Performance in the most recent quarter of this year sees the average outlet earn over $13,500 from cocktail sales, which is an +11% increase from the first quarter, according to CGA by NielsenIQ‘s Cocktail Sales Tracker. While average prices are up +4% from the previous quarter, average check value is down -1%. This increase in sales velocity can be solely attributed to traffic, which sees a +14% rise. This is good news for On Premise retailers and suppliers, CGA says.
Exploring daily performance across the week, data highlights that Saturday, as expected, saw the largest velocity on average ($3,300) but interestingly all the growth occurred on the other days of the week – with midweek preforming particularly well, (Wednesday and Thursday having a +22% and +24% velocity increase respectively). Early evening and late night were the best performing dayparts compared to the previous quarter (+15% and +20% respectively), as the days become longer, and consumers choose to stay out that bit later.
As we enter the summer months, research suggests that consumer cocktail preferences change – the Mojito has overtaken Old Fashioned as the fourth most popular cocktail this quarter. However, the biggest jump in the top 30 cocktails is with Piña Colada, which moved from the 17th to 9th most popular cocktail type, with an +87% increase in traffic. This rise is most pronounced in New York, specifically in the last 4 weeks of the quarter.
This trend is maintained when considering total cocktails by state. In the first quarter, warmer states like California and Nevada recorded the highest velocity and, while they are still on top in the second quarter, this gap has been shortened with Illinois (+37%) and New York (+28%) heating up and performing best vs Q1. Again, this boost is driven by traffic with Illinois seeing an increase of +43% and New York an increase of +29%.
Interestingly, Illinois and New York do not follow the total U.S. trend for dayparts – Breakfast/Brunch experiences the highest growth in both states in the second quarter (+95% and +33% increase in velocity), where Bellini’s and Mimosa’s are the top two cocktails. Knowing how each market reacts to the seasonal changes can help suppliers identify areas of opportunity and target consumers more effectively.
Matthew Crompton, CGA’s regional director – North America, said “The changing dynamics of consumer preferences are coming through in the cocktail tracker. The Summer presents ample opportunities for beverage suppliers to maximize these shifts in preferred serves to compliment occasions and changes in the weather – and understanding these trends will be key to building a winning cocktail strategy in the On Premise.”