Value Adds

The Value-Add Program offers customers something extra when they purchase a featured product in LCBO stores. This program is well received and generates a great deal of excitement with both customers and store employees.

Rates

Approved products are subject to a $1,000 participation fee per representative or plant applied value-add per Promotional Turn (flat rate). The agent/supplier is responsible for providing the Value-Add or "give-away" items. Participants will also absorb the costs of added duties, freight and excise taxes in order to maintain the regular price of a product during the Promotional Turn.

Terms and Conditions 

Production

Suppliers are responsible for the production of Value-Add items. Value Add items must not interfere with any adjacent products (i.e. oversized). There are no size specifications for non beverage alcohol Value-Add items. The applicable Category or Product Manager must approve all Value-Added items. Value-Added items may be applied to the product by the supplier prior to shipping or by sales representatives in store.

Wording on P.O.P.

Product labeling and signage for Value-Add items highlighting the giveaway must read, “Free with Purchase. “ It is not acceptable to use the word “Free” by itself.

Applications

Follow this link for information. Value-Added items must be defined on the application, "To Be Determined (TBD)" will not be accepted.

Food Value-Add Program Requirements

Food Value-Add products are subject to specific regulatory requirements pertaining to product composition, labeling and traceability. The LCBO updated the framework supporting the Value-Add program to incorporate specific requirements for Food products to ensure compliance with the regulations.

Effective February, 2021, Food Value-Add submissions that are considered for the Promotional Program require to undergo an Attestation and Traceability information disclosure.

Suppliers are required to complete a Food Product Value-Add Questionnaire where the Agent/Vendor provides required information related to product composition, labeling and traceability.

Vendors must be aware that Product Traceability records must be provided to the LCBO within 5 hours from the request for such records. Typically, requests for Product Traceability are prompted by Quality Investigations up to/including Product Recalls therefore a timely response is critical to ensure product safety and compliance requirements. For more details related to CFIA Traceability requirements please refer to: Safe Food for Canadians Regulations (justice.gc.ca).

Applications with value-adds must include a description of the value-add and size. For Online Exclusives, value-add dimensions must be provided in its packaged form. Wherever possible, provide a picture of the value-add in the ‘Supporting Creative and Assets’ Tab in excel application.

NOTE: The description of value-add should include as much detail as possible, including but not limited to:

 

• - All offer contents (tools, branded box, etc.)
• - Quantity of value adds
• - Packaging colour
• - Size (mL) if applicable
• - Type of glass – rocks, balloon, martini
• - Is it branded?
• - Is the value-add FREE? Or incremental in cost?
• - Any extra unique aspects?

 

If your value-add is or has a food component, please complete the Food Product Value-add Questionnaire posted on the Promotional Calandar page for more information.

Value-Add Program Update (April 2023)

The follow requirements have been instituted for value-adds. These requirements will be in effect moving forward for applications as of FY24 P11/P12/P13.

- Near pack value-adds on End Aisles must be applied to all SKUs on the End and must be confirmed at time of application.

- Near pack value-add dimensions must be submitted at time of the application, for planogramming and e-commerce shipping information purposes.

- On-pack and near pack value-adds cannot be a gift bag or reusable bag. Exceptions should be discussed with Category for pre-approval.

NOTE: Applications without all required information will be declined.

Opportunity: LCBO gift cards as a value-add product

Details:
    · Value-adds of gift cards must not exceed 20% of the value of the product
    · must be a minimum of $5
    · can be co-branded or use existing LCBO gift cards
    · supplier to absorb cost of value-add
    · At this time, there is no additional charge to participate (besides the cost of
    the gift card mentioned above)

For more information about this exciting opportunity, please contact denise.papaconstantinou@lcbo.com before the promotion application deadline.