For nearly a decade OPM has been the US industry standard for brand owners to track their share of the channel. Now launched in Canada, CGA by NIQ brings a new dataset for the Beverage Alcohol industry to track sales out of the channel to consumers, capturing final purchases made rather than shipment reporting across select provinces. All, while including competitive information at every level of reporting.
The two OPM datasets are now aligned in the same monthly reporting periods, revealing similarities and differences between the two markets. Here are five data highlights:
1 More variety in spirits in Canada
Spirits volumes have declined in Canada to a tune of -4.1% vs YA, which is slightly less than decreases reported in the US (–8.4%). However, assortment of spirits categories in Canada present growth opportunities for suppliers. In the US, vodka, tequila and whiskey make up 70% of total sales, but the figure is notably lower in Canada at 51%. This means volumes are spread across more spirits segments, with consumers choosing a greater variety. Despite Canadian and US spirits drinkers having a similar amount of categories in their repertoire, sales patterns highlight differences in each market.
2 Tequila the fastest growing segment
Tequila has been the biggest growth category in both markets in the last year. But while it commands 22% volume share of total spirits in the US, it only represents 15% in Canada.
Value sales ($) over the last 52w are up by 6% in Canada, while in the US the category is trending at -3.4%. Over time Tequila consumption in the On Premise has made its presence felt in Canada following it’s fast-paced take-off in the US.
3 Growth in beer imports
Canada’s beer volumes have dropped slightly in the last 12 months, by -1.5% and –6.2% in the US. However, imports have bucked the downward trend in both Canada and the US. Imports now take 25% of volumes in Canada, having gained (+0.7pp) of share in the last 12 months, while Imports in US takes 20% of share and gained (+0.8pp). As CGA’s recent analysis of the market indicates, the appetite for imports correlates with a trend of choosing quality over quantity in the On Premise, as well as the impression that this category offers excellent value for money.
4 Draft dominates in Canada
While draft beer has a 52% share of volume in the US, it is much higher in Canada at 70%. As draft is a more popular serve in Canada, this also comes with the wider range of draft serve options that are made available to consumers compared to US markets. Additionally, looking at CGA by NIQ’s On Premise User Survey (OPUS) across both countries, Canadians have a +11pp increase in preference for Beer served on Draft (41%) compared to US consumers (30%).
5 Gin and rum outperform in Canada
While the US spirits market is top heavy with the three largest segments of vodka, tequila and whiskey, other options command a bigger piece of the category in Canada. These include gin, which has a 14% share of total spirits volumes in Canada—much larger than the figure of 4% in the US. Another being rum, which also has a 14% share in Canada compared to 10% in the US. While rum’s volumes are falling it has been notably more resilient in Canada than the US, with respective volume declines of -2.1% and -11.9% over the last 12 months.
There are clear and distinct category performance differences across Canada and the US. Whilst it’s easy to use the US as a benchmark for performance in Canada, OPM highlights the need for Canada-specific market measurement to unlock market-level opportunities in the channel.
CGA by NIQ’s OPM solution delivers in-depth analysis of these and many more category trends in Canada’s On Premise. To learn more about the service, including opportunities for expert bespoke analysis by category, channel and much more, contact Mitch Stefani at mitch.x.stefani@nielseniq.com or visit https://cgastrategy.com/unlock-the-potential-of-opm.
