LCBO looks to improve ordering experience for convenience stores, grocers
Ontario's main liquor store said its seeking to improve the ordering experience for convenience stores and grocers.
The Liquor Control Board of Ontario (LCBO) is also launching a new portal called LCBO Gateway to help Canadian alcohol producers get listed for wholesale.
The initiatives aim to offer suppliers and partners a more seamless experience as part of the organization's ongoing transformation.
George Soleas, the Crown agency’s president and CEO, announced the news at the Ontario Craft Wine Conference & Trade Show in Niagara Falls on April 23.
With the theme “A New Era for Ontario Wines: Driving Growth at the Cellar Door and Beyond,” this year’s annual event, hosted by Ontario Craft Wineries, touched on topics like the economy, the federal election and the threat of tariffs to the wine sector.
“[LCBO Gateway] will maximize our performance when it comes to the digital property and allow for improved overall responsiveness,” said Soleas. “Some of our new customers are worried about how we respond. We’re doing everything we can, and these systems will help us be even more responsive.”
In other sessions throughout the full-day conference, leaders from the convenience and grocery sectors voiced frustrations with the shortcomings of the ordering process. Chief among them was the red tape surrounding product listings—especially for limited-run and new releases from VQA (Vintners Quality Alliance) producers.
“We’re all about getting exciting new items into our stores as quickly as possible,” Jennifer Gordon, assistant general merchandise manager for cooler, liquor, sundries and tobacco at Costco Wholesale, said during a panel session. “We understand it can take six months or more for a new product to get listed on GMS, which is not fair to producers or us as a retailer.”
If the LCBO can’t significantly speed up the process, Gordon suggests it take a page from the SAQ (Société des alcools du Québec), which allows retailers, within certain parameters, to work directly with local brands.
“We can pick up the phone and say, ‘We want to list this item,’ and work together on pricing and promotions, and get product very quickly into stores,” she explained.
The LCBO has been collecting feedback.
“We’ve onboarded thousands of wholesale customers in the last eight months. Now we’re focused on how to best meet the needs of our different wholesale customers—because no group is the same,” Soleas said.
These needs include “effective inventory management, the ability to automate and optimize delivery schedules, strengthen data governance, and allow for more seamless and personalized customer experiences.”
Speaking to a crowd of a few hundred, Soleas also illustrated the massive boost Canadian wine sales have enjoyed since the LCBO pulled American alcohol from store shelves and wholesale distribution in response to the U.S. tariffs.
Since going into effect, VQA wine, including sparkling, has surged by 23%. That’s a huge jump in a matter of weeks. Year-over-year, the category has increased 62%. Overall, Canadian wine sales are up 19% compared to last year, while wines from Australia and New Zealand have also seen gains—11% and 8%, respectively.
To meet demand, the LCBO has expanded its purchasing plans for new VQA listings across both in-store and wholesale channels, including with 30 new VQA wines to be made available between May and August.
The provincial agency is also collaborating with Ontario Craft Wineries (OCW) as well as other craft associations to share data and expertise on category trends with customers.
“I believe the buy Canadian movement is here to say, and that we’ll see a long-term shift in Canadian consumer behaviour,” added Soleas, while cautioning the sector not to take the momentum for granted. “It’s really up to us to make sure that continues by keeping our foot on the pedal and continuously repeating [a homegrown] message to customers.”
This article was first published on our sister site Convenience Store News Canada
Correction: An earlier version of this story incorrectly described the new LCBO Gateway program, as well as GMS, the LCBO's digital ordering system.
