CGA’s On Premise Measurement (OPM) service reveals the scale of New Product Development in Ireland. A total of 433 new drinks products have been launched in the island of Ireland since the end of COVID-19 restrictions, with the LAD and spirits categories recording 43% and 40% of the launches respectively.
The wave of NPD is in response to Irish consumers’ thirst for new brands and flavours. While 72% of them say they typically opt for familiar brands, more than a quarter (28%) prefer to try new and interesting ones. Pubs, bars and restaurants are powerful channels for reaching these experimental drinkers, as over a quarter (29%) of all consumers say they are most likely to buy new products in the On Premise.
CGA’s data delivers valuable insights into the new drinks products launched in Ireland in recent years—including a strong demand for no and low alcohol drinks. One in ten (10%) new LAD products—and four of the five most successful of all launches—have been no and low brands. This reflects a growing interest in health and alcohol moderation, with one in seven (14%) consumers telling CGA’s REACH survey that it is more important to them than that their drink is healthy than it was a year ago. A third of Ireland’s On Premise consumers have now tried no or low alcohol alternatives.
Another major NPD trend is premiumisation. Six of the top ten new spirits are in the premium tier, which meets the needs of the 44% of consumers who say they are likely to pay more for a better quality drink.
Regional breakdowns show how Dublin is the heartland for brand launches, as the region accounts for half (50%) of new LAD products sales by value in the Republic. In Northern Ireland, Belfast accounts for 54% of NPD sales.
Other trends include a strengthening of the whiskey segment, which has provided the largest number of new spirits products in recent years. Meanwhile soft drinks account for 17% of new products, nearly a quarter of which are mixer brands—reflecting suppliers’ growing awareness of mixology and cocktail trends. With two thirds (67%) of consumers specifying a brand when they order a soft drink, clear visibility at the bar and messages around quality and value are vital if new launches are to gain traction.
CGA’s OPM solution highlights the many challenges suppliers face in embedding NPD in the On Premise and how to overcome them. The average new product gets stocked in only 81 outlets, though this has increased from 69 two years ago. Brands backed by large suppliers are much more likely to be widely stocked, and three new post-COVID products have achieved distribution of more than 2,000 outlets.
Katie Lawton, CGA by NIQ’s senior client manager, Ireland, said: “As drinks sales bounce back from COVID and the cost of living crisis, Ireland’s consumers are ready to try new products. The On Premise is the perfect place for suppliers to gain brand awareness, encourage trial and start building loyalty. However, NPD is a hyper-competitive environment, and consumers want to be certain they’ll get a high-quality and good-value drink before they buy. Success requires an expert knowledge of people’s purchase drivers, rival brands and the optimum channels, and our fusion of sales measurement and consumer research is the ideal basis for winning NPD strategies.”
CGA by NIQ’s OPM service and REACH research provide deep insights into market trends and consumers’ engagement across all On Premise channels, as well as expert analysis of categories, occasions and much more. To learn more about CGA’s solutions and opportunities for tailored analysis, contact Katie Lawton here.
