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CGA: spirits prices rise in US bars
Research has revealed that the average price of spirits in the US on-trade has seen a boost of 6% in the past 12 weeks, compared with the same period in 2021.
CGA’s Beverage alcohol pricing dynamics by Nielsen IQ data reviewed the performance of spirits prices and volumes in the US on-trade over the past 12 weeks, with comparison to the same 12-week period in 2021.
Research showed that the average price for spirits has increased by 6%, with all subcategories within this seeing a boost between 4%-9%.
Brandy saw the largest increase in price, by 9%. Meanwhile, rum and vodka experienced the lowest price rise, at 4% and 5% respectively.
Matthew Crompton, regional director – North America, said: “On-premise businesses are facing a number of challenges in the market and while visitation levels remain high, it’s crucial that suppliers and distributors are understanding shifts in consumer consumption, the factors driving their drinks choice and the impact this has on performance of brands across price bands.
“Pricing analytics helps suppliers spot trends over time and identify the areas for opportunity that may be missed otherwise.”
The report looks into how spirits are being ordered and distributed across the US.
Although the average price changes varied across each category, the rank of each category remained the same in both 2021 and 2022 (from most to least expensive: Cognac, whisky, Tequila, gin, cordials, brandy, rum).
CGA grouped sales into price bands low, mid and high, recording the average velocity for each.
Each category’s performance is then measured.
Compared to 2021, brandy and gin performed better in the mid-price band (up by 36% and 16% respectively), while Tequila performed much better in the high-price band (up 21%).
In the low-price band, Cognac had its largest increase in velocity at 10%.
Drinking outlets fared better in the recorded 12 weeks compared with the same period in 2021, particularly in the mid-price band where all but Cognac and whisky saw positive trends.
Gin was the one outlier earning more for eating outlets compared to drinks-led venues.
The most lucrative price band for gin is the high-priced one, although the largest growth was seen in the mid-price band (up by 15% from 2021).
The research also found that drinking outlets earned the most from whisky than any other spirits category.
In ‘premium’ bars, the mid-price band saw the best results on average (US$8,405 per outlet and an increase of 63% on 2021), while neighbourhood bars earned more on the low-price band (US$4,690 per outlet and up by 17% on 2021).
In September, CGA revealed that growth of Tequila is ‘outpacing its counterparts’ in certain price tiers across spirits categories in the US.