PRODUCT LIFECYCLE MANAGEMENT MANUAL

Transcription

PRODUCT LIFECYCLEMANAGEMENT MANUALUPDATED: AUGUST 2021Updated: August 20211

TABLE OF CONTENTS1. About ANBL2. What You’ll Find in This Manuala) Glossaryb) About the Category Management Team3. Product Lifecycle Managementa) Product Listingi. Application Processii. Listing Typesiii. Labelling Standardsiv. Evaluation Processv. Pricing and Feesvi. Purchasing Logisticsb) Product Managementi. Merchandising Opportunitiesii. Product Format, Label and Packaging Changesiii. Quality Assuranceiv. Pricing & Data Changesc) Product Delistingi. Portfolio Reviewsii. SKU Delisting and Exit Strategy4. AppendicesUpdated: August 20212

ABOUT ANBLUpdated: August 20213

ABOUT ANBLWHO WE AREAlcool NB Liquor (ANBL) is a Provincial Crown Corporation established as the sole authority for importing andretailing beverage alcohol in New Brunswick.ANBL is one of Atlantic Canada’s leading retailers, with a network of 40 retail stores, including EXPÉRIENCE byANBL, The Craft Beer Room, Depot, 87 privately operated agency stores, 88 manufacturer’s agency stores, 67 grocerystores and a central distribution centre. We are an engaged team delivering the B.E.S.T (Better. Every. Single. Time.)customer experience while generating annual sales of over 506 million and responsibly managing a profitablebusiness for the people of New Brunswick.Updated: August 20214

WHAT YOU’LL FINDIN THIS MANUALUpdated: August 20215

WHAT YOU’LL FIND IN THIS MANUALThis document has everything you need to knowabout ANBL’s product lifecycle managementprocess, including details on how to apply for alisting, managing a listing and how a listing exitsthe market.GLOSSARYACM: The Assistant Category Manager.Agent/Representation: In this document, agent/representation refers to a person or companyauthorized to do business with ANBL on behalf ofa Supplier. A Supplier can be their own agent orrepresentative.BevHub: ANBL’s online product listingapplication system.Gateway: ANBL’s online booking platform formerchandising programs.GP: Great Plains (GP) is ANBL’s product managementsystem where product information is hosted andlinked to internal and external platforms. Spirits Non-liquorOur Category Management Team is responsible formanaging product lifecycle, in store merchandisingprograms and vendor relationships. Here are someof the main roles:The Assistant Category Manager “ACM” is the mainpoint of contact for all things related to productlistings with ANBL.The Category Manager develops and tracksthe category strategy, while supporting theimplementation of the strategy by the ACM.The Vice-President and Director of CategoryManagement work with the team to oversee andguide through all stages of product lifecycle.The Merchandising Coordinator organises all thingsrelating to the merchandising programs at ANBLand manages the Gateway portal.Supplier: A business authorized to sell liquorto ANBL.The Product Lifecycle Coordinator assists the teamwith category planning, organising listing callsand various aspects of product maintenance anddelisting.ABOUT ANBL’S CATEGORYMANAGEMENT TEAMThe Product Data Coordinators set up and maintainall products in ANBL databases, as well as manageBevHub and other internal information systems.ANBL’s product portfolio has five categories: Beer Coolers and Ciders WineSee Appendix A: Contact List for a current list ofour team members.Updated: August 20216

