September 5, To: All LCBO Trade Partners, RE: VINTAGES Product Needs for Summer/Fall 2014

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1 September 5, 2013 To: All LCBO Trade Partners, RE: VINTAGES Product Needs for Summer/Fall 2014 I hope everyone had a fantastic summer! With fall comes our next cycle of VINTAGES product calls. Starting in early October, VINTAGES will be accepting submissions for our Summer/Fall 2014 releases. Attached is the Product Needs schedule outlining opportunities for purchases and detailing product specifications and deadlines. As per the usual protocol, submissions must be processed through NISS (New Item Submission System). For those who are new to the system, instructions for registering for or using NISS are available on doingbusinesswithlcbo.com under Web Systems. Please remember that the LCBO s Green Initiative is an ongoing corporate priority and agents and suppliers should note that special consideration will be given to products that are packaged in light weight glass, follow sustainable, biodynamic, or organic agricultural practices meeting CFIA standards. For your convenience and as a reminder, an overview of the VINTAGES Purchasing Process is attached. Please pay special attention to our note below on the Instore Discover Program (ISDs). We have made some positive changes to this program to better highlight these products to increase sales velocity. We have also made changes to our post release rebates. Starting Jan 1, 2014, all products released will be eligible to be rebated by 20% if they fail to sell 75% in 8 weeks. The buyers have already adjusted their purchase quantities to accommodate this. On behalf of the VINTAGES team, thank you for your support. Together we have achieved great sales results this year so far. We look forward to working with you and your suppliers to build an outstanding selection of product for our customers and grow our premium wine sales this year. My best to all of you, Kathy Cannon Director, VINTAGES, LCBO cc: Shari Mogk-Edwards, Nancy Cardinal 55 Lake Shore Blvd East, Toronto Ontario, Canada M5E 1A4

2 PURCHASING PROCESS NEW!! Change to the ISD program In an effort to better highlight and create added excitement in our largest VINTAGES locations, we have recently made some changes to our ISD program. The evolution of this program will now limit the distribution of these products to our 10 largest stores (stores numbers 217, 10, 355, 486, 38, 164, 149, 452, 346, 528). Our data shows these stores have the largest potential to sell this additional selection. All products in this program will also be pictured in the release along with a score and/or tasting note. A clear message in the release will communicate the limited distribution. Products chosen for this program will be focused on premium regions/ varietals that have historically performed well in these top stores where our most engaged customers are shopping. We look forward to your continued support on driving sales of this program. Types of Submissions: Product Calls Product Calls are open to all products fitting the criteria outlined in the VINTAGES Product Needs Schedule. A Pre-submission must be entered through NISS by the posted deadline. Agents should refrain from resubmitting the same or next vintage of a wine that has already been scheduled for an upcoming release, excluding iconic wines and collaborative items. VINTAGES Direct This refers to applications, outside of the Product Calls, for which a sample is not required for tasting and/or laboratory analysis. Approval from the appropriate buyer is required before submitting an application. VINTAGES Ad Hoc This refers to applications, outside of the Product Calls, where a sample is required for tasting and/or laboratory analysis. Approval from the appropriate buyer is required before submitting an application. 55 Lake Shore Blvd East, Toronto Ontario, Canada M5E 1A4

3 PURCHASING PROCESS CONT D: Accepted Applications Each application must be accompanied by a complete quote on supplier letterhead. Be sure to include any applicable third-party reviews and technical information. Fully completed applications are vital to ensuring expedient purchases. Estimated retail price must be stated in Canadian dollars. If labels are submitted with the sample, we recommend placing them in a small zip-lock bag. If possible, please include technical information and third-party reviews for our researchers to reference. If you have any questions regarding accepted applications, please call VINTAGES at Dropping off Samples We will accept delivery of samples Monday to Thursday 8:30 am to 4:00 pm during the week of the sample deadline. Please note: LCBO Security will not accept product samples after hours. Tasting Results Tasting results are available through NISS only. Due to the potential volume of telephone inquiries, VINTAGES cannot accept calls regarding tasting results. Notice to Purchase VINTAGES issues a Notice to Purchase via NISS for all products we intend to purchase. That is, when a decision to purchase has been made, a Notice to Purchase will be issued. This is the only precursor to the issuing of the purchase order. Offers under consideration should not be interpreted as intent to purchase. Agents are requested to acknowledge the Notice to Purchase and must agree to honour and adhere to all clauses therein, on behalf of their suppliers. Suppliers are required to agree to all terms and conditions specified in the purchase order. We are not able to issue a purchase order until suppliers have registered for Web P.O. More information on Web P.O. can be found at doingbusinesswithlcbo.com under Web Systems. Please do not fax or acknowledgements as we are not able to process these. 55 Lake Shore Blvd East, Toronto Ontario, Canada M5E 1A4

