Boyce Strategic Marketing’s Post

Beverage Alcohol Update: the Ontario government has decided to move the beverage alcohol market forward with a rumoured agreement with the Beer Stores to allow for beer, wine, cider & RTD”s for convenience stores beginning September 1, 2024. Exciting opportunity for 1000’s of C stores with the knowledge that the devil is still in the details. Lots to consider from distribution, margins, licensing requirements, training expectations and speed to market. Bottom line this decision by Premier Ford will change the C store landscape allowing consumers throughout the province to have an open access in every community. This file was a 15 year project covering 3 Premiers with support from many Board members and industry friends. Some points of interest are as follows: August 1, 2024 the 450 grocery store presently licensed to sell beer, cider, wine, will be able to sell RTD’s ( Ready to Drink) beverages. These stores can also start selling larger format beer sizes like 30 packs. After September 5, 2024 - all eligible Convenience stores will be able to sell beer, cider, wine and RTD’s After October 31, 2024 - all eligible grocery and big box stores will be able to sell beer, wine, cider and RTD’s including large pack sizes. More updates to come!

Ontario Premier Doug Ford announces a groundbreaking move allowing beer, wine, cider, and ready-to-drink cocktails sales in convenience stores and all grocery outlets by 2026, marking a significant shift in the province’s alcohol sales landscape. This decision heralded as one of the most substantial changes in Ontario’s history, signifies a major step, making the province the second in Canada to sell beer in corner stores and the first to offer ready-to-drink cocktails in these locations. Ford’s pledge, originally made in 2018, signifies a second attempt to introduce beer and wine in corner stores. The new agreement will dissolve the current Beer Store contract by 2025, enabling over 8,500 retail locations to set prices independently. The deal ensures dedicated shelf space for small-scale beer and wine producers, while the Beer Store retains a predominant role in the beer distribution and recycling programmes for five years. To learn more about the disruptions in the grocery industry, subscribe to our newsletter at: https://lnkd.in/dzCCRh4b

#neoprohitiion trend: Did you know that since #prohibition #NY is one of the only states in the country where it ILLEGAL to sell any non alcholic products (#water, #soda, #mixers, #nonalcoholic spirit, wine, RTDs, beer)? But all that might soon change given the growth of the new #NA category: "while US sales of alcoholic beverages edged 0.8% higher to $105 billion during the past 12 months, sales of non-alcoholic booze soared 34% to $620.4 million during the same timeframe, according to NielsenIQ." https://lnkd.in/eUZRXSav

Effective Sept. 16, 2024, Act 86 of 2024 will expand the network of retailers allowed to sell ready-to-drink cocktails (RTDC) to go to include restaurants, hotels, supermarkets, convenience stores, beer distributors and others. The new RTDC permit will authorize permittees to sell spirits-based RTDCs ranging from 0.5% alcohol beverage by volume (ABV) to 12.5% ABV in original containers up to 16 ounces for off-premises consumption (to go). RTDC permits will be available to retail liquor licensees eligible for wine expanded permits (restaurants, hotels, supermarkets, convenience stores etc.) and to distributors and importing distributors of brewed and malt beverages, all of which must be certified in the Responsible Alcohol Management Program. Highlights of the new law include the following: Retail RTDC permit holders (not distributors/importing distributors) will be able to sell RTDC to go in quantities up to 192 fluid ounces per transaction, and that allowance is in addition to up to 192 fluid ounces of brewed or malt beverages and up to 3 liters of wine per transaction – all three can be maxed out in a single sale, but only to retail customers (not licensees). Distributors and importing distributors will be able to offer samples of RTDC and sell RTDC in any quantities to retail customers, but not to licensees. They will also remain prohibited from selling wine or other forms of spirits. The PLCB currently has a catalog of more than 100 RTDC, but RTDC permit holders are not allowed to procure RTDC through Special Order for sales for on-premises or off-premises consumption. The PLCB will also entertain permittees’ requests to bring new RTDCs into the market, if suppliers are willing to make them available through regular product listing processes. Pennsylvania licensed manufacturers producing RTDC may sell them directly to retail customers and permit holders, in any quantities, at prices equivalent to or more than what the PLCB charges, if the PLCB carries the same or substantially similar products.

