Premium brands drive on-trade spirit growth

By John Harrington

- Last updated on GMT

Related tags: Distilled beverage, Cga strategy

Growth: Premium spirits
Growth: Premium spirits
Premium spirits are driving growth in the on-trade spirits category, fuelled by a growth in cocktails and premium drinking venues and the continued...

Premium spirits are driving growth in the on-trade spirits category, fuelled by a growth in cocktails and premium drinking venues and the continued rise of the 'weekend millionaire'.

Those are the key findings of the First Drinks' Market Report 2011, which examines trends in the spirits and Champagne market using data from CGA Strategy and other sources.

The report also highlights the switch from the on-trade to home drinking, with the off-trade now accounting for 80% of spirit volume sales.

Among the categories experiencing the fastest growth in the on-trade in the past year are flavoured vodka (up 103% by value and 112% by volume), golden rum (up 24% by value and 19% by volume) and cream liqueurs (up 20% by value and 11% by volume).

Traditionally strong categories performed less well, according to the figures.

Vodka, for example, which accounts for more than one in three spirits sold in the on-trade, saw its value decline by 2% and volume by 1%.

Gin dropped 2% by value, and volumes were static.

The report notes a rise in premium drinking venues such as cocktail and wine bars, while traditional venues have evolved to embrace cocktail menus and Champagne by the glass.

While people are drinking out less, they spend more when they do go out.

The proportion of 18 to 24-year-olds who venture out once a week has increased from 38% in 2005 to 70% today.

This has seen the rise of the so-called 'weekend millionaire', who is willing to pay more. This has also helped increase sales of premium spirits.

Related topics: Professional Services & Utilities

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