Previously, the LCBO announced the sale and redevelopment of our Head Office as well as the eventual closure of our Toronto Retail Service Centre (RSC). At this time, we are on track to move to the new LCBO Head Office in late 2021 and anticipate the Toronto RSC will close by fall 2021. We’d like to take the opportunity today to provide you with an update on this process and what this means for you.

In March 2019, we issued a Request for Proposal (RFP) to procure a service provider to locate, set up and operate a distribution centre to perform our non-core and online operations including our e-Commerce, Vintages Shop Online, and Specialty Services.

With the RFP process now complete, we can share that the LCBO has selected Trillium Supply Chain as our service provider. Trillium Supply Chain is an affiliate company within the Supply Chain division of Deutsche Post DHL Group, a leader in supply chain solutions with significant experience in the logistics and warehousing of beverage alcohol in a regulated environment. Trillium leverages the larger organization’s knowledge, experience and proven track record of successfully starting up new facilities and delivering on service levels.

Trillium will operate a strategically located warehouse to manage the distribution of our e-Commerce, Vintages Shop Online, and Specialty Services.

For the LCBO, this means increased efficiencies, improved processes and productivity, enhanced operations and, in turn, improved supply chain capabilities and better service to our customers. For you — our trade partners and your agents — this means improved customer service. Trillium will provide extended service hours and have an appointment scheduling system to better serve our customers.

The facility will be in the Peel Region. The location is strategically positioned centrally within the GTA with easy access to major highways.

The LCBO is using a phased approach to transition operations out of the current Toronto RSC. The first phase is expected to be in fall 2020 and will include the transition of e-Commerce. The current Toronto RSC will continue to operate throughout the transition, and through to the closure of the facility in fall of 2021 when the LCBO Head Office relocation takes place. There are no immediate changes at the Toronto RSC or to any of our day-to-day operations.

We are committed to keeping you informed throughout this process and will provide updates on the transition to the new facility in the months ahead. To help answer some common questions, we have attached a Q&A with more information.

We will also be looking for your feedback and input as we determine elements of operations that help make sure you have the experience you are looking for through the new location.

This will mark new ways of working for both of us and we look forward to your support as we work together on a successful transition and to make sure we’re meeting your needs as much as possible.

Thank you for your continued support and partnership. We hope you and your teams are staying safe and healthy.

Sincerely,

Nick Nanos, SVP Supply Chain & Wholesale

TRSC Q and A