The Limited Time Offer (LTO) Program provides suppliers with an opportunity to generate product trail and sales while offering a discount on selected products.
Rates
The supplier/agent will be charged based on the full reduction in retail for the number of units sold at the LTO price.
Mandatory Pre-printed LTO signage: $1,750.00 per product, per Promotional Turn (flat rate).
Program Dates
Limited Time Offers start on the first Monday and end on the last Sunday of each Promotional Turn.
Participation Guidelines
All products that meet the LTO guidelines and are currently listed by the LCBO are eligible to participate in the program with the exception of products at the current minimum retail price, at the wine Non-Discriminatory Retail Price (NDRP) and products participating in any other support program during that Promotional Turn.
A brand may participate in consecutive Promotional Turns but a product sku may not participate in consecutive turns.
If the LTO amount offered is approved, it will remain the same regardless of the retail price (unless below floor price) of the product at the time of promotion.
It is the agents' responsibility to ensure products are eligible for LTO's.
If the proposed LTO brings the retail below floor price at the time of promotion, the LTO will be cancelled without further notification.
Products featured in Display Programs will be given priority when LTO submissions are reviewed.
A number of additional stand-alone opportunities will be reserved for non-display products.
Stores are not obligated to list products for LTO promotions.
The product sizes will be limited to:
- Spirits: 200 mL, 375 mL, 750 mL, 1140 mL, 1750 mL formats
- Wines: 375 mL, 750 mL, 1Litre, 1.5 Litre, 2 Litre, 3 Litre, and 4 Litre formats
- Beer: all package sizes
- Coolers: all package sizes
- Ciders: all package sizes
- Premixed Cocktails: all package sizes
- Sake: all package sizes
Participation in the LTO Program requires products to be sold at the same retail price for the duration of the offer if they are also sold at Ontario manufacture’s own on-site store, at the Beer Store or in Grocery.
LTO Pricing
To qualify for the program, a minimum discount of 5% or $1.00 per package (whichever is less) must be offered at retail.
The maximum discount allowed is 20% off the regular retail price.
Wholesale price (quote) changes will not be accepted on participating product(s) during or after the 90-day advance notice period or during the applicable LTO turn. The product's regular price is to be maintained for at least one full Period before and after the LTO Period.
Product(s) selected to participate in the LTO Program will have to extend the same discount to other package formats (i.e. pre-wraps and P.E.T./Glass formats of the same product) that retail for the same price.
LTO discounted prices will not be allowed to fall below prevailing minimum retail prices or wine Non-Discriminatory Retail Price.
Spirits Rules
For sizes 750mL or larger, the minimum discount is $1.00.
The sale price cannot fall below the floor price for all formats.
Customer Eligibility
Featured products will be available to all customers (public, licensee, Agency stores) with no limits on purchases per customer (Agency store participation is based on the selling of products at the same price throughout the province).
P.O.P. Specifications and Shipping
Pre-printed LTO shelf talkers are produced by the LCBO and shipped to all stores. Stores listing the approved products will display the applicable LTO signage for the duration of the Promotional Turn.