Drinks sales likely to stabilise as consumers settle into new spending patterns
Half of consumers are more concerned about their personal financial situation than they were in May, according to PROOF’s research. 41% saw no change in their concern whilst 9% felt less concerned. This has not been reflected in the frequency of on-trade visits, 27% still visited the on-trade at least once a week in the 3 months to July, compared to 26% in the previous 3 months. When asked about the coming 3 months, 78% reported no expected change in their on-trade visit frequency, whilst 14% expect to visit more and 9% expect to visit less.
In the 3 months to July, fewer consumers (17%) reported a decrease in their overall alcohol spend than they did in the 3 months to May (25%). Furthermore, in the 3 months to July, 10% reported an increase in alcohol spend compared to 7% in May. This increase is largely driven by inflation, with 44% feeling that drinks prices are a little more expensive than the beginning of the year and 26% seeing them as a lot more expensive.
Of those who have maintained their level of spend on drinks, 1 in 5 reported going out less to maintain drinks spend. Others bought fewer drinks when out (13%) and looked for promotional deals (12%), whilst 2 in 3 reported no adjustments to their behaviour. Of those who order drinks when out, only 1 in 4 reported changes in their typical drinks order to save money. Avoiding buying rounds with others (10%) was the most common behaviour change, followed by ordering wine by the glass instead of by the bottle (8%) and avoiding buying cocktails (7%).
Consumer behaviour in the on-trade has stabilised since May. PROOF expects the decline in on-trade drinks sales to plateau soon as consumers continue to settle into their new spending patterns.
Sources: PROOF Insight On-Trade Behaviour Research July 2023
Champagne yields set 5% below last year’s in response to declining sales
Comité Champagne has confirmed a yield limit of 11,400kg/ha for the 2023 Champagne harvest, down 5% on 2022. This brings Champagne volumes in line with 2022 shipments, which totalled 326m bottles, but also reflects worldwide economic challenges. Shipments in the first six months of 2023 are down -4.7% on the same time period in 2022. The decline is also evident in the GB on-trade with MAT volumes of Champagne 22% behind on the same period last year.
Sources: The Drinks Business, Just Drinks, CGA OPM 52 weeks to 17.06.23 vs the same time period last year
Calls for deposit return scheme as most commonly-littered brands are revealed
Surfers Against Sewage’s annual audit has named Coca-cola, McDonald’s and PepsiCo as the top 3 brands responsible for litter in the UK. The audit called for companies to take responsibility for the entire lifecycle of their products and an “all-in” deposit return scheme (DRS) for drinks in the UK. PROOF finds that over 75% of consumers felt that the responsibility lies with manufacturers to ensure drinks are environmentally friendly.
Sources: Propel, Daily Mail
How to deal with explosive bottles of cider
Jeremy Clarkson, alongside Clarkson’s Farm co-star Kaleb Cooper, were seen de-fusing a faulty batch of their Hawkstone Cider that had over-fermented. The brand’s social media posted a characteristically satirical video of the former Top Gear host demonