Page 28 - IAADFS Summit of the Americas 2024 Special Edition

INSIDER

Canada: Ontario Buyers Group helps duty free operators deal with
suppliers/liquor board

Ontario duty free stores have banded to its locations. One positive sign for recovery is that
together as a buying group to have a “In Ontario we are currently dealing the customers that do shop are spending
stronger voice with its supplier partners and with 48 craft distillers, and 379 products more.
the Ontario Liquor Board. that have been listed as of October 2022 “The interesting thing is when you
Chris Foster, who heads the group and in all of the land border stores with the compare our business to our traffic and our
owns Queenston-Lewiston Duty Free in exception of one, as well as the airport,” crossings there is definitely not a consistent
Niagara Falls, Canada, tells TMI that the says Foster. correlation between the two. We’re seeing
combined weight of its Ontario members “We’re constantly adding new less traffic crossing the border these days.
has had a positive impact in its interactions suppliers that were not involved in the But our sales are performing better because
with the government agencies. original program. We’re also unfortunately we’re having more people spending more
“It is harder for us to compete with listing some products that may not be as money in the stores. Also, our premium
as single individual locations. So together effective as some of the other ones. It’s offerings are up and our average sales per
we have a bigger voice when having amazing because the products range from customer is up. Get the traffic to return
conversations with suppliers. The idea ready to drink products like coolers and then we’re going to be in a very positive
behind the group is that we all have the seltzers, to beers and ciders all the way up situation.”
common thread of having to deal with the to vodka, gin, and whiskey.”
Ontario Liquor Board, all of our liquor runs Despite the influx of new products, Queenston-Lewiston Duty Free
through that government agency. It made a Foster tells TMI that sales in his Niagara Foster’s Queenston-Lewiston Duty
lot more sense to have a smaller subgroup Falls land border duty free store are still Free store has just started a renovation
of operators in the group. And it’s helped down 20-30% versus 2019. of the shop that will expand its retail
us in dealing with the liquor boards, as well In fact, sales across Canada’s land footprint by 2,000 square feet.
as government lobbying, and dealing with border stores still remain down an average “We are always evolving.
the province,” says Foster. of 20-30% versus 2019. Unfortunately, Starbucks for us never
“We’ve also been able to manage to “There are small changes. I think that survived COVID. So we are claiming
get in front of certain government officials some of the stores were 30 to 40% down that space for retail, and we have a major
to educate the government about duty free.” last year. Maybe some people thought it facelift going on. We just put the holding
would change much quicker. But the reality wall up today, and putting in a new cash
Going Local is that there are some land border stores area, redoing our front entrance, changing
The Ontario buying group has brought that believe they are not going to get back our flow of traffic,” says Foster.
in many local craft wines, spirits, and beer to 2019 numbers for five years.” “We’ll be able to expand our
fragrance and perfume and cosmetics
area. We’re going to shift some product
categories around and we’re going to
be able to add to the product categories
that we’re seeing trending up. So tequila,
American whiskey, scotch, all those
categories are going to see some healthy
increases in space.”
The new construction will also
change the flow of the store.
“One of the challenges we have is
that people come in to the store just to
use the restroom facilities and they may
not necessarily want to shop in the store.
So what we’ve done is we’ve designed
the new store to push all those customers
that are using the restrooms onto the retail
space.”
Foster and Queenston-Lewiston must
be doing something right. The store won
the 2023 FDFA Gold Standard Platinum
It was a night of awards for Chris Foster and Queenston-Lewiston Duty Free at the 2023 FDFA Gold Award Category B, and Foster was
Standard Awards. Left: Chris Foster, Queenston-Lewiston Duty Free (holding award) poses with Jeff honored with the Outstanding Contributor
Butler, 1000 Islands Duty Free, Kyle Hiebert, Emerson Duty Free, and Tania Lee, Blue Water Bridge Award.
Duty Free after Foster was presented with The Outstanding Contributor Award. Right: Queenston-
Lewiston Duty Free Shop won the Platinum Award- Category B.

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