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Vodka sales fall in Canada’s on-trade
Vodka still leads Canada’s on-trade despite a volume decline in the past year, data from CGA’s On Premise Measurement (OPM) has revealed.
OPM in Canada functions the same as in other markets, such as the US; the tool tracks and shares trends from bars, restaurants and nightclubs, looking at sales from leading beverage suppliers.
It found that vodka sales in Canada’s on-trade were down by 6.8% in the past year, however the category still has a 21.5% share of the country’s spirits market. Due to price increases, vodka sales by value fell by only 0.5% year-on-year.
Vodka lost 0.7 percentage points of its share to whiskey (which now represents 17.6% of the market), while Tequila gained 0.5 percentage points and accounts for 15% of the market.
Non-flavoured vodka (down by 6.4%) proved to be more resilient than flavoured versions, which saw revenue drop by 9.6%.
By region in Canada, vodka grew in Quebec’s on-trade (by 1.8%), but elsewhere in the country, there were double-digit drops for Alberta (11.3%), Ontario (11.5%) and Toronto (10%). In Montreal, vodka’s decline was less steep – a slight 1% dip.
Whiskey saw the largest price increase per serve, growing by 7% from 2022 to 2023. Cordials and rum followed with 6.1% and 5.1% growth respectively, while vodka had a 4.6% increase.
Mitch Stefani, CGA by NIQ’s client solutions director – Americas, said: “Amid pressure on consumers’ spending and competition from other categories, the on-premise spirits market has been challenging in 2024, and vodka has been significantly impacted.
“Nevertheless, there remain sizeable opportunities for sales and share growth, especially for brands that can optimise their visibility in outlets. Compelling activations, smart ranging and pricing and localised strategies are all needed for success in this tough category.
Headlines in Canada’s spirits world have recently been dominated by the dispute between the Liquor Control Board of Ontario (LCBO) and its employees, who went on strike in July. The action has since been resolved.
Earlier this year, Chrystia Freeland, Canada’s deputy prime minister and minister of finance, announced a two-year increase cap of 2% for alcohol excise duty.
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