The days of spirits reigning supreme after 8.00pm are being upended by consumers shifting their drinking habits earlier in the day. And it’s beer, wine, and Prosecco leading the charge during lunch and mid-afternoon, leaving spirits playing catch-up.
It’s vital to turn the tide before it ebbs further. And this calls for thinking and acting differently in alignment with the consumers who make or break drinks brands and categories.
Understand the challenges and opportunities of changing occasionality
So, here’s where we are. Spirits are synonymous with late evening drinking, with almost two thirds (64%) of consumers enjoying them after dark. Yet their limited appeal earlier in the day has left a gap competitors have been quick to fill.
As we can see, the data paints a stark picture of the challenges spirits face during earlier dayparts:
- Lunch (12.00–2.00pm) – Spirits make up just 7% of consumption – a far cry from Prosecco’s 22%.
- Mid-Afternoon (2.00–5.00pm) – Spirits fare slightly better at 15%. But again, Prosecco (29%) and beer (33%) dominate.
- Early Evening (5.00–8.00 pm) – Spirits gain more traction at 44%, but still trail behind Prosecco, wine, and beer, which hover around 60% each respectively.
The message is plain. If spirits are going to recapture consumers’ hearts (and pounds), they need to break free from their late-night pigeonhole and tap into the opportunities earlier dayparts offer.
Revise serve strategies for different occasions
Spirits need to take cues from other successful categories and innovate serve strategies to drive earlier consumption.
Take cocktails. They’ve already proven effective in shifting spirits into the early evening, with more than two thirds (69%) of cocktail consumption occurring during this time slot in Q1 2024, (up from 66% in Q1 2023). But the challenge lies in bringing spirits even earlier in the day to lunchtime and mid-afternoon occasions.
For this purpose, spirits must fight for their place in these under-indexed moments by driving serve strategies tailored to emerging occasions.
The Rise of the Spritz
Spritz serves are having a moment, and for good reason. They’re refreshing, versatile, and tick the boxes for consumers seeking something lighter and more affordable during daytime occasions.
Consider these numbers:
- Lunch – Prosecco captures 22% of lunchtime drinking occasions, far surpassing spirits (7%).
- Mid-Afternoon – 29% of consumers choose Prosecco, while spirits lag way behind at 15%.
This demonstrates a clear window for spirits to start closing the gap and become a viable choice earlier in the day by leaning into serves like Gin Spritz, Vodka Spritz, and Aperol Spritz.
Nearly one in three consumers already find Gin Spritz appealing, and Vodka Spritz isn’t far behind.
But beyond preference, price point is a piece de resistance, with the average cost of a Spritz nearly £1 cheaper compared to a double spirit and mixer. This small yet mighty difference could be the nudge spirits need to become part of the daytime drinking repertoire of consumers mindful of value for money.
Additionally, more than three quarters of cocktail drinkers report regularly choosing a Spritz, drawn by factors such as price, lighter options, and promotions. This demonstrates the potential for Spritz to entice consumers away from beer, wine, or Prosecco by leveraging the following factors:
- Competitive Pricing – A compelling alternative to more expensive spirit-based options.
- Sessionable Serves – A lighter option for midday or mid-afternoon occasions.
- Volume Appeal – The right balance of drink size and price, countering perceptions of poor value in traditional spirit and mixer serves.
Expand the serve portfolio
Correspondingly, spirits brands must develop and promote a portfolio of serves catering to diverse consumer needs during earlier dayparts. For example:
- Lunchtime and Mid-Afternoon Innovation – Introduce lighter, lower-ABV options like Gin or Vodka Spritzes for these occasions.
- Consumer Education – Enlighten customers on the versatility of spirits across dayparts, showcasing how serves like Spritz can enhance the dining or casual drinking experience.
- Promotional Strategies – Optimise price promotions and bundle offers to make Spritz serves more accessible and enticing.
- Sharing Options – Explore innovative formats, like sharing vessels, to encourage group consumption during emerging occasions.
Avoid cannibalisation
The opportunities Spritz presents are compelling. But there’s a potential sting in the tail – the risk of cannibalising existing cocktail sales.
Instead, the focus should be on winning back share from beer, wine, and Prosecco by positioning Spritz as an entry point into the spirits category. And to do so, spirits brands must gain a 360 understanding, equipping themselves to clearly demonstrate the value to the On Premise of investing in different spirit serves during earlier dayparts, such as:
- Consumer Shifts – Identifying who’s leaving the spirits category and why.
- Target Audiences – Tailoring serve strategies to win back these consumers.
- Occasional Trends – Aligning serves with the needs of emerging occasions.
- Venue Buy In – Supporting venue staff with tools to confidently promote Spritz serves and other innovations, showcasing the role of serves across dayparts and highlighting the revenue potential of new occasions.
- Promotional Partnerships – Collaborating on events, offers, and campaigns to spotlight spirits as a versatile choice.
A flexible future
Spirits have always been a category of innovation and adaptability. And right now is no time to just sit back and roll with the punches.
Because spirits can reclaim their relevance and secure a brighter future by flexing with the changing dynamics of occasionality and doubling down on serve strategies to suit.
The Spritz might not be the ultimate saviour of spirits. But it’s a powerful tool in the broader effort towards category adaption, evolution, and future fitness. Similarly, success doesn’t lie in replacing the late-night cocktail, but complementing it with options that work just as well at 3.00pm as they do at 9.00pm.
CGA by NIQ provides a best-in-class suite of research to help On Premise brand owners understand their sales performance across dayparts and support to optimise serve and portfolio strategy aligned to evolving consumer needs.
Contact Rachel Weller, CGA by NIQ commercial leader – GB and Ireland here to discuss solutions.