Cocktails are driving growth in both the on- and off-premise channels, according to reports from market research firms CGA and IRI.
In the on-premise channel, bars and restaurants have earned more than $12,000 on average from the sale of cocktails in the first quarter of 2022, compared to the 12 weeks that ended October 22, reported CGA, which focuses on on-premise retail occasions.
“Consumers have been visiting the on-premise more often for a cocktail occasion, and are spending more when they do,” CGA wrote in a report about cocktails.
During the first quarter of 2022, bars and restaurants saw a +9% increase in tickets containing cocktails and sold +11% more cocktails than in the 12-week ending October 22. This indicated that there are “more cocktails per check on average, as quantity is up more than traffic,” CGA senior analytics client manager Siobhan Madeley told Brewbound.
Check values also increased by $4 on average for cocktail-seeking consumers; however, the average price of a cocktail increased $0.50, “behind the average level of inflation across the country,” CGA noted.
Sales velocity has increased every week day in the first quarter compared to the 12 weeks ending October 22. With a 25% lift in sales velocity during the time period, Saturday remains the most valuable day, but sales velocity has also increased by double-digits on Monday and Tuesday, according to CGA.
All but one of the top 10 cocktails recorded sales velocity increases in the period. The mojito, the only cocktail to see its sales velocity decline, dropped two spots in the rankings in New York and Texas, but remained among the top three drinks sold in California. Nationwide, it is the fifth best-selling cocktail, according to CGA.
Pina coladas and bloody marys have dropped off the top 10, and were replaced by espresso martinis and Manhattans, which are “shorter” and “stronger,” CGA noted. In New York, espresso martinis remain within the 10 most popular cocktails from the midday time slot and later.
“This demonstrates the espresso martini is not solely an evening cocktail,” CGA wrote.
Espresso martinis have led cocktails in growth, and the majority of the top 10 cocktails have seen “double-digit growth.” On average, outlets have earned +40% more on sales of espresso martinis during Q1 nationwide, according to CGA.
The 10 most valuable cocktails by velocity nationwide are:
- Margarita
- Moscow mule
- Martini
- Old fashioned
- Mojito
- Long Island iced tea
- Mimosa
- Espresso martini
- Bellini
- Manhattan.
IRI: Spirits-Based Hard Seltzers +80.9% in Off-Premise Retailers
In the off-premise channel, spirits-based hard seltzers are the only segment to grow in the ready-to-drink (RTD) category, according to market research firm IRI. During the week ending May 22, dollar sales of spirits-based seltzers increased +80.9%, compared to the same week last year.
Spirits-based RTDs’ growth rate has fluctuated in recent weeks compared to the same weeks last year:
- +111.2% for the week ending May 15;
- +79.6% for the week ending May 8;
- +78.% for the week ending May 1;
- +104.8% for the week ending April 24.
Overall, dollar sales of RTDs declined -2.4% compared to the same week last year, with wine-based seltzers (-40.8%) driving the negative numbers, followed by malt-based seltzers (-13.8%). Hard seltzers across beer, wine and spirits declined -10.8% compared to the same week last year, but increased dollar sales +2.3% week-over-week.
Spirits-based RTD maker BuzzBallz led the spirits category in dollar growth for the week ending May 22, increasing sales +56.3%, followed by Anheuser-Busch InBev, maker of Cutwater Spirits (+34.7%); and E. & J. Gallo, maker of High Noon Sun Sips (+32.2%).
High Noon was the top growth brand in the spirits category for the week ending May 22,increasing sales +95.2% in multi-outlet food and convenience stores, followed by BuzzBallz (+57.7%), Fireball (+20.6%), Tito’s (+7.7%) and Crown Royal (+3.6%).