4 PURCHASING PROCESS CONT D: ***Revised**Sales Performance Targets The sales target for products purchased for VINTAGES retail releases is (minimum) 75% sell-through after 8 weeks in stores. Achieving these targets and increasing sku productivity ensures a continuous flow of new and exciting products. It also allows us to allocate a larger portion of the most current release out to stores. For products with a rebate agreement that fail to achieve 75% sell-through after 8 weeks, a 20% rebate term will be applied to all remaining inventory. The product will then be marked down to clear. Sales and inventory levels are available through LCBO data sources such as the complimentary Narrowcast service or by purchasing additional information through the Sale of Data (SOD) program. More information on SOD is available at doingbusinesswithlcbo.com under Web Systems. 55 Lake Shore Blvd East, Toronto Ontario, Canada M5E 1A4

5 VINTAGES Product Needs Summer - Fall 2014 Call ID Product Category Product Specifications Varietals Price Range Buyer Pre-submission Call Back Sample Tasting Date 1529 California Red All varietals and regions with preference for regionally specific wines, particularly Napa and Sonoma with a focus on $20- $50. All varietals with a focus on Cabernet Sauvignon and Zinfandel. Pinot Noir and red blends are also of interest. Prices for Cabernet and Pinot Noir should be $20+, $17+ for other varieties. $17-$150 October 2, 2013 October 9, 2013 January 2, 2014 January 6, Kosher Red/White/Sparkling wines from all countries. Prefer products certified Kosher for Passover or Kosher for Passover + Mevushal. All varietals except Concord. $10-$30 October 2, 2013 October 9, 2013 January 2, 2014 January 6, Veneto and Regional Italy (North, Center and South) All areas, except Tuscany and Piedmont, red and white. Red & white: all varietals, primarily native grapes. $15-$25; Ripassos $16+; up to $50 for Amarone October 9, 2013 October 16, 2013 January 9, 2014 January 13, Flagship store Releases, all areas. Red & white: all varietals. High scores or wellestablished iconic brands, great values in all price bands. $35+ October 9, 2013 October 16, 2013 January 9, 2014 January 13, California White 1534 Premium Spirits (excluding Scotch) 1535 Flagship store release All varietals and regions with preference for regionally specific wines, particularly Napa and Sonoma with focus on $20-$50. Primarily whisky (excluding scotch), non-cream liqueurs, tequila, eau-de-vie and grappa. Focus on new and trendsetting spirits for Distilled Treasures program., all areas. All varietals and styles, with a focus on Chardonnay. Viognier, Sauvignon Blanc and blends are also of interest. Consideration will be given to other varietals as well. Whisky from established and emerging regions (excluding Scotland), innovative liqueurs and eau-devie. Red & white: all varietals. High scores or wellestablished brands, great values in all price bands. $17-$75 $40-$125 $35+ October 16, 2013 October 23, 2013 January 16, 2014 January 20, 2014 October 16, 2013 October 23, 2013 January 16, 2014 January 20, 2014 October 16, 2013 October 23, 2013 January 16, 2014 January 20, Reds only from Southern Rhône, South and South Western France Reds only, recognized appellations from all areas in Southern Rhône, Southern and South Western France. 2009, 2010, 2011 and 2012 vintages for Rhône. Rhône and the South - traditional blends, or indigenous single varietals of the areas. Exceptional wines of other blends/varieties. Key appelellations from South West - Madiran, Cahor, et al. Primarily $15-$22. Vacqueyras- Gigondas <$30, with CdPape up to $50; $15-$22 for SW wines. October 23, 2013 October 30, 2013 January 23, 2014 January 27, Other - fruit-based wines Iced ciders and fruit wines with focus on such products originating from Canada; primary priced $15 -$20 All fruit- and other wine-based products not made from grapes. $15+ October 23, 2013 October 30, 2013 January 23, 2014 January 27, South Africa Modern-styled wines with a focus on price points primarily $13- $25 for reds and $13-$20 for whites. All varietals and styles, with a focus on Sauvignon Blanc, Chardonnay, Chenin Blanc, white blends, Cabernet, Pinotage, Syrah and red blends. $13-$40 October 30, 2013 November 6, 2013 January 30, 2014 February 3, Specialty Portfolio Northern Rhône Reds; Whites 1540 from the Rhone, South and South Western France Primarily spirits that have niche demand with ethnic communities in Ontario with a focus on prices $22-$40. Submissions must have a clear target market. Reds from Northern Rhône only. Whites from entire Rhône region plus Southern and South Western France. Traditional products from countries not widely represented in the LCBO, particularly Eastern and Southern Europe as well as Asia (excluding sake and rice wines). Traditional varieties from respective areas. All price bands $14-$20 for whites; $18-$29 for reds, with up to $50 for Condrieu, Cote-Rotie and Hermitage. October 30, 2013 November 6, 2013 January 30, 2014 February 3, 2014 October 30, 2013 November 6, 2013 January 30, 2014 February 3,

