CGA’s On Premise Measurement (OPM) service shows Canada’s total beer and spirits volumes in the last 12 months are down by -2.2% and -3.3% respectively year-on-year. However, there are growth hotspots in both categories, presenting suppliers, manufacturers and venues with opportunities amid the challenges.
For example, OPM shows Alberta is bucking the national trend with year-on-year beer volume growth of +1.2%. This has been driven by domestic brands, which account for 49% of all beer volumes in Alberta, and which have risen +3.9%. Growth has been even faster in the imported beer segment at 5.9%—the highest of any Canadian province, although imports in Alberta still have the smallest proportion of total sales compared to all other major provinces.
While Alberta is performing best for beer sales, Quebec is ahead in spirits. OPM indicates that volumes are up by +0.4% year-on-year, and it’s the only province with three spirits—vodka, whiskey and tequila—in growth. Vodka (up +2.4%) has been notably strong, and it now attracts 20% of all spirits volumes in Quebec.
CGA’s On Premise User Survey (OPUS) compliments the landscape of Beer and Spirits sales performance across Alberta and Quebec, looking into these residents respective behaviours in the On Premise. Findings here include that Alberta residents have a sharper than average focus on value, with 41% buying value beer products in the last six months—more than any other province. Less than a third (31%) say they are likely to pay extra for better quality beer, the lowest of all other major provinces.
In Quebec, OPUS points to strong interest in cocktails, with 26% of those between Legal Drinking Age and 34 consuming them, compared to a national average of 21%. Young Quebec residents are 9 and 7 percentage points more likely to buy vodka and tequila respectively, but gin remains the top choice of cocktail spirit overall—a sign of the significant differences in tastes between age groups.
OPM casts light on the previous dark spaces of information available for the On Premise channel in Canada, particularly Alberta and Quebec. This helps suppliers and operators understand what is being sold out of bars and restaurants—a much more valuable source of intelligence than fragmented tracking of shipments and depletions. It delivers consistent reporting across all major provinces to provide a national view of share and trend for brands and categories, to create a true understanding of what consumers are buying in bars and restaurants.
Mitch Stefani, CGA by NIQ’s client solutions director – Canada, said: “While the spirits category has been challenging this year, there are still opportunities for growth across specific channel segments and provinces.
Contrasting patterns in Alberta and Quebec show that a one-size-fits-all strategy won’t work in a country as diverse as Canada, and what succeeds in one region may not align with the trends and needs in others. Our OPM and OPUS solutions deliver the foundation of region-level data that drinks suppliers and brand owners need to understand local nuances and achieve growth across Canada’s On Premise.”
Mitch Stefani, CGA by NIQ’s client solutions director – Canada, said: “While the spirits category has been challenging this year, there are still opportunities for growth across specific channel segments and provinces.
To learn more about CGA by NIQ’s solution and how it can help businesses measure the performance of brand portfolios in all Canadian provinces, click here and contact CGA’s expert team.
