The latest On Premise Measurement data indicates that spirits in the Value and Ultra categories increased their share of total volumes by 0.3 and 0.5 percentage points (pp) respectively in the year to October 2024.
Value brands now attract around 17% of all spirits volumes in the US On Premise, with Super-premium, Ultra and Luxury brands earning 24%. Growing interest in the two ends of the market is starting to squeeze spirits brands in between, and the Mid range spirits market has lost 0.5pp of share year-on-year.
With some consumers starting to spend more freely after a prolonged period of cost pressures, the On Premise Measurement Report highlights significant growth potential for Ultra spirits brands, which have increased their distribution and menu prominence across the On Premise. They are a particularly valuable component of sales in fine dining restaurants, where they command 10.7% of all spirits volumes. Year-on-year growth has been sharpest in the nightclub channel, where the Ultra segment has added 1.5pp of share.
Tequila and gin have been among the biggest beneficiaries of the move towards ultra-quality options, adding 1.2 and 1.0 percentage points of share of their categories’ total sales in the last 12 months.
CGA’s exclusive On Premise Measurement service also delivers breakdowns of spirits sales by state, helping suppliers track trends and localize strategies. It indicates that all but two states recorded share growth in the Ultra tier in the last year, with New York achieving the highest uplift in volumes.
Matthew Crompton, CGA by NIQ’s Vice-President: On Premise-Americas, said: “The widening of the gap in spending capabilities has led to a notable polarization of the On Premise over 2024. The rise of value brands has reduced spending in some channels, but other consumers’ desire for quality and difference is also generating share gain at the top end. This is also putting pressure on the middle ground of spirits, though there remains room for development in all tiers in 2025. For suppliers and venues, the key to success is providing careful range and effective pricing ladders that give all consumers attractive entry points.” is the ideal source of this intelligence, creating the foundations for agile and winning strategies.”
CGA by NIQ’s On Premise Impact Reports help suppliers and manufacturers across food and beverage keep a pulse on the industry, delivering expert and up-to-the-minute insights derived from a variety of our best-in-class data tools. Click here to download more information. To discover more about the service and opportunities for bespoke analysis, click here and contact the CGA by NIQ team or visit https://cgastrategy.com/unlock-the-potential-of-opm.
