New research from CGA by NielsenIQ highlights the opportunity for beverage suppliers to influence drinks choice when a branded spirit is listed as an ingredient on cocktail menus in bars and restaurants.
The latest Consumer Impact report shows that in the past month 2 in 5 consumers have visited the On Premise 3 or more times and 56% of consumers' last trip to the On Premise was within the past week. Visitation levels remain positively steady compared to the previous month, however 38% of consumers have been out for a drink-led visit, up +2pp compared to July; likely driven by consumers wanting to make the most of patio season and the warmer weather.
Significantly, the report reveals that almost 3 in 5 cocktail drinkers have seen cocktails listing branded spirits on menus when visiting bars and/or restaurants in the past 3 months, and 44% have subsequently ordered these cocktails.
Among consumers who have ordered cocktails including branded spirits in the past 3 months, 2 in 5 have done so every time/almost every time they have visited the On Premise - highlighting the influence this brand exposure has when positioned as a key ingredient in a preferred cocktail type.
There is still significant room for growth in this area for brands to entice consumers to try a branded spirit in a cocktail, by optimising this crucial part of the consumers' path to purchase - 52% of consumers order cocktails with branded sprits only occasionally when visiting bars and/or restaurants.
Typically, when ordering spirits, 43% of spirits drinkers order by specific brand, while just over a third (33%) order the category generally, and 24% do so depending on the situation. This presents suppliers with the opportunity to engage loyal brand consumers, and to drive consumers to trial brands when presented in a range of cocktail serves.
Matthew Crompton, regional director - North America, said "Casual dining chains continue to be the most visited venue type in the On Premise, with over half of consumers visiting the channel in the past 3 months. Working effectively with target outlets to get branding and branded descriptions on menus can help boost visibility further to influence cocktail choice. It's important for suppliers to consider the effectiveness of branded and non-branded options when building On Premise strategies with operators and independents."
On Premise satisfaction remains high across the board, particularly around quality of service. The research also suggests operators and suppliers can expect steady levels of consumer visits to bars and restaurants in the upcoming month, and new opportunities to entice target consumers to repeat purchase and trial brands.
"Being able to truly understand the nuances of consumer preferences, need states and motivations to influence effective decision-making is key to success. On Premise occasions are important to consumers, and suppliers and operators need to be able to cater to the needs and expectations during visits," said Matthew Crompton.
The knowledge around consumers' choice on branded, non-branded preference, quality, taste, service, and experience is paramount to exceed customers' expectations. CGA's OPUS (On Premise User Survey) research can help dig further into brand influence on consumers when visiting bars and restaurants. For more information, contact Matthew.Crompton@cgastrategy.com