David Menzies’ recent column on the LCBO offering Air Miles(“Drink n’ Swipe,” Sept. 10, p. 42)shows he is an environmentalist, committed to reducing his carbon footprint. The column is a shining example of reuse, being a repeat, almost word for word, of an equally flawed opinion piece he wrote for the National Post three years ago.
Questionable journalistic integrity from someone who questions the ethics of the LCBO offering reward miles to its customers. What’s worse, he repeats the same false and misleading information from his previous column, namely that it costs the LCBO $20 million a year to offer Air Miles. Three years ago he was made aware that the cost was significantly less but chose to ignore it. The vast majority of reward miles issued are funded by LCBO suppliers and not by the LCBO directly. In fact, the LCBO’s net investment-after vendor-funded sales/promotions initiatives-is about $1 million. Any suggestion to the contrary is a gross misrepresentation of the facts.
LCBO suppliers consider Air Miles to be a cost-effective way to promote their products. It encourages customers to try new products and adds value to their shopping experience. A poll conducted by CTV’s Canada AM a few years ago showed that more than 85% of Canadians had no issue with reward miles being offered at liquor stores. An independent, government-sponsored review of the LCBO by a major accounting firm also confirmed Air Miles is a financially sound marketing investment.
The LCBO has used Air Miles to successfully promote Ontario wines and is doing so again. Starting September 17, Buy to Fly, a month-long Ontario wine promotion in 600 LCBO stores, began offering customers who purchase an Ontario wine and who are Air Miles collectors the chance to scratch and win instant Air Miles reward miles. Last year’s Buy to Fly promotion increased sales of Ontario wines by nearly 14% and $3 million.
That’s not unethical, it’s simply good marketing.
Bob Downey
LCBO senior vice-president, sales & marketing
Toronto
