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Spirits sales drop 8.1% in Australian on-trade
Volume sales of spirits in Australia’s on-trade fell by 8.1% in the year to 26 March 2024, driven by a decline for gin.
CGA by NIQ’s latest On Premise Measurement (OPM) report showed that spirits rose by just 0.6% in value over the 12 months, led by price increases.
By volume, year-on-year gin sales declined by 8.9%, vodka fell by 7.1%, rum dropped by 5.8% and whisky decreased by 5.2%.
By value, gin dipped by 1.5% while vodka posted a 1% gain, rum rose by 2.5% and whisky grew by 4.9%.
Prices of 30ml measures increased for all four of the categories. Vodka and rum both saw a 8.7% rise, while gin was up by 8.2% and whisky by 10.7%.
CGA highlighted that rum had increased its share of spirits consumption in the Australian on-trade by 0.3%.
CGA’s breakdown of the rum category indicates that golden variants outperformed white rum. Golden rum sales by value have increased by 7.6% year on year, while white rum dropped by 9.3%. In volume terms, golden rum dipped by 0.5% and white rum plummeted by 17.2%.
Looking across different areas of Australia, New South Wales recorded a 7.6% drop in rum sales by value, while Queensland saw an 8.8% increase. Sales of rum in Victoria rose slightly by 0.4% in value.
James Phillips, CGA by NIQ’s client solutions director – total liquor, Australia and New Zealand, said: “With many consumers still facing pressure on their spending, it’s clear that trading conditions in Australia’s spirits market are tough at the moment.
“However, it’s a very nuanced picture with pockets of growth opportunities for venues and suppliers – especially in rum.”
OPM is described as the only fully projected and extensively validated measure of alcohol sales in Australia’s bars, pubs and restaurants.
OPM Spirits Australia was launched in mid-2023.
CGA previously revealed that spirits sales in Australian bars and restaurants fell by 6.8% in 2023.
Despite the decline, drinks conglomerates are investing in Australian gin. The past 12 months have seen Asahi Group buy Never Never Distilling Co, while Kirin’s Australasian division, Lion, took over Four Pillars.
A trade body recently warned that the Australian government’s “outdated policy settings and inaction” has resulted in the country’s spirits having a “significant competitive disadvantage” in its home market and across the world.
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