PRODUCT LIFECYCLEMANAGEMENTUpdated: August 20217

PRODUCT LIFECYCLE MANAGEMENTPRODUCT LISTINGThis section provides information on the process fornew products entering ANBL’s market, along withkey definitions, policies and practices surroundingthis section of product lifecycle.APPLICATION PROCESSThe product listing process begins with a call forproducts within a specific category. ANBL issuescalls for submission based on a set schedule eachyear. For current call descriptions and applicabledates, see Appendix B: Product Call Schedule.This schedule is subject to change based onportfolio and timeline needs. To be added to ourcall invitation email list, please contact the ProductLifecycle Coordinator (See Appendix A: ContactList).The application process takes place on BevHub,ANBL’s online listing platform. To get a login,contact the Product Data Coordinator (AppendixA: Contact List). For more on how to use BevHub,please see Appendix C: BevHub Training GuidePreliminary Application.All listing applications are reviewed by theCategory Teams and are subject to final approvalby the Category Manager. The respective AssistantCategory Manager will advise applicants of thestatus of their application via BevHub.DIRECT NEGOTIATIONS WITH SUPPLIERSANBL negotiates and transacts its purchasesdirectly with Suppliers. Payments are made onlyto them. ANBL does not pay commissions or otherremuneration.SUPPLIER/AGENT REPRESENTATIONSome Suppliers may choose an agent as their localbusiness representative. The benefits of localrepresentation are significant but not required for aSupplier to do business with ANBL.HOW TO APPLY FOR A LISTING1. When ANBL releases a call, the first step inapplying for a listing is to submit a prelistingrequest in BevHub.2. If your prelisting request is approved, the nextstep is to submit a full listing request.3. A comprehensive marketing and merchandisingplan must accompany the listing application.Include supporting data on consumer demandand well as your intentions for promotionalinvestments. For more on ANBL promotionalopportunities, please see Appendix D:In-Store Merchandising Program Guide.4. Listing applications must include completepricing information and digital copies of allproduct labels and images. Failure to includedigital images and labels will result in therejection of the application and the listing’spossible forfeiture.5. Listing applications are incomplete withoutproduct samples. Product sample submissiondeadlines can be found in Appendix B: ProductUpdated: August 20218

PRODUCT LIFECYCLE MANAGEMENTCall Schedule. Details on sample quantitiesand address can be found in the next section ofthis document.6. Final approval is made based on the aboveinformation submitted. It is the responsibilityof the submitting party to ensure the accuracyof this data. Any product approved thatcontains incorrect information is subject tocorresponding fines and fees (See Appendix E:Fines and Fees Schedule).PRODUCT SAMPLESProduct samples must be shipped FOB to theCategory Team at:Alcool NB Liquor Warehouse (back of building)Attn: ACM, Name of Call170 Wilsey RoadFredericton, NB E3B 5B8Samples required:Wine – 1 selling unitSpirits – 1 selling unitBeer – 1 selling unitCoolers, Ciders – 1 selling unitA document outlining the sample shipping processis available upon request.DIGITAL IMAGE FILES JPEG/JPG format Image pixel dimensions of at least 1000 orlarger in either height or width Square aspect ratio File size must not exceed 30MB Pure white background colour is preferred(RGB: 255, 255, 255) RGB or CMYK colour mode The full product must be in frameIf you cannot provide an image meeting theminimum standards outlined above, ANBL willsupply one for a fee of 30/image.ADDITIONAL SIZESRequests for additional sizes of listed products areconsidered the same as requests for new productsand must follow the same process as for a newlisting.While product samples are not required for this typeof application, a sample of the package must beincluded with the application.APPLICATION DEADLINESThe Category Team reviews all completeapplications as per the review schedule in AppendixB: Product Call Schedule. Any product rejected forpricing issues only may be reconsidered for listingonce the pricing concern is resolved.All digital image files must meet the followingminimum standards as noted in BevHub:Updated: August 20219

