By Jackie McAskill | jackie@bevproconsulting.com
Tapping into the over
$6 Billion and growing Canadian market is a great opportunity for many wine
suppliers. Let me help – as a former Wine
Buyer / Category Manager for Canada’s largest beverage alcohol retailer (LCBO)
and one of the largest importers of wine in the world, I have some insights that can
help you succeed in the Canadian Marketplace.
1. Understanding the market - I
know this sounds like a no brainer for selling to any market, but it is
absolutely vital when it comes to Canada.
Why you ask? Because it is
complicated – and understanding it will impact everything from your initial
investment to your ultimate success in the market. Each of Canada’s 10 provinces and 3
territories distributes, sells, regulates and markets wine very differently.
- Six provinces are 100% government controlled (MB, PE, YT, NL, NT, NU).
- Four provinces are undergoing transformation from government controlled to a mixed market (BC, ON, NB, SK).
- Two provinces are predominantly controlled by government with some form of privatization (NS, QC) or wine in grocery.
- One province with 100% privatization (AB).
2. Target your distribution channel. To say that Canada is complex and dynamic is
an understatement. The good news is –
You don’t have to sell your product in all of these markets, you
get to choose. Quebec (SAQ) and Ontario
(LCBO) are by far the largest, representing almost 60% of the total wine sales
in Canada combined. Choosing the best markets to break into is key to your long
term success. Although Canada is considered a very profitable market for many
brands, the ROI in
certain provinces is sometimes not worth the cost of entry for particular
products. A focussed strategy based on
a strong understanding of the market will ensure you are positioned to achieve
strong ROI’s and have the critical mass and influence to reach your ultimate
goal.
3. Invest. Depending on your best route to market, your investment will vary as
will your volume potential. For an ongoing
listing (sometimes referred to as a general list), many suppliers are reluctant
to invest upfront due to uncertainty in a new market. You need to remember that you only get one
shot at a first impression to the market so make it count. Costs to consider
are tastings, in-store marketing programs and external advertising and your
sales agent’s commission. These are
often negotiated with your agent as a % of your FOB price quote. Other types of
listings such as one- time purchases, seasonal buys, consignment products and
private orders often require a significantly smaller investment, however offer
less mass exposure. The other investment
to prepare for is patience. Although
many channels bring your product to the market within a few months, some
listings can take over a year from the time you formally submit your product to
the time it is available to sell.
4. Select the best agent for your brand. Once you have decided what your market goals are,
where you want to launch your brands and what your targeted investment is, you
are ready to look for a Sales representative agent (known as “agents”
throughout Canada). It is absolutely critical
for your success to hire an agent that will make your products a priority and
be engaged with your ongoing success in the market. Some Agents offer national
representation, while others focus
on individual provinces. It is also paramount that your brands align
with their business model and strengths.
5. Call me at Bevpro Canada Inc. at 1 (416) 214-7743. Navigating these waters can be daunting and
we are here to help. We are a team of former Canadian beverage
alcohol Buyers, Category Managers and marketers whose
focus is helping you understand and achieve success in the Canadian market. We provide you with a customized strategy to
maximize your success and help you meet your objectives within Canada. Our experience working with
over 500 agents across Canada provides us with insights that help us to refer
you to the strongest agent for your unique brand and goals.
Hope this is helpful. I know we can be.
Our Experience is your Advantage.
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