The exclusive ‘Does it pass the pub test?’ webinar delivered the latest data from CGA’s in-depth survey of pub-goers’ preferences, covering paths to purchase, category trends, the roles of technology and bartenders and much more. The insights from Tom Graham, NIQ’s BevAl Industry Insights Lead, were bolstered with expert views from Ryan Kimball, beverage category manager for range at the ALH Group.
Tom Graham called the pub channel “the Swiss army knife” of the On Premise, because it appeals to such a wide variety of demographics. More than two in five (43%) Australian consumers typically visit it in a three-month period—rising to around half (49%) of 18 to 34 year-olds—and they cater for a huge range of occasions and need states. So what can drinks suppliers do to build strong partnerships with venues and grow their sales and share? Here are seven top takeaways from the webinar.
1. Value and quality are essential
CGA’s On Premise User Survey (OPUS) in Australia shows value for money and quality of food are among the top three factors in pub choices for 46% and 44% of guests respectively. There are some interesting nuances in preferences: for example, 18 to 34 year-olds over-index for the availability of new drinks, while 35 to 54 year-olds are more likely to focus on quality of service.
2. Experience is key
Experiential On Premise elements are more and more important around the world, and Australian pubs are no exception. There’s an increasing focus on events and special occasions, which now attract 39% of all On Premise occasions—up by 4 percentage points year-on-year. Suppliers who can support venues with occasions like live sport and music or themed events have great opportunities to promote their brands. “Suppliers are a key part of bringing these things to life,” said Ryan Kimball. “Being able to move with agility and mobilise quickly are huge drivers of success.” But they need to understand exactly where their brands fit. “Live music isn’t a one-size-fits-all space… Just having a product on offer isn’t enough—it needs to add value to the whole occasion.”
3. Paths to purchase vary
OPUS shows physical menus are the most important influence on decision-making for all types of pub-goers. “They’re the anchor points for ordering,” said Tom Graham. But beyond menus, paths to purchases vary substantially from occasion to occasion and category to category. For example, specials boards are important to wine drinkers and tap handles influence beer consumers. For venues, the challenge is to ensure that all the different influences come together in coherent messaging that provides consumers with solutions at every touchpoint. “It’s about offering flexibility and choice for different kinds of occasions,” said Ryan Kimball.
4. Bartenders are pivotal
Bartenders can also have a big influence on consumers’ spending. Around one in seven (14%) pub-goers are influenced by staff recommendations, and while this is lower than in other channels like formal dining and hotels, there are some powerful opportunities for encouraging trial and trade-ups. High quality bartender training is vital, and suppliers have a role to play in supporting it. There are many more insights into driving recommendations and training in CGA’s Global Bartender Report.
5. Digital ordering is expected
While buying at the bar remains by far the most popular option, OPUS shows 13% of pub-goers now prefer to order digitally. This figure has climbed by 3 percentage points year-on-year, and it rises to 21% among Gen Z. While it doesn’t suit everyone, it has to be an option in pubs now. “It’s a hygiene factor—making sure that you’re not dropping the ball when it comes to what people expect,” Kimball said.
6. Loyalty schemes add value
Nearly half (48%) of Australian consumers are signed up to at least one On Premise loyalty scheme, and these can improve guests’ experiences and satisfaction levels. However, it’s vital to give participants a range of value-add benefits and an easy, frictionless experience when they use app-based programmes. They can also provide operators with valuable guest data.
7. Tap-lines are evolving
CGA’s research in Australia shows that although beer continues to dominate pub counters, there is growing interest in other tap-delivered drinks. Consumers now expect an average of 39% of taps to be for non-beer products, and brand-driven and convenience-driven taps like pre-batched cocktails are increasingly prominent. “There’s definitely demand for more non-beer options on tap,” said Ryan Kimball. “It’s about making tap-lines more inclusive,” added Tom Graham. Overcoming barriers to tap adoption, like unfamiliarity and limited options, can help suppliers and venues to grow these draught sales in the future.
Click here to watch a full replay of the webinar.
CGA by NIQ provides deep insights into consumers’ engagement with pubs in Australia, with expert analysis of occasions, categories, sales drivers and much more. The upcoming OPUS survey will explore key On Premise trends and topics, to learn about the survey, and other solutions and opportunities for bespoke analysis, contact the CGA team.