PRODUCT LIFECYCLE MANAGEMENTUNSOLICITED APPLICATIONSGENERAL LISTING (GL)Unsolicited applications will not be accepted. Products that are considered to appeal to abroad cross-section of the buying public andhave reasonable sales expectations inmost stores.If you would like to submit a product for listingconsideration outside of the call period, you mustcontact the appropriate Category Team beforesubmitting an application. They will book a meetingwith you to discuss market conditions and reviewthe ANBL product portfolio to determine if it meritsconsideration.INVITATION OF APPLICATIONSANBL may, at its discretion, invite Suppliers/Agentsto submit applications for specific products. ANBLmay, at its discretion, invite a Supplier/Agent tosubmit another request for a previously rejectedproduct within a year of the original application.FESTIVAL PRODUCT SELECTIONApplications for products to be considered forinclusion in ANBL-supported festivals listed in thecall schedule must be identified on the officiallisting application. They must be received by theappropriate date. For more details on festivalguidelines, see Appendix F: Event SponsorshipHandbook.PRODUCT LISTING TYPESAll ANBL product listing calls will have anassociated listing type(s). This listing type defineshow the product is brought into market. See belowfor the three listing types. GL products are expected to maintain annualsales that meet or exceed their productcategory targets. GL products are kept at the ANBL centralwarehouse and are regularly replenished (exceptfor direct delivery SKUs). Re-orders are based onprojected sales volumes. GL products can be exclusive to a Channel orBanner within the ANBL network. For details onChannels and Banners, see page 14. GL status is granted after the product haspassed an initial test phase in the market. These products will be priced in accordancewith the General Mark-up Policy outlined inAppendix G: ANBL Pricing Policy.TEST PRODUCTS (TP) TP listings are treated similarly to GLs but areconditionally listed for up to one year and thenevaluated for performance. Products that are considered to appeal to alarge cross-section of the buying public andhave reasonable sales expectations but may besubject to specific conditions agreed to by ANBLare considered for TP listing.Updated: August 2021 10

PRODUCT LIFECYCLE MANAGEMENT TP products are expected to maintain annualsales that meet or exceed their productcategory targets.1. The Supplier/Agent provides a sales forecast aspart of the product’s application, broken downby month. TP products are kept at the ANBL centralwarehouse and are regularly replenished (exceptfor direct delivery SKUs). Re-orders are based onprojected sales volumes.2. The Category Team reviews the forecast. Theteam accepts it as submitted or returns it tothe Supplier/Agent with suggested revisions.If ANBL purchases a quantity exceeding theSupplier/Agent’s forecast, ANBL is responsiblefor liquidating product beyond the originalforecast. TP products can be exclusive to a Channel orBanner within the ANBL network. For details onChannels and Banners, see page 14. These products may be priced outside of theGeneral Mark-up Policy outlined in Appendix G:ANBL Pricing Policy.ONE-TIME LISTING (OT)These products are in the market temporarily for adefined length of time.OT product forecast and sell-through dates areagreed upon by the Supplier/Agent and ANBL beforea listing is granted.OT products are fully distributed to stores from theANBL Central Warehouse. Direct Delivery Productsare ordered by the stores during a definedordering period.OT products can be exclusive to a Channel or Bannerwithin the ANBL network. For details on Channelsand Banners, see page 14.GUIDELINES FOR ONE-TIME PRODUCT LISTINGSTo optimize and avoid overstock of One-Timelistings:3. Once the forecast is agreed to, ANBL’s SupplyChain ensures that the proper orders are placedin a timely manner.4. Once the product is released into the market,ANBL does a monthly date-sensitive review.ANBL notifies the Supplier/Agent of any productin jeopardy of not meeting its sell-throughtargets.5. ANBL liquidates product with remaininginventory after the agreed-upon selling period.6. Products selected for the EXPÉRIENCE Program,which introduces new wine portfolios at selectANBL stores every 6-8 weeks, will automaticallybe invoiced upon release for six bottles at Tradediscount. These are for store team Experiencetastings, which are critical in driving volumeof premium wines. Products selected for theExperience Program that do not hit 50% sellthrough after 12 weeks in market are sent to theDepot. The Supplier/Agent is charged back 15%per case on remaining inventory.Updated: August 2021 11

