“If you stay ready, you don’t have to get ready.” That’s the logic of smart companies that are always assessing their markets. What’s the next big thing? What’s going to change? How can we adapt or capitalize?
In the liquor retail market, that means paying attention to Central Canada. Last month, Ontario announced a step in progression towards private sector liquor retail and away from the existing monopoly of retailer The Beer Store. Likewise, Quebec’s government has been relaxing regulations against private liquor sales over the last year.
The ball is now in the court of private liquor retailers. Experienced companies will be able to quickly gain a foothold in an opening market, and few look as poised and prepared as Alcanna Inc. (T.CLIQ, OTC: LQSIF, Forum).
Stockhouse readers are already familiar with Alcanna, Canada’s largest private retailer of adult beverages. Previous coverage has detailed the Company’s portfolio of more than 235 liquor retail stores, as well as its well-performing cannabis retail brand, Nova Cannabis.
But one retail brand stands out as a growth vehicle for the Company: Wine and Beyond. Unlike the convenience-format stores and discount stores also run by Alcanna, the large-format liquor retail brand stands out significantly from the competition as a true category killer.
The Wine and Beyond stores number some of the largest liquor stores in Canada. With floor sizes of up to 20,000 ft2 and massive selections of over 10,000 products (more than 6,000 wines, 2,500 spirits, and 2,000 beers), the brand is able to dwarf the selection offered by competing large liquor retailers, including Costco Wholesale (COST).
(Image via Alcanna. Click image to enlarge)
Smartly, Alcanna built the Wine and Beyond brand with a focus on more than just sheer size. From the “Growler Bars” where customers can sample beers and fill up their own growlers to the modern and attractive aesthetic, the entire customer experience is billeted as one of the brand’s biggest selling points. The Company adopted a modern digital marketing approach to drive the point home, providing instructional videos and blog posts, and promoting release parties for exclusive spirits heavily on social media.
And the decision to focus on customers has paid off. A quick glance at reviews for Wine and Beyond stores reveals hundreds of glowing testimonials praising the selection and knowledgeable staff. When the Company opened its sixth store in Lethbridge in May 2019, customers were lined up out of the parking lot and down the block.
The spirits release events have even gone viral online, thanks to a dedicated community of rare spirit collectors. International customers have contacted Wine and Beyond after hearing about the events, and one flew in from Australia to buy an $83,000 bottle of scotch for their private collection.
(Image via Alcanna. Click image to enlarge)
For investors, the growing success of Wine and Beyond is a snapshot of what makes Alcanna an exciting prospect. By leveraging the Company’s expertise in liquor retail and embracing a distinct customer-centric promotional strategy, the Wine and Beyond brand has become a cornerstone for revenue growth and expansion that outperforms Alcanna’s other liquor retail outlets.
James Burns, CEO of Alcanna, commented to Stockhouse on the brand’s rapid success and growth potential.
“Our Wine and Beyond locations produce four times the revenue and five times the EBITDA of our regular stores. We have more coming in S. Alberta and BC and if the Ontario retail liquor reform permits we would look to start with at least 20 in Ontario.”
Two new Wine and Beyond stores have already opened in Alberta this year. The Company is also pushing to open two more in Alberta in 2019, one store in Kelowna, and up to six more by 2021.
As the Ontario market continues to open up, it’s easy to see how a brand like Wine and Beyond would be a welcome market entrant. The stores regularly win over customers and present the best that private liquor retail has to offer, quickly becoming a retail favourite.
Investors tend to focus exclusively on numbers when thinking retail, without giving much thought to the experience. In the case of Alcanna, however, the Wine and Beyond brand is a combination of both, and the culmination of years of retail expertise.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.