CSNC Exclusive Q&A: LCBO’s Leanne Rhee talks about Ontario’s new beverage alcohol market
How do Ontario’s licensed convenience stores order wine, ciders, beer and other alcoholic products from the LCBO? How long does it take to receive an order once it’s placed? Are there any products that c-stores are not allowed to sell? In an exclusive interview with CSNC, Leanne Rhee, director, grocery and convenience, wholesale services at the Liquor Control Board of Ontario (LCBO), answers these and other burning questions about the emerging category for c-stores in the province.
We've heard that c-store retailers must place orders by early August to have them in time for September. Is this accurate?
If convenience stores wish to have products on their shelves for September 5, they should be mindful of the following dates:
· Complete the LCBO onboarding form by August 1. If you are a licensed convenience store who needs help completing the onboarding form, contact [email protected].
· Place any orders where The Beer Store is the supplying source by August 9 or place orders where Ontario manufacturers are the supplying source by August 16.
Don’t worry if you complete the form after August 1 or order products after these dates, you can start selling products any time after September 5 when you’re ready. [Also check out a video on Vimeo that the LCBO created outlining the steps to purchase product.]
READ: Convenience stores quickly signing up to sell beverage alcohol in Ontario
How many convenience stores in Ontario are planning on selling alcohol?
Currently, there are more than 3,500 licensed convenience stores, and three quarters have completed the LCBO onboarding process. Both Alcohol and Gaming Commission of Ontario licensing and LCBO onboarding will be an ongoing process managed by the AGCO and LCBO, respectively. Onboarded convenience stores were able to start ordering from July 29, and we have started receiving product orders.
What do delivery timelines look like?
Delivery times vary for each supplying source. If you purchase a product on LCBO’s online ordering system that is supplied by The Beer Store, it will typically be delivered within seven business days, while Ontario manufacturers may take anywhere between a few days up to 14 days. When you can start ordering LCBO-supplied products in October, you can expect delivery to take up to seven business days. For more details on delivery timelines and supplying sources, visit doingbusinesswithlcbo.com/groceryandconvenience.
Who should retailers contact if they run into issues?
We are pleased to share that we have multiple supports available for licensed convenience stores. As part of the onboarding process, licensed convenience store operators will be partnered with an LCBO Account Manager, a primary contact for doing business with the LCBO.
LCBO’s Customer Care team is also available to assist with any order and delivery inquiries; they are available via email, chat or phone (1-800-668-5226) six days a week. There is also a dedicated technical team to help with any questions related to the online ordering site via [email protected] or 1-866-826-4334.
What are the shelf-space requirements?
Convenience Store operators can refer to Section 89 in the licensing regulation or contact the AGCO for more information about shelf space requirements. Beer and cider must be displayed together: 20% of your beer selection must be from small breweries and 20% of the cider selection must be from small cideries. Wine products must be displayed together: 40% of this selection must be from small wineries, or a small wine-producing country (of which, 10% must be small wineries). RTDs (Ready-To-Drink) must be displayed together: 20% of this selection must be from small producers.
What are the most popular products being purchased so far? Are any shortages expected?
Convenience stores can select from a robust catalogue of over 1,700 wine, beer, cider and ready-to-drink products. Most popular SKUs differ regionally, so we encourage you to speak to your LCBO Account Manager about popular products in your region.
What are exemptions on the alcoholic products c-stores can sell?
Licensed convenience stores can order eligible wine, beer, cider and RTD beverages. Products with more than 7.1% ABV, in addition to spirits and Vintages products, are exempt.
To assist convenience store customers, a product catalogue is provided and only eligible products are available for purchase in GMS (Grocery Management System), LCBO’s online ordering system. Convenience stores determine what eligible products they would like to carry to best serve their customers.
Does a wholesale discount of 10% from the LCBO's retail price apply to both grocers and c-stores?
All wholesale customers are entitled to a 10% discount on LCBO’s basic retail price. This discount will be applied automatically in GMS—the only way to legally purchase products.
Anything else c-stores should know about the order and delivery of alcohol?
Whether you are interested in becoming a licensed convenience store or already licensed, we encourage you to visit doingbusinesswithlcbo.com/groceryandconvenience. The dedicated site provides a one-stop-shop for the information and resources to help convenience stores do business with the LCBO. We appreciate this is a new area of business for convenience stores and we are here to support them every step of the way. On behalf of the LCBO, we look forward to doing business with you!
