Thousands of new products and innovation are launched every year in the convenience store channel, encouraging the hard working retailers to enable their customers with many of these brands with hopes of an enhanced business relationship with our suppliers. Success relies heavily on the face to face interaction with millions of c-store customers everyday and the most recent launch by the Ontario Lottery (OLG) defines the strength and ability of the hard working families throughout Ontario.
Plinko, a $5 instant scratch ticket, launched January 1, 2021 in 8,500 c-stores. The launch included strong in-store marketing support, as well as an introductory commission of 30% (instead of the normal 8%). Retailers throughout Ontario were quick to upsell and promote, as we had a three-month commitment from OLG and the Ontario government to enjoy this promotional commission and did we succeed!
The results of the three-month promotion show c-stores accounted for 84% of all Plinko sales for a total of $58 million in sales, with total c-store commissions at $17 million. Notably, that's an additional $12.6 million in commission at 30%, compared to the usual 8%.
This type of promotion confirms an introductory margin with strong in-store support, as well as a disciplined distribution channel, will reap benefits for the entire c-store industry. Having face-to-face relationships with millions of customers allows all suppliers the same opportunities to successfully launch products. Our retailers recognize and appreciate the support of the OLG.
Plinko is the most successful launch in any provincial lottery jurisdictions and pleased to have been part of this great opportunity. A great template for all new brand intros!