Liquor Control Board of Ontario (LCBO) and the Ontario Public Service Employees Union (OPSEU) returned to the bargaining table on Wednesday, two weeks after starting the strike, which has closed around 669 LCBO stores in the province. OPSEU said there were no new developments and that they expected the talks to continue.
Workers are demanding wage increases and more full-time jobs, claiming that part-time positions have become 70% of the LCBO workforce. The union also opposes provincial plans to allow convenience and all grocery stores to sell beer, wine and ready-to-drink cocktails, which it says will affect LCBO revenues and lead to job losses.
According to the Tourism Industry Association of Ontario (TIAO), about 35% of businesses have been affected by the strike. The main concerns, according to the TIAO, have been limited product availability, slow delivery times and restocking capacity.
Canadians brands that sell at LCBO are also among those affected. Media in Canada talked to Geoff Crain, VP of sales and digital for Kingstar Media, and he said it’s clearly a difficult time for brands at LCBO, especially those that are only available in the summer, the prime season for driving sales. “It not only affects LCBO workers and Ontario residents, but also many businesses that rely on the store for revenue and to support their own brand and business,” Crain says.
Many brands, according to him, have paused media or ad spending, “but what we recommend is just the opposite,” he says. LCBO continues to operate online, with free delivery to any customer in Ontario within two to five business days, so brands should rely on this to bolster their advertising.
“We are suggesting to keep advertising so that your customers can find the brand online or the LCBO website and make the purchase specifically with digital channels that are clickable. All ads can lead directly to the brand’s inventory section on the LCBO website and the consumer can make the purchase there,” Crain says.
“We would suggest keeping media in general because advertising is an investment, not an expense, and it is especially important for businesses in the alcohol industry, where driving brand loyalty is key as there are many competitors,” he adds.
GroupM Canada chief client officer Urania Agas agrees. “During difficult periods, we have seen time and time again that brands should continue to invest in key areas of their marketing strategy to not lose momentum with consumers. These moments in time, are just that, moments, and once they pass, brands do not want to be rebuilding top of mind awareness and consideration,” she says.
Marketing is often the first to be paused in such situations, Agas says, which may be justified with immediate activities that prioritize results. However, investment should continue with brand-building initiatives to ensure that traction is not lost when business gets back to normal.
According to her, brands should focus on those channels that continue to tell their story and remain top of mind for their audience. “Depending on the brand’s situation, creative messaging may need to be considered, but staying connected with consumers will support a brand’s journey through such a transition period,” she says.
“Brands always need to remember their reason for being, and how they can leverage that for their audience,” Agas adds. “A robust media plan is not always possible, but every brand must be clear on their mission, audience and measurement strategy. All paid, owned and earned assets are equally important, however with brands that are building, maximizing owned and earned may be the optimal approach to start.”
For Crain, any channel where the brand can apply advanced segmentation parameters and really focus on a target or niche audience is key at this time. Broad channels such as linear TV, where it is difficult to focus on the exact target audience, would not be best, he says.
Any experiential activation could have a negative connotation, while “digital marketing would serve as a channel to further promote the brand, without actual face-to-face interaction, which could see consumer frustration,” Crain says.
PHD president Caroline Moul tells Media in Canada that with the distribution disruption, this is a great opportunity for local businesses in the alcohol sector to support their brands with a push to localization or direct purchase. “It will present an interesting moment in time for these local brands where they may have the opportunity to reach and engage with customers that would otherwise default to their typical choice on shelf,” Moul says.
She suggests that brands should focus on digital media and OOH advertising in geographic areas that are easy to reach by car. They could also launch pop-up stores or collaborate with restaurant partners to set up bottle sales or pick-up points.
Brands that are just starting out and don’t have enough resources for a solid media plan could take advantage of social media and the huge audience that is always there. “Use your fan base. You have a community that are your supporters. Remind people that they can come buy from you,” Moul says.
“We saw this during the pandemic. Lets take those learnings,” she says.