PRODUCT LIFECYCLE MANAGEMENTLABELLING STANDARDSSuppliers must ensure that labels meet all federallegislation requirements, including the Food andDrugs Act. ANBL will remove from stores and delistproducts whose labels don’t meet these standards.For more on these regulations, see the Labellingrequirements for alcoholic beverages on theCanadian Food Inspection Agency website.Canadian label regulations have changed.For guidance and support: Find a summary of the new food labellingchanges here and the CFIA Labelling Tool forIndustry here. Find information about Lot Code requirementsunder the new Safe Food for CanadiansRegulations here.Suppliers must also ensure that labels meet therequirements of the Beverage Containers Actof the Province of New Brunswick. Failure to do socarries penalties ranging from product removal tomonetary penalties outlined in Appendix E: Finesand Fees Schedule.The following are approved versions of acceptablerefund statements: Refund/Consigné Return for refund where applicable/consigné làoù la loi le prescrit Return for refund where applicable/consigné làoù applicableAll retail sales units must bear a UniversalProduct Code (UPC) as outlined in the ProductIdentification Standards Manual issued by theCanadian Association of Liquor Jurisdictions,(CALJ). A UPC is the bar code that is used to scan aproduct at the point of sale. BevHub accepts UPCsthat are 12 or 13 digits long and should be unique tothe product. If you receive a warning that the UPC isalready in use, please contact the ACM or ProductData Coordinator immediately as they can helpresolve the issue.As of Jan. 1, 2020, ANBL no longer issuesin-house generated UPCs and SCCs.To get a new UPC or manufacturer number, pleasecontact GS1 Canada.For package design, including Global TradeItem Numbers (GTINs), consult with a packagingdesigner or a packaging materials supplier, as theytypically have significant experience with theserequirements.SHIPPING CASE LABELLINGAll shipping cases processed through ourcentral warehouse must conform to the CaseLabel Specifications as defined in the ProductIdentification Standards Manual, issued by CALJ.Failure to do so carries penalties ranging fromproduct removal to monetary penalties outlined inAppendix E: Fines and Fees Schedule.All shipping units must bear a Shipping ContainerCode (SCC). An SCC is the bar code that appears onthe shipping unit of the product. BevHub acceptsUpdated: August 2021 12

PRODUCT LIFECYCLE MANAGEMENTSCCs that are 13 or 14 digits long and must be uniqueto the product that they are assigned to. ANBLutilizes SCCs to generate the purchase order for allproducts, including kegs, so accuracy is essential. Ifyou receive a warning that the SCC is already in use,please contact the ACM or Product Data Coordinatorimmediately as they can help resolve the issue.CERTIFICATION OF DECLARATIONSIf your product has gluten-free, fair trade or organicdeclarations, you must upload proof of certificationduring the product application process in BevHub. Ifyour product is vegan, you may choose to include acertification of such if applicable.EVALUATION PROCESSANBL’s Category Management Team selects listingsbased on the following criteria in noparticular order: TasteSuitability for the New Brunswick marketPriceProposed marketing and merchandisingplanRelationship to other listed productsPerformance in other marketsUniquenessPackagingSupply chain considerationsLabelling Past performance of Supplier/Agent Strategic fit Portfolio requirementsTASTING PROCESSANBL conducts tasting sessions to determinethe palatability of products recommended foracceptance by the Category Teams. Tastings areconducted by the appropriate Category Manager andAssistant Category Manager who give final approval.APPEALSA Supplier/Agent may appeal a rejected applicationin writing to the Director of Category Management(Appendix A: Contact list). The letter shouldclearly state the reason for the appeal. It must besupported by additional information that was notpart of the original application.SOCIAL RESPONSIBILITYThe Category Management team follows a set ofsocial responsibility guidelines when reviewingproducts. See Appendix H: Social ResponsibilityGuidelines.PRICING AND FEESProduct pricing is established in collaborationwith the Category Team. Please refer to AppendixG: ANBL Pricing Policy for detailed markupinformation. The Markup Structure and resultingPricing Calculators will be used as a guide todetermining retail price; however, ANBL reservesUpdated: August 2021 13

