US OPM - CGA

Hard Seltzers, Tequila and Sparkling Wine set to continue their growth into 2022 in US On Premise

2022 is set to be a big year for the On Premise, as sales return to pre-COVID-19 levels and consumer confidence grows. Using OPM (On Premise Measurement) data, CGA reveals how much value the On Premise is creating to provide suppliers an insight into the channel’s increased potential for the next year.

As we approach the new year, Beer, Wine and Spirits look set to continue their growth as recovery continues. The three categories total US$76.8bn in sales over a 52-week period – with Beer holding a 40% share, Wine at 16% and Spirits dominating with a 44% share. Comparing the current quarter’s data to the same period last year using OPM demonstrates that growth rates are showing positive signs for 2022 with Beer growing at +120%, Wine at +134% and Spirits at +132%.

 

CGA’s OPM service is the only fully projected, extensively validated, measure of beverage alcohol performance in the American On Premise. Used to track share and trends by all the leading beverage suppliers, OPM is the most robust view of sales performance for bars and restaurants ever produced in the US.

 

Certain subcategories will continue to perform well into 2022 and beyond. The Hard Seltzers category has maintained its growth and is favored by consumers in outlet. While growth of the category is not reaching the same levels it experienced when it first exploded into the On Premise, in the latest quarter it still showed strong growth of +119%. With new brands continuing to join the category every week, the question remains if its On Premise performance will mirror that of the Off Premise in terms of saturation. Given the stocking space available in most On Premise outlets it is doubtful, but there is still potential for further innovation. With flavor and brand innovation continuing onwards the makeup of the category will likely continue to evolve.

 

Sparkling Wine is another category that was a standout performer pre-COVID-19 and has continued to make headway. Growing +136% on the latest quarter, this suggests that consumers are still engaging with the category for the celebratory and treat occasions that they visited the On Premise for pre-COVID-19. This will no doubt continue upwards through the festive season, and into 2022.

 

Tequila initially dipped in performance due to supply chain issues but is back to its strong performing ways. With the category growing at +133% on the latest quarter, it’s no surprise that the Margarita is the most popular cocktail in terms of velocity in the On Premise (CGA On Premise Cocktail Report, 2021). CGA’s sales data indicates that consumers will continue to develop their taste for this category and maintain a strong preference for Margaritas.

 

Across other Spirits categories, cocktails remain a huge opportunity. While consumers attempted to replicate their favorite mixed drinks during lockdown, they are now back in the On Premise looking to the experts for the perfect cocktail experience. While staffing has been a continued challenge over the past 18 months, suppliers should be looking to their advocacy programmes to ensure consumers’ expectations are being met for the On Premise cocktail experience during 2022.

 

Patrick Bannon, CGA Client Director, Americas, said: “2022 is an exciting year for the On Premise, and there is evidence to suggest we have returned to ‘normal’ in terms of levels and progressing beyond.

The next 12 months will be an exciting time to track in the On Premise as it evolves further and develops. As the channel will be ever changing, at CGA we will be using the likes of OPM, BeverageTrak and our other measurement services to monitor the opportunities that unfold over the next 12 months.”

 

To stay in the loop with On Premise consumer trends, download CGA’s latest On Premise Impact Report, which tracks consumer sentiment every month around topical issues such as fresh concerns around pandemic variants, intentions for specific events and shifting patterns of category engagement. The latest On Premise Impact Report by CGA, along with other special reports issued over the past several weeks, can be found here: https://cgastrategy.com/on-premise-impact-us/

 

Matt Crompton CGAFor further details on CGA’s On Premise Measurement solution, along with support in understanding trends at category, segment and brand level within the On Premise, contact Matthew Crompton at Matthew.Crompton@cgastrategy.com

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