Future Trends: Spirits

Customers spend 24% more on properly-served cocktails

By Nicholas Robinson contact

- Last updated on GMT

Too much of a good thing: variety isn't always the best option
Too much of a good thing: variety isn't always the best option

Related tags: Spirits, Alcoholic beverage

Consumers will spend up to 24% more on a cocktail that has been served properly and to a high-standard, according to exclusive research by CGA Strategy.

Spirits and cocktail customers’ knowledge of how their drinks should look is at its highest, which affects where they frequent and what they buy, CGA Strategy director of client services Rachel Perryman told delegates at The Morning Advertiser​’s Future Trends: Spirits event last week (3 October).

“According to our research, 46% of consumers drink spirits in the on-trade and they will spend 24% more when the quality of the serve is right,” she said.

When drinking spirits out of home, in general, consumers will spend 19% more on drinks than if they were at home, according to Perryman.

“This shows there’s definitely an opportunity for more growth in spirits in the on-trade and that’s about operators creating something that’s more appealing to customers.”

Customers are now looking for premium spirits and cocktails, clear pricing for what they get and the best experience they can afford, the on-trade expert added.

Different spending powers

There is a huge variety of customers with different spending powers and needs when it comes to spirits and cocktails, which means operators had to provide enough choice for consumers.

Trends pubs should look into when developing spirits and cocktail menus with maximum choice include health, food-pairing, premium and things like ‘happy hours’, to drive footfall in premises, Perryman advised.

“More people are thinking about being healthier and consumers, according to our research, see spirits as a healthier alcoholic drink. They want things like fruit cocktails and lower-ABV when they come into an on-trade outlet.”

Restaurants and bars had become very good at offering customers these options and it was time for pubs to get in on the action.

Pubs should grow their spirits range and increase their cocktail repertoire, she said. “Offering a greater range of spirits and activating them in the right way can really help pubs increase sales for a variety of occasions – from meal times to drinks with friends,” she added.

However, too much choice could work against businesses, as research in the US was indicating that having a huge offer confused customers and made them choose entry-level products.

Choices before serving

Too much choice also slowed down bar staff, as customers spent longer looking at their choices before making a decision on what to drink.

The solution was to have a ‘good’, ‘better’ and ‘best’ offer, advised Perryman.

“When you offer too much choice,” she said. “There’s confusion among consumers. There are often more than 50 brands available in many US bars and this is confusing to their customers who will tend to order a standard product.”

This took Perryman on to her next point, which was that simplicity was coming back into fashion.

“Cocktails are getting a bit stuffy and over the top, when they should be fun and accessible. Consumers are more discerning and aware of what they are drinking and even something like the provenance of a drink is enough to make a customer buy into something at the moment.”

The Future Trends: Spirits event was organised by The Morning Advertiser ​and sponsored by headline partners Diageo and Schweppes; associate partners Pernod Ricard UK and the Wine & Spirit Education Trust; and bar partners Warner Edwards, Masons Yorkshire Gin, Slingsby Artisan Gin, the City of London Distillery and Willis Publicity.

Related topics: Spirits & Cocktails, Spirits

Related news

Show more

Related products

The MA Media Pack 2020

The MA Media Pack 2020

William Reed Business Media | 09-Jan-2019 | Product Brochure

'We reach more than 200,000 pub people every month’

Recently celebrating our 225th anniversary, The Morning Advertiser continues to...

Bar Essentials – Spirits Guide

Bar Essentials – Spirits Guide

Diageo | 05-Oct-2018 | Insight Guide

Spirit sales continue to rocket as a result of an ever-growing interest from consumers who are looking for experience, choice and more premium drink options.

Bar Essentials – Beer Guide

Bar Essentials – Beer Guide

Diageo | 19-Jul-2018 | Insight Guide

Beer continues to be a fascinating world, full of exciting products that are keeping customers engaged. From craft-inspired brews to stalwart lagers, on-trade...

Bar Essentials Guide

Bar Essentials Guide

Diageo | 23-Oct-2017 | Insight Guide

Spirits continue to be the fuel for growth of alcoholic drinks in the on-trade, tapping into consumer trends for premiumisation, choice and experience.

Related suppliers

Follow us

Pub Trade Guides

View more

FREE EMAIL NEWSLETTER

Subscribe to The Morning Advertiser

The definitive voice for the pub trade

Get the latest news, analysis and insights from the uk pub sector straight to your inbox!