CGA’s December’s “US Consumer Impact Report” reveals that bars and restaurants are essential for driving awareness of drinks brands

CGA by NielsenIQ’s latest consumer research reveals that bars and restaurants are essential for driving awareness of drinks brands, with 61% of consumers more likely to look for new brands in the on premise as opposed in stores and 54% stating they’ve made an in-store purchase of a brand that they first tried in the on premise.

CGA’s Consumer Impact report highlights 1,600 consumer behaviors across Florida, Texas, California and New York. The latest research highlights that the frequency of visits to the on premise have remained stable, with 4 in 5 consumers visiting bars and restaurants 3 or more times in the last three months. Plans for visiting also remain very positive with around 73% of US consumers planning to go out in the next weeks.

Consumers continue to seek out new experiences in bars and restaurants, with consumers more likely to first try a new Spirits or Beer brand in the on premise over an in-store purchase – underlining how important venues are in building brand awareness and encouraging trial.

Trial of new drinks brands in bars and restaurants is highly likely to compel consumers in their purchasing decisions in the off premise too – with 54% of consumers agreeing they have made a purchase in store of brands that they first tried in the on premise. 3 in 5 consumers also agree that they are likely to look for new brands in store if they’ve already tried them at a bar or restaurant.

Not only are on premise purchases informing in-store buying behaviors, they also help to build loyalty – with two thirds of consumers agreeing that if they try a new brand they like in a bar or restaurant, they will continue drinking it on subsequent visits.

Ahead of the holiday season, two thirds of US consumers are planning to visit the on premise throughout this period, with 3 in 10 planning to visit on New Year’s Eve specifically. These consumers are planning to visit a range of food- and drink-led venues, with neighborhood bars, fine dining and sports bars leading the list of most popular venues, while beer is the drink of choice for New Year’s Eve.

Moving into the new year, almost 2 in 5 US consumers predict they will visit the on premise more or much more often than they did in 2022, while half plan to maintain their current frequency of visitation. A third of consumers predict their spend in bars and restaurants will increase over the next 12 months, with 2 in 5 consumers willing to spend more for better quality drinks compared to 2022 – providing significant opportunities for premium drinks brands.

Source: CGA Strategy

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Cognac Sales Up 31% In 2021

Cognac’s biggest market, the US, saw the liquid’s sales climb by 11.1% in 2021 Cognac sales saw a 31% rise in value last year, with volumes of the spirit increasing by 16.2% to 223.2 million bottles, the BNIC has revealed.

Christophe Veral, president of the BNIC, noted that demand for Cognac “has never been greater in our markets than this year.” He said despite weather uncertainties, last year’s harvest allowed a “continuation” of growth.

Despite the health and geopolitical uncertainties, this growth reflected recovery for Cognac, as well as new consumption habits, the BNIC said in a statement.

Cognac exports to the US, the largest market for the category, climbed by 11.1% with 115 million bottles shipped in last year.

Cognac’s second biggest market, China, saw a 55.8% boost in sales with 34m bottles shipped.

Meanwhile, sales in Europe jumped by 8.1% to reach 37.1m bottles in 2021. Within this region, France, which is the fifth largest market for Cognac, saw a 23.4% rise in sales as 6.1m bottles were sold.

In a statement released on Monday 17 January, the BNIC commented that with the development of mixology, Cognac is attracting new consumers who are searching for quality products.

The report also cited South Africa and Nigeria as new markets.

The BNIC also said that the outlook for the category was ‘positive’ for the coming months in all regions.

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Global alcohol consumption will bounce back to pre-Covid levels by 2023

Global alcohol consumption will return to pre-Covid levels by 2023, according to recent IWSR data, with the market already showing signs of recovery.

Projected to grow by 2.9% in volume by the end of 2021, the research forecasts that total alcohol consumption will reach pre-Covid levels within two years and will continue to increase steadily until 2025.

Total alcohol volume decreased by 6.2% globally during 2020, affected by lockdowns and other restrictions.   Total wine and beer volumes are both forecast to be down about -9% in 2020 and are unlikely to regain volumes for several years.   However, within the wine sector, sparkling wine volume consumption is anticipated to recover to 2019 levels by 2023, along with the rest of the alcohol market. Premium-and-above Prosecco is expected to be least impacted by Covid, and premium-and-above still wine forecast to recover lost volumes by 2022.

This growth will be boosted by several factors including the growth of ecommerce which is up 45% from 2019; to reach US $29 bn in 2020, and RTD’s, the industry quickly adapting in key markets and the increasing sophistication of the at home occasion in many markets.

“In many global markets Covid-19 accelerated the impact and growth of key industry drivers, such as the development of ecommerce, premiumization, the rise of the home premise, moderation and the need for convenience in product formats,” said the IWSR’s CEO Mark Meek.

“These are the trends that will also underpin the industry’s resilience as it pivots to meet consumers where they are in the years to come. Additionally, across many markets, some segments of the population now have significantly more disposable income than they did in 2019, some of which will be spent on beverage alcohol products.”

