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Value Add Program

The Value Add Program offers customers something extra when they purchase a featured product in LCBO stores. This program is well received and generates a great deal of excitement with both customers and store employees.

Rates

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Terms and Conditions

  1. Participants shall at all times comply with all AGCO ADVERTISING GUIDELINES as amended from time to time, and with all applicable laws.
  2. All Value Added promotions must be pre-approved by the appropriate Category Manager. The Category Manager's decision is final.
  3. All approved Value Added samples must be submitted to the proper Category a minimum of six months prior to the scheduled Promotional Turn for quality control approval.
    If the Value Add item has not been approved, the program will be cancelled.
  4. A Value Added item may have a nominal value of 20% of the retail price of the beverage alcohol product which it is included with, up to a maximum of $5.00.
  5. The maximum size allowed for Value Added beverage alcohol items is: 100 mL.
    Note: Spirits only - The 100 mL or 2 x 50mL Spirit Value Add item cannot be applied to a host product that is less than 1750 mL in size.
  6. Participants are encouraged to cross merchandise line extensions and different brands to stimulate customer trial.
  7. A brand may participate in consecutive Promotional Turns, but a product SKU may only participate as frequently as every 2nd Promotional Turn.
  8. Value Add programs will not be offered in conjunction with either Limited Time Offers or Bonus AIR MILES® or the Bundled Bonus AIR MILES® reward miles programs.
  9. Participants shall absorb the cost of added duties, freight and excise taxes to maintain the regular price of a product during a Value Added program.
  10. Preference will be given to products also featured in Display Programs, however all submissions will be considered.
  11. Where food items are provided as Value Added items, vendors must additionally provide coupons for redemption on subsequent purchases of the Value Added item at select retailers.

    Example

    A Value Add promotion featuring a wine product with a package of pasta must be accompanied by offering a coupon for redemption on a subsequent purchase of that pasta at selected retailers.

    • If there are complaints from local stores regarding Value Added food promotions, the promotions will be removed from those stores.
    • Participants are encouraged to use trial sizes and new product launches for their food selections to stimulate trial and provide potential business for local convenience and grocery stores.
    • All food Value Added items must be submitted with a valid Canadian Food Inspection Agency (CFIA) certificate.
  12. All Value Add products sourced directly from the vendor are ordered under a different LCBO number (Mother Carton #) from the original product. The Shipping Container Code (SCC) used for the Value Add must also be different than the Shipping Container Code used for the original product and should be marked on the Value Add carton. In the event that the vendor is unable to mark the Value Add Mother Carton with a different SCC, the Value Add item must be Sales Representative-applied in LCBO stores.

    Notes:

    • Regular product UPC/LCBO# is maintained on the individual selling units.
    • Value Add Mother Carton case pack configuration must be the same as the regular product (e.g. If the regular product is configured as a 12 pack, the Mother Carton must be configured as a 12 pack.)
    • It is the suppliers/agents responsibility to inform the LCBO of any SCC code changes for a Value Add Mother Carton number once the program has been approved.
  13. The Value Add “Free” item should NOT have a UPC symbol. If it does, it must be defaced (mark vertically between bars) so that it cannot be scanned at the checkout.
  14. Category Managers determine the minimum and maximum order quantities for all applied Value Add items.
  15. The duration of Value Added programs shall not be longer than one LCBO Promotional Turn. Remaining inventories will be allowed to stay on shelf at the end of a Value Added promotion. It is the intention of this program however, that inventory will be kept to a minimum at the end of a Value Added promotion.
  16. Seasonal products (e.g. coolers) may have their Value Added programs approved for a season rather than one Promotional Turn.
  17. Spirits Only:
    • No representative-applied Value Add after the third week of the Promotional Turn.
    • Plant applied value add programs will be approved only when the case quantity is a minimum of 200 cases.
  18. Participants hereby indemnify and save harmless the LCBO from all costs, losses, damages, judgments, claims, demands, suits, actions and other proceedings in any manner connected to their participation in a Value Added program. The LCBO shall have no liability for any Value Added items supplied by the participant or its agents under this program.
  19. The LCBO may terminate or suspend the Participant's participation in any Value Added promotion immediately upon written notice to the Participant where the Participant is in breach of any of the terms and conditions. Failure to comply with any of these terms and conditions may disqualify the Participant's application in any future Value Added promotion.
  20. Any company applying unapproved Value Adds at store level will lose their Value Added privileges for four consecutive turns. The penalty will be applied to all of the brands in the company's portfolio.
  21. Imported products cannot participate in the plant-applied liquid value add program. Non-liquid plant-applied value adds are acceptable.

Production

Suppliers are responsible for the production of Value Add items. Value Add items must not interfere with any adjacent products (i.e. oversized).

There are no size specifications for non beverage alcohol Value Add items. The applicable Category Manager must approve all Value Added items.

Value Added items may be applied to the product by the supplier prior to shipping or by sales representatives in store.

Wording on P.O.P.

Product labeling and signage for Value Add items highlighting the giveaway must read, “Free with Purchase. “ It is not acceptable to use the word “Free” by itself.

Applications

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Value Added items must be defined on the application, "To Be Determined (TBD)" will not be accepted.

Deadline Dates

Follow this link to the deadline dates page.

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