Beer at on-premise establishments cost consumers an average of +6% more in the last 12 weeks (through August 20) versus the same period in 2021, according to the market research firm CGA.
The increase is on par with price increases across all beverage alcohol in the period, which range from +4% to +8% year-over-year (YoY). Craft, super domestic premium and below premium segments recorded a larger increase of +8% in the period versus 2021, while imports increased less than the category (+3% YoY). Flavored-malt-beverages (FMBs) were flat with no recorded price increase versus 2021.
Malt liquor remains the most expensive beer segment in the on-premise, followed by (in order) craft, cider, imports, hard seltzer, domestic super premium, FMBs, domestic premium and below premium.
Of the mid-priced beer segments, imports overtook domestic premium as “the most lucrative” beer segment, with a +33% increase in sales velocity in the period versus 2021. However, in drink-led on-premise outlets, mid- and low-priced domestic premium beers maintained the highest velocity, with an average of $9,209 and $6,867 a week per outlet, respectively. Imports claimed the title for food-led on-premise outlets, with an average of $2,792 per outlet.
Craft beer recorded the highest velocity in “polished casual” restaurants in the period, with an average sales velocity of $4,232 a week per outlet, followed by hard seltzer ($2,216). Domestic premiums dominated sports and neighborhood bars, while imports – “particularly in the high price band” – were king in Irish pubs and premium nightclubs.
Similar to beer, the average price of spirits increased an average of +6% YoY in the 12-week period, with individual segments increasing price between +4% and +9%. Brandy (+9%) and cordials (+6%) recorded the largest price increases, while rum (+4%) and vodka (+5%) recorded the smallest.
Drink-led on-premise outlets recorded higher spirits sales velocities than food-led outlets across all spirits segments except gin. Drink-led establishments earned the most from whiskey in the period, while vodka recorded the highest velocity in food-let outlets.