year Dollar Last Year Dollar Trend Dollar Current Year Last Year
Value Value Value SOM SOM
Canadian Wine $ 29,045,038 $ 27,194,443 6.8% 25.1% 24.4%
Australian Wine $ 20,597,400 $ 19,520,664 5.5% 17.8% 17.5%
Italian Wine $ 12,840,725 $ 11,974,540 7.2% 11.1% 10.7%
American Wine $ 12,047,924 $ 10,923,128 10.3% 10.4% 9.8%
Chilean Wine $ 6,526,616 $ 7,115,823 -8.3% 5.6% 6.4%
Argentinian Wine $ 6,514,919 $ 7,223,923 -9.8% 5.6% 6.5%
French Wine $ 6,198,500 $ 6,101,449 1.6% 5.4% 5.5%
South African Wine $ 3,391,126 $ 3,349,555 1.2% 2.9% 3.0%
German Wine $ 3,218,468 $ 3,012,107 6.9% 2.8% 2.7%
New Zealand Wine $ 2,569,787 $ 2,136,167 20.3% 2.2% 1.9%
Nova Scotia $ 7,181,126 $ 6,484,768 10.7% 6.2% 5.8%
• NS is the 5th ranked wine “Country” in sales dollars and
growing at 10.7% vs. total category at 4.4% in dollars

4. Wine Category
F12/13 Focus
• Develop wine through three pillars:
– Penetration (increase as primary beverage)
– Frequency (additional occasions)
– Premiumization (education =
exploration/discovery)

5. Introductions
- MEET ME-
• With the NSLC since 1984.
• Born in Halifax.
• Graduate of Dal and U of King’s
College.
• Freelance writer since 1996.
• Higher Certificate – WSET.
• Your first point contact with the
NSLC.

6. NSLC Structure Overview
- WINE -

7. NSLC Structure Overview
- WINE / CATEGORY MANAGEMENT-
Old World / Local New World
Nova Scotia Canada
Europe USA
South Africa South America
Other Countries Australia
Misc. New Zealand

8. Category Management
- THEN -
• Product s offered from all
categories.
• Monthly review conducted.
• Individual product selection
made.
• Inventory
ordered/arrives/shipped to
stores.
• Stores instructed to add to
specified location on shelf.
• Shelf management aligned
annually.

9. Category Management
- NOW -
• Individual category review
initiated according to Cat Man
schedule.
• Category Manager reviews
current selection.
• Potential opportunities within
category identified.
• Expression of Interest (EOI)
created and forwarded to the
industry.
• Follow through: Listing
Process.

10. Category Management
- SCHEDULE -
Estimate
d Estimated Target Shelf
Letter to All Applicati Applicatio In Implementatio
NSLC Spread All on n Marke n (2 week
Agents sheets Sampl Request Receival Peri t completion
Month Year Category SENT DUE es DUE DATE DATE od Period window)
Beer (Cold
Room & Roller 16-
Nov. 2011 Racks) 18-Nov 2-Dec Dec 22-Dec 6-Jan 2 May 7-May
Beers of the 16-
World 18-Nov 2-Dec Dec 22-Dec 6-Jan 2 May 7-May
16-
RTD (Total) 18-Nov 2-Dec Dec 22-Dec 6-Jan 2 May 7-May
Canada 23-Nov 7-Dec 3-Jan 12-Jan 19-Jan 3 June 11-Jun
USA 23-Nov 7-Dec 3-Jan 12-Jan 19-Jan 3 June 11-Jun
Germany 23-Nov 7-Dec 3-Jan 12-Jan 19-Jan 3 June 11-Jun
Australia 23-Nov 7-Dec 3-Jan 12-Jan 19-Jan 4 July 16-Jul
16-
New Zealand 18-Nov 2-Dec Dec 13-Dec 20-Dec 4 July 16-Jul

11. Listing Process
• Category reviews initiated.
• Expression of Interest (EOI)
forwarded to industry.
• Spreadsheets returned by
suppliers.
• Category analysis completed.
• Product ordered.
• Arrive in Distribution Centre (DC).
• SKUs assigned to stores / stores
order.
• Category shelf managed annually
according to Cat Man schedule.

12. Expression of Interest (EOI)
• A invitation to apply.
• Provides guidance
regarding those SKUs
the NSLC is interested
in by category.

13. Spreadsheets
• Alternative to a complete
application process.
• Provide all information
necessary to price and
review.
• Allows an opportunity to
provide product
availability date &
estimated case
quantities.

14. Samples / Product Testing
• Price point oriented.
• Two bottles required.
• Products to meet
national standards.
• What alternatives are
available from local
producers?
• Opportunities for WANS
to assist?

15. Application Requests
• Products selected.
• Applications requested.
• Electronic Fund Transfer
form (EFT)
• Product Images (1 mg+).
• Product Information
Sheets (details).
• Importance of accuracy.