Another trend set to give alcohol a leg up is product premiumization, according to the IWSR, with premium-and-above wine and spirits forecast to increase by 25.6% in total volume between 2020-2025 compared to 0.8% volume growth over the same period for brands in lower price tiers.

LUCK OF THE IRISH! JAMESONS LAUNCHES A MONTH-LONG ST PATRICK’S DAY CELEBRATION

Jameson Irish Whiskey is launching St Patrick’s Day celebrations that will run for the full month of March, which includes a series of party-at-home kits, competitions and live-streamed music events.

The celebrations start on March 3rd with a revival of Jameson’s partnership with online music broadcasting platform Boiler Room, with streaming sets each Wednesday in the run up to St Patrick’s Day. The two performances, which can be streamed live via the Jameson Connects platform, feature local bands including Dublin Rap and Indie. This will culminate in an immersive gig on St Patrick’s Day [17 March], with a Grammy nominated Toronto-based singer-songwriter Jessie Reyez performing some of her critically acclaimed tracks including Coffin, Shutter Island and Figures. Other performers include Dublin rappers Denise Chalia and Kojaque, R&B artist Savannah-Re, and Canadian rapper Junia-T.

The aim is to showcase emerging talent and creatives from across the world to celebrate hometowns and communities. The live gig will be accessible only through Jameson’s online partners, or via its Jameson Connects platform, available across four time zones. Fans can sign up for free tickets and check performance times on the Jameson Connects website. https://www.jamesonwhiskey.com/en-EN/join-in/jameson-connects

Jameson is also teaming up with Brooklyn-based internet football club, Nowhere FC to create a collection of three limited edition football shirts, and accessories. Fans can join the team, when the collection launches March 10th via Jameson.com and NwFC’s website.

The brand is also offering fans the chance to win a “once in a lifetime St Patrick’s Day experience” for 2022.

Brendan Buckley, international marketing Director at Irish Distillers said St Patrick’s Day is a day to celebrate all that Ireland represents – culture, music and togetherness. “Jameson is ensuring that this year is no different as the whiskey brings its proud Irish spirit to life through a series of global virtual events and collaborations that encourage everyone to adapt an Irish state of mind and join in to safely celebrate St Patrick’s Day 2021.”

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17 ASSOCIATIONS DEMAND END TO WINE AND SPIRITS TARIFFS

17 associations representing both the US and European wine and spirit trades have submitted comments opposing proposals for further US tariffs on wine, beer and spirits. industry bodies have submitted comments to the United States Trade Representative (USTR) after news of another tariff review last month.

In addition to existing tariffs on still wine, Scotch whisky and liqueurs, the US said it was considering further levies of up to 100% on beer, gin and vodka made in France, Germany, Spain, and the UK.

The dispute relates to EU subsidies given to aviation company Airbus over US-based rival Boeing.

In their comments, the groups cited the latest data which revealed that US imports of Scotch whisky were down by almost 33% between October 2019 and May 2020, while imports of wine fell by 44% and liqueurs and cordials by 23% during the same period.

Analysis conducted by the Distilled Spirits Council of the United States (DISCUS), one of the groups to submit comments, warned that US tariffs on UK and EU wine, distilled spirits and beer could lead to as many as 95,900 job losses, depending on the extent of the tariffs.

In a joint statement, the group said: “Our 17 US, EU and UK associations are united in strong opposition to tariffs on beverage alcohol products. We are speaking with one voice in calling for the US administration and the European Commission to remove the current tariffs on spirits and wine from the EU and UK, and American whiskeys, and to forgo imposing any additional tariffs on beverage alcohol products. We hope Friday’s announcement by Airbus and the legislation passed in Washington State in March regarding civil aviation subsidies are significant steps toward the elimination of tariffs.

“Beverage alcohol sectors on both sides of the Atlantic have suffered enough. These tariffs are exacerbating the incredible burden hospitality businesses are experiencing with the widespread closures of bars and restaurants due to Covid-19. The US and EU need to seek measures to bolster hospitality jobs, not saddle businesses with unnecessary tariffs,” they added.

In October 2019, the US has imposed tariffs on US$7.5 billion worth of EU goods – including wine, spirits and liqueurs – as result of this dispute. The country first imposed 25% tariffs on drinks including Scotch whisky and wine (not over 14% ABV) made in France, Germany, Spain and the UK. The EU has stated that it may impose retaliatory tariffs on US rum, vodka, brandy and wine.

In a separate dispute in June 2018, the EU imposed a 25% tariff on all US whiskey imports. It is scheduled to increase these tariffs to 50% in spring 2021.

In addition to DISCUS, the 16 other associations include: SpiritsEurope, the Scotch Whisky Association, American Beverage Licensees, the National Retail Federation, the American Craft Spirits Association, the American Distilled Spirits Alliance, the National Council of Chain Restaurants, Kentucky Distillers’ Association, the National Association of Beverage Importers, the National Restaurant Association, the US Wine & Trade Alliance, WineAmerica, the Wine Institute, the Wine and Spirits Shippers Association, Wines & Spirits Wholesalers of America, and the National Association of Wine Retailers.

Source:  Drinks Business