as booze shipment delays linger for lcbo, wine suppliers worry about lost sales

by:Powerful Toys     2019-12-10
While LCBO said the shortage due to the slow transition to the new warehouse management system would be resolved by the long weekend of August, industry insiders said they were not told about it.
The two suppliers who sold wine to LCBO said that the senior staff of LCBO told them that the situation in the store would not return to normal until September.
LCBO\'s front-line staff told union leaders that September was also a more realistic schedule.
The two vendors have provided stars with what they call internal LCBO data, showing that the number of sales cases for many popular products has dropped in the middle after the Durham retail service center implemented the new systemJune.
Rolf Lutz, president of Vinexx, an Ontario agency representing wineries, said there is no doubt that warehouse problems have led to a decline in sales of at least some wines.
Other factors, such as promotion and competition, will affect sales, he said.
\"At the end of the day, if the products are not on the shelves, they cannot be sold,\" he said . \" He stressed that the financial impact of the delay on his business was real.
\"We cannot cash the check for items that have not been sold.
\"If it doesn\'t sell, we won\'t get paid,\" he said . \" He added that he expects the issue to have an impact on his business within six to nine months from now
Data display, sales of Heineken beer, red striped beer, Strongbow cider, Mike hard lemonade, Yellow Tail Cabernet Sauvignon, Pele Island Lola red wine, Palm Bay ruby grapefruit cooler and black fly grapefruit gin Fizz were available from June 23-7 to 13 there was a decline during the day, from 12 cents to nearly 60 cents-
Last week.
When the star presented the supplier\'s data to LCBO, the official agency said, \"any impact on individual products needs to be evaluated --by-
The case base we promised to do.
\"It is important to pay attention to this year --over-
The annual sales comparison can be attributed to other factors, including product engagement promotion opportunities, overall growth in wine sales and low innovation, and increased competition in the cooler and Apple machine categories, an email from a LCBO spokesperson said.
In the snapshot of the data provided by the supplier, sales of some beer, wine and liquor have increased, and these data do not show sales of all brands in the province.
At the beginning of July, customers began to notice that the shelves were empty, and some had Brands on them, telling customers to ask the staff for advice on alternative products.
On July 13, CP24 reported that LCBO president and CEO George Solas said that the system should return to normal within \"two to three weeks.
Then, in the information to the trade organization, Drinks, according to the organization, Nick Nanos, senior vice president of supply chain and wholesale at LCBO, said, the agency is expected to resume more normal operations within \"2 to 4 weeks.
\"All areas of our business are focused on getting back to normal operations,\" LCBO told Star.
Significant progress is being made on a daily basis and we are confident that the delivery schedule will be back on track before the citizen\'s long weekend.
Warren \"Smokey\" Thomas, president of the Union OPSEU, who represents LCBO employees, said that such a schedule is unrealistic given the existing backlog of deliveries.
\"The backlog is still higher (workers)
It is considered that it can be processed within the time frame (Soleas)
\"What I\'m saying is unless he has some sort of rabbit that can be taken out of his hat,\" Thomas said . \".
He said his members said it was likely that the problem could not be resolved until September.
In a letter to the agency on Thursday, Thomas asked for an \"immediate\" meeting with LCBO chairman Carmine Nigro and Soleas to discuss the issue.
\"I\'m skeptical, frankly, and so is the expert: Your front-line staff are trying to solve the mess you \'ve created,\" he wrote . \".
\"We don\'t believe you two.
The schedule for the week is a realistic goal and we would like to know how you intend to achieve it.
Soleas responded bluntly in his own letter on Friday, he told Thomas LCBO \"disappointed to hear your irresponsible, inaccurate and inflammatory attempts in recent weeks to politicize the issue
\"I have made public updates to our customers and partners on our return to normal delivery schedules by the upcoming citizen long weekend.
Largely because of our efforts.
\"I have full confidence in the employees who work on the front line,\" Soleas wrote . \".
Thomas told the Star that in addition to the backlog of deliveries, the receiving worker also told him that there were about 300,000 boxes of alcohol waiting to be processed at the Durham service center.
LCBO said it signed a short one as part of the contingency plan
Sign a \"transportation and logistics service support contract\" with the freight management company \".
It said, \"at this time of year, the number of inbound products at our Durham factory is normal.
According to LCBO\'s website, Durham retail service center began shipping in 1985, handling more than 50 million boxes of alcohol per year, at the \"forefront of today\'s retail distribution \".
The agency said the introduction of the new warehouse management system \"is a key modernization effort to help us serve our customers better and more efficiently. ”Cathy Siskind-Kelly, co-
The founder of Black Fly beverage, a Canadian hybrid beverage maker, said her company was one of the few domestic suppliers that recently allowed access to the LCBO store to replenish inventory.
At a factory in London, Ontario, black flies mix drinks, bottles, cans and boats.
Sell 6-after delivery delay starts but before blackfly is able to deliver on its own-
The grapefruit gin of the black fly dropped by 43.
3% for the period from June 23-7 to 13, compared with the same period of 3-
According to the LCBO data presented to the stars, the week of last year.
Black flies are running
Store promotions offer $6 off $1
The packaging of grapefruit gin, \"so anything that affects our ability to increase our inventory to support such a project is a problem for us ,\"Kelly said.
\"When your inventory is lower than the store system you want or need, it doesn\'t have a positive impact on our sales,\" she said, but she stressed that in this case, the ability of her company to deliver shares directly to the store is \"a glimmer of hope \".
Mike Pearce, vice president of sales and marketing at Black Fly, said the decline in sales could be due to a number of factors, including current issues, and the wet and cool spring that Ontario has experienced this year, this resulted in the store manager not wanting to overstock the product.
\"We all know that you need the weather in this industry, you need the weather
Store promotion, you need a great product and you need the supply chain to work.
\"You have to get all this stuff ready and it will have an impact if you don\'t have one or two,\" he said . \".
Data Display, 6-
Red striped beer and 500 cases-
Sales of Heineken beer fell by 59 cans.
5% and 25.
From June 23-7 to 13, 1% respectively, compared with 3-
Last week.
François Lefebvre, director of corporate affairs at Molson Coors Canada, said he was unable to comment on sales figures for competitive reasons, but he said, \"We are working with LCBO to explore all the options to ensure that our products fall into the hands of consumers.
\"The data also shows that sales of several wines produced by Pelee Island Winery in Southern Ontario fell from June 23-7 to 20, including Wells
Known Pelee Island monarchs Vidal VQA and Pelee Island Lola Blush VQA, both show a 4-
Last week.
Pelee Island Winery declined to comment when the star contacted.
One supplier said that their products had also been delayed, with sales of some products falling by 50 during the delivery delays in recent weeks.
The supplier said that no LCBO warehouse or store received a wine that was supposed to be promoted from July 22.
\"It was disappointing that the consumer missed the promotion.
\"Unfortunately, brands are missing in exposure and visibility,\" the supplier said . \".
Labatt, who sells Mike\'s Hard Lemonade and Palm Bay products, declined to comment.
Philip Danduran, a wine agent representing the Yellow Tail, also declined to comment.
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