Circle K rolling out beverage alcohol at 600 locations in Ontario
On the first day of sales for alcoholic beverages in Ontario convenience stores yesterday, customers at hundreds of Circle K locations across the province were met with a wide assortment of brands and products in the newly opened-up category.
“We will be offering everything that our customers want from beer, cider, ready-to-drink and wine,” says Steve Pitts, vice-president of operations, Central Canada, Circle K, at Alimentation Couche-Tard. “We’ve engaged both big brands and our regional craft partners to ensure that we have local partnerships throughout various communities to serve our customers the flavours they know and love.”
About 600 Circle K stores in Ontario—representing “the vast majority of the network”—are selling alcohol, or soon will be.
According to the Alcohol and Gaming Commission of Ontario, 4,220 Convenience Store Licences for the sale of alcohol have been approved as of Sept. 5, up from 3,500 approved as of July 25.
By forging “early yet strong partnerships with various vendors,” Circle K turned to their “category guidance” in determining the merchandising mix at launch, says Pitts. He adds that Couche-Tard’s Ontario business also collaborated with provincial counterparts, including in Quebec where alcohol sales have long been permitted in c-stores.
“Using their historical data, experience, and in-depth knowledge,” he says they were able to make informed decisions on not just merchandising, but also other facets of the category, from security and safety protocols, employee training, and promotional strategy.
On Sept, 5, the first day Ontario adults could purchase alcoholic beverages from c-stores, this large-format Circle K store in Richmond Hill, Ont. with a Tim Horton’s kiosk and small seating area inside, offered myriad of choice. Major beer brands on display included Molson Canadian, Corona Extra, Pabst Blue Ribbon, Coors Light, Budweiser and Bud Light; craft beers from Muskoka Brewery, Steam Whistle Brewing, Creemore Springs Brewery and Collective Arts Brewing; and in the RTD category, hard seltzers from White Claw and Sandbagger, Twisted Tea hard iced tea and Dillon’s gin cocktails.
The location has nine doors of coolers for beverages; two were devoted to alcohol including single cans. In addition, nearby shelving units in the aisles were stocked with 12-packs, 24-packs and variety packs.
“We created space by optimizing other categories,” Pitts tells CSNC. “Some footprints are larger than others, as our stores vary from 500 sq. ft. to over 3,000 sq. ft. We made investments in new fixtures, adjusting older fixtures, reinforced shelving, and new wine coolers and racks. We also invested heavily into our staff’s knowledge and ability to certifiably sell alcohol in our stores safely.”
READ: What equipment are c-stores investing in to support beverage alcohol sales?
Pitts also spoke about Circle K’s promotional strategy for the age-restricted category. “With the utmost responsibility, we are taking a grassroots approach,” he says. “You will only experience traditional marketing such as signage and some promotions.”
That was reflected at the Richmond Hill store. Parking bollards in the forecourt featured three-sided advertising sleeves with Woodbridge wine, Bud Light and White Claw product shots. “Beer & Wine is here!” read the copy above each image.
On cooler doors, “Pair together” stickers suggest purchasing alcohol-snack combos, including Mott’s Clamato Caesar with Jack Link’s beef stocks; 19 Crimes, a red wine from Snoop Dogg, with Rap Snacks Snoop Dogg OG potato chips; Corona Extra with Takis tortilla chips; and a Dillon’s gin with a Ferrero Rocher chocolate bar.
While the c-store sector is no stranger to risks associated with theft—mainly of tobacco— alcohol creates an additional layer of concern.
“Security and safety are of utmost importance for our staff and customers, and we will address this on a case-by-case basis,” says Pitts. “Some stores have been identified as requiring extra measures, but we will be assessing continuously to see what is necessary.”
Circle K is forecasting a sales lift in its Ontario operations. “This category gives our customers another occasion to shop at Circle K in Ontario,” says Pitts. “We expect an increase in traffic in hopes that it will drive further revenue growth.”
