Alliance of Beverage Licensees

Webinar Handouts July 26, 2017

BC’s Changing Political Landscape:

What this means for the private liquor industry

July 26, 2017 Webinar Handouts

Table of Contents

ABLE BC 2017 Policy Priorities ………………….…………………………………………………………………………………………. 3

2017 Policy Changes Factsheet …………………………………………………………………………………………………………… 5

Summary of Member Benefits ……………………………………………………………………………..…………………………….. 7

Summary of Associate Member Benefits …………………………………………………………………………..………………… 9

buyABLE FAQ for Buyers ……………………………………………………………………………………………………………..……. 10

buyABLE FAQ for Agents ……………………………………………………………………………………………………………..……. 11

ABLE BC 2017 POLICY PRIORITIES PAGE � OF �1 2

ABLE BC 2017

POLICY PRIORITIES

INDUSTRY ISSUESABLE BC is advocating for the following industry-wide issues in 2017:

• Create transparent markup policy for hospitality products sold via, but not at, BC Liquor Stores

• Modernize inducement policy to better reflect business relationships with suppliers

• Continue to work with government partners to reduce red tape and promote logical business-friendly liquor policies

• Offer webinars and online training tools designed with the liquor store or pub owner and manager in mind. These tools will help members find new ways to increase profitability and grow their businesses in British Columbia’s changing liquor landscape.

ADVOCATING FOR YOUR INTERESTSThe Alliance of Beverage Licensees is the voice of British Columbia’s private liquor industry. Our primary goal is to help build a thriving and sustainable liquor industry in BC by advocating for your interests, protecting your investments, and proactively solving industry challenges. Read on to find out the key issues we are advocating for in 2017 on behalf of Liquor Primaries, Licensee Retail Stores, and Hotels.

HOTEL LIQUOR LICENSEESABLE BC is proud to represent the liquor policy interests of the BC Hotel Association. On their behalf we have advocated for the following positive policy changes:

• Guests at a hotel with LP or FP can take unfinished alcoholic beverages from bar or restaurant to their room

• Hotels and resorts with LP can serve one standard free alcoholic drink to guests in lobby or reception area at check-in

• New streamlined application process allows golf courses and ski hills to temporarily extend licensed area

• Liquor can now be delivered to hotel guests by room service 24 hours a day

• Licensees now have additional flexibility in liquor licensing for special events

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LIQUOR PRIMARIES ABLE BC is advocating for the following issues on behalf of Liquor Primaries in 2017:

• Implement LDB discount for hospitality customers

• Allow LP to purchase product from LDB Wholesale Customer Centre and get product delivered directly to their establishment

• Allow LP to sell and refill growlers

• Allow Video Lottery Terminals (VLT) in LP

• Expand eligibility for flexible hours of liquor service

• Create fixed and transparent markup policy for hospitality products sold via BC Liquor Stores

• Increase product selection available on buyABLE

• Allow LP to legally offer table bottle service

buyABLE: online purchasing portalbuyABLE is ABLE BC’s online purchasing portal for private liquor retailers. This web-based platform gives private retailers the group buying power necessary to compete in today’s retail climate. ABLE BC members receive free exclusive use of buyABLE. Members use buyABLE to access exclusive product offers, preferred pricing, and profitability costing tools.

Agents and Manufacturers can promote priority brands by posting exclusive offers to private retailers on buyABLE. Save time, effort, and investment and get instant access to over 680 buyers in one centralized location. For more information visit: https://ablebc.ca/membership/buyable/.

LICENSEE RETAIL STORES

ABOUT ALLIANCE OF BEVERAGE LICENSEESThe Alliance of Beverage Licensees is the advocacy organization representing British Columbia’s private liquor industry. Our membership includes: private liquor retailers, pubs, bars, nightclubs, hotel liquor licensees, as well as various agents, suppliers, and benefit providers.

