The on-trade gears up for the festive period With nearly 4 out of 5 consumers (78%) expressing concerns about the rising cost of living crisis, the on-trade is braced for a challenging winter. But given that this is the first restriction-free Christmas since 2019 and with three-quarters (72%) of consumers already looking forward to Christmas with loved ones, there are pockets of opportunity for the on-trade to make the most of the festive period. The premiumisation drinks trend is set to continue; premium spirits have grown +12% in value in the on-trade vs. 2019, premium beer +19% and champagne +4% demonstrating how consumers are still treating themselves despite cutting back on frequency of visits. Listing premium drinks and fun festive cocktails are important to the consumer’s sense of occasion. There are celebration opportunities too; 43% of under 45s are already looking forward to Christmas work parties, an opportunity for the on-trade to provide the space, catering and atmosphere for employees to relax and have fun. In addition, the first ever winter World Cup will extend the festive season by blending Christmas reunions and football matches in social occasions. Pubs are set to benefit from this as 46% of under 45s like the atmosphere of pubs when watching football.
However, with 1 in 3 consumers not interested in watching international football, it is important to provide space for these consumers too. Restaurants, food pubs and premium bars can focus on the festive special occasions that may be driven out of football-focused venues, with some operators dividing up their estate to cater for football and non-football occasions.
To learn more about the on-trade Christmas outlook and what drink trends we expect to see, contact PROOF for a copy of our report. Sources: PROOF Insight Euros 2020 survey, World Cup survey 2022, on-trade consumer surveys July ’22 and September ’22. CGA OPM 6 months to 16.07.22 vs 3 years ago |
Summer staycations provided a welcome boost to the industry Summer 2022 saw the return of restriction-free holidays, both domestically and internationally. PROOF’s market research shows 39% of consumers went on a UK holiday this summer, with 30% put off going abroad by long queues and mass cancellations at UK airports. This saw on-trade drink sales climb 6% in the four weeks to 13.08.22 vs the previous four, as the majority went on their staycation in July or August. The demand for UK holidays helped drive sales in wet-led outlets and hotels. Nearly 14 million staycationers visited a pub whilst on holiday in the UK, whilst 13 million visited a restaurant and a further 13 million purchased alcohol in local supermarkets. Cider saw its usual summer growth, increasing volumes month-on-month before peaking in August, despite the category being in decline overall. With a high proportion of older consumers taking UK holidays, traditional ale, white wine and red wine proved to be the three most popular drinks in the on-trade amongst those surveyed – each purchased by 26% of consumers – although volumes remain below 2019. White and red wine were also the most popular drinks in the off-trade, followed by craft beer and apple cider. Whilst 49% of holidaymakers opted to treat themselves and their family more on this year’s holiday compared with previous years, the story may be different next year. 31% of consumers agreed that they would completely avoid going on holiday in 2023 due to struggles with the cost of living, with a further 42% taking fewer holidays and 49% having stricter holiday budgets. This could in turn prove an opportunity for destination dining in the UK, as consumers cutting back on holidays treat themselves elsewhere. Sources: PROOF Insight post-summer consumer survey 2022 |
Display of calorie information impacting consumer behaviour Six months have passed since the government introduced mandatory calorie labelling for hospitality businesses with more than 250 employees on non-prepackaged food and drink (excluding alcoholic drinks above 1.2% abv). When it was introduced, PROOF Insight found that 53% of consumers felt it was a good idea and the latest research from CGA by NielsenIQ suggests that calorie information on menus does have a significant impact on consumer behaviour: 59% of consumers would change their food choice if the menu showed that the dish was too calorific.
While alcoholic drinks are exempt from calorie labelling on menus, recent drinks market research from PROOF Insight shows that calories are most influential on young consumers (18-24s), and this is driving the choice of spirits. 48% of spirits drinkers find low calorie content important when choosing a drink. These drinkers are more likely to consider calorie content when in up-tempo parties or special celebrations, in bars and clubs, perhaps due to consuming more drinks over a longer period of time, than when in relaxed social settings. This suggests that we’ll continue to see a swing towards spirits consumed as shots or with low-calorie mixers, within bars and clubs.
Contact PROOF to find out more about consumer behaviour in different drinking occasions. Sources: Morning Advertiser, PROOF Insight |
Investments, Mergers & Acquisitions
Sources: Drinks Business, Spirits Business, Propel, Langton Capital |
New Product Launches & Campaigns
Sources: Drinks Business, Spirits Business |