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Dear Trade Partners,

Over these last few months, as we have been navigating COVID-19 together, it’s been important to us to keep you as up to date as possible on our operations. As we close out the week, and as the province enters the next phase of safely easing restrictions, I would like to provide you a brief update on our supply chain, namely our close monitoring of some lower fill rates and in-stock positions that are the result of changes to the typical sales patterns of our customers, both retail and wholesale.

As you know, throughout the pandemic customers have favoured larger formats and products of a certain price point. This could not have been projected in forecasting and as you know, has resulted in many of you having to react and adjust production lines to new formats in higher demand. When larger formats are not available, strain is then placed on other product availability. Combined, this can create fill rate and in-stock position challenges for certain products.  

We appreciate and acknowledge our suppliers and agents for all the work they are doing to keep up with demand and will continue to work collaboratively with you to ensure optimal in-stock positions for customers however with a global supply chain, lead times, and our regular network capability, some time for adjustment is required. 

Working together, I have full confidence that we will be back on track over the coming weeks and do not anticipate this having a substantial impact on in-stock in stores, but as our partners, I want to reassure you that it is something we are closely monitoring and that our facilities and technologies remain fully operational. We are also working collaboratively with our retail colleagues on actions we can take at the store level.

As we continue to work through this, we encourage you to have continued conversations with our Category teams about the call for value products. If you do have any questions regarding inventory, our inventory team would be pleased to speak with you.

Thank you and stay safe,

Nick Nanos

Chief Supply Chain Officer, LCBO