CGA: On-Premise Visits Remain High Despite Price Increases
Despite inflationary pressures, more than three-quarters of consumers (76%) are still visiting bars and restaurants more than or as often as usual, according to market research firm CGA.
CGA surveyed 1,597 consumers in four key cities (Florida, Texas, California and New York) from September 14-15. More than one-third of respondents (37%) said they have visited on-premise establishments more often than usual over the past three months, while nearly two-in-five (39%) have visited about the same as usual.
Of the consumers who are visiting more frequently, 38% said they’ve done so to “treat” themselves, followed by wanting to try new places (31%), feeling safe in hospitality venues now (28%), wanting to support local businesses and “no longer concerned about COVID-19” (both 27%).
A quarter of respondents said they visited the on-premise less in the past three months, crediting an increase in cost of living (63%), on-premise price increase (58%) and less disposable income (49%). Still, a quarter of respondents said they would prioritize regular trips to on-premise establishments “even if their disposable income is reduced in the future.”
“This will be important to monitor as cost of living pressures may increase and weather deteriorates further into fall and winter,” Matthew Crompton, CGA regional director – North America, said.
Frequency of visits has remained “broadly positive,” with seven in 10 planning to visit the on-premise in the next two weeks for food-led occasions, and 43% for drink-led occasions. More than half of consumers (56%) expect to make their next on-premise visit within the next week.
About a third of consumers are spending more per visit at on-premise venues in the past month versus their usual spending.
“Although this increased spend is driven to some extent by food and drink prices increasing, younger consumers are tending to increase their spend in order to treat themselves, to celebrate more special occasions, or to buy more premium drinks brands when out,” Crompton said.
About a quarter of respondents (26%) age 21-34 who are spending more on alcohol per on-premise visit said it is due to an increase in drink prices. More Gen Z and Millennial respondents said they are treating themselves (39%), celebrating more special occasions (30%) and buying more premium beverages when out (28%). Comparatively, higher drink prices were the number one reason for spending more among consumers aged 35-54 (46%) and 55+ (60%).
Nearly seven in 10 respondents said they noticed higher prices at bars and restaurants in the past three months. About a third said they have been purchasing fewer drinks than a normal visit as a result.
Beer remains the most popular beverage-alcohol offering in the on-premise, consumed by 42% of on-premise visitors in the past three months, followed by cocktails (26%), vodka and table wine (both 23%). Just over one in 10 consumers (11%) purchased hard seltzer, while 8% purchased ready-to-drink canned cocktails (RTDs).
Atwater Brewery $1 Million Investment Highlighted
Molson Coors-owned Atwater Brewery is winding down a $1 million project to make capital improvements to its Detroit-based brewery, according to Crain’s Detroit Business.
The investment allowed Atwater to upgrade its kegging and packaging lines, which helps the brewery package more styles more quickly, president Katy McBrady told Crain’s. McBrady took the top job in April and was named to Crain’s 40 Under 40 list this month.
In addition to equipment investments, Atwater also recently hired Cordell DeMattei, previously director of fermentation sciences at Central Michigan University. DeMattei will oversee Atwater’s brewing operations.
Atwater is working on deepening its local connections, McBrady – a native Michigander who moved back from California, where she worked at Classic Beverage, to lead Atwater – told Crain’s. Tactics to do so include pairing local non-profits with limited release beers and donating $1 for each pint poured in the taproom and “some exciting activation with the [MLB’s] Detroit Tigers next year,” Crain’s wrote.
Long Live Beerworks to Move Into Former Flying Embers Boston Taproom
Providence, Rhode Island-based Long Live Beerworks will open a taproom in the Roxbury neighborhood of Boston, Massachusetts, according to Boston Magazine.
Long Live will move into the taproom formerly occupied by hard kombucha maker Flying Embers, which vacated the spot on September 18, Flying Embers CMO Ryan Giunta told Boston Magazine. Ventura, California-based Flying Embers opened its Boston outpost in May 2021 in the space vacated by Backlash Beer Co. in January 2020.
Jessica deBry and Armando DeDona opened Long Live in 2016. It brews on a 15-barrel brewhouse in its 4,000 sq. ft. facility in Providence. The Boston taproom and brewery is about 7,000 sq. ft. and also has a 15-barrel brewhouse.
Last year, Long Live produced 1,100 barrels of beer, according to the May/June issue of the Brewers Association’s New Brewer magazine.