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SLGA ADDING SPECIALTY WINE FRANCHISES

Released on December 2, 2008

Wine lovers in Saskatchewan will soon have another shopping option.

The Saskatchewan Liquor and Gaming Authority (SLGA) is adding two specialty wine store franchises to its current liquor franchise system, one in Saskatoon and one in Regina.

"These two stores will serve a niche market by providing increased customer service for consumers looking for specialty wines not currently available in SLGA stores," Minister responsible for SLGA Dan D'Autremont said. "These two specialty wine store franchises will complement SLGA's 79 liquor stores that carry a wide range of products for a much more diverse clientele."

Currently, consumers and licensed establishments that want specialty wines not listed by SLGA must place orders through SLGA's Special Order Desk, with a minimum order of one case, and a delivery time of one to three months, depending on the country of origin. The new wine store franchises will also order through SLGA's Special Order desk, but will be able to sell to consumers by the bottle, rather than by the case.

The wine store franchises are to be independently owned and operated and awarded through an open Request for Proposals (RFP) process. Proposals will be evaluated on factors like; knowledge of the industry and an understanding of Saskatchewan's wine market, business experience, financial plan and site proposal. An independent third party will be employed to select the winning proposals and to guarantee that the process is open and fair. The RFP will be released Dec. 12 with final decisions expected by early spring.

Commission for the specialty wine franchises will be 15.3 per cent of purchases for resale, the same as existing liquor franchisees that sell beverage alcohol on behalf of SLGA in communities throughout rural Saskatchewan.

"As a businessman, I'm always trying to match my wine selection with what my customers want," The Ivy Dining and Lounge in Saskatoon owner Curtis Korchinski said. "Being able to drive to a specialty wine store franchise to pick up products means I won't have to pre-order as much and find room to store the extra inventory until I need it. The bulk of my liquor order will still come from SLGA stores but I'll have a more convenient option when it comes to specialty wines."

Saskatchewan's liquor retail system is a mix of public and private operators. There are 79 public liquor stores, 185 private businesses that operate as liquor franchises on behalf of SLGA and approximately 450 private off-sale outlets located throughout the province.

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For more information, contact:

David Morris
Saskatchewan Liquor and Gaming Authority
Regina
Phone: 306-787-1721
Email: dmorris@slga.gov.sk.ca
Cell: 306-531-9243

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