Canada: Overcoming Regulatory Challenges to Boost Premium Wine Market Penetration

Challenge:

The ultra-regulated environment of provincial liquor outlets in Canada, particularly in Ontario under the Liquor Control Board of Ontario (LCBO), traditionally created a quasi-monopoly in wine distribution. This made building premium wine distribution costly, with high advertising and promotion (A&P) spend necessary to sustain visibility in competitive tender systems. However, with the Ontario government announcing an end to the LCBO’s monopoly, new opportunities for market penetration and distribution channels are emerging.

Action:

An adaptive strategy was implemented to capitalize on this market shift, focusing on entering newly available retail spaces such as grocery stores, private outlets, and new online channels. The plan leveraged strong relationships with importers and provincial buyers to ensure premium wine brands gained prominence in these emerging channels. Additionally, tailored A&P campaigns targeted both the traditional LCBO stores and these new avenues, ensuring consistent brand visibility across all touchpoints.

Results: This Route to Market strategy resulted in successful tender placements across key provinces, leading to improved market penetration and increased brand presence in premium categories. By navigating the regulatory complexities, the brand secured a foothold in Canada’s challenging wine market.