2022 has been a year of change for the On Premise, when following the impact of COVID-19, new challenges arose for the hospitality industry and consumers alike with rising inflation and cost of living concerns becoming more prevalent towards the end of the year. Despite these challenges, the On Premise has seen some intriguing developments across the globe, with CGA’s unrivalled data and insights providing a deeper look into 2022’s key On Premise trends:
Great Britain
The return of the casual occasion and fewer COVID-19 restrictions influences category consumption.
Paul Bolton, Client Director’s top insight looked into the change in category dynamics in the GB On Premise in 2022. Spirits were the big winner in 2021 vs 2019, as ‘Freedom Day’ brought back high tempo celebratory occasions. But the picture changed in 2022, with older consumers returning as COVID-19 became less of a concern, and the return of more casual occasions, such as after work drinks leading to categories like Beer, Cider, and Wine all benefitting from an uplift.
While in the Hospitality Operators and Food team, Genevieve Witney and Reuben Pullan highlighted the uplift in cocktail drinkers in the On Premise.
In 2021, Cocktails made up 10% of total venue drinks sales – up by +4% vs the same period in 2019 – showing the real growth in this category. With 44% of those visiting pubs drinking cocktails there, there is an appetite for cocktails in the sector.
This change in consumer behaviour represents a real opportunity for Pub operators, with PubTrack, CGA’s new service that launches this year, monitoring perceptions and behaviours within the pub market.
To find out more about PubTrack, contact hoaf@cgastategy.com
Ireland
Special and celebratory occasions have remained the most popular reason for consumers to visit the Irish On Premise this year.
Sian Brennan, Client Director – Ireland, dives into the most popular occasions to visit the Irish On Premise: Special and celebratory occasions. In 2022 these remained the most popular occasion for consumers to visit the On Premise, highlighting just how important the On Premise is to consumers and how important it is to those celebrating those special moments.
Sian highlights, “Despite the current market challenges, consumers will continue to visit the On Premise for special occasions because there’s just no substitute for the atmosphere you find within the Irish On Premise.”
Europe
European Cocktail drinkers tend to be more loyal to brands that they enjoy.
The latest Cocktails in Europe report revealed that European Cocktail drinkers tend to be more loyal to brands that they enjoy, in comparison to the average consumer. Ben Krzysica, Client Director – EMEA, shares how developing connections and building relationships with consumers is crucial to building brand loyalty. Establishing links between drinks brands and the “moments of exuberance the sector offers in abundance”, will help drive sales alongside a targeted and well executed On Premise activation strategy.
The Americas
A significant percentage of consumers in the US like to try new or different drinks brands while visiting the On Premise.
CGA’s Global REACH research revealed that 41% of US consumers like to try new or different drinks brands when out in the On Premise, increasing to 47% for 21-24 year olds. Matthew Crompton, Regional Director – North America, reveals that the On Premise is a key channel for trial, experimentation, and launching new brands – particularly when it comes to younger demographics.
Recommendations are a top deciding factor when it comes to RTDs
Andrew Hummel, Client Solutions Director – Americas, highlights an insight from the recent NielsenIQ ‘What’s new and next in the US Bev Al’ webinar, delving into which factors motivate consumers when it comes to their purchasing decisions. He revealed that price is always a top factor when choosing what to order across all drinks categories, but when it comes to Ready to Drink (RTDs), recommendations from friends and bartenders prevail. This demonstrates that consumers are curious but may still be sceptical of the category – and there’s a definite opportunity for suppliers to educate these consumers and bartenders to drive
Canadians are continuing to support their favourite establishments and maintain their current On Premise visitation rates despite Cost of Living concerns.
Mitch Stefani, Client Solutions Manager – Americas, takes his insight from CGA’s recent Cost of Living Report Canada, where 60% of Canadians say that they’re likely to spend up to $20 more at their favourite bars and restaurants. Only 7% of consumers say that they’re seeing the biggest increase in prices from their visits to eating and drinking out, as opposed to groceries at 53% – showing that despite the cost of living concerns, Canadian consumers are likely to prioritise their On Premise visits.
45% of consumers drank more than usual while celebrating Mexican Independence Day with their family and friends.
Mike Rende, Associate Client Solutions Manager, takes his insight from the Mexico On Premise Consumer Impact Report. He revealed Beer and Tequila were the most consumed drink categories during Mexican Independence Day, and 45% of respondents admitted to drinking more than usual during the occasion with their friends and family. This shows the importance of the On Premise during celebratory occasions, and how this can contribute to category changes.
Australia
Australia has the lowest level of city centre visitation and the highest level of suburban visitation compared to other countries included in CGA’s REACH study.
Tom Graham, Senior Client Success and Insight Manager – APAC, uses insights from CGA’s global REACH study to highlight the cultural nuances of On Premise behaviour – highlighting that Australians are far more likely to visit On Premise venues in the suburbs as opposed to city centres. This reinforces the need for localised data and insights to ensure On Premise strategies are specific to each market.
While more Australians are visiting suburban venues, this doesn’t mean they’re looking for cheaper options.
James Phillips, Client Solutions Director – ANZ, uses insights from the Australian On Premise Consumer Pulse that shows the average Australian is now more willing to pay extra for a better quality drink in the On Premise. The percentage of consumers in Australia who are willing to pay more for a higher quality drink grew to 53% in Spring 2022, which is +6pp higher than results from last year’s Autumn On Premise User Survey. This shows how important quality is to consumers and the opportunity for premium brands within the On Premise as we move into 2023.
Global
Globally, consumers are feeling more confident about visiting the On Premise compared to last year.
Dylan Battick, Consumer Research Executive, highlights that 76% of consumers were feeling confident about visiting the On Premise, and that it had increased by +27pp vs 2021. This shows how the confidence and positivity surrounding hospitality continues to return and how important the channel is for suppliers and brands when it comes to planning their 2023 strategies.
To find out more about what CGA can offer in your region and how their solutions can enhance your On Premise strategy, get in touch at hello@cgastrategy.com
