Cocktails take share from spirits in US on-trade

CGA has revealed that the value velocity of cocktails in the third quarter (Q3) of 2024 was 10% higher than in the previous quarter.

Cocktail value velocity is the average amount spent on cocktails in US venues. Despite the increase in Q3, the figure was down year on year.

The Cocktail Sales Tracker also revealed that cocktails take up 35% of total spirits value in the on-trade, which is a year-on-year increase of six percentage points.

The average price of a cocktail rose 50 cents to US$13.50, while the average check value climbed more than US$3 to US$86.35. In these respects, cocktails are stronger than wine, beer and spirits.

CGA said more drinkers are weighing up cost versus quality, with 52% willing to pay more for a cocktail with branded ingredients – a four percentage-point drop from last year.

Other trends observed included draft and pre-batched cocktails, with a third of 21- to 34-year-olds having either tried or expressing interest in trying them. There was particular appeal in New York, California and Texas.

In fine dining and ‘polished casual’ venues, the Espresso Martini, Sangria, and Gin Fizz saw strong demand.

Matthew Crompton, CGA by NIQ’s vice-president – Americas, said: “In a tough trading environment for spirits, cocktails will be absolutely pivotal to the growth plans of suppliers and operators in 2025.

“We see ample opportunities across the category, but seizing them will require a deep understanding of what consumers want, and why, where and when they want it.

“Our Tracker and report are essential building blocks for precise and data-driven strategies that can sustain interest in spirits in US bars and restaurants in 2025 and beyond.”

Last month, CGA predicted a rise in spending for the US on-trade this year.

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