Americans favour liqueurs in on-trade

Liqueurs and apéritifs outperformed spirits in the US on-trade in the 12 months to July 2023, driven by coffee-flavoured variants.

Data from CGA’s latest On Premise Cocktail Report showed that the cordials segment, which includes a variety of subcategories such as liqueurs, apéritifs, digestifs and shot brands, saw sales grow by 0.6% in the US on-trade in the year to July 2023.

In comparison, spirits sales dropped by more than 5% over the same period.

Within the cordials segment, coffee was the fastest-growing flavour, with sales up by 14.5%. It was followed by peppermint (up by 9.2%), herbal (up by 5.2%) and cream (up by 5.2%).

The cordials subcategory saw its sales grow fastest in casual-dining outlets (up by 1.4%) and fine-dining venues (up by 1.5%). Sales in bars and nightclubs fell slightly.

Super-premium cordial sales rose by 7% in value over the 12-month period, while the ultra-premium segment grew by 3.8%.

However, cordials in the value and mid-priced tiers dropped by 7% and 1.3% respectively.

CGA said this trend was backed by its On Premise User Survey, which found that 70% of cordial consumers are willing to pay more for a better quality drink ­— 20 percentage points higher than the average US drinker.

Matthew Compton, CGA by NIQ’s regional director – North America, said: “Sales of cordials have held up well in a challenging market this year, and strong growth for top-priced brands shows consumers are willing to spend freely on them if the quality is right.

“However, the cordial-based cocktail market is evolving fast, and we can expect more shifts between flavours and channels in 2024.

“As suppliers and venues develop their menus, pinpointing exactly where, when and why consumers enjoy these drinks is going to be crucial to success in an increasingly competitive part of the market.”

Data from CGA last month showed that spirits sales fell by 3.3% in the US on-trade in the year to 9 September 2023, with gin being the only category that grew.