ABLE BC’s primary goal is to help build a thriving and sustainable private liquor industry in BC by advocating for your interests, protecting your investments, and proactively solving industry challenges.

How to join: visit www.ABLEBC.ca and signup for your membership online or contact Danielle Leroux (Manager of Membership and Communications) at 604-688-5560 or danielle@ablebc.ca.

ABLE BC is advocating for the following issues on behalf of Licensee Retail Stores in 2017:

• Allow LRS to sell to restaurants, pubs, and other licensees

• Allow LRS to retail recreational cannabis if legalized by the federal government

• Allow LRS to sell and refill growlers

• Increase product selection available on buyABLE

• Improve wholesale pricing system to protect fragile profit margins

• Improve LDB wholesale operations: access to live online inventory visibility and order tracking, improve in-stocks, reduce lead time on spec products, and enhance private sector demand forecasting

• Maintaining the 1 km distance separation and the LRS moratorium

ALLIANCE OF BEVERAGE LICENSEES FACT SHEET PAGE � OF �1 2

CHANGES IMPACTING PUBS AND LIQUOR STORES

LP and LRS policy changes effective January 23rd include:

• No restriction on size of kegs of beer or cider than can be sold by an LRS.

• Licensees can apply in writing to request branch approval to serve liquor outside permitted hours under exceptional circumstances.

• Licensees are no longer required to pour and mix drinks in full view of patrons. They can now infuse liquor and age cocktails.

• LP can relocate anywhere in the province subject to local government/First National community input.

• LP with an off-sales endorsement may deliver liquor to customers.

• Golf course patrons can take a drink from one service area to another.

• Dual licensing: LP can apply for FP at same location and vice versa.

NEW POLICY CHANGESOn January 23, 2017, new liquor policies and Licensee Terms and Conditions take effect. New Liquor Control and Licensing Act and Liquor Control and Licensing Regulation also come into force.

Industry policy changes effective January 23rd include:

• Businesses outside hospitality, entertainment, or beverage service can apply for a Liquor Primary license. Examples: spas, art galleries, cooking schools.

• Licensed BC manufacturers no longer require a separate agent license to promote and market their products off-site.

• A licensee may be permitted to choose between a monetary penalty or license suspension if certain conditions are met. Licensees can also apply for reconsideration of enforcement decisions under certain circumstances. Compliance history must be considered every time.

• For a full list of changes visit the LCLB website.

FACT SHEET

CHANGES IMPACTING HOTELS

Hotel policy changes effective January 23rd include:

• Guests at a hotel with LP or FP can take unfinished alcoholic beverages from bar or restaurant to their room.

• Hotels and resorts with LP can serve one standard free alcoholic drink to guests in lobby or reception area at check-in.

ALLIANCE OF BEVERAGE LICENSEES FACT SHEET PAGE � OF �2 2

RECENT POSITIVE POLICY CHANGES

WHAT’S NEXTAs the voice of BC’s private liquor industry ABLE BC remains committed to what matters most: advocating for your interests and protecting your investments. Some of the key issues we’re advocating for in 2017 include:

ABOUT ALLIANCE OF BEVERAGE LICENSEESThe Alliance of Beverage Licensees is the advocacy organization representing British Columbia’s private liquor industry. Our membership includes: private liquor retailers, pubs, bars, nightclubs, hotel liquor licensees, as well as various agents, suppliers, and benefit providers.

ABLE BC’s primary goal is to help build a thriving and sustainable private liquor industry in BC by advocating for your interests, protecting your investments, and proactively solving industry challenges.

How to join: visit www.ABLEBC.ca and signup for your membership online or contact Danielle Leroux (Manager of Membership and Communications) at 604-688-5560 or danielle@ablebc.ca.

British Columbia’s liquor industry has recently experienced some of the most significant policy changes in a generation. As of January 23, 2017, 90% of the provincial Liquor Policy Review recommendations will be in effect. While some policy changes have had serious implications for licensees, other policy changes have created new business opportunities:

• Increased sampling sizes and charging for samples. Help recoup costs of sampling high-end products.

