LCBO HOLIDAY TRENDS BACKGROUNDER - PART III
November 25, 2013 10:30 ET
BEER AND CIDER
This category sees roughly 15 per cent of its sales during holiday, and as more consumers turn to LCBO for their beer purchases. This year that number is expected to increase by about four per cent. Limited-release products, taster packs and gift packs continue to be popular selections for gifting, although buyers this year have focused less on the traditional packs that include specialty items or glassware, and more on products meant for sampling different styles and varieties. Premium imported brands and specialty craft beers will continue to attract new customers. Sales of Ontario craft beer have grown 28 per cent over the last year, and by more than 335 per cent in the past five years.
“There is definitely a shift at holiday toward premium brands, especially imported, specialty and craft,” said Leanne Rhee, Category Manager for Beer and Cider. “Our customers told us they wanted unique offerings, so we purchased more single bottles that are offered in limited release and niche brews. They’re the perfect gifts for beer-lovers.”
Five top-selling products in the beer category this year; also expected to be popular for holiday 2013:
1. Corona 6-pack bottles – Mexico - $12.95
2. Coors Light 6-pack tall cans – Canada - $13.20
3. Molson Canadian 6-pack tall can – Canada - $13.20
4. Budweiser 6-pack tall can – Canada - $13.20
5. Old Milwaukee Ice 6-pack tall can - $11.50
Three top gifting suggestions for holiday 2013:
1. St. Ambroise Ale Trio Collection – Quebec - $17.95 (3x341mL)
2. Brewmaster’s Choice Discovery Pack – Ontario - $13.50 (6x348mL)
3. Wychwood Brewery Beers of Character – United Kingdom - $12.95 (5x500mL)
Gift cards are quickly becoming one of the most popular and convenient choices for gift giving, with about 54 per cent of all LCBO gift card sales happening during the holiday season. Consumer feedback and gift card sales data suggest they are now the preferred gifting option for our customers. Last November and December, gift card sales rose more than 21 per cent to $34 million and, year-to-date this fiscal, they are up by 37 per cent. Customers will find LCBO gift cards merchandised on end-aisles and in key sections of participating stores – including VINTAGES sections – allowing them to consider a gift card if they have difficulty making a buying decision.
LCBO and VINTAGES gift cards are available in any denomination between $10 and $500 at all LCBO stores and can be purchased at more than 4,500 LCBO and approved third-party retail locations throughout Ontario. See http://www.lcbo.com/gifts/en/giftcards.shtml for a complete list. To redeem a gift card, you must be 19 years of age or older. They do not expire and can be used toward in-store purchases and LCBO events. Gift cards can also be ordered online at www.lcbo.com/giftcards in singles or in bulk, delivered next business day to anywhere in Ontario for a nominal shipping and handling fee, and individual gift card orders can be personalized.
“Since inception of the LCBO gift card program in October 2004, more than 8.6 million LCBO gift cards have been activated, with the average person spending about $39,” said Shari Mogk-Edwards, Vice-President, Products, Merchandising and Sales. “Our research shows that customers tend to treat themselves to special or premium products when they redeem an LCBO or VINTAGES gift card. It has quickly become an important part of our business.”
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