The way you buy alcohol in Ontario will never be the same… TL;DR This is a very interesting/complicated topic I could speak for hours about. It’s all about the MFA (Master Framework Agreement) which the government is changing in the next year or so. The current MFA is why you can really only buy booze at the LCBO, Beer Store of some grocery stores. Covid loosened up a few things which is why you can buy alcohol from restaurants, breweries and via E-Comm. Good times…. The MFA discussion you may be hearing about is really about two things: 1) who gets the money and 2) you, the customer. 1) Who gets the money? Right now its the Ontario Crown (LCBO) and 3 big foreign national beer companies like AB-InBev (The Beer Store). Then that goes to the Crown. MFA stands to open up Convenience Stores (like in the US, and frankly everywhere else in the world). For those making lots of money off Ontario alcohol, the current MFA is worth clinging on to. It’s a sweet deal. 2) You, the customer? Current MFA isn’t so good for us. Don’t get me wrong, I love shopping the LCBO to find new things, but I also love when I’m travelling and I can pop into any little corner store, bodega, gas station and buy a 6-pack or bottle of wine. Our alcohol relatively expensive and relatively tough to get relative to our peers. For us customers, out with the MFA. It’s not so sweet. LCBO: sets all pricing for any alcoholic bevy in the province. Can’t bring it in or sell it without the LCBO saying so. The Beer Store: the only place you can buy 12-packs and 24s. Its been closing locations and revenue has been declining YOY for a long time (hi Gen Z, health & wellness, not your dad’s beer). Grocery: only 450 licenses exist to sell alcohol, which is why only some Loblaws or some Metros sell booze. Then there’s local restaurants, local wineries, local breweries. I like those guys. This is a classic example of not being a this OR that discussion, it is a this AND that discussion. Here’s a good primer article if you want to get caught up. I got my hands on a much longer article I’ll post next week. https://lnkd.in/gyQ8_Pnt

📊 3-Tier is very excited to share the news that NIQ is launching the new Liquor Open State view, an expanded and enhanced Liquor Channel measurement. 📈 It expands the base of stores, enhances universe statistical projections, and broadens the measurement of the Liquor Channel to include an aggregate of 31 states + DC (non-control markets). 🔍 This new read will provide significantly more visibility into this critical and sizeable channel to the Beverage Alcohol industry. It will replace the current, much smaller Liquor channel view (Liquor Plus) that you may receive today. 🍻 Category size increases will be in the range below, the new measurement will provide a better read of the broad assortment of products carried in stores largely dedicated to Beverage Alcohol – including Liquor chains and equally important independents: 🍺 · Beer: 2.8x increase in the size of the new Liquor Channel vs the existing channel 🍷 · Wine: 1.8x increase in the size of the new Liquor channel vs the existing channel 🍸 · Spirits: 2.2x increase in the size of the new Liquor Channel vs the existing channel 📅 This change from Liquor Plus to this broader Liquor Channel market will take place as of July 22, 2024. If you do not have a 'separate' view of the Liquor channel today and would like a 'separate' view of the new Liquor Open State channel, please let us know and we can provide pricing. 💲 NIQ is also offering 8 Liquor channel total state reads - California, Colorado, Florida, Maryland, Massachusetts, New Jersey, NY State, and Texas. If you are interested in any of these state level Liquor channel breakouts, please let us know and we will provide pricing.

Connect with me if you want to learn more about our New Liquor Channel Enhancement!

Supporting Ontario-made products strengthens the province’s economy, sustainability, sense of community, and quality of life. By shopping locally, consumers help build a more prosperous and resilient Ontario. Summer is a time for relaxation, social gatherings, and outdoor activities, often featuring alcoholic beverages. In May 2024, Ontario announced plans for expanding the province’s alcohol beverage marketplace in phases to allow convenience, grocery and big-box grocery stores to sell beer, cider, wine and ready-to-drink alcoholic beverages, such as coolers, hard seltzers or other premixed cocktails. By ensuring access to alcohol, drinking responsibly, and staying hydrated, we can continue enjoying the summer and create lasting, positive memories. To help consumers connect with local retailers and producers close to home during the ongoing OPSEU strike, Ontario has launched a new searchable and interactive map of retailers that remain open and ready to serve. These retailers include more than 1,000 local Ontario breweries, wineries, wine shops and distilleries, in addition to other retailers such as LCBO Convenience Outlets, The Beer Store and licenced grocery stores that sell a range of Ontario-made and imported products. As announced in May 2024, Ontario is expanding the province’s alcohol beverage marketplace in phases to allow convenience, grocery and big-box grocery stores to sell beer, cider, wine and ready-to-drink alcoholic beverages, such as coolers, hard seltzers or other premixed cocktails. Upcoming expansion includes: - Starting in August, existing grocery retailers that currently sell wine or beer will be able to sell new products like coolers and other ready-to-drink beverages alongside more pack sizes of beer. - By the end of October 2024, every eligible convenience, grocery and big-box store in Ontario will be able to sell beer, cider, wine and ready-to-drink alcoholic beverages if they choose to do so. To learn more, please follow this link: https://shorturl.at/eNEOS 

Ontario's liquor landscape is undergoing a significant transformation as the Liquor Control Board of Ontario (LCBO) will relinquish its monopoly on wine and beer sales, while still maintaining control over spirits. This move, announced by the Ontario government in mid-December 2023, marks the largest expansion of consumer choice and convenience since the end of prohibition almost a century ago. With the LCBO being among the largest single buyers of wines and spirits globally, the implications of this shift are far-reaching, affecting consumer preferences, industry dynamics, and the broader cultural aspects of wine consumption.