This service development — following six years of On Premise consultancy in the United States and, more recently, Canada — is part of a wider international expansion program which will see CGA’s Americas program expand into central and southern American countries.
CGA’s service expansion into Mexico begins with their On Premise User Study (OPUS) – a comprehensive research program surveying a representative sample of 5,000 Mexican On Premise visitors.
The study, focusing initially on the impact of COVID-19 on the Mexican On Premise and ongoing consumer behavior as they return to the channel, provides key consumer insights across important demographics and major cities, highlighting behaviors, intentions, and key sales opportunities for Mexican beverage alcohol suppliers.
MEXICO ON PREMISE USER STUDY: A COVID-IMPACT SNAPSHOT
Most Mexican consumers will return to the On Premise at pre-COVID levels
CGA’s research revealed that 7/10 of Mexican On Premise visitors use the channel at least once a week. Of these, 64% go out for food, 52% for food and drinks, and 33% for drinks only. When questioning those who have already returned to the channel, 65% of consumers chose restaurants for their first On Premise visit back after restrictions were lifted.
Following an extremely difficult year for hospitality, CGA’s data shows strong indications of a ‘bounce back,’ as 24% of consumers say that they plan to visit the On Premise more often (when all venues reopen) compared to pre-pandemic levels. 36% are planning to visit the channel at least to the same frequency.
Although disposable income has been reduced for many, premiumization is still a strong opportunity for suppliers
When asked about personal finances, 66% of respondents said they now have less disposable income compared to pre-COVID-19. However, 52% indicated that they plan to spend more per visit after reopening, and 26% plan to spend more than their prior average spend.
With premiumization relatively underdeveloped in Mexico vs other North American markets, OPUS data highlights how the ‘returning mindset’ is an opportunity for education, trial, and upselling that is not typically available. Engaging events, promotions, food/drink package deals, or any other mechanic to premiumize the experience is likely to be better received for many visitors than ever before.
Food and alcohol delivery has been key in recovery, with Tequila in the lead
Like those in North America and Europe, Mexican hospitality businesses have pivoted to allow for food and drink delivery in lieu of On Premise visitation. CGA’s study revealed that the percentage of On Premise visitors ordering take out / delivery is consistent with the well-developed U.S. market: in the past three months, 66% of Mexican consumers have ordered a delivery of just food and 12% have ordered food and alcoholic drinks. Of these consumers, 53% used a third-party app to facilitate their order.
In terms of drink categories, recent data revealed a significant consumer demand for spirits and beer, with Tequila (40%), domestic beer (47%) and imported beer (38%) leading the way in Mexico. Hard seltzers perform less well in the delivery market than in the U.S.
CGA’s Managing Director: Americas, Scott Elliott said “We are genuinely delighted to finally launch our popular OPUS service in Mexico after working with the world’s leading beverage suppliers in the US and Canada since 2015. Mexico has an incredible cocktail culture and is one of the most fascinating On Premise markets around. We are delighted to finally have best-in-class consumer insights to help our beverage clients maximize the opportunity as the channel begins to return to normality”.
With banner-level insights for restaurant chains and hotel groups in Mexico, we also believe that OPUS will become as essential for building compelling Key Account tactics in Mexico as is in the U.S. and many other countries around the world”.
To learn more about CGA’s OPUS Mexico service, or to access custom On Premise consumer research, please contact CGA’s Client Solutions Director Matthew Crompton via Matthew.Crompton@cgastrategy.com
