Data shows drinkers prefer premium spirits
New BevergageTrak data from CGA by NIQ shows that while the price of spirits has increased due to global inflation, consumers are more willing to purchase higher-end products.
The data shows the price of all spirits has increased, with cordials showing the largest jump.
Research shows that all on-premise spirits categories have seen an increase in average price over the past year, with cordials leading the way, up by US$1.
Each category has seen a median price up of at least US$0.60 from the previous year. However, consumers appear to still be opting for premium spirits.
Cognac remains the most expensive spirits category, while Tequila has overtaken whiskey for second-highest median price.
CGA by NIQ data tracks category performance using price brand tiers. In 2022, cordials showed the highest velocity at the mid-price band, while this year’s data shows consumers’ willingness to spend more on premium products.
Gin, meanwhile, performed better in the mid-price band rather than the high price band compared with last year. That said, velocity in the high price band was up by 24% from 2022. Similarly, the high price band for vodka outperformed the low, with the high price band up by 80%.
The new data also tracks spirit trends at eating and drinking outlets. Eating outlets performed better in the high price band when compared with the previous year, and all spirits categories saw increased velocity. Specifically, Cognac is up by 132% and vodka is up by 72%.
Drinking outlets likewise performed better in the high price band, with the exception of vodka. The mid-price band performed worse across all categories.
On average, drinking outlets outperformed eating outlets in the high price band, particularly for whiskey and rum.
“It’s important for brands, suppliers and operators to monitor how the on premise landscape is changing, especially whilst navigating cost of living pressures across the country,” Matthew Compton, North America regional director for CGA, said.
“This BeverageTrak data is crucial for those looking to keep a pulse on how consumers are navigating the on-premise, and how best to position products to appeal to consumers who are considering their purchasing decisions much more carefully.”
Earlier this year, IWSR Drinks Market Analysis data showed Tequila has overtaken American whiskey to become the second most valuable spirits category in the US.