The ‘Going Premium’ report shows that more than two in five (43%) consumers now choose high-quality drinks or say they are likely to upgrade to one when drinking out of home. The figure rises to more than half (54%) among 18 to 34 year-olds, suggesting that young adults are driving the shift towards premium drinks brands.
CGA’s analysis of the trend reveals an increase in sales of spirits that are classified as ‘super-premium’, with volumes up by nearly 12% in the year to June 2017. Small-batch, artisan-style spirits, especially gins, have hugely increased their appeal recently—and demand for premium mixers to drink with them is rising too. A similar trend is apparent in beer, where craft volumes increased by 14.5% in the year to June.
CGA’s research emphasises the huge value of premium drinkers to pub, bar and restaurant operators. Consumers who drink premium brands tend to spend much more on eating and drinking out than their non-premium counterparts, averaging £116 and £92 a month respectively. The ‘Going Premium’ report suggests key steps operators can take to capitalise on the fast-moving trend, including by sharpening focus on range, price point and serving style.
Phil Tate, CGA’s chief executive said: “The shift towards premium brands has been one of the most fascinating trends in drinking-out in recent years. This report casts new light on the factors behind premiumisation and its consequences, and has some vital insights into the soaring appeal of luxury brands in particular. Operators will need to stay right on top of drinking trends like these if they are to generate spend and loyalty in this ultra-competitive market.”
The ‘Going Premium’ report, including more exclusive data and expert insights from CGA, can be downloaded for free at http://www.cga.co.uk/all-reports/going-premium-six-key-trends.