Premiumisation
This year has seen an extension of consumers’ trend for buying fewer but better drinks in the on-premise, Sterling explained, with more than half (58%) of consumers opting to buy one or two premium drinks while just 13% would buy four or five lower-quality ones.
Longer drink serves
While quality was vital for consumers in the (Long Alcoholic Drink) LAD segment, they also want to be certain they will get full value for their money, CGA said, which has “played to the advantage” of the categories as they are often perceived to be “better value” than spirits or wine.
According to the latest CGA OPM service, beer and cider have grown their share of drinks sales by a combined 1.6 percentage points in the last 12 months, while spirits have lost 1.3 percentage points.
Live sport and music
Many types of occasion-led serves have recorded a drop in frequency over the past year, including both relaxed and high tempo drinks.
However, the shares of visits taken by live sport and music have increased by three and one percentage points respectively.
The Euros football tournament in particular, has been a reminder of how big sporting occasions can boost beer brands in particular, CGA added.
Earlier dayparts
One of the biggest post-Covid shifts in the on-trade has been the move towards earlier dayparts.
Average weekly sales by value after 10pm have dropped by 7.3%, but they’ve risen sharply in the 12pm to 7pm period, which has “important implications” for consumers’ category choices.
Spirits and cocktails
Spirits sales have been under pressure for some time, but some segments have fared better than others.
vodka and rum in particular have increased their share of the overall category by 0.7 and 0.3 percentage points in the last 12 months, while whiskey and cream liqueurs have also made gains.
The categories have also seen their popularity shored up by cocktails, sales of which have marginally increased in the last 12 months despite a 3.3% drop in distribution.
Mixed and layered shots like Baby Guinness have been another growth segment.
World lager
Positive LAD trends and premiumisation have powered the growth of world lager.
Its share of the category grew by 2.3 percentage points in the last 12 months, mostly at the expense of standard lager.
Draught world lager has sharply increased its penetration—from 45% of outlets in 2017 to 69% at the end of 2023.
Stout
Stout has been another post-pandemic winner, thanks to effective marketing, a close association with live sport and a focus on quality.
It has also seen an increase in its share of the LAD category, jumping by 1.3 percentage points, and has diversified its appeal to younger and female consumers in particular.
Health
A growing focus on health and moderation has helped fuel interest in no and low alcohol brands.
Earlier this year, 67% of industry leaders told CGA’s Business Leaders Survey that no and low would be a key trend in 2024, and beer, cider, wine and spirits have all seen sharp growth here—albeit from a low base.
Sustainability has been another important ethical consideration, with two in five (41%) of consumers now proactively choosing drinks brands that are sustainable.
Social media
In a competitive environment, social media is key to visibility, Sterling concluded.
Half (48%) of bar staff told CGA’s Global Bartender Report that brands with strong social media presence were best placed to thrive this year, and a similar proportion of consumers (49%) said they had purchased a drink or food brand after seeing it on a social platform.
