Retail Beer Promotions - Liquor and Gaming Authority of Manitoba

April 2015
guide
Retail Beer Promotions
Together, the LGA and licensees have a responsibility to
ensure that liquor marketing and promotional practices in
Manitoba balance business needs with consumer choice and
social responsibility. The LGA believes that self-monitoring
by licensees is an effective way to manage marketing and
promotions within a modern regulatory framework.
Under the new liquor laws, manufacturers and distributors
are not prohibited from entering into agreements to conduct
promotions with retail licensees authorized to sell beer. This
has led some retail licensees to charge varying rates for
certain promotional activities, raising concern from
manufacturers and distributors that this change may affect
established marketing practices.
The LGA has developed this guide in consultation with its
industry advisory committee, with the goal of balancing
consumer interests with the objectives of both retail licensees
and manufacturers and distributors. Recognizing that the
objectives of retailers and manufacturers and distributors
may not align on every issue, this guide is intended to assist
in developing promotional agreements that are fair to all
parties.
Please note that this guide is not intended to apply to service
licensees.
Promotional Agreements
The old rules prohibiting promotional agreements have been replaced with subsections in the
Miscellaneous Liquor Provisions Regulation that now allow retail licensees to enter into promotional
agreements with liquor manufacturers and distributors:
Promotional agreements with liquor manufacturers and distributors
5(1) All promotional agreements must be in writing.
5(2) The holder of a liquor service licence or retail liquor licence must, on request, provide
the authority (LGA) with a copy of any promotional agreement that the holder has entered
into with another person.
Retail Beer Promotions Eligible for Fees
Retail licensees may levy a fee for the following types of promotions:
Paid Promotional Displays
Retail licensees may offer manufacturers and distributors the opportunity to display featured
products or other promotional items on end caps, display pods, speciality racks/shelves, or in
other prominent locations within the premises. Displays may or may not include a contest.
Promotional Signage
Retail licensees may offer manufacturers and distributors the opportunity to advertise their
brands or products through the use of in-store, external (e.g. on outside of building), and/or
electronic signage. The types of signs or advertisements may include banners, posters, neon
signs, electronic billboards, cold box signage, signs advertising time-limited promotions
(e.g. value-adds or contests), or other similar types of signage.
Loyalty Programs
Retail licensees may offer customer loyalty programs. Licensees must not give or serve free
liquor, but may offer gift cards and/or promotional items.
Multiple promotions can be undertaken in combination. For example, paid promotional displays could
be offered in combination with cold box signage to maximize visibility for the featured product.
Unless otherwise agreed to by the retail licensee, manufacturers and distributors are responsible for
providing all displays, signage, and other promotional items. Impact displays or other on-site
promotions may be set up and maintained by a manufacturer, distributor or one of their agents, or by
the retail licensee themselves, as agreed to by the parties.
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Retail Beer Promotions Ineligible for Fees
While retail licensees may offer the following promotional opportunities, they may not charge a fee
for:
 in-store sampling, beyond charging for the product required for sampling;
 shelf space or shelf management activities, including listing or stocking products;
 limited-time offers1;
 value adds (e.g. mini on-pack or near packs); and
 free-of-charge packaging (e.g. gift boxes).
Application of Fees
Retail licensees set their own fee structures for promotional activities. When establishing fee
structures for retail beer promotions, the LGA encourages retail licensees to consider the marketing
value they are able to offer manufacturers and distributors.
The LGA anticipates that stores providing a welcoming and positive retail environment for customers
will be better equipped to offer high-impact promotional opportunities and will be able to generate
higher revenues. A positive retail environment is achieved through proper lighting, larger space,
clean premises free of visual interruptions, enhanced safety, and easy access through an entrance
located in a highly visible area (e.g. through a front street rather than an alley). In addition, retail
licensees that produce signage to display in their stores on behalf of manufactures and distributors
will be able to charge higher rates to accommodate their increased costs associated with providing
this type of service.
Requirement to Submit Promotional Agreement
To ensure that promotional agreements are developed in accordance with this guide, the LGA will
annually randomly select retail licensees that will be required to submit copies of all promotional
agreements. The LGA will contact selected licensees directly to request their agreements for the
previous year. Agreements must detail the promotional activities being undertaken and
corresponding fees being levied. If the LGA determines that a promotional agreement fails to meet
the standards established in this guide, the parties may be required to redevelop the agreement or
cease offering retail beer promotions.
Formal regulatory requirements would only be introduced in the event the LGA determines that
industry is unable to manage marketing and promotional activities in accordance with this guide.
1
Due to laws regarding uniform pricing, private retailers stocking a product must offer limited-time offer pricing for products
identified by Manitoba Liquor & Lotteries. Manitoba Liquor & Lotteries may charge manufacturers and distributors fees
related to the central administration of the limited-time offer program.
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Canadian Code of Advertising Standards
All licensees must adhere to the letter and spirit of the Canadian Code of Advertising Standards,
which sets the principles for acceptable advertising in our country. This code defines advertising
broadly to include “any message expressed in any language and communicated in any medium to
Canadians with the intent to influence their choice, opinion or behaviour.” This means that these
standards apply to marketing and promotional activities as well as advertisements themselves,
whether indoor or outdoor, and whether on-premises or off.
The Canadian Code of Advertising Standards applies to all licensees, including service licensees,
retail licensees (beer vendors, liquor vendors, wine stores and Liquor Marts) and manufacturers.
Licensees must also continue to comply with federal regulations that govern advertising.
For additional information on advertising standards, please refer to the LGA’s guide to Liquor
Advertising and Marketing Practices at www.LGAmanitoba.ca.
Review
To ensure these guidelines meet the expectations of industry, the LGA will review this document in
consultation with retail licensees, manufacturers and distributors 12 months after the document’s
initial release. These guidelines will be subsequently reviewed every two years.
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