The On Premise is such a big part of South Africa’s culture and way of being. Spending time outdoors and with friends and family is what drives this high visitation frequency. It’s a similar figure to other regions like Latin America or the Mediterranean, where going out is also part of day-to-day life—but it’s pretty high by comparison to northern Europe.
For bars and restaurants, it’s essential to deliver consistently good experiences to justify consumers’ ongoing spending. South Africa has a differentiated On Premise, with plenty of opportunities in different types of outlets and occasions, but venues need to meet people’s expectations.
Experiences start with the quality of a drink. It sounds obvious but it’s not always delivered well, especially in cocktails. A good cocktail or mixer will get people coming back, but a bad one can keep them away for a long time. However, bar experiences go well beyond that, and things like music, bartenders and waiters are all important as well. Many South Africans have been challenged financially lately, and they want their investments in special occasions to really count.
We’re seeing increasing consumption of higher quality wines and Champagne. South Africa’s got a very democratised wine market now, and people can enjoy some fantastic wines across the On Premise. It’s part of a trend we’re seeing around the world of people buying fewer but better drinks when they go out. They want to get the best possible quality for their occasion and spend.
Younger generations are driving the growth of the bar scene, and issues like sustainability and ethical production are very important to them. People are becoming more aware of the climate challenges we are facing and the need to corporations to act. Our research also shows younger drinkers are turning to Flavoured Alcoholic Beverages (FABs), which give them a very consistent quality, regardless of where they are bought. They’re also very convenient—easy to store and deliver in many different venues, including festivals and outdoor events.
CGA by NIQ’s On Premise User Survey provides deep dives into numerous drinks categories, channels and occasions in South Africa’s On Premise, with actionable insights to support winning brand strategies. It is part of a suite of solutions that combines with outlet and sales data to deliver unrivalled coverage of the market.
To learn more about how CGA’s research solutions support winning On Premise activity, click here or contact George Argyropoulos here.
