CGA’s Hospitality Market Monitor with AlixPartners indicates pubs account for 36% of all licensed premises in Britain, and after years of decline their number is starting to stabilise. But since they generate 52% of all On Premise sales (by volume), pubs are clearly an integral channel for suppliers and manufacturers to target for growth.
CGA’s Daily Drinks Tracker has shown how spirits sales have been down year-on-year throughout 2024—partly a result of consumers’ squeezed spending and their moves to seek more value in other categories.
It’s not just consumers feeling the pinch, cost challenges now result in the need for operators to review all parts of their cost base, including drinks. Add in the intense competition for space, and it’s essential for suppliers to create strong sales stories that show why their brands deserve to be at the bar.
PubTrack—an exclusive tool that combines CGA’s outlet data with consumer research to create actionable insights into guest sentiment—shows there is plenty of scope to engage more consumers via smart promotional, ranging and pricing strategies.
Here are just five takeaways to help businesses capitalise on pub opportunities:
1 High street pubs take share
High street pubs are increasingly important for the spirits category, having added +0.8 percentage points of volume share in the last 12 months—the highest share gain of any segment. Increases of share have been particularly sharp in white rum and gin, at +1.6 and +1.5 percentage points respectively.
2 A loyal core of consumers
Spirits consumers are above-average visitors to Britain’s pubs. According to CGA’s latest On Premise User Survey (OPUS), nearly half (47%) have visited a drink-led pub in the last three months—13 percentage points more than the average consumer. More than three in five (62%) of them have used a food-led pub, which is 5 percentage points above average.
3 The importance of influence
Spirits drinkers also tend to be more flexible and impulsive in their spending. Over a third (36%) of those visiting drink-led pubs—2 percentage points above the average—say they don’t know what they will drink before entering a venue, which opens up the chance to intervene on paths to purchase. Even more (42%) say they drink multiple categories in one visit—10 percentage points more than average and a sign they can be attracted to spirits even if they start out on other drinks.
4 Interest in experimentation
Pubs provide a lot of potential for spirits suppliers to promote new products and introduce creative serves. Nearly half (47%) of spirits consumers visiting drink-led pubs, and 40% of those using food-led ones, say they are likely to try new drinks flavours or varieties in those venues.
5 Premiumisation
The premiumisation trend has been at play in pubs for a long time now, but the appetite for trade-ups is as strong as ever. 44% of spirits consumers visiting both drink-led and food-led pubs agree they are likely to pay more for a better quality drink in these venues. But they want to know they will get full value for their spending, so the positioning and serve of premium portfolios is crucial.
Sophie Brown, CGA by NIQ’s senior client manager, said: “Britain’s pub sector is a rich source of sales for spirits manufacturers and suppliers, but the formula for success in the channel is evolving fast. It’s vital to appreciate the changes in demographics, occasions, category choices, paths to purchase and more, and our PubTrack solution provides the suite of in-depth insights businesses need to build sales stories, win listings and gain share. In a demanding and competitive landscape, it’s the perfect starting point for brands to demonstrate why they deserve to be stocked by pubs, and why consumers should choose them.”
Sophie Brown, CGA by NIQ’s senior client manager, said: “Britain’s pub sector is a rich source of sales for spirits manufacturers and suppliers, but the formula for success in the channel is evolving fast. It’s vital to appreciate the changes in demographics, occasions, category choices, paths to purchase and more, and our PubTrack solution provides the suite of in-depth insights businesses need to build sales stories, win listings and gain share. In a demanding and competitive landscape, it’s the perfect starting point for brands to demonstrate why they deserve to be stocked by pubs, and why consumers should choose them.”
Powered by CGA’s Outlet Index and an online survey of 10,000 active pub consumers, PubTrack is a unique and flexible solution delivering expert analysis of Britain’s entire pub landscape. It helps suppliers understand key pub behaviours and sales drivers and analyse their consumers and competitors. To discover more, click here and contact the CGA experts.
