The rising trend of Dry January participation among On Premise consumers saw 44% of active consumers (+10 percentage points for 21–34-year-olds) ‘very likely’ or ‘likely’ to participate in the activity. Of those participating, 73% of On Premise consumers in the US planned to abstain from alcohol at home, while 54% planned to abstain while still frequenting bars and restaurants in January. This was driven by consumers wanting to be generally healthier (45%), saving money (39%), taking up the challenge and demonstrating self-discipline (31%), and decreasing alcohol intake (24%).
Dry January boosts sales
CGA’s BeverageTrak reveals that each week in January 2024 the US market saw a double-digit increase in velocity sales of the No/Low category compared to average sales across the whole of 2023. The week to January 13 was particularly strong (+22%), and by week ending February 3, velocity sales were still up at +12%.
As consumers opt for low alcohol alternatives, Beer and Spirits saw a drop in performance. Velocity sales in the week to January 13 sales were down -16% and -17% respectively when compared to sales across the average week in 2023. Both categories saw recovery toward the end of the month, with the week to January 20 only slightly below average (-6% and -8%), and both mega-categories performing at or above average on the week to January 27, with Beer up +6% and Spirits flat.
This recovery and dip in No and Low velocity suggest that by the end of the month consumers began to return to their usual behavior. Last year only 29% of consumers surveyed completed the month, 63% didn’t participate and like other New Year’s Resolutions that get abandoned long before January is over, 8% didn’t complete their challenge.
Catering to all non-alcoholic tastes
Consumers abstaining while visiting bars and restaurants intended to opt for soft drinks (62%), sparkling water (30%), and hot drinks (26%). Less than 10% specified mocktails and alcohol-free beer, wine and spirits, but more than 10% of consumers who were likely to take part in Dry January say they’re motivated by a better range of non-alcoholic options available than in previous years. This represents a key window of opportunity for creative strategizing and product development, in order to entice more Dry January participants from the sofa to the bar.
Bartenders also play a role
CGA’s Global Bartender Report reveals that 15% of bartenders include no/low in their top trending drinks. This popularity can explain why it isn’t one side of the bar that are eager to learn about the category – over half of consumers (58%) want to get closer to no/low, making this the no.1 drinks category consumers would like to learn more about.
Despite this popularity amongst consumers, no/low category knowledge is still relatively low (46%) among bartenders when compared with the likes of spirits (87%) and cocktails (93%). To bridge this knowledge gap, drinks suppliers can play a crucial role in supporting operators and their bartenders. By actively engaging with bartenders and enhancing their knowledge of the brand and the no/low category, suppliers can ensure that these non-alcoholic and low-alcohol brands remain top of mind, especially when making influential decisions in crafting seasonal drinks menus.
Matthew Crompton, Regional Director – Americas said: “In order to embrace and leverage Dry January, drinks brands, suppliers and operators must creatively cater to a growing base of consumers committed to alcohol abstinence. Crafting enticing non-alcoholic options and unique experiences for this demographic ensures continued visitation and greater brand equity, optimizing sales and profitability, even as customers prioritize health-conscious choices while frequenting venues.”
Matthew Crompton
CGA’s On Premise Impact Reports help suppliers and manufacturers across food and beverage keep a pulse on the industry by featuring current insights derived from a variety of our best-in-class data tools. Click here to download more information or contact Matthew Crompton at Matthew.Crompton@nielseniq.com to learn more about subscription access and wider capabilities.
