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Spirits sales slip in Australian bars
On-trade spirits sales in Australia declined by 10.5% last year with higher-priced categories such as Japanese whisky and mezcal down by double digits.
CGA by NIQ data noted the disparity between beer and spirits sales in Australia’s on-trade sector, with beer seeing a 3.4% volume drop and a 1.2% value increase in the 12 months to 3 December 2024.
Volume sales of spirits declined by 10.5% in 2024 as the category faces high taxes, CGA said. Earlier this month, Australian spirits duty rose to AU$104.31 per litre of alcohol in line with twice-yearly increases.
CGA said spirits are being hit the hardest as value-driven consumers turn to beer amid cost-of-living pressures, or avoid the on-trade completely. It also noted that globally the spirits category is seeing a huge decline.
This is evident in Australia’s on-trade as higher-priced spirits like Japanese whiskey and mezcal declined in volume year on year, falling by 12.7% and 16.6% respectively.
Meanwhile, slightly lower-priced options such as gold rum (down 3.8%) and Irish whiskey (down 7.6%) had smaller decreases compared to the broader spirits category.
CGA also highlighted price hikes across the country’s on-trade with a 30ml serving of spirits rising by 1.5% in the year to 3 December 2024, and by 18.8% since 2022.
A 425ml beer saw its price go up by 2.8% year on year, and by 13.4% since 2022.
In addition, Scotch (up 22.3%) and Tequila (up 19.9%) have had the biggest price increases when compared to 2022.
However, in line with total spirits, both Scotch (up 0.3%) and Tequila (up 1.6%) have seen smaller price rises in the last 12 months.
RTDs gain favour
CGA also highlighted the rise of pre-mixed drinks such as ready-to-drink (RTD) products and draught cocktails among Australian consumers.
More than half of consumers (51%) encountered draught cocktails and mixed drinks when out. Although 45% believe that while the category is improving, it still falls short of drinks made by a bartender.
Furthermore, the total number of RTD drinkers rose from 48% in March 2024 to 55% in September 2024, with significant growth found among the 55-plus age group (from 13% to 22%).
CGA said this shift showed the ‘importance of investment in beyond-beer options to stay competitive’.
Nightclubs, bars and hotels are the types of venues where RTD drinkers expect to see more pre-mixed spirit and mixers, and cocktails on tap.
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