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Here are some of the key trends in three big areas of the drinking out market over the first quarter of 2023.
Spirits
Spirits brands have had a good start to the year in the On Premise, with first-quarter sales by volume up by 10.9% on the first three months in 2022, though trading in that comparative period had been weakened by lingering concerns about COVID-19. It was a solid start to the year for cocktails, and gin has seen strong performance, while the whiskey category experiencing lesser growth compared to other categories. Discotheques significantly increased their sales volumes (+36.2%) over the first quarter as the late-night market came back to life following pandemic-related restrictions, demonstrating the continuing value of supplier engagement with the segment.
Beer and cider
The LAD category has had a slightly weaker start to the year, with total beer and cider volumes up by only 3.5% year-on-year. The ‘biere de luxe’ segment (up 11.8%) grew much faster than the mainstream beer category (up 3.2%), which indicates solid demand for premium brands. Non-alcoholic beer (up 16.4%) has been another winner—suggesting that many French consumers are focused on their health and moderating their alcohol intake. Channel-wise, discotheques, bars de jour and bars de nuit have all gained sales volume over the first quarter, while bar restaurants have lost some sales.
Soft drinks
In another sign of moderation, On Premise soft drinks and water volumes increased by 8.9% year-on-year in the first quarter. Growth was solid in major segments like colas, water and fruit-based and tea-based drinks, while energy and sports drinks (up 24.5%), syrups (up 15.8%) and juices and smoothies (up 14.0%) outpaced the market. Again, discotheques and bars de nuit gained a little market share at the expense of bar restaurants.
France’s On Premise channel is ever-evolving and existing knowledge and supplier strategies must be optimised to reflect shifts in consumers’ drink preferences and trends in the market; in turn focusing on growth opportunities and adjusting investment.
“It’s encouraging to see France’s key On Premise categories record decent growth in the first quarter despite the impacts of inflation and widespread strikes and demonstration,” said Julien Veyron, CGA Client Solutions Director – France. “Consumers continue to spend their time in bars and restaurants, and demand for drinking out remains very strong. But beneath the surface lie some notable movements, and identifying which categories and channels are going up and down is pivotal to sales growth. Pricing will be another crucial factor over the summer and beyond, and brands that provide best value will have a head start in the battle for market share.”
“It’s encouraging to see France’s key On Premise categories record decent growth in the first quarter despite the impacts of inflation and widespread strikes and demonstration,” said Julien Veyron, CGA Client Solutions Director – France. “Consumers continue to spend their time in bars and restaurants, and demand for drinking out remains very strong. But beneath the surface lie some notable movements, and identifying which categories and channels are going up and down is pivotal to sales growth. Pricing will be another crucial factor over the summer and beyond, and brands that provide best value will have a head start in the battle for market share.”
CGA by NIQ’s On Premise Measurement service delivers best-in-class market analysis and actionable insights to help suppliers optimise sales and marketing strategies. To learn more about the benefits and discuss opportunities for bespoke analysis to support category and brand growth, contact Julien Veyron at julien.veyron@nielseniq.com.