PRODUCT LIFECYCLE MANAGEMENTthe right to determine final retail price for alllisting types.responsibility to determine whether they will carrythe product.STOCKING ADMINISTRATION FEESCHANNELS AND BANNERSStocking Administration fees apply to newly listedproducts as follows:Any product (GL, TP or OT) can have a Channel(s)and/or Banner(s) assigned to it that provides moreinformation about the listed item’s availabilityin market. GL & TP listings will be subject to a one-time 250.00 charge when ANBL accepts thelisting. The Category Team can waive the StockingAdministration Fee at its discretion. OT listings are exempt from the StockingAdministration Fee.PURCHASING AND LOGISTICSPRODUCT DISTRIBUTIONAll products arriving to ANBL’s Warehouse mustfollow the guidelines in Appendix I: ReceivingGuidelines.Once a product listing is granted, ANBL notifiesall stores of its availability through a New ProductRelease Bulletin, which also contains pricing andordering information.All new product listings receive automaticdistribution to select stores upon release (excludingdirect delivery). The Category Team determines thedistribution when it grants a listing. See Channelsand Banners section below for more information.For stores that are not included in the initialdistribution of a new listing, it is the Store Manager’sCHANNELSChannels are how and where consumers buy itemslisted for sale. They are: Brick and Mortar: Products that are availablefor sale in ANBL stores. (Please see the Bannerinformation for more details on which stores arepart of this Channel.) Convenience Channel: Products available for theAgent Store network. Licensee: Products available to Licenseecustomers. Certain products are exclusive tothis channel, such as beer kegs. Duty-Free Shops: Products that are exclusive toDuty-Free Shops. Grocery Stores: Products that are available orexclusive to the Grocery channel.BANNERSANBL may assign products to one, multiple or allBanners: Stores A-D: ANBL Stores each have a bannerrating from A to D. The letter indicates the storesize and capacity, in descending order.Updated: August 2021 14

PRODUCT LIFECYCLE MANAGEMENT Boutique: This Banner refers to theEXPÉRIENCE by ANBL Boutique in Moncton andANBL’s Craft Beer Room in Fredericton. TheBoutique is a wine shop featuring rare bottles,trendy items and exciting vintages. The CraftBeer Room has the best selection of craft beersin the province. Depot: Located in Salisbury, Depot offers deepdiscounts on select items of wine, spirits,coolers and beer in a warehouse-designed store.PRODUCT MANAGEMENTThis section provides guidelines for suppliers onproducts once they are in market.MERCHANDISING OPPORTUNITIES(CUSTOMER EXPERIENCE)ANBL offers an array of merchandisingprograms and packages for Suppliers/Agentsto book. Suppliers are encouraged to apply formerchandising opportunities primarily during oneof two open calls through Gateway, ANBL’s onlinebooking platform for merchandising programs. Fordetailed information on in-store merchandising, seeAppendix D: In-Store Merchandising ProgramGuide.PRODUCT FORMAT, LABELAND PACKAGING CHANGESPRODUCT PACKAGING/LABEL CHANGESChanges of any kind in the presentation of a productmust have prior written approval from theCategory Team.ANBL accepts requests for approval of packaging/label changes throughout the year, provided theCategory Team receives them at least eight weeksbefore the requested date of change.PRODUCT FORMAT AND PACKAGING CHANGESA new listing application is required if a product’spackage size or product name changes. The newproduct must have a unique UPC/SCC. If theCategory Team approves a product format change orpackaging change, the Supplier/Agent must providean exit strategy for the existing product as part ofthe application.SPECIAL PACKAGINGApplications for products packaged in specialcontainers or containing additional non-beverageitems must show the cost of containers and nonbeverage items separate from the beverage alcoholcontents on the application form.More in-depth details around visual merchandisingcan be found in Appendix J: Retail MerchandisingStandards Manual.QUALITY ASSURANCESpace Planning is done internally by the StoreOperations Channel Team. ANBL determines productplacement based on demand and sales.ANBL listed products must have the stability tosupport an unrefrigerated, end-to-end supplySHELF STABILITYUpdated: August 2021 15

