1 On Premise consumers prefer premium
Two thirds (66%) of global consumers told CGA’s 2024 REACH survey that they prefer to buy high quality drinks over cheaper ones, and more than half (55%) are willing to pay extra for a better quality drink.
2 The On Premise is where premium brands are built
Pubs, bars and restaurants are essential targets for the owners of premium drinks brands. In five key markets measured by CGA—the UK, US, Germany, France and Canada—61% of all spending on alcoholic beverages takes place in the On Premise, and it has a 67% share of spirits sales.
3 Earlier visits impact premium spirits
A significant shift in consumers’ On Premise engagement has been a drift towards earlier dayparts. A quarter (24%) of premium consumers say they are going out earlier than they were a year ago, while just 9% are going out later. This has created challenges for the premium spirits segment, which is usually associated with later drinking. However, suppliers that can adapt their brand positioning to suit earlier need states can still achieve growth.
4 Affordability is in sharp focus
Rising costs have led some consumers to move from high-quality premium to medium-quality drinks. In Britain, CGA’s On Premise Measurement solution has shown a 13% year-on-year drop in volumes of premium spirits—steeper than the 9% dip in standard spirits.
5 Brand values matter
People are increasingly aware of the ethics of brands they buy. Three quarters (74%) of premium consumers say it’s important that the products they choose align with their personal morals—9 percentage points more than the average consumer.
6 Millennials and Europe are growth targets
REACH shows millennials are the only age group to have increased their trade-ups to super-premium brands in the last 12 months. Late night, celebrity endorsements and visual triggers are among the most effective routes to engagement with this crucial demographic. Consumers in Europe that are looking for premium tend to lean toward cocktails and restaurants in particular.
7 Staff can drive spirits sales
Face-to-face engagement in venues can be a powerful source of sales. Two thirds (67%) of millennials buying premium products say they like to interact with staff, while CGA’s exclusive Global Bartender Report found four in five (79%) bartenders will make drinks recommendations to guests on every shift. This makes good team engagement strategies and brand ambassadors vital for suppliers.
CGA’s REACH solution delivers global insights into consumers’ engagement with drinks in the On Premise, powered by research in 38 countries with 30,000 On Premise users, 600 operators and a range of bartenders. To learn how it can sharpen strategies in all premium drinks segments, and discuss research tailored to the needs of individual brands and channels, contact the CGA team.
