How can restaurants and bars put the fizz back into on-site alcohol sales?

953482af-bcf7-4527-923d-834eff7108dfarticleimage.jpg

06 Dec 2017 --- The New York City-based Beverage Marketing Corporation has published a new report claiming slow consumer traffic at on-premise locations, coupled with stagnancy in occasions for beverages is leading to flat total alcohol volumes in restaurants and bars this year.

According to the corporate consulting company’s recently released On-Premise Intelligence Report, which was jointly developed by Technomic, brand marketers and restaurant and bar businesses are challenged by finding new growth opportunities for adult alcoholic drink sales. 

The on-premise channel is crucial to adult beverage brand development and sales success. The latest intelligence report provides on-premise industry pros with category and brand performance metrics, operator insights and projections for where the on-premise channel is headed.

It also includes deep on-premise consumer insights derived from Technomic’s Drinker Archetypes. This multi-phased psychographic segmentation model analyzes on-premise consumers to uncover their unique personalities and behaviors, key occasion attributes, drink preference and more.

Key report findings include:

  • Adult beverage category dynamics continue to evolve, with spirits outpacing beer in volume growth.
  • Wine is challenged, experiencing its fourth consecutive year of volume decline on-premise in 2017.
  • Year-end dollar sales are expected to increase 2.1 percent, driven primarily by raised drink prices and continued growth of premium products at the bar.
  • The appeal of differentiated and flavorful adult beverages and the importance of supplier support is evident in the roster of fastest-growing brands on-premise, led by Tito’s Handmade Vodka.

The report also helps to identify new product, drink and occasion opportunities, a key element to growing drink sales. 

“Growth categories remain aged spirits – whiskey, brandy, cognac and aged rum – while vodka volume is down slightly,” said Eric Schmidt, director, alcohol research at Beverage Marketing Corporation. 

“In beer, imports and craft are gaining share, propelled by Mexican brands and smaller craft labels. We are tracking mixed results from leading domestic table wine brands, while imported sparkling wine continues to find relevance at the bar.”

While volume growth is elusive, drinks remain an important aspect of going out for consumers, according to Donna Hood Crecca, associate principal at Technomic. 

“Consumers prioritize adult beverages, with one-third overall and half of those aged 21 to 34 confirming that the drink offering influences their decision of where to go,” she said. 

“Today, consumers have more choices, as venues ranging from sports stadiums to winery and brewery tasting rooms are in the consideration set, which raises the bar for traditional locations like restaurants. Improving and differentiating the drink experience is key to success.”

Capturing the moment and associating new occasions for alcoholic drinks could unlock potential sales growth, as evidenced in other food and drink categories. 

FoodIngredientsFirst recently published a Special Report detailing how “moment do matter” for brands trying to tap into growth potential. Read more here. 

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Food Ingredients News

Diageo sells 19 spirit brands to Sazerac for US$550m

12 Nov 2018 --- UK-based drinks giant Diageo is selling a portfolio of 19 brands to privately owned US firm Sazerac for US$550 million. Diageo believes the sale will allow the business to have a “greater focus” on its premium brands in the US, including Johnnie Walker.

Food Ingredients News

Clean label dairy? Sugar and fat reduction in desserts, protein remains a key trend

12 Nov 2018 --- As health-minded consumers become ever-more sugar aware with their food and beverage choices, delivering indulgence without the guilt in dairy dessert products has become an increasing challenge. Consumers also want more from their products including fat reduction, but they still want the same great taste that they know and love. As with any product reformulation that involves cutting out sugar, the main challenge is to obtain a similar sweetness and body to that provided by sugar, while reducing its use.

Food Ingredients News

Weekly Roundup: Solvay increases price of vanillin and ethyl-vanillin ingredients, Stern-Wywiol Gruppe enlarges production capacity in Mexico

09 Nov 2018 --- In business news this week, Solvay announced a price increase of its vanillin and ethyl-vanillin ingredients, while Stern-Wywiol Gruppe enlarged its production capacity in Mexico and is intensifying product development at the adjoining Technology Center. Mühlenchemie has introduced flour optimization by smartphone and Margarita Louis-Dreyfus announced new arrangements to finance obligations towards minority shareholders. Finally, Aviko, a Royal Cosun company, will terminate operations at its factory in Oberdolling, Germany.

Business News

Plant-based meat alternatives present new yeast extract opportunity, claims industry body chief

09 Nov 2018 --- Growing product development within the meat alternative and vegan/plant-based space is creating a new opportunity for yeast extracts to offer a savory flavor and clean label edge. Ongoing industry trends towards sodium and sugar reduction, coupled with an overarching theme towards sustainability are creating further opportunity for ingredients that are enjoying renewed potential amid the fermented foods revival. This is according to Gerard Hardeman, President of EURASYP (European Association for Specialty Yeast Products), whose daily role is Business Unit Director, Savory Ingredients at DSM Food Specialties.

Food Ingredients News

Cutting sodium in processed meat: US start-up cuts salt by 95 percent

08 Nov 2018 --- Keeping pace with demand for healthier, lower salt recipes for processed meat, one US start-up has developed a vegetable-based ingredient that can be used to create processed meat and proteins with a reduction in sodium of up to 95 percent. Botaniline’s one-ingredient substitution allows manufacturers to improve their existing recipes and eliminate all fillers, binders, allergens, and chemical additives, for cleaner label, healthier processed meat products.

More Articles