• Individual establishments part of a larger company can transfer small amounts of liquor between locations.

• Streamlined application process allows golf courses and ski hills to temporarily extend their licensed area.

• Minors are permitted in LP that holds a family food service term and condition when accompanied by a parent or guardian.

• Liquor can now be delivered to hotel guests by room service 24 hours as a day provided food is available.

• Patrons are permitted to carry liquor between adjoining licensed establishments owned by the same licensee.

• Licensees can store liquor in secure off-site locations. Take advantage of LTO and volume purchases without overtaxing your valuable retail backroom space.

• buyABLE: ABLE BC’s online purchasing portal gives private retailers the group buying power necessary to compete in today’s retail climate.

• For a full list of policy changes from the Liquor Policy Review visit the LCLB website.

• Allow LRS to sell to LP, FP and SEP holders

• Allow LP to legally offer bottle service

• Hospitality customer discount

• Allow LRS and LP to sell and refill growlers

• Create fixed and transparent markup policy for hospitality products

• Allow LRS to retail recreational marijuana

• Modernize inducement policy

• Increase product selection on buyABLE

• Improve wholesale pricing system

• Improve LDB Wholesale Operations: inventory availability, in-stocks, track orders

Member Benefits

Your ABLE BC membership fee includes access to exclusive member benefits. Our benefit programs more than cover the cost of your annual membership.

A summary of our programs is listed below.

Western Financial Group Hospitality Insurance A cost-effective insurance program that provides initial premium savings and long-term stability. ABLE BC members save an average of 10 percent on insurance costs.

Johnstone’s Employee Benefits Get optimal life insurance, income protection, travel insurance, health & dental coverage at the best price through this customizable group insurance plan.

Desjardins Payment Solutions Enjoy our preferential rate for processing credit and debit card payments. Your discount rate is your effective rate and there are no additional fees to bloat your bill.

BDL Beer Bottle Return Program Sign up your LRS and receive a full refund on beer bottles and cans plus handling fee. Members make an average $2,700 in annual handling commissions.

buyABLE Online Purchasing Portal Our online purchasing portal for private retailers gives you the group buying power necessary to thrive in today’s retail climate, increase profitability, and keep your business competitive.

VI Banking ATM Secured Solutions Our exclusive ATM agreement is no-risk (day-to-day with no fixed term commitment) and high-profit. Earn an extra $1000 monthly. Keep 100% of the surcharge and determine the surcharge amount. Complimentary maintenance and upgrades.

Foodbuy Canada Receive monthly rebate cheques for manufacturer products your operation is already buying with no changes. Join 1000s of foodservice operators across Canada enjoying added manufacturer revenues and savings over and above all current programs.

Revolution Resource Recovery Effective waste management and the most innovative solutions in the industry. Food waste is recycled into 100% organic soils and fertilizers. Members receive free waste audit and analysis, special pricing, and complimentary organics training.

BetterBeer.com The average bar spills $12K per year in draught beer. Hand-me-down staff training doesn’t work. Pints get returned by angry guests. BetterBeer.com can help and as an ABLE BC Member you get special pricing.

Sting Investigations Compliance Program Do your due diligence. Make sure your staff is in compliance with the law. Members receive discounted pricing on monthly compliance checks.

Rising Tide Consultants British Columbia’s leading liquor licensing consulting firm. Services include: buying and selling liquor licenses, new license applications, retail store operations, staff training, and special event permits. Receive a 10% discount on liquor licensing consulting.

Webinars and Online Training Tools Get online access to webinars and training guides produced by ABLE BC and designed with the liquor store and pub owner or manager in mind. Adopt industry best practices and adapt to today’s changing business environment with advice from our guest experts.

