Canada’s on-premise sales see boost
New research has found that nearly a third (31%) of Canadian consumers are going out more despite the cost-of-living crisis, with on-premise value velocity increasing by 7% for the year ending 24 June 2023.
CGA by Nielsen IQ has released its Canada On Premise Impact Report, and discovered that value velocity in the on-trade has reached a value of CA$79,064 (US$59,787) for the year ending 24 June.
Mitch Stefani, client solutions director – Americas, said: “The latest data doesn’t shy away from the current challenges the hospitality industry is facing.
“Despite this, our industry leading research for the channel continues to demonstrate steady growth in footfall with peak visitation taking place throughout the summer, coupling this with our sales reporting shows how the on-premise is set to have a successful summer period.”
Just less than one-in-three (31%) consumers have said they are going out ‘much more’ or ‘slightly more’ often than usual. A third of these said this was due to the time of year, while another third said it was due to events taking place more than usual. Half (49%) of consumers are going out the same as usual, while 21% are going out much less, or slightly less, often than usual. Three in five cite the cost-of-living crisis as a cause of this, while the same proportion note the price increases in the on-trade as a factor.
Analysing key provinces Alberta, British Columbia, Ontario and Quebec, the report looked at consumer behaviour in the month to 16 June 2023.
Yet, research does not suggest Canada’s on-premise is consistently reporting positive results: the data analyst also found that 82% of respondents have been out to eat in bars or restaurants in the past month, representing a decline of three percentage points when compared to May 2023. In addition, 37% of respondents have been out to drink in bars and restaurants in the past month, which is four percentage points lower than May 2023.
In March, an increase in excise duty on alcohol in Canada was temporarily capped at 2% instead of a planned 6.3% rise.