With traffic at bars and restaurants expected to pick up this holiday weekend, new data from on-premise market research firm CGA provides some insight on the top spirits and RTDs, and who will be enjoying them.
Last July 4, which fell on a Monday, on-premise retailers recorded a 17% increase in sales velocity versus a typical Monday in 2022, according to CGA. Drink-led outlets recorded a 31% increase in velocity on the holiday compared to an average Monday in 2022, while food-led outlets recorded a 16% increase. As for what spirit drinkers will be sipping on? Here are four trends that may shape their orders.
Whiskey Outsells Tequila, Vodka
Whiskey is the best selling spirits category on-premise, according to the latest 52-week period ending April 22. Meanwhile, tequila has experienced the biggest growth in share against other mega-categories, and vodka remains a top contender.
In volume, the total spirits category is up 2.1% year-over-year, led by tequila (6%), Whiskey (2.5%), and vodka (0.8%). As for vodka types, unflavored vodka remains the most in-demand type, with 2.1% growth, compared to more negatively performing flavored vodka (-3.3%), which holds the category back.
The State Showdown
Despite tequila’s growth at restaurants and bars, vodka’s volume is still strong in most states.
Across key East Coast states, vodka’s volume share tops that of tequila including New York (6.6%), Pennsylvania (3.8%), Illinois (4.6%), North Carolina (1.9%) and Florida (11.9%). But out West, tequila is charting strong growth and has outsold vodka in several states including Colorado (3.2%), California (10.4%), and southwards as well in Georgia (2.2%) and Louisiana (1.9%).
Vodka RTDs Win On-Premise
While RTD packaging carries a certain appeal for around a quarter of consumers, a higher proportion – approximately one-third – make choices based on the type of alcohol used, whether malt, sugar or spirit. Among white spirits, vodka is by far the most popular (70%) while tequila, selected by over half of RTD consumers, aligns with the mother spirit’s current moment in the sun. Rum is also a popular base, selected by 42% of RTD drinkers while gin is the least appealing white spirit base (30%). Meanwhile, whisky (43%) is almost twice as desirable as brandies and cognac (23%).
Young, Wealthy and Thirsty
The typical on-premise RTD drinker is young with money to spare. Only 16% of RTD drinkers are above the age of 55 – and, with an average income of $83,000 per year, a little wealthier than the typical American household income. At-home consumption may be driving RTD sales, but CGA’s research shows that 17% of American drinkers who visit bars, pubs, and restaurants have consumed RTD alcohol in the past three months. As for dining habits, 75% of all RTD consumers dine out at least once a week, while almost half visit on-premise venues with the primary intent of consuming alcohol.