LCBO provides new data on c-store beverage alcohol orders
After two weeks of selling beverage alcohol, some c-store operators and owners are very happy with the movement of the category so far. Others, however, say it’s been a bit of a slow start but remain optimistic.
“We’re pleasantly surprised with the initial results of the new alcohol category in our Ontario Waypoint stores,” says Thea Bourne, partner marketing manager at BG Fuels. “A change of this magnitude doesn’t come without some bumps, but the demand we’re seeing has made it clear that Ontarians welcome the opening of the market.”
“At this point we haven’t had to make any major adjustments from our launch strategy,” she adds. “We do expect that there will be some opportunities to optimize the program, but for now we’re generally quite pleased with the how the launch has gone.”
READ: BG Fuels takes all-in approach to beverage alcohol sales
“It’s doing really well for us,” says another multi-location c-store operator. “We’ve placed quite a few re-orders already. And I’ve noticed empty shelves of some of our competitors, too.”
According to the LCBO, as of the end of last week more than 5,700 orders have been fulfilled for more than 3,000 licensed convenience stores. The majority of stores—over 2,300—have placed more than one order, the provincial agency told CSNC in an email.
Other c-store owners say it’s been a slow build.
“We’re seeing gradual growth, but we’re not going to see peak sales over night,” says Anthony Magnini, CEO of Gateway Corporate Group, which is selling beverage alcohol at its gas and c-store locations in Burlington, at 1134 Plains Road West, and Hamilton, at 1134 Plains Road West. “The economy right now is challenging, and I think during the holidays when the Beer Store and LCBO close over Christmas, that’s when things will really turn for the better for convenience stores.”
“It’s way lower than my expectations,” says August Guo, owner (with his wife, Cathy Xu) of Carp Foodliner in Carp. Ont. outside Ottawa, who previously shared his plans for the category with CSNC. “But I am confident that my sales will get better and better as long as the customer takes the time and gets used to buying beer and wine in the convenience store.”
Over the past 15 days, he says on average the store has rung up $200 per day in beverage alcohol sales, with major beer brands Coors Light, Bud Light, Budweiser and Corona Extra performing particularly strong. Carp Foodliner has also sold 15 bottles of wine in that same timeframe.
Starting on Oct. 1, licensed convenience stores will be able to order from an expanded product catalogue, including imported products supplied by the LCBO.
