Consumers Prefer Their Favorite Spirits And Cocktails At Food Outlets Instead Of Bars

It used to be that the bartender was like a psychologist, listening to our woes and offering sage advice from behind the bar. If the latest Nielsen report is spot on, bartenders across the country may be needing those of us who still go to the bar for a drink to listen to their woes.

According to Matt Crompton, Client Solution Director, Nielsen CGA, ‘The On-Premise sector is more diverse than ever before, so for suppliers and distributors to properly prepare a strategy, an in-depth look into each of these channels is needed.’

By in-depth look he is referring to Nielsen’s CGA New Channel Strategy Report (NCSR). The report covers 14 different categories: chains, independent restaurants, fine and polished dining, neighborhood bars, sports bars, casinos, brew pub tap rooms, stadiums, airports, game rooms, groceraunts and nightclubs.

Genevieve Aronson, VP Communications, Nielsen, said the purpose of the survey was to understand where consumers are visiting and why, in order to help suppliers and retailers understand how to better work in different types of outlets. CGA asked consumers which channel they had visited in the past 3 months to understand visits to different outlet types, then followed up with a number of questions around their visits to further explore why they were visiting, what they were drinking and why they were drinking it. Consumers often visit more than one establishment, so the percentages reflect the overlap.

According to the report, restaurants are becoming the place to go for a drink, and casual dining chains are in front with 55% of visits in the past three months. Independent restaurants tallied 38%, and fine dining grabbed 23%. Yes, that’s more than 100 percent, which reflects the overlap. In fact, sports bars racked up 28% of visits, and the neighborhood bar came in at 22%.

According to this report, on-premise eateries, etc. are attracting more and more consumers for drinks at their bar or table.

The analysis claims the real opportunity for beverage alcohol providers are the independently owned restaurants, which came in second place over the past three months. According to CGA, at a current 141,512 independent restaurants across the U.S., the category outnumbers chains “6 times over.”

The report shows premium bar (top shelf products) visits were only at 7%, but CGA claims the category had grown by 10.5% more bars over 2018, which is significant growth, especially when compared with increased outlets across the whole restaurant spectrum. The second best growth over 2018 was the polished casual dining category (4.4%), followed by casual dining chains 3%; sports bars, casinos and night clubs followed, but each was under 1% growth.

In addition, premium bars as destinations draw a minimum 33% return customers weekly. CGA calls that loyalty. Finally, liquor distributors should take note: at premium bars spirits represented 66% of bar sales and cocktails came in at 35%.

The casino is a category where the glass may be less than half full, but it shows notable potential for big name brands. The consumer survey indicates “82% of casino-based drinkers say brand names are ‘important’ when choosing their drinks, leaving the channel open to a strong brand-led drinks strategy. With +0.6% growth versus a year ago and 16% of US consumers visiting a casino in the last three months, there is promising room for growth.”

The report states that a reward-based mentality means casino-goers are likely to respond to exciting offers around their two top selling drink categories, beer (36%) and spirits (41%). CGA says, “there is room for fresh / targeted brand activations and partnerships within the wider casino channel.”

The fact that so many of the bar categories are growing gives Nielsen the view that on-premise sales are replacing home alcohol consumption.