CGA’s On Premise Measurement (OPM) solution indicates that lager is stocked in more outlets on the island than any other LAD category, but it has seen interest drift away to other options in 2024. Its share of sales by value over the last quarter in ROI is 1.3 percentage points down on the same period in 2023—losing out to stout, which has added 3.0 percentage points. Stout gained 2.0 percentage points in Northern Ireland during the same period.
While three quarters (74%) of beer drinkers told CGA’s On Premise User Survey (OPUS) that they drink lager, high levels of competition have made it tough for many brands to get a foothold in Ireland’s pubs, bars and restaurants. Sales are at risk of falling further unless suppliers can adapt to the changing demands of consumers and venues, and craft compelling reasons to choose lager.
Sustaining sales needs to begin with an expert understanding of the types of lager that drinkers are choosing, as well as where and why. The OPM service has highlighted a growing preference for world lager, which now provides 4 of the 10 fastest-growing brands in Ireland. With consumers still facing rising costs and looking for value for money, standard brands have gained share at the expense of premium ones. They also prefer the draught serves that are unique to the On Premise and which account for 8 of the top 10 lager brands of the last quarter—against only 2 for packaged products.
Suppliers need to target the right channels to avoid losing sales. Bars and pubs remain the heartlands for lager, with bars enjoying a higher rate of sale for lager and gaining share of LAD in the last quarter—rising by 0.2 and 1.5 percentage points in the Republic and Northern Ireland respectively. But bigger growth has been found in restaurants, which have added 1.6 percentage points to share of lager (ROI) year-on-year.
This partly reflects consumers’ moves towards earlier dayparts and relaxed occasions, so with-food strategies—like menu recommendations and pairings—will be vital to securing restaurant sales. Some people are meanwhile moving their lager drinking from suburbs and towns towards the big cities, and Belfast, Cork and Dublin have all secured above-average rate of sale in lager in the last quarter.
The most popular factor in lager drinkers’ choices is the availability of a favourite brand, which presents a barrier to growing share. But OPUS shows there are many more levers for suppliers to pull—like the quality of a product, offers and recommendations from bar staff, menus and friends. Lager drinkers also value the consistency and reliability of a serve and qualities including freshness and uniqueness, making them key buzzwords for promotional activity.
Darren Bradley, CGA by NIQ’s senior client manager, Ireland, said: “Lager is a dynamic category with big rewards in Ireland’s On Premise, but competition for consumers’ spend is now higher than ever, and there’s a real risk of missing sales. Responding to the trends of different channels, locations and occasions is crucial, and with so much interest in both value for money and quality, finding the right balance between pricing and high standards will be particularly important. Challenges are likely to continue, but investment in an expert knowledge of what consumers want in this complex category can help unlock some exciting opportunities in the months ahead.”
Darren Bradley, CGA by NIQ’s senior client manager, Ireland, said: “Lager is a dynamic category with big rewards in Ireland’s On Premise, but competition for consumers’ spend is now higher than ever, and there’s a real risk of missing sales. Responding to the trends of different channels, locations and occasions is crucial, and with so much interest in both value for money and quality, finding the right balance between pricing and high standards will be particularly important. Challenges are likely to continue, but investment in an expert knowledge of what consumers want in this complex category can help unlock some exciting opportunities in the months ahead.”
CGA by NIQ’s OPM, OPUS and other solutions provide many more insights into consumers’ engagement with lager and purchasing decisions across all On Premise channels, plus analysis of sub-categories, occasions and much more. To learn how the services deliver in-depth insights into consumer behaviour, and to explore opportunities for analysis tailored to the needs of brand portfolios, contact Darren Bradley.
