OPUS holds the keys to growth in South Africa’s cocktail market

With the cocktail market continuing to flourish in South Africa’s On Premise, new research from CGA by NIQ reveals how suppliers can meet consumers’ needs and win their spend.
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The exclusive On Premise User Survey shows how South Africa’s pubs, bars and restaurants remain a big part of consumers’ lives despite the ongoing effects of the cost-of-living crisis. Nearly nine in ten (87%) On Premise users say they go out to eat or drink at least once a month, and half (49%) go weekly. 

 

With nearly half (47%) of these regular visitors drinking cocktails, there is major potential for spirits suppliers and venues across the category—and it is set for more growth. Three in five (60%) cocktail consumers are now drinking them every or almost every time they visit the On Premise, and 42% are buying them more frequently than they were a year ago. 

 

OPUS pinpoints the demographics of cocktail consumers to help businesses target the right people. Nearly three quarters (71%) are aged 34 or under—9 percentage points more than the population as a whole—and 75% are female. These consumers also earn more than the average South African and go out more often. 

 

Well over a third (38%) of cocktail consumers drink Mojitos, making it the most popular type ahead of the Daiquiri (25%), Margarita (25%), Pina Colada (24%) and Mimosa (23%). But while 38% say they prefer classic cocktails, there is a growing interest in alternatives as well, with half preferring either signature serves (21%), modern cocktails (15%) or classic cocktails with a twist (14%).  

 

CGA’s OPUS solution delivers more valuable insights into cocktail consumers’ preferences, including:  

 

  • Just over a third of cocktail consumers typically choose berry-based (35%) or refreshing (36%) cocktails, making them the two most popular tastes 
  • Cocktail consumers are willing to pay more for good quality, and will spend an average of R116 for a cocktail while out 
  • Early and late evenings are the two biggest dayparts for cocktail consumption, making them prime times to push in-venue activations and promotions. 

 

CGA’s research also explores consumers’ purchasing decisions and what suppliers can do to influence them. Standing brands out on menus is crucial, as half (51%) of drinkers use these to decide what to drink. Recommendations from bar staff influence 31% of consumers, so it’s also vital to build relationships with teams. A venue’s atmosphere (26%) and deals and promotions (24%) are among other top factors.  

 

 

CGA by NIQ Client Solutions Manager EMEA, Abhi Sehgal said: Cocktails are one of South Africa’s most vibrant On Premise categories, and with so many consumers increasing their purchases there is great headroom for growth in the months ahead. Education and innovation are key to unlocking sales, so suppliers that can help people learn more about their options, and impress them with exciting twists or serves, are well placed to secure trials and trade-ups. Working closely with venues and earning the endorsements of their bartenders is also powerful. To seize all the opportunities, businesses must know exactly what consumers want, and our OPUS service provides the exceptional insights to drive growth.”

 

Accessible via a package of core outputs and custom projects, and a proprietary self-serve platform, OPUS is the single source of understanding what consumers are doing in the On Premise and why. To learn more about CGA’s consumer research across South Africa, download more information here, or contact Abhi Sehgal here 

 

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