Monthly Liquor Price Guide Online monthly price guide available to members free of charge. Use the Liquor Guide to review monthly LDB price changes, compare current retail pricing to wholesale pricing, and track wholesale markup and retail margin.

Mills Office Supplies BC-based supplier of office supplies committed to providing our members with competitive pricing and personalized service to best accommodate your individual needs. Access discounted products and supplies relevant to the hospitality industry at this one-stop shop.

Off-site storage for private liquor stores With the recent changes in British Columbia liquor policy, the BC Liquor Distribution Branch now allows private liquor retailers the opportunity to store inventory off premise. Take advantage of LTOs and volume purchases without the worry of having to overtax your valuable retail back room space. ContainerWorld Forwarding Services has developed a special retail offsite premise storage warehouse exclusively for private liquor stores.

Due Diligence Signage and Materials Purchase our “2 Pieces of ID Required” signage and “I ask for 2 pieces of ID” buttons online: https://ablebc.ca/online-store/. On an annual basis, members can order North American and International ID Checking Guide Books through the ABLE BC office at a discounted group rate.

Bi-annual conferences: SUMMIT and BC Liquor Conference Network and connect with leaders in the industry, learn new strategies and tactics, and be the first to know about industry trends at our bi-annual conferences: SUMMIT (spring) and BC Liquor Conference (fall).

Advocacy work on your behalf Our primary goal is to help build a thriving and sustainable private liquor industry in BC by advocating for your interests and proactively solving industry challenges. To learn more about the issues we are currently advocating for visit: https://ablebc.ca/advocacy/policy-priorities/.

Additional Benefits Discounts with over 25 industry suppliers, biweekly Industry Update e-newsletter and regular member updates, member meetings and networking events, industry expertise specific to your business.

How to sign-up for benefit programs To sign-up for a member benefit program and for more information please contact: Danielle Leroux (Manager of Membership and Communications) at 604-688-5560 or danielle@ablebc.ca.

Associate Member Benefits

Your ABLE BC associate membership fee includes access to exclusive benefits. Our benefits will help you increase sales to our members & position your

company as a supplier of choice in the BC Liquor Industry. Support our Advocacy Work ABLE BC advocates for protecting the small businesses in your community & finding sensible ways for our industry to prosper.

Members-Only Website Login to our Members-Only website to profile your company in our Member Directory, access Licensee contact information, download helpful Documents & Resources, and more.

Digital Advertising Receive a 10% discount on all digital advertising in our biweekly Industry Update e-newsletter and on the ABLE BC website.

The Publican Magazine Receive a 10% discount on all ad rates in The Publican, ABLE BC’s industry magazine published quarterly and distributed across BC.

Annual Buyers’ Guide Position your company as a supplier of choice with a complimentary profile in the Annual Buyers’ Guide. This online & print resource is used industry-wide and lists our preferred suppliers.

Liquor Price Guide Stay competitive by getting access to BC Liquor Store retail prices on the same day they are released. This online pricing guide is available exclusively to ABLE BC members for free.

Free Product Listings on buyABLE Post unlimited product listings at no cost on our new online purchasing portal buyABLE. Get instant access to buyers, save time on order processing, and reduce risk by quantifying the aggregate demand of 680 licensees.

Sponsorship & Partnership Opportunities Participate in and sponsor ABLE BC’s annual events, including: SUMMIT hospitality industry conference; annual BC Liquor Conference; a summer golf tournament (in partnership with the BC Hospitality Foundation), regular member meetings, and networking events. Partner with ABLE BC by offering a member benefit program or preferred pricing for additional promotional opportunities.

Additional Benefits Get optimal life and travel insurance, and health

and dental coverage at the best price through Johnstone’s Benefits group insurance plan.

Enjoy our preferential rate for processing credit and debit card payments with Desjardins.

