Spirits outperform beer in Canadian on-trade
Spirits volumes in Canada’s on-trade fell by 1.9% last year, driven by whisky and vodka, but the category fared better than beer.
CGA’s On Premise Measurement (OPM) tool noted that while spirits in Canada’s bars and restaurants decreased last year, the category performed better than beer, which saw its volumes fall by 3%.
CGA attributed the decrease in spirits to a 3.7% drop for whisky and a 1.5% fall for vodka, which collectively account for 39% of spirits volumes in Canada.
Tequila, which represents 15.3% of spirits volumes, was the only segment in volume growth (up by 1.1%).
Spirits’ performance varied by province in 2024, with Alberta (down 0.8%) and Quebec (up 0.4%) being the most resilient.
Ontario and British Columbia saw slightly steeper losses, down by 3.8% and 1.9% respectively.
Mitch Stefani, client solutions director – Americas at CGA by NIQ, said: “Spirits volumes remain under strain in the on-premise channel, but we still see pockets of growth.”
Quebec and British Columbia saw the biggest rise in the average cost of a spirit per serve, up by 11.4% and 9.3% respectively.
Price increases were smaller in other major provinces like Ontario (up 3.2%) and Alberta (up 5.3%).
The OPM data also found that spirits volumes decreased less in food venues (down by 1.7%) when compared with drinks venues (down by 2.7%).
CGA’s March Consumer Pulse Report showed that 76% of Canadian consumers had dined out during the month, while 42% went for a drink.
Nearly a fifth (19%) of consumers who visited the on-trade in March drank cocktails during their visit, and 86% of them claimed to be satisfied by the quality of serve they received.
Tariffs on American whiskey in Canada could help local producers win back share in the country’s on-trade, according to Stefani.
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