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RTDs and Tequila drive LCBO sales
American whiskey, Tequila and ready-to-drink (RTD) cocktails were among the categories that consumers purchased the most in Ontario, Canada, in the past year.
Data from the Liquor Control Board of Ontario (LCBO) revealed purchasing trends for consumers across its outlets from 4 November 2023 to 9 November 2024.
In Ontario, spirits can only be purchased from LCBO’s 680-plus retail stores. It is one of the largest retailers and wholesalers of alcohol in the world.
The LCBO noted that Tequila grew strongly over the past 12 months, up by 6%, however it was a smaller growth compared with the previous year (up 16%).
American whiskey rose by 7%, driven by limited edition releases throughout the year.
RTD products, including pre-mixed cocktails and coolers (alcopops), remained popular. RTD cocktails were the fastest-growing segment with a 17% increase and LCBO noticed that consumers were buying more variety packs to try different flavours.
The LCBO also highlighted that more consumers were exploring Asian spirits, such as whisky and Korean soju.
Another notable trend was the consumer demand for smaller bottle formats across wine and spirits, with the LCBO expanding its selection to offer 200 bottles of spirits that were 375ml or less.
Furthermore, the LCBO noted a movement towards lighter options – drinks that contain lower sugar, less alcohol or no alcohol – with zero-ABV products soaring by 73%. Since 2022, this category has skyrocketed by 189%, LCBO said.
December was called a ‘peak sales period’ for no-and-low drinks, with Ontarians choosing to limit their alcohol consumption.
“This year’s product trends could be described as Ontarians seeking products that were unique, lighter and smaller in size,” said Abhay Garg, vice-president of merchandising at LCBO.
Approximately 10,000 workers at LCBO went on strike in July 2024 – the first in LCBO’s 97-year history – causing the closure of its stores for two weeks. While the action has been resolved, the future of the government enterprise could be in doubt.
Spirits sales in Canada’s bars and restaurants grew by 4.6% in value in the 52 weeks to early September, according to recent CGA data. However, volume sales for spirits were down by 2.1% for the full year, but the decrease lowered to 0.8% in the final 12 weeks.
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