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BLACK FLY BEVERAGE CO.: Mike Pearce

"Before delisting a slow mover, try putting it in the fridge first. We've found that refrigeration can transform performance—especially for 12-packs."
Michelle Warren smiles
Mike Pearce head shot
Mike Pearce

Mike Pearce

Vice-president sales and marketing

Black Fly Beverage Co.

 

Based on your data, insights and experience, what’s trending for summer 2025?

So much! I think 2025—for us and for the category in Ontario specifically—is really the second phase of this whole privatization. The first phase was the announcement and scramble: everyone trying to get licensed, get to market, figure out which products made sense, and if they were even the right ones on the shelf.

Now you're starting to see assortment adjustments depending on each retailer's strategy. Farm Boy is going to differ from Circle K, which is going to differ from your INS Market. In the beginning, a lot of retailers likely stocked top products just to have something in place, often influenced by the big suppliers saying, “Take these for now.”

Now we’re seeing retailers becoming more comfortable, which means consumers are going to start enjoying better offerings on the shelf. That interaction—between supplier and retailer—is really coming into play.

For example, grocery jumped on 12-packs right away, but then realized people’s grocery bills were massive, so they’ve pivoted. They’ve cut back on 12s and are bringing in more singles, much like they did for beer.

One of the big c-store chaints thought 30-packs would be awesome, expecting people to stock up. But when gas is $1.50 a litre and you’ve just filled up your truck for $170, you’re not walking in to buy a 30-pack. You just want a cold six-pack to take home.

There are functional adjustments like that happening. You’ll also see more out-of-home marketing—SkipTheDishes promotions, social/digital efforts—because we can’t do much in the c-gas channel. But we can drive consumers to retailers doing promotions like, “Buy a Black Fly, get a bag of chips,” bundling and discounting, which they can do and we can’t.

Which of your products do you anticipate being hot sellers this summer? Any new innovations in your mix?

For sure! Our strategy might differ from others, but our innovations in the convenience channel are our biggest winners. We want c-stores to have the products consumers have been asking for at the LCBO.

Our Vodka Cranberry and Raspberry are performing exceptionally well across all types of convenience—from large chains to independents. Our teams are ensuring these are core starting products for retailers.

Following those, our Gin Greyhound and Tequila Sunrise (both 473 mL cans) were big at the LCBO last year and continue to grow. Convenience is exciting for these because they taste like actual cocktails—something not commonly found in-store. Many other brands are higher ABV and don’t work for the channel due to the 7% limit, but ours fit.

On top of that, we’ve got three 12-packs we’re focused on:

  • Fixed Lemonade

  • Cocktail in a Can (includes Gin Greyhound and our popular Margarita)

  • Crushed 12-Pack with nostalgic flavours like watermelon and mango

Altogether, we’ve got seven priority SKUs this summer, and it's working—we’re already number five in convenience RTD volume.

What are the outside influences shaping the space?

Consumers are shifting again. Before and during the pandemic, we saw a move toward local and low-alcohol products—3.2% ABV, smaller formats. Then came the seltzer boom and a return to higher alcohol and fuller flavour. Now, we're seeing continued demand for 7% cocktails and more recognizable, easy-to-drink formats.

While some niche products like Negronis and Manhattans are gaining attention, the average drinker prefers something sessionable—social, repeatable and not overpowering. That’s where flavours like cranberry, raspberry and sunrise shine.

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This is the first summer of beverage alcohol sales for convenience retailers. What advice can you share?

It’s always a space squeeze for convenience store owners. Every SKU needs to perform. Based on our research, cold product sells 20% more than ambient. That’s a huge opportunity.

Before delisting a slow mover, try putting it in the fridge first. We've found that refrigeration can transform performance—especially for 12-packs. They take up space, yes, but they could also turn faster when chilled. If they move well cold, try placing them on the floor and track the results.

Listen to your reps—ours or others. They bring market intelligence that can inform your decisions. Push them to give regional data, not just provincial. Sales in Ottawa might be different from Niagara. And most importantly, track what works. Ask questions, rotate stock in and out of coolers, and test often.

Also know your demographic. There are 12-pack stores and non-12-pack stores. Walk-in/walk-out locations typically do better with singles and four-packs. Drive-up stores? Load the fridge with 12s.

How are you supporting convenience retailers this summer?

Education is key. We train every CSR we can reach—especially in provinces with private liquor and grocery sales. Staff should know Black Fly is less sweet, made with real juice, and has low carbonation.

If you're not getting info from your rep that helps you sell, ask for it. Reps should be explaining how to merchandise, what’s selling well, and where. We make sure our team does that.

What other convenience items pair well with your products?

I love this question! It depends on the format. Our Crushed line (orange, grape, raspberry) is perfect with ice cream—think floats! Try orange Crushed with a scoop of vanilla for a nostalgic summer treat.

With our vodka cranberry or margarita in PET bottles, pair with chips and dip. Because our drinks aren’t overly sweet, they balance well with something salty.

Got a slushie machine? Mix a slushie with tequila sunrise—customers love that fun, frozen experience.

Anything else to add?

We’re proud to be part of CICC, Spirits Canada and Drinks Ontario. Not only are we a brand—we're also a manufacturer for much of the industry.

We care deeply about helping this channel succeed. We know convenience will become a dominant sales channel for beverage alcohol, and we’re here to support and guide however we can.

We’re a proudly Canadian-made and Canadian-born brand. That’s our message this year, and we’re excited to be part of this journey with you all.

 


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