The on-premise drinking scene in Australia is a colourful and vibrant scene shaped by market influences. However, with rising interest rates and increased living costs, Australian consumers are starting to second-guess their discretionary spending habits, raising the question of how on-premise consumption will be impacted in the face of changing economic conditions.
To help venues and suppliers adapt to shifts in how consumers behave, spend and socialise, the Drinks Association recently collaborated with CGA by Nielsen to add three custom questions to the OPUS online survey that reaches 4,000 on-premise consumers across Australia.
1. Consumers confused by pre-batched and draught cocktails
Pre-batched and draught cocktails are yet to be widely adopted, with more than one-in-two consumers (56%) saying they have not seen either style available in on-premise venues. These cocktail options are more popular among younger female consumers, who are more inclined to explore and try new drinks.
Traditional cocktails are still preferred across all age groups. The prevailing perception is that pre-batched and draught cocktails don’t measure up in terms of taste, leading to the belief that they should be cheaper. Additionally, a high number of consumers admit to being in the dark about the contents of pre-batched and draught cocktails.
This knowledge gap presents an opportunity to educate consumers and shift their perceptions through trial.
2. ‘Pre-gaming’ highly prevalent among younger drinks
For high-energy drinking occasions like a big night out, the lead-up to arriving at a club, bar, or similar venue, is different across consumer groups. While a dedicated group of "pre-gamers" always indulge in initial drinks before heading out (25%), about a third of individuals (32%) choose to wait until they arrive at the venue before having a drink.
Younger consumers are more likely to enjoy their first drink(s) before reaching the venue. A significant proportion of 18-34-year-olds state that they always (43%) or occasionally (45%) engage in pre-visitation consumption. In contrast, the trend shifts dramatically for older drinkers, with 24% of 35-54-year-olds claiming they never drink before arriving at a venue. The disparity is even more pronounced for those over 55, with 59% reporting that they do not engage in pre-venue drinking.
3. Category drinkers are incredibly loyal and unlikely to switch drinks even with a discount
A considerable number of consumers demonstrated loyalty to their preferred drink category even when presented with different options and varying prices at their favourite on-premise venue. Wine drinkers were the most loyal, followed by spirits, beer, and cocktail drinkers.
These findings highlight how consumers' perception of value greatly influences their drink choices. While some customers are drawn to discounts and value deals, the majority of consumers remain loyal to their favourite drink category, regardless of price.
Understanding the diverse preferences of consumers allows venues to enhance their offer and ultimately create a positive customer experience that encourages repeat visits.
Source: CGA by NIQ, Australia Pulse Report (April 2023).
For more on-premise insights, including the latest in cocktail trends, contact Georgia Lennon.
About CGA by NIQ
CGA by NIQ is the trusted on-premise measurement, insight and research consultancy to food and drink businesses across the globe. CGA is dedicated to empowering growth and shaping on-premise strategies to deliver memory-making experiences for consumers and high-value returns for clients.
CGA by NIQ is a Corporate Partner of the Drinks Association.