Stout and sport boost Irish on-premise sector amidst cost challenges – CGA
Big sporting events like rugby’s Six Nations and football’s Euros 24 tournament have boosted pub and stout sales in H1 (Photo by ELEVATE via Pexels)
Ireland’s on premise has been boosted by stout and sport in 2024, but remains challenged by cost pressures and moderation, says CGA by NIQ in an expert analysis of the first half of the year across the country’s pubs, bars and restaurants.
Drawing on its On Premise Measurement service and Consumer Insights Reports, CGA reveals the 10 key trends and developments for suppliers and operators to track.
1.) Value growth thanks to rising prices
CGA’s data shows on premise drinks volumes in the first half of 2024 (H1) were 3% behind the first six months of 2023 – the result of both tough comparatives and some consumers reducing visits.
Despite this, sales by value nudged up by €93.7 million, following an average 10.5% rise in the price of a round of drinks, from €26.68 to €29.47.
2.) Stout drives LAD gains
The Long Alcoholic Drinks (LAD) category picked up 0.5 percentage points of total drinks sales by value in the first half of 2024.
Gains were powered by stout, which added 2.1 percentage points of share.
3.) Spirits struggle
LAD’s growth came at the expense of spirits, which lost 0.6 percentage points of share in H1.
Gin continued its post-COVID downward trend, losing another 2.1 percentage points.
4.) Pubs take share from restaurants
Ireland’s pubs have outperformed the market as a whole in 2024. They gained 1.3 percentage points of share, as rising prices made up for drops in distribution and RoS.
Restaurants lost 0.7 percentage points, with spirits particularly weak.
5.) Cork up, rest of Munster down
CGA’s regional breakdown shows Cork picked up 0.2 percentage points of share in H1, with the rest of Munster losing 0.3.
This is partly the result of higher-than-average rises in costs and consumer spending in city centres.
6.) Cost of living pressures go on
Inflationary pressures continue to affect consumers’ confidence, and three in five (62%) told CGA’s Cost of Living Pulse that they are still at least moderately affected by rising costs.
It has accelerated the shift towards the LAD category, which is perceived by some to offer better value than smaller spirits serves.
7.) Quality over quantity
The squeeze on spending has also led many consumers to buy fewer but better quality drinks when out.
Asked about their plans with a fixed amount of money, half (53%) said they would buy one or two higher quality drinks—four times the number (12%) who would buy four or five lower quality ones.
8.) Sport powers pub footfall
Big sporting events like rugby’s Six Nations and football’s Euros 24 tournament have boosted pub and stout sales in H1.
More than a quarter (29%) of all consumers now watch live sport in pubs and bars.
9.) No and low benefit from moderation
CGA’s sales and consumer data has highlighted a steady lowering of alcohol consumption in countries around the world, and Ireland is no exception.
It’s been led by growing interest in health, prompting pubs, bars and restaurants to adjust menus accordingly.
Nearly half (46%) of consumers now expect venues to offer healthy options, and more than a quarter are open to trying no and low alcohol beer (30%) and mocktails (26%).
10.) Younger adults emphasise ethics
As well as health, consumers – and younger ones in particular – are increasingly motivated by ethics.
One in eight (12%) now looks for ethical qualities in the drinks they buy, and two in five (40%) of those in Gen Z are more likely to buy a brand if it openly supports moral causes and values.
Darren Bradley, senior client manager, CGA Ireland, said: “High costs continue to affect businesses and households alike, but Ireland’s consumers remain as eager as ever to visit pubs, bars and restaurants.
“Despite drops in frequency and distribution there is still plenty of headroom for growth in multiple categories, channels and occasions. With spending likely to loosen over the rest of 2024 and beyond it will be vital for all businesses to stay right on top of sales patterns and consumers’ latest preferences, and our data is the ideal starting point for responsive and effective strategies.”
