Press Release: Adult Beverages Prioritized By Consumers, But Battle For Occasions Heats Up
Adult beverages prioritized by consumers, but battle for occasions heats up
Dynamics and drivers of alcohol sales in restaurants and bars are evolving, finds report from Technomic and Beverage Marketing Corporation
CHICAGO, Dec. 5, 2017: Drink sales remain a dynamic and important part of the restaurant and bar business, but finding growth continues to be a challenge for operators and brand marketers alike. Slowed consumer traffic at on-premise locations and stagnancy in occasions involving adult beverages translates to flat total alcohol volume in restaurants and bars in 2017, according to the recently released On-Premise Intelligence Report, jointly developed by Technomic and Beverage Marketing Corporation.
The report is available for purchase here: https://www.beveragemarketing.com/shop/on-premise-intelligence-report.aspx
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%, 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.
"Growth categories remain aged spirits-whiskey, brandy, cognac and aged rum—while vodka volume is down slightly," observes 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 says. "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."
The On-Premise Intelligence Report includes channel, category and brand performance metrics, consumer and operator insights, and menu trend information developed via primary research conducted by Technomic and Beverage Marketing Corporation.
To provide enhanced consumer insights, profiles of Technomic's Drinker Archetypes are included in the report. This on-premise adult beverage consumer segmentation tool uses psychographic and attitudinal metrics to identify five archetypes and deliver insights around motivations and decision drivers.
About Beverage Marketing Corporation
New York City-based Beverage Marketing Corporation is the leading consulting, research and advisory services firm dedicated to the global beverage industry. Visit Beverage Marketing Corporation at http://www.beveragemarketing.com.
Technomic Inc., a Winsight company, delivers a 360-degree view of the food industry. It impacts growth and profitability for clients by providing consumer-grounded vision and channel-relevant strategic insights. Its services range from major research studies and management consulting solutions to online databases and simple fact-finding assignments. Its clients include food manufacturers and distributors, restaurants and retailers, other foodservice organizations, and various institutions aligned with the food industry. Visit Technomic at www.technomic.com.
About Winsight LLC
Winsight LLC is a recognized leader in business-to-business media and information services for the convenience-retailing, foodservice and grocery industries. Winsight has an extensive media portfolio, including five publications: CSP, Restaurant Business, FoodService Director, Convenience Store Products and Winsight Grocery Business. Winsight also offers a suite of digital products, including websites, e-newsletters, webinars, video products, mobile and tablet apps, and custom marketing solutions. In addition to more than 12 major EduNetworking conferences and advisory meetings, Winsight also produces seven exclusive, large-scale executive-level conferences: Restaurant Leadership Conference, Global Restaurant Leadership Conference, Outlook Leadership Conference, Convenience Retailing University, FSTEC, MenuDirections and Restaurant Directions. Winsight acquired Technomic Inc., a provider of primary and secondary market information and advisory services for the food industry. For more information on Winsight and its brands, go to www.winsightmedia.com.