1 The On Premise is the launchpad for drinks brands
Bars and restaurants continue to be pivotal to life in Canada, and they are the places where consumers discover new drinks. Nearly half (47%)—and three quarters (74%) of Gen Z—say they prefer to have different drinks in the On Premise than at home, and 64% say they are likely to buy a drink to have at home if they’ve enjoyed it while out. The On Premise is where drinking habits are formed and loyalty begins.
2 Check values up but ticket counts down
CGA by NIQ’s BeverageTrak shows trading in 2024 has very closely followed the patterns of 2023. However, while check values are up by 3% year-on-year, ticket counts have dropped by 4%—a sign that some consumers have reduced the frequency of their eating and drinking out amid pressure on their spending. This, combatted with a shift towards spending more per visit.
3 Beer and spirits sales just ahead of last year
It is a similar story in the beer and spirits categories, where sales by value are up year-on-year by 4.8% and 3.5% respectively. However, volumes are down by 2.2% and 3.3%. CGA’s OPM also shows how sales have varied across the different regions of Canada—including volume for growth for beer in Alberta and gains for spirits in Quebec.
4 Whiskey and tequila take share from gin and vodka
A breakdown of the spirits category reveals that vodka and gin have both lost share in 2024, while other segments including whiskey, tequila and rum have increased their slice of sales. American whiskey has bucked the trend with volume growth within the Whiskey category, while tequila has performed particularly well in Quebec.
5 Imports and draft gain share in beer
CGA’s analysis indicates that domestic brands account for 42% of all beer volumes in Canada’s On Premise. However, the import and below-premium segments are the only ones in year-on-year growth in volume terms. Other patterns in the beer category include small gains for draft over packaged formats.
6 Consumers are seeking new experiences
While some Canadian consumers are sticking to tried-and-trusted venues and drinks, others are eager to try new things. Many turn to social media to both discover fresh experiences and recommend them to others, which makes it vital to develop brand strategies that target consumers pre-visit. Online menus are especially important, as nearly a third (31%) say they check a venue’s drinks menu before every or almost every visit.
7 Food-led occasions drive visits
Only 24% of consumers say they are spending more on drinks than they were ago, but 35% are doing so on food. Average spend on food now surpasses drink by 42%. For drinks suppliers, this makes it essential to develop strategies for with-food purchases.
8 Consumers drinking less, but drinking better
The cost of living crisis has fuelled the polarization of the drinks market in recent years. Nearly two in five (39%) consumers say they are willing to pay extra for a better quality drink, with the same amount also expressing that it’s important to them than a year ago that their drink is good value. But the general trend is for drinking fewer but better drinks: asked about their plans with a fixed amount of money, two thirds (66%) would spend it on one or two high quality drinks while only 35% would buy three or four lower quality ones.
9 People want fresh and fun drinks
Asked about their preferred qualities in drinks, 35% of Canadians selected ‘fresh’—4 percentage points more than the global average. They also over-index for ‘fun’, while qualities like ‘reliable’ and ‘authentic’ are important too. Interest in fun drinks is especially apparent in cocktails, where visual appeal is a powerful sales driver.
10 Bartender engagement can unlock sales
CGA by NIQ’s Global Bartender Report highlights the major influence of venue staff over consumers’ purchasing decision. Nine in ten (90%) of Canada’s bartenders say they recommend drinks to guests every shift—and 96% of them say guests order that drink every time or most times. This makes it crucial to build good relationships with teams, especially through training and knowledge-building. It has a clear impact on sales, as 89% of bartenders agree they’re more likely to recommend brands that they have learnt about in training.
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CGA by NIQ’s unrivalled suite of sales and consumer research sources delivers the in-depth and up-to-the-minute insights that businesses need to win sales and share in Canada’s On Premise. To discover more, contact CGA’s expert team.
