Summer in the on-trade sees stable number of consumers and a shift in occasions PROOF’s latest market research shows the same proportion of consumers (58%) visited the on-trade in the three months to September, as the previous three months to May. Likewise, the proportion visiting weekly remained unchanged (28%). In addition, the warm weather of the summer tempted out the infrequent visitors; those who did not visit the on-trade at all in the past 3 months dropped by 5pp from May (24%) to September (19%), subsequently driving up those who visited less than once a month from 18% to 23%. The reason for venturing in to the on-trade this summer has also seen a change; the number of consumers who visited venues for a special celebration in the past 3 months rose from 20% in May to 26% in September. Whereas the percentage of consumers visiting for a quiet drink dropped from 42% to 38% in September, an indication that consumers are prioritizing the larger special occasions over more informal occasions. As we move into the winter months and the effects of inflation are felt by more, we’re likely to see a drop in infrequent visitors to the on-trade, whilst frequent visitors will start to reduce their visits. With special occasions seeing growth, there is an opportunity for the on-trade to capitalise on these treat moments and continue to drive the premiumisation trends we’ve seen in drinks, during the World Cup and unrestricted Christmas and New Year’s Eve celebrations. Contact PROOF to find out more about consumer behaviour this Summer. Source: PROOF POURtrait Panel, September 2022 |
The changing habits of Gen-Z Much of gen-z were denied their first visit to the on-trade upon turning 18 over the course of the pandemic. Now, with the worst of the pandemic seemingly behind us, they are finally making their presence felt in the on-trade. Your average gen-z consumer spends £68.02 per week in pubs, restaurants and bars which is 49% higher than the spend of 35-44s. Taking action to ensure the needs of gen-z are met is a good way for hospitality to capitalise on the opportunity. Despite their seemingly lavish spending habits, affordability is still a key factor for gen-z. They are more likely than the average consumer to be positively influenced by low prices (27% vs 21%) when choosing a venue, with a further 16% saying they would choose a venue because of the promotions and discounts on offer. When it comes to drinks, 35% of gen-z typically drink cocktails, making it their favourite alcoholic drink. Sex on the Beach, Pornstar Martinis and Daquiris are their three favourite cocktails, although they are increasingly looking for uncomplicated cocktails made with real fruits. 18-24s enjoy tequila more than any other age group, both in shot form as well as longer drinks including Palomas. Gen-z are also driving the macro-trend towards conscious consumerism, becoming more aware of what they put into their bodies in terms of the impact it has on themselves and the environment around them. Offering a range of low and no alcohol alternatives will help venues to satisfy an increasing number of 18-24s looking to limit their alcohol intake, with alcohol-free cider being particularly popular. Source: Morning Advertiser, PROOF Insight |
Growing demand for organic wine but price points need to be considered Global volume sales of organic wine are up 8.3% from last year according to IWSR. The heightened sense of environmental responsibility and the desire to know the ingredients in products are the main forces behind this trend. A survey by PROOF Insight shows there is a healthy demand for organic wines in the UK drinks market as 40% of consumers would like to see more organic and biodynamic wine options on menus. However, 62% of consumers who feel discouraged from buying organic wine think it is too expensive; only 25% of consumers would be willing to pay more for these certified wines. Organic wine is around 30% more expensive to produce, however, in 2022 the gap in production costs might be narrowing as the price of fertiliser and chemical imports are rising exponentially. Some producers feel organic wine will still be more expensive to produce in certain regions but countries such as Chile and Argentina, which benefit from low disease pressure, are producing organic wines at more approachable prices and could soon see production grow. More affordable organic wine could spur on the category to a higher growth rate. Contact PROOF to find out more about UK consumers’ attitude towards organic wine. Source: IWSR, PROOF Insight POURtraits, The Drinks Business |
Investments, Mergers & Acquisitions
Sources: Big Hospitality, Propel, Spirits Business, Drinks Business, Hotel Owner |
New Drinks Product Launches & Campaigns
Sources: Propel, Spirits Business, Drinks Business |