16. Nova Scotia Listings
- KEY DATES 2012 -
• Spreadsheet = February 6th
• Applications = April 16th
• Order Date = May 7th
• Shelf Date P3 = June 11th

17. Mandatory Labeling Requirements
- SELLING UNITS -
Product Description
Not manditory for it to
be shown in
English/French
Product Description
Shown in English/French
Refund Statement
Alternante version:
Refundable/Consignée
Unit Size
Shown in
Millilitres (ml)
UPC or EAN
Must include bar code
and number
Alcohol Percentage
Country of Origin Must be represented as
Shown in English/French alcohol/volume
(alc/vol)

18. Mandatory Labeling
Requirements
- CARTON -
• Name of Product
• Product Description
• SCC (Shipping Container Code)
• Case Size X Bottle Size
• PO # (not mandatory)

19. Shelf Implementation
- GENERAL LIST -
• Total NSLC Network = 105
• A Group = 28
• B Group = 31
• C Group = 45
• D Group = 52
• E Group = 64
• F Group = 74
• G Group = 97
• Agency Store Network = 56

20. Shelf Implementation
- LIMITED FINDS -
• Total LF Network = 11
• Port of Wines
• Bayers Lake
• Mill Cove
• Portland Street
• Joe Howe
• Barrington Street
• Kearney Lake
• Tantallon
• Truro
• Antigonish
• Wolfville
• New Minas
• Approx. 15 new SKUs bi monthly

21. Shelf Implementation
- PORT OF WINES -
• Total PW Network = 4
• Port of Wines
• Bayers Lake
• Mill Cove
• Portland Street
• Approx 400 SKUs total

22. MARKETING

23. MARKETING
• In-Store Programs & advertising
• Events
– Port of Wines Festival
– Regional Wine Events
– In-Store Events
• Occasions
• Digital/myNSLC.com
– 30,000 monthly visitors
– 12,000 facebook fans
• Vendor Marketing Programs

24. Nova Scotia Focused
Programs in FY12
• Go Local Program
(promotional period 6; October 2011)
– Focus on Nova Scotian & Canadian Brands
• What’s New Program
(promotional period 2; May 2011)
– Vendor buy-in
• Upcoming FY13:
– Tidal Bay 2012 Launch (promotional period 3;
early June 2012 - TBD)

25. Opportunities
• Marketing Support
– MyNSLC.com
• Events Listings
– Social Media
• Vendor Marketing Programs:
– Submission process
– Opportunity for partnership

26. Consumer Insights
• Less than ½ of English speaking Canadians consume
wine
• Less than 1 in 10 are highly wine involved
• Nova Scotia falls middle of the pack compared to
other Canadian jurisdictions for consumption:
– 10.1L per capita annual consumption in NS vs.
15L for English Canada

27. Distribution of Wine Customer
Segments to Total Wine Profit

28. Wine Grow Customer Profile
• 26% of Wine Customers = approx. 90,000 customers
• Account for 50% of the wine profit = $27M
• Average profit per Wine Grow customer = $300 annually
in wine
• No distinguishing age characteristics – most are
between 35 and 54 years of age
• Skew female (56% female vs. 44% male)
• Middle to higher income
• Most live in HRM

29. Wine Grow Customer Profile
• Interested in learning more about wine
• Interested in learning more about food and wine pairings
• Tend to experiment within the wine category and try
different kinds of wines / range of varietals
– Prefer red wine 3:1 over white wine
– Most list Australian as their favorite country for wine
• Typically purchase higher priced wines – majority spend
between $15 to $20 on a typical 750ml bottle
• Virtually all purchase wine at least once a month

30. Wine Grow Customer Profile
• Taste is the most important factor in their decision to
purchase a particular wine
– Majority would spend more a bottle of wine if they were
certain of the taste
– Over half of this group would spend $6 or more
• Tend to be daunted by the number of choices available
• Interaction with staff who can answer questions and give
advice is important to their purchase decision
• Interested in attending NSLC events to learn about their
favorite beverage

31. Wine Grow Customer Profile
• Moderate Internet Usage from home
– Most use the Internet to research a product or service
– 1/3rd use the Internet to help make a decision on a product they are
considering to purchase
• 2/3rd are facebook members
• High penetration of cell phone (87%)
– More likely than other wine customers to have a Blackberry (20%)
• Chronicle Herald by far the most read newspaper
– Front page, local and provincial news most read sections
– Most read their preferred newspaper online
• More inclined to read a flyer that is inserted in the paper rather than an ad
printed in the newspaper
• Listen to the radio an average of 2 hours per day
– Classic rock stations have the highest penetration (30%) among the wine
grow customer
• Spend an average of 2hrs a day watching television shows and about an hour a
day watching the newscasts on TV
– Most watch the dinner time newscast on ATV/CTV Atlantic

32. OPEN Q&A