Discounted supplies & products from BWI, Time Access Systems, FoodBuy, Revolution Resource Recovery, BetterBeer.com, VI Banking ATM, Sting Investigations, Mills Office Productivity, ESSO, Driver’s License Guide, and more.

Biweekly e-newsletter to keep informed on liquor policy changes and important industry issues and events.

Regional member meetings, networking events, and business workshop.

For more information and to take advantage of your benefit programs, please contact Danielle Leroux at 1-800-663-4883 or danielle@ablebc.ca.

COLLECTIVE BUYING POWER – buyABLE allows private retailers to join together as one powerful buying force instead of acting alone as an individual business.

EXCLUSIVE PRODUCT OFFERS – all products are exclusive to the private retail channel and not made available to government liquor stores. New products are added weekly.

PREFERRED PRICING – buyABLE allows the private retail channel to purchase as a collective group in order to guarantee better deals and offers.

SHORTENED BUYING CYCLE – the online portal gives you easy access to products and the ability to buy with just the click of a button.

INCREASE PROFIT MARGINS – Use the profit calculator to determine the suggested retail price to gain at least 30% margin on products offered.

ZERO COST – buyABLE is free for all ABLE BC members

WELCOME TO buyABLEABLE BC’s online purchasing portal for private retailers

DISTRIBUTION AND DELIVERY

There is no change to your current distribution, delivery or payment processing

LDB Distribution: processed buyABLE orders are uploaded onto your orders at the LDB. Orders are then charged and delivered in the same way as they are today.

Direct Delivery Products: buyABLE creates the Doc 60 and automatically sends it to the distributor the agent designates and payments are processed as normal.

buyABLE offers the group buying power necessary for you to thrive in today’s retail climate, increase profitability and keep your business competitive!

To sign up for your buyABLE account, contact Danielle Leroux 604-688-5560 | danielle@ablebc.ca

HOW TO PARTICIPATE

Activate your buyABLE account: Contact ABLE BC at danielle@ablebc.ca or 604-688-5560.

Login at https://buy.ablebc.ca

Easy navigation: filter by product type and use the calculator to find your goal profit margin.

Click the “Buy” button: purchase for a single license or group of licenses.

Your order is processed and delivered: Click “View Orders” for your order status.

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Instant access to over 680 buyers in one centralized location

Promote priority brands by posting exclusive offers to private retailers

Save time, effort and investment with a user friendly online marketplace

Increase agency reach and awareness in the private liquor channel

Free for ABLE BC Associate Members and only $25 listing fee for non-members

WELCOME TO buyABLEABLE BC’s online purchasing portal for private retailers

OFFER GUIDELINES

DISTRIBUTION AND DELIVERY

HOW TO PARTICIPATEProduct offers must be channel-exclusive and not available to government liquor stores.

LTO Pricing Offer: Process a LTO when you confirm the number of orders required to execute.

Unique Product Offer: make or import a unique product for buyABLE private retailers.

Clearance Product Offer: Post a price offer only to be carried out when orders are confirmed.

buyABLE validates demand prior to you assuming any cost. You set the threshold of cases needed to produce the product, the price, and the time frame for delivery.

There is no change to current distribution, delivery or payment processing. The individual orders are organized and submitted instantaneously with no extra effort from agents.

LDB Distribution: processed buyABLE orders are uploaded onto the customer’s orders at the LDB. Orders are then charged and delivered as per a usual order.

Unique Product Offer: buyABLE creates the Doc 60 and automatically sends it to the distributor.

Send your agent # and GST # to danielle@ablebc.ca to create your account

You will receive an email to activate your account

Post offers with the help of the buyABLE team

GAIN ACCESS TO OVER 680 PRIVATE LIQUOR RETAILERS IN ONE CENTRAILIZED LOCATION WITH NO COST AND NO RISK!

Join ABLE BC as an Associate Member and get free unlimited listings through buyABLE.Contact Danielle Leroux | 604-688-5560 | danielle@ablebc.ca

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