14% of On Premise consumers have participated in high tempo drinking occasions over the past quarter. This trend is particularly popular among more than a quarter (28%) of Gen Z consumers, who are over-indexing in high tempo drinks by +14pp versus average On Premise drinkers.
While high tempo occasions are traditionally associated with late night revelry, they are now expanding to earlier dayparts. Three in five (61%) consumers are enjoying these experiences in the late evening (8pm -10pm), while more than are half (57%) are further extending the fun into early evening (5pm – 8pm), though a third (33%) still indulge late at night (10pm and beyond).
This notable shift is further reinforced among Millennials, who are known for their love of brunch. Accordingly, these younger On Premise visitors are over-indexing by +9pp for earlier dayparts, preferring high tempo drinks in the morning (before 11.00am) and mid-afternoon (2pm – 5pm).
The rise in high tempo occasions is accompanied by shifting venue and drinks preferences. Sports bars remain a favourite, particularly among Millennials (+8pp). Comparatively, Gen Z consumers are gravitating towards more experiential venues, such as rooftop bars and outdoor terraces, where they over-index by +10pp (47% versus the average consumer).
Notably, this evolution in dayparts and venue preferences comes together with an inviting opportunity for premiumization among drinks brands and suppliers. The data confirms almost a fifth (18%) of consumers have been purchasing more premium drinks compared to a year ago, while almost three quarters (71%) have maintained their drink choices. This trend is even more pronounced for consumers in the party spirit.
For these reasons, high tempo occasions present multiple windows for drinks brands and suppliers to encourage consumer trade-up to premium options. For instance, almost two thirds (62%) of consumers who went out for high tempo occasions in the past quarter ordered bottle service, with champagne being the most popular choice (60%), followed by vodka for more than half (54%) and whiskey for almost half (46%). These metrics confirm and amplify the growing thirst for quality, coupled with consumers’ increasing willingness to spend more on superior options.
Moreover, a third of beer drinkers and spirit drinkers (35% and 33% respectively) are ordering premium options on high tempo occasions, outpacing those who only order value brands. This shift emphasizes the importance of offering resonant premium experiences to supply to the evolving demands of high tempo consumers.
Matthew Crompton, Vice President – Americas, said: “The diversification of high tempo occasions across different dayparts and venue types presents both challenges and chances. So, it’s necessary for brands and suppliers to appreciate the complexities of high tempo consumers’ decision-making processes in order to capitalize. As a result, they can retain and grow their share by focusing on quality, atmosphere, and experience. But it remains key to offer value for money in a way that meets consumers’ heightened expectations, ensuring they choose to spend On Premise rather than taking the party elsewhere.”
Matthew Crompton, Vice President – Americas, said: “The diversification of high tempo occasions across different dayparts and venue types presents both challenges and chances. So, it’s necessary for brands and suppliers to appreciate the complexities of high tempo consumers’ decision-making processes in order to capitalize. As a result, they can retain and grow their share by focusing on quality, atmosphere, and experience. But it remains key to offer value for money in a way that meets consumers’ heightened expectations, ensuring they choose to spend On Premise rather than taking the party elsewhere.”
CGA’s On Premise Impact Reports help suppliers and manufacturers across food and beverage to keep a pulse on the industry, delivering expert and up-to-the-minute insights derived from a variety of our best-in-class data tools. Click here to learn more about subscription access.
In addition, our best-in-class OPUS research solution provides many more insights into consumers’ engagement and purchasing decisions across the US On Premise, delivering expert analysis of categories, channels, occasions and much more. To learn how the services help businesses craft winning strategies, and to explore opportunities for tailored analysis, get in touch with Matt Crompton, VP – Americas here.