6 VINTAGES Product Needs Summer - Fall 2014 Call ID Product Category Product Specifications Varietals Price Range Buyer Pre-submission Call Back Sample Tasting Date 1541 Spain Spain: Reds - all styles, classic regions and other areas (Toro, Bierzo, Jumilla, La Mancha, Yecla, etc). Whites /12 vintage of Rias Baixas, Rueda, etc., current vintages of Rioja. All styles for Spain, classic regions, as well as Other (non-traditional appellations). $14-$25; up to $30 for Gran Reserva November 6, 2013 November 13, 2013 February 6, 2014 February 10, Sparkling Wine All new world wine regions with a preference for traditional method. Looking for all varieties, though focus is traditional varieties. $17 - $50 November 6, 2013 November 13, 2013 February 6, 2014 February 10, 2014 Ontario - Limited Availabilty program. All varietals/blends/styles considered for two Minimum availability: 300 cases. Initial order will be 150 cases seasonal collections: 1543 Ontario VQA - to Watch Limited Availability and additional stock will be flowed in throughout the Turn as needed. Shipping cartons must be compliant with the new standards of P8-P11 - emphasis on reds, winter styles, holiday entertaining wines P12-P3 emphasis on trend setting styles, popular $13.95-$19.95 November 13, 2013 November 20, 2013 February 13, 2014 February 19, 2014 Durham warehouse. favorites, wines for spring celebrations and to start the white wine season 1544 White wines from out-of-the-ordinary countries Other Europe, Asia and Africa - (Bulgaria, Georgia, Romania, Switzerland etc.) + other unusual White wines sources (Lebanon, North Africa etc.). Indigenous and traditonal varieties/blends from outside of the traditional and established sources. $14-$25 November 13, 2013 November 20, 2013 February 13, 2014 February 19, Sake and Rice Wine Focus on Japanese product, good price/quality ratio for various grades. Sake and Rice Wine $12 - $20; upto $60 for Daiginjo November 13, 2013 November 20, 2013 February 13, 2014 February 19, Tuscany/Piedmont Primarily reds from traditional/classic appellations for Tuscany and Piedmont, as well as up-and-comers e.g. Maremma and Bolgheri and some better known IGTs. Traditional varieties and blends from all areas. primarily $14-$22; Chianti $15+, Chianti Riserva <$30; Barolo/Brunello up to $50 November 20, 2013 November 27, 2013 February 20, 2014 February 24, Oregon All varietals with interest in new suppliers to the Ontario market. Price points mainly $19 - $30 for reds and $17 - $25 for whites. Primarily Pinot Noir with some interest in Pinot Gris and Chardonnay Price points from $19 - $60 for reds and $17 - $30 for whites. November 27, 2013 December 4, 2013 February 27, 2014 March 3, 2014 All varietals with interest in new suppliers to the Ontario market Washington Primarily price points of $17 - $25 for reds and $15 - $22 for whites. Largest opportunity is for Cabernet Sauvignon under All varietals especially Cabernet Sauvignon $17 - $40 for Reds and $17 - $30 for Whites November 27, 2013 December 4, 2013 February 27, 2014 March 3, 2014 $ Flagship store Releases, all areas. Red & white: all varietals. High scores or wellestablished brands, great values in all price bands. $35+ November 27, 2013 December 4, 2013 February 27, 2014 March 3, Champagne and Sparkling Champagne (all styles, including Vintage), Cremant and key sparkling styles (Prosecco, Cava, etc). Traditional or traditional-for-the-area varieties. $15-$22 for Cava, $17+ for Cremant, up to $55 for NV, $55+ for Vintage Champagne December 4, 2013 December 11, 2013 March 6, 2014 March 10, 2014 VQA, QC fruit wines and 100% Ontario. Red, white and sparkling wines that over-deliver, from all regions; primary price 1551 Ontario VQA band between $15-$25. Icewine, primary price band $20-$30 for mixers and $30-$50 for sippers. Whites - with a focus on Chardonnay, Riesling. Reds - with a focus on Pinot Noir, and ripe, rich Bordeaux varietals. $15-$50 December 4, 2013 December 11, 2013 March 6, 2014 March 10, 2014 Looking for compelling sales potential - always include past sales results, LCBO number, and 3rd party reviews if available. 2

