alcohol industry: all articles

What was created after 11 years of prohibition?

LCBO (Liquor Control Board of Ontario)

When did the first LCBO stores open?

June 1, 1927

How were the first LCBO stores described?

Long lines, shortages, confusion

How was alcohol treated in the early LCBO approach?

As a moral threat, not a normal product

What was the purpose of making stores unwelcoming?

To make buying alcohol feel embarrassing and closely monitored

What did customers need to purchase alcohol initially?

Annual permits judged on moral fitness

What could clerks do regarding alcohol sales?

Refuse or limit sales

What happened to customers who over-bought alcohol?

They were blacklisted on an interdiction list

How was alcohol packaged for customers?

In brown paper bags

What was the measure of success for the LCBO?

Low drunkenness and stable families, not sales

Who was excluded from store jobs in the early LCBO?

Women and visible minorities

When were First Nations people barred from permits until?

1959

What significant change occurred in 1958?

Permit books were scrapped

What was introduced in the LCBO in 1962?

Wallet cards for permits

When did the first self-service LCBO store open?

1969 in Weston

What was added to self-service stores to assist customers?

Product consultants

When was full conversion to self-service announced?

1973

What issues did LCBO staff face in the 1970s?

Seen as surly and judgmental with poor product knowledge

Who led the modern transformation of the LCBO in the 1980s?

Jack Ackroyd

What initiatives were part of the LCBO's modern transformation?

Marketing, gift cards, Vintages, ads

What did the LCBO gain under Andy Brandt?

Larger stores, education, demo kitchens, Food & Drink

What is the legacy of the modern LCBO?

It is the opposite of its moralistic origins

What question does the LCBO's evolution raise about cannabis retail?

Whether it follows control or normalization

What is the core idea regarding catch-up in the wine industry?

Catch-up is not limited to high-tech; it involves long-term cycles driven by demand shifts, institutions, and innovation.

How do latecomers in the wine industry succeed?

Latecomers rise without fully displacing incumbents, who adapt and survive.

What factors contribute to catch-up in industries?

Catch-up depends on technological congruence and social capabilities, including institutions and skills.

What are 'windows of opportunity' in the context of catch-up?

Windows of opportunity arise from demand changes, new consumers, distribution shifts, and policy/regulatory changes.

What challenges do incumbents face in adapting to new market conditions?

Incumbents are often locked into old systems, which slows their response to changes.

Which regions dominated the wine industry until the 1980s?

Old World (OW) producers, including France, Italy, and Spain.

What changes occurred in wine consumption since the 1970s?

Consumption fell in traditional producers while demand rose in the UK, USA, Northern Europe, and Asia.

What led to the rise of New World (NW) wine producers?

NW producers gained market share mainly through innovation and market orientation, not just low costs.

What was the significance of the Judgement of Paris in 1976?

It legitimized the quality of New World wines.

What consumer preferences emerged in the wine market during the NW catch-up period?

New consumers preferred cheap, consistent, branded wines and simple varietals.

What investments did NW producers make to improve wine quality?

Heavy investment in science-based winemaking, R&D, and strong industry-research links.

How did Old World producers modernize in the 2000s?

They upgraded technologies, branding, marketing, and consolidated industries.

What competitive assets became important for OW wines?

Terroir and appellations became major competitive assets, appealing to wealthy consumers valuing authenticity.

What was the outcome of the EU wine reform in 2008?

It reduced market distortions, encouraged competition, and preserved terroir-based differentiation.

Which countries succeeded as new latecomers in the wine market?

New Zealand and Argentina succeeded by targeting premium segments and leveraging terroir.

What is notable about the emerging Asian wine market?

China is the fastest-growing market with rising domestic production and heavy foreign investment.

What does the conclusion about wine industry dynamics suggest?

Wine shows overlapping, gradual catch-up cycles, where incumbents adapt and latecomers rise.

What is brand stretching in alcohol marketing?

Linking alcohol brands to non-alcoholic products to increase visibility, enter homes, and bypass advertising restrictions.

How has alcohol marketing changed post-WWII?

Modern branding expanded rapidly, embedding alcohol brands in UK culture, with children as young as 10 recognizing them.

What is 'below-the-line' marketing?

Marketing techniques that include sponsorships, promotions, celebrity endorsements, product placement, and social media.

What are line extensions in alcohol branding?

Variations within the same product category, such as light or flavored beers, which are lower risk and cost due to existing brand trust.

What are category extensions in alcohol branding?

Applying alcohol brands to non-alcoholic products to transfer brand image and values, build brand equity, and promote core products indirectly.

What is alcohol-branded merchandise (ABM)?

Products like clothing and accessories sold directly by alcohol companies, linked to earlier drinking initiation and higher youth alcohol use.

What types of products are included in alcohol-branded foods and lifestyle products?

Food tie-ins such as chocolates, ice cream, and sauces, often from heritage or luxury brands.

What regulatory concerns exist regarding alcohol brand stretching?

Concerns about child-appealing products increasing early brand familiarity and potential surrogate advertising if stricter rules emerge.

What lessons can be learned from the tobacco industry regarding brand stretching?

The tobacco industry used brand extensions to evade ad bans, indicating similar patterns may emerge in alcohol marketing under restrictions.

What is the impact of brand familiarity on drinking behavior?

Brand familiarity forms before purchasing and influences future drinking choices.

What is the risk associated with poor brand-product fit in category extensions?

It can lead to failed products, such as Coors bottled water.

What is the significance of strong parent brand reputation in product extensions?

It is crucial for the success of alcohol-branded food and lifestyle products.

What evidence links ABM ownership to youth alcohol use?

Strong evidence shows that ownership of ABM correlates with earlier drinking initiation and higher alcohol consumption among youth.

How do alcohol brands utilize brand narratives in extensions?

They use narratives of heritage, craftsmanship, and sensuality to enhance perceived fit and success.

What is the potential financial impact of successful category extensions?

Successful extensions can raise shareholder returns by approximately 5%.

What marketing strategies do alcohol brands use to bypass traditional advertising restrictions?

They use indirect strategies like brand stretching and below-the-line marketing.

What is the role of celebrity endorsements in alcohol marketing?

They are a key component of below-the-line marketing, influencing young consumers without them recognizing it as marketing.

What are the implications of stricter alcohol marketing controls?

They must account for indirect strategies like brand extensions, not just traditional advertising.

What is the historical context of brand stretching in marketing?

Brand stretching tactics in alcohol marketing mirror those used by the tobacco industry to evade advertising restrictions.