PRODUCT LIFECYCLE MANAGEMENTchain. If a product is found to be unstable, ANBLimmediately recalls it. The Category Team will workwith the Supplier/Agent to investigate the cause. Ifa satisfactory root cause can be identified and thereare appropriate corrective actions to remedy it, theproduct will be reintroduced into the supply chain.TIME-SENSITIVE PRODUCTSANBL works with Suppliers/Agents to preventstale-dating of time-sensitive product listings byfollowing these guidelines:1. The Supplier/Agent provides an annual salesforecast to the Category Team for each product,broken down by month. The Supplier/Agentalso identifies the format, decryption key, anddate code location on their packages, indicatingwhether it is the production or expiry date.2. The Category Team reviews the forecast. Theteam accepts it as submitted or returns it tothe Supplier/Agent with suggested revisions.If ANBL purchases a quantity exceedingthe Supplier/Agent’s forecast, ANBL takesresponsibility for stale-dated product beyondthe original forecast.3. Once the forecast is agreed upon, Supply Chainwill ensure that the proper orders are placed in atimely manner.destroy and discard it, the Supplier/Agent willbe billed the landed case cost anddisposal costs.5. ANBL will return products that arrive at thecentral warehouse without substantial shelflife remaining to the Supplier at the Supplier’sexpense. Product with a stated shelf life of6 months or less must have a minimum of75% upon receipt; product with a stated shelflife greater than 6 months must arrive with aminimum of 5 months remaining (See AppendixI: Receiving Guidelines for more information).PRICE CHANGESANBL provides the opportunity for Suppliers toadjust product prices at least once per year, butreserves the right to issue a price call if needed.Please refer to Appendix G: ANBL Pricing Policyfor detailed markup information.CHANGES IN REPRESENTATIONSuppliers must notify ANBL in writing of theappointment or termination of any agent or agencyauthorized to act on their behalf in New Brunswick.Any change to representation can be sent to theProduct Lifecycle Coordinator along with theappropriate Assistant Category Manager.4. ANBL does a monthly time-sensitive review. TheCategory Team will discuss options to preventstale-dating with the Supplier/Agent, includingLTOs, sampling, and increased store distribution.If the product stale-dates and ANBL mustUpdated: August 2021 16

PRODUCT LIFECYCLE MANAGEMENTPRODUCT DELISTINGThis section provides details on how products exitthe market.PORTFOLIO REVIEWSThe Category Team reviews the portfolio (TP/GLlistings) quarterly, ranking products on categoryand subcategory performance, Supplier/Agentperformance, ANBL portfolio requirements andother criteria.The resulting scorecard identifies top performerssafe from delisting, mid-range performers thatrequire attention by the Supplier/Agent, and bottomperformers that are strong candidates for delisting.ANBL shares the results by email with Suppliers/Agents. Please contact your Assistant CategoryManager to book a meeting to discuss productsother than top performers.Permanent listings (GL and TP) delisted duringtheir first 24 months in market are marked down25% of landed case cost at the Supplier’s/Agent’sexpense. Depending on the circumstances, alternatearrangements may be made to move delisted stockout of the ANBL system. Please contact the CategoryTeam for details.If a Supplier/Agent does not agree with ANBL’sdelisting decision, a letter of appeal may be sentto the Director of Category Management forconsideration. Their decision is final.ANBL Store Managers conduct periodic reviews oftheir store portfolio to identify products that maybe discontinued at the store level. Any productsidentified for delisting will no longer be carried inthat store.Suppliers/Agents should review the ANBL ImportOrder Schedule (see Appendix K: Import OrderSchedule and Appendix L: ANBL PO Terms andConditions).SKU DELISTING AND EXIT STRATEGYProducts are delisted following a thorough portfolioreview process (see above); however, the CategoryTeam reserves the right to delist a product atany time.Once a product is delisted, any outstandingpurchase orders are cancelled, and no further onesare issued.Updated: August 2021 17

APPENDICESUpdated: August 2021 18

APPENDICESAppendix A: Contact ListAppendix B: Product Listing Schedule 2022-2023Appendix C: BevHub Training Guide Preliminary ApplicationAppendix D: In-Store Merchandising Program GuideAppendix E: Fines and Fees ScheduleAppendix F: Event Sponsorship HandbookAppendix G: ANBL Pricing PolicyAppendix H: Social Responsibility GuidelinesAppendix I: Receiving GuidelinesAppendix J: Retail Merchandising Standards ManualAppendix K: Import Order ScheduleAppendix L: PO Terms and ConditionsUpdated: August 2021 19

PRODUCT LIFECYCLE MANAGEMENT. Updated: August 2021 11 TP products are expected to maintain annual sales that meet or exceed their product category targets. TP products are kept at the ANBL central warehouse and are regularly replenished