7 VINTAGES Product Needs Summer - Fall 2014 Call ID Product Category Product Specifications Varietals Price Range Buyer Pre-submission Call Back Sample Tasting Date 1552 Port/Sherry/Fortified 1553 Chile and South America (excluding Argentina) Port and Sherry, similar and traditionally styled wines from elsewhere (e.g. Moscatel, Vin Santo, Madiera etc.) Does not include non-fortified sweet wines. All varietals and regions with price points between $13-$25. Looking for site-specific wines and new suppliers to the Ontario market. Traditional or traditional-for-the-area varieties for the appropriate style. All varietals and styles with a focus on Cabernet, Carmenere, Syrah, Pinot Noir, Chardonnay and Sauvignon Blanc. $15-$22 for entry level Fortified, up to $55 for Vintage Port Red: $13-$50; White: $13-$40 December 11, 2013 December 18, 2013 March 13, 2014 March 17, 2014 December 11, 2013 December 18, 2013 March 13, 2014 March 17, Portugal/Germany/Austria 1555 Scotch Whisky Portugal: reds - primarily Douro, Dao, Alentejo and Bairrada. Whites - primarily 2011/2012 Vinho Verde, and current vintage of Douro. Germany & Austria primarily white wines, dry as well as classic styles for Germany. Austria mainly Grüner. Premium Scotch with a focus on high scores and well-known distilleries. Age statement on the label preferred. Portugal - Focus on traditional indigenous grapes, classic regions, e.g. Douro, Dao, Alentejo, Bairrada, plus Tejo basin. Germany- Riesling all $14-$30 styles + Pinot family & Sylvaner. Austria - Grüner Veltliner. Primarly single malt Scotch. $80+ January 22, 2014 January 29, 2014 March 20, 2014 March 24, 2014 January 22, 2014 January 29, 2014 March 20, 2014 March 24, Argentina All varietals and regions with price points between $13-$25 and suppliers new to the Ontario market. All varietals and styles with a focus on Malbec, Cabernet, Bonarda, Chardonnay and Torrontes. reds: $13-$75; whites: $13-$40 January 29, 2014 February 5, 2014 March 27, 2014 March 31, Flagship store release, all areas. Red & White: all varietals. High scores or wellestablished brands, great values in all price bands. $35+ January 29, 2014 February 5, 2014 March 27, 2014 March 31, Bordeaux 1559 Flagship store release Primarily reds. All areas with focus on satellites/côtes, great values from Medoc and Right Bank, some communal interest - Pauillac,St. Julien, etc. Preference for older good years (no 2007 or 2002), 2009 and 2010 finished wines, no Futures offers., all areas. Great value whites and reds at $15-$20; district appellations - e.g. Medoc, St. Emilion, etc under $30; communal/cru Classe under $40. Red & white: all varietals. High scores or wellestablished iconic brands, great values in all price bands. $15-$40 $35+ February 5, 2014 February 12, 2014 April 3, 2014 April 7, 2014 February 5, 2014 February 12, 2014 April 3, 2014 April 7, New Zealand 1561 High scoring/high volume EW Primarily region-specific wines. Price range $17-$60 with a focus on $20-$25 for whites and $20-$30 for reds. Reds only, 1000cs+ of 12s, key areas of Italy and France, 2+ glasses GR, 4+ star Decanter, 90+ WA/WS, etc. All varietals, styles and blends with a focus on Sauvignon Blanc and Pinot Noir with interest in Bordeaux varietals, Chardonnay and Pinot Gris. Major, well recognized regions' wines and varietals/blends from both countries. $17-$60 $17-$25 February 12, 2014 February 19, 2014 April 10, 2014 April 14, 2014 February 12, 2014 February 19, 2014 April 10, 2014 April 14, Burgundy and Beaujolais Burgundy: vintages. Focus on Cote d'or red and white villages and Crus, Macon, Challon, as well as whites from all sources; Bourgogne and Cote de wines vintages; Beaujolais Cru. Burgundy: Bourgogne white and red, Macon and Chablis -$16-$22; Chalonnais, Pouilly, Chablis 1-er Cru and Cote de..-$18-$30; Villages and 1-er Cru Cote d'or -$30-$60; Beaujolais Cru -$17-$25. $16-$60 February 19, 2014 February 26, 2014 April 17, 2014 April 23, British Columbia White Proven performers and suppliers new to Vintages. Price points between $15 -$25. Preference given to products priced competitively with domestic market (BC). All varietals $15-$50 February 19, 2014 February 26, 2014 April 17, 2014 April 23,

8 VINTAGES Product Needs Summer - Fall 2014 Call ID Product Category Product Specifications Varietals Price Range Buyer Pre-submission Call Back Sample Tasting Date 1564 Australia All varietals and regions with a preference for regionally All varietals and styles with a focus on Shiraz, specific wines. Price points mainly $15-$20 for whites and $15- Cabernet, Pinot Noir, Grenache, and Chardonnay. $15-$50 whites; $15 - $75 reds $30 for reds. February 26, 2014 March 5, 2014 April 24, 2014 April 28, Ad Hoc Ad Hoc, all varietals and price points. By invitation only from Category Team All countries/ regions all price points February 26, 2014 March 5, 2014 April 24, 2014 April 28, Loire / Alsace Loire: key appellations / varieties, current vintage for Sauvignon Blanc based wines. Alsace: key appellations / varieties Main appellations/varieties from both regions. $13-$25; Pouilly-Fumé and Sancerre up to $30 March 5, 2014 March 12, 2014 May 1, 2014 May 5, Red wines from out-of-the-ordinary countries Other Europe, Asia and Africa - (Bulgaria, Georgia, Romania, Switzerland etc.) + other unusual Red wines sources (Lebanon, North Africa etc.). Indigenous and traditonal varieties/blends from outside of the traditional and established sources. $14-$25 March 5, 2014 March 12, 2014 May 1, 2014 May 5, British Columbia Red Proven performers and suppliers new to Vintages. Price points between $17 -$30. Preference given to products priced competitively with domestic market (BC). All varietals $17-$60 March 5, 2014 March 12, 2014 May 1, 2014 May 5, 2014 All samples and submissions must be received by the stated deadlines above. Please note that the needs calendar may change without prior notice. Please note that there is an ongoing demand for wines made from organically grown grapes and/or using biodynamic and sustainable agriculture practices. When applying to the specific calls please ensure you highlight submissions that are organic and/or Kosher. It is critical that submissions are completed in their entirety. Include grape varietals and the LCBO number if the product or previous vintage was listed. Incomplete submissions will be declined. 4

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