CGA’s OPM (On Premise Measurement) data for Ireland in the 6 months to June 2022 vs 3 years ago reveals that more consumers are opting for serves they can’t recreate at home, and city centres are showing promising signs of recovery.
The On Premise is showing signs of premiumisation
93% of On Premise outlets returned to being fully operational, though 7% were lost as a result of the lasting impacts of COVID-19. Long alcoholic drinks (LAD) volumes returned to 84%, with outlets failing to return to 2019 levels. But there were higher value sales of 89%, as the market showed signs of premiumisation, and prices increased by +6.2%. Spirits were slower to return volumes, settling at 72%, though 75% value also reflected signs of premiumisation.
Consumers are choosing serves they couldn’t recreate at home
From a segment perspective, consumers continued to revisit the segments that were most heavily impacted by operating restrictions. As a result, wet-led venues continued to push ahead, with Spirits leading the way. These revitalised segments grew in share by +2.1pp vs 2019, accounting for 78% of the Irish Spirits market. LADs enjoyed a more stable market vs 3 years ago but, as with Spirits, pubs saw the biggest growth within LAD (+0.6pp).
City centres recovered well – for Spirits rather than LAD
Regionally, Cork and Dublin gained a greater share of the Spirits sales mix (+1.3pp and +3.8pp respectively), with consumers returning to city centre areas. At the opposite end of the scale, Leinster saw the biggest decline vs 2019 in Spirits, down by -3.8pp. Again, the LAD market remained more stable, with the biggest win in Connaught and Ulster, up by +1.2pp vs 3 years ago, compared to the biggest decline in Cork, (-0.8pp).
Stout is a top performer
With consumers craving those serves that couldn’t be replicated at home during lockdowns, Stout continued to dominate within LAD, growing in share by +3.9pp vs 2019. The appetite for an authentic On Premise serve was further evidenced, with draught continuing to gain from the packaged format. As a result, draught LAD share was up +3.1pp, whilst packaged lager was down -2.1pp and ale was down -1.5pp.
Cocktails drive the growth of Vodka
Vodka continued to lead in Spirits. Driven by the return of On Premise drinking and the popularity of cocktails, it accounted for 27.9% of the Spirits category, up by +1.8pp versus 3 years ago. In addition, Liqueurs and Specialities was the second largest growth category, up by +1.4pp vs 2019, as consumers increasingly opted for cocktails. Demographically, the slower return of older consumers may have caused Whiskey to be the most significant loser in Spirits, declining by -1.9pp. Gin also lost -0.6pp share.
Sian Brennan, client director – Ireland said: “It felt like the sector was just starting to find its feet again after COVID-19, when the cost-of-living crisis started to loom large. Despite more market turbulence, wet-led sales held their own for the first part of 2022, with an appetite for higher value products presenting an opportunity for sales growth in premium categories. And, the fact that Stout and draft were big winners is encouraging – it’s acknowledgement from the consumer that there’s no substitute for a real pint pulled in a pub.”
Sian Brennan, client director – Ireland said: “It felt like the sector was just starting to find its feet again after COVID-19, when the cost-of-living crisis started to loom large. Despite more market turbulence, wet-led sales held their own for the first part of 2022, with an appetite for higher value products presenting an opportunity for sales growth in premium categories. And, the fact that Stout and draft were big winners is encouraging – it’s acknowledgement from the consumer that there’s no substitute for a real pint pulled in a pub.”
CGA by NielsenIQ’s OPM (On Premise Measurement) solution’s best-in-class data gives pubs, bars, restaurants and drinks suppliers statistically robust analytics around On Premise trends at a national and local level. To learn how the market-leading data and expert analysis can track volume and value, and identify growth opportunities, contact Sian Brennan, client director – Ireland at sian.brennan@cgastrategy.com
