The big picture in spirits
CGA’s exclusive On Premise Measurement service shows spirits volumes in bars and restaurants nationally dropped by -1.9% in 2024. However, a mix of both increase in prices, and consumers choosing quality products over quantity in consumption, has contributed to a growth in total dollar sales generated by +5% year on year. The spirits category’s 2024 performance also compares favourably with beer, where volumes fell by -3.0%.
The drop in spirits is being largely driven by whiskey (-3.7%) and Vodka (-1.5%) which between them account for 39% of all spirits volumes nationally. Tequila, which attracts 15.3% of volumes, was the only spirit in volume growth at +1.1%.
Province and price
Canada’s trends are in line with other markets around the world. However, there are important differences in patterns in the country’s key provinces—and understanding the nuances is vital to suppliers’ strategies where regionality plays a vital role to targeting strategy growth opportunities for suppliers.
For example, spirits volumes were most resilient in 2024 in Alberta (-0.9%) and Quebec (+0.4%). Other major provinces like Ontario and British Columbia saw losses at a slightly larger clip, at -3.8% and -1.9% respectively.
There are some significant variations in pricing as well. Increases have been highest in both Quebec and British Columbia, with the average price of a spirit serve rising by +11.4% and +9.3% respectively, over the course of 2024. The price rises could be leading some consumers to choose quality over quantity when they go out, and price increases have been more restrained in other major provinces, like Ontario (+3.2%) and Alberta (+5.3%).
Spirits consumption in eating vs drink-led venues
CGA by NIQ’s On Premise Measurement (OPM) solution analyzes category and brand sales across eating and drinking segments to understand venue dynamics. The data shows that total spirit volumes in 2024 decreased slightly less in eating venues (-1.7%) compared to drinking venues (-2.7%). This indicates that food-led visits remain significant as consumers look for effective ways to spend in the On Premise.
CGA’s March Consumer Pulse Report showed that 76% of consumers had gone out to eat in the past month, while 42% had gone out for a drink. This trend, combined with steady ticket counts tracked weekly, highlights the ongoing importance of food-led visits.
Recent data also highlights the growing trend of moderation in consumer lifestyles, which may explain the slight decline in volumes in drinking venues. While consumers are becoming more mindful about moderation, there is still a demand for alcohol consumption. For example, 52% of Dry January participants chose to drink a mix of non-alcoholic and alcoholic beverages in one visit, indicating that moderation is becoming a key aspect of their drinking habits.
Cocktails and the premium opportunity
Premiumization continues to be a relevant trend in the On Premise, especially pertaining to the Spirits category. Around a fifth (19%) of consumers who visited the On Premise in the past month drank cocktails during their visit, and nearly nine in ten (86%) of them were satisfied by the quality of serve they received—suggesting that while cocktails might be more expensive than other choices, consumers are happy with the quality. Even more (87%) were satisfied by how exciting their cocktail was—a much higher number than for categories like beer (75%) and table wine (71%).
Cocktails resonate in particular with the LDA-to-34-year-old age group, who tend to visit bars and restaurants most frequently. This cohort is increasingly prioritising the quality over quantity in their drink choices, making them a good target for premiumisation strategies—especially if they can stress that cocktails can deliver excitement. In fact, almost half (49%) of LDA-34’s have paid extra to trade up to a larger serve size cocktail in the past 3 months, +10pp above the average consumer, this further showing the interest this age group have in cocktails.
Menus are one of the best ways to communicate these messages. Classic cocktails remain staples on menus, and well over half (57%) of consumers say they typically choose them. However, sizeable numbers are now seeking flavour twists on classics (35%) or signature serves (30%). Working with venues to deliver distinct menus can be a very effective way to improve brand presence.
Mitch Stefani, client solutions director – Americas at CGA by NIQ, said: “Spirits volumes remain under strain in the On Premise channel, but we still see pockets of growth. Unlocking these through strategic, data-driven execution in unison with operators can build greater awareness of products with consumers, with the goal of creating the best experience possible. Being a part of consumers positive experiences in the On Premise will not only create connections to specific brands and products but help with bringing consumers back to the On Premise while also influencing drink purchasing at retail locations.
The enduring value of the On Premise
All of the opportunities in areas of spirits like cocktails, premiumisation, food-led outlets and tequila emphasise how Canada’s On Premise remains as important as ever to manufacturers and suppliers. It’s the place where big category trends start to emerge, and where brands can drive trial and build loyalty. What’s more, consumers who have a good experience with spirits in pubs, bars and restaurants are very likely to buy them in retail outlets too. In a competitive market, the On Premise should be a focal point for all suppliers seeking to grow sales and share.
CGA by NIQ’s OPM service delivers unrivalled insights into sales across Canada’s On Premise, with extensive breakdowns available by channel, region, category and more. Click here to learn more about the solution and how it supports winning strategies for suppliers and operators. It is complemented by consumer research that delivers expert analysis of people’s latest habits and preferences in Canada’s bars, restaurants and other venues. Contact the CGA team for more information.
