On-trade continue upward trajectory in Canada

The rate of on-trade sales in Canada continues to be above 2022 levels, as the most recent weekly data showed an 8% increase.

Sales velocity across Canadian bars and restaurants for the week ending 15 July 2023 was up by 8% compared with the same seven-day period last year, according to CGA’s Beverage Trak dataset.

In Alverta, the sales velocity of food and drink is now 10% higher year over year, compared with the same period the previous year.

In British Columbia, the sales velocity is 1% higher year on year, while Quebec is up by 4%.

Mitch Stefani, client solutions director – North America, said: “It’s clear the on-premise remains important to consumers, so brands, suppliers and operators should be considering how best to approach the rest of 2023.

“Looking forward, with the Civic Holiday taking place on 7 August, we can expect to see an uplift in velocity.

“Last year on the day, velocities were +48% versus the average Monday in 2022, recording the second largest Monday only behind Valentine’s Day.

“CGA by NIQ’s [Nielsen IQ] On-Premise Impact Reports provide the data and insights needed to help craft successful on-premise strategies.”

Earlier in July, research revealed almost a third (31%) of Canadian consumers were going out more despite the cost-of-living crisis. It came to light as data from CGA by Nielsen IQ showed on-premise velocity by value rose by 7% during the year ending 24 July 2023.

In March, an increase in excise duty on alcohol in Canada was temporarily capped at 2% instead of a planned 6.3% rise.

That same month, a survey showed the majority of Canadians planned to ignore the government’s update to alcohol consumption guidelines.