CGA’s latest On Premise Cocktail Report provides extensive check-level insights that reveal key trends in this valuable sector, complemented by data from its On Premise Measurement (OPM) service. This shows that cordials—a segment that includes a variety of sub-categories including cream liqueurs, aperitifs, digestifs and shot brands—increased their sales by 0.6% year-on-year in the 12 months to July—comparing favourably with other spirits like rum, cognac and brandy, where year-on-year sales have dropped by more than 5%.
CGA’s OPM solution provides extensive breakdowns of cordial sales, with insights to help all suppliers and venues optimise ranging and pricing strategies. It reveals that coffee is the fastest-growing flavour, with year-on-year sales up by 14.5%. Peppermint (+9.2%), herb (+5.2%) and cream (+5.2%) have the next biggest growth. Meanwhile, channel analysis shows cordial sales have been rising fastest in casual dining (+1.4%) and fine dining (+1.5%) restaurants, while sales through bars and nightclubs have fallen slightly.
Opportunities are particularly apparent in higher price tiers. Super-premium cordial sales by value have increased by 7.0% year-on-year, while the ultra category has risen 3.8%. By contrast, cordials in the value and mid–price tiers dropped by 7.0% and 1.3% respectively. CGA’s On Premise User Survey reinforces this trend, with 70% of cordial drinkers willing to pay more for a better quality drink—20 percentage points more than the average US consumer.
Matthew Compton, CGA by NIQ’s regional director – North America, said: “Sales of cordials have held up well in a challenging market this year, and strong growth for top-priced brands shows consumers are willing to spend freely on them if the quality is right. However, the cordial-based cocktail market is evolving fast, and we can expect more shifts between flavours and channels in 2024. As suppliers and venues develop their menus, pinpointing exactly where, when and why consumers enjoy these drinks is going to be crucial to success in an increasingly competitive part of the market.”
Matthew Compton
CGA’s Cocktail Report and OPM research provides much more analysis of sales patterns in cordials, cocktails and all other drinks categories in the US On Premise. To discover more about the solutions and the expert support that is available to help interpret trends at category, segment and brand level in the US On Premise, contact Matthew Crompton at matthew.crompton@nielseniq.com or visit https://cgastrategy.com/unlock-the-potential-of-opm.
Discover more about CGA’s OPM reports as part of their US Impact Report subscription, here.
