Spirits lead US on-trade growth

Spirit sales in the US on-trade are outperforming beer and wine – driven by Cognac, Irish whiskey, Tequila, and single malt Scotch, according to new data from Nielsen.

New figures have revealed that spirits sales in bars and restaurants across the US have witnessed “steady growth” at the expense of beer and wine, with volumes up 1.7% and value up 2.9% for the 52-week trend until 13 August 2016.

Over the same period, beer dipped -3.2% in volume and -1.3% in value, while wine saw -1.6% decline in volume and -0.6% in value sales.

Cognac led the growth, reporting an impressive 31.1% in volume growth and 36.8% in value on the quarter.

Irish whiskey followed behind, up 9.9% and 11.4% respectively, while single malt Scotch whisky achieved 4.4% volume growth and 12.5% value growth in the same period.

Scott Elliott, SVP, Nielsen CGA, said: “The latest numbers confirm the long term trends at play in the on-premise – especially as usage moves from habit to treat occasions.

“From the latest data it shows that whiskeys, Tequila and Cognac/Brandy are still under-spaced in the average bar or restaurant given their value-contribution and trend direction.

“With this in mind, suppliers will need to grow sales by working with distributors and retailers to ensure category management strategies reflect these changing consumer preferences.”

October marks the launch of Nielsen CGA’s first on-premise report suite for the financial services sector – which means that Wall Street Institutions, consultancies and advisors subscribing to Nielsen’s off-premise data can monitor the performance of key manufacturers and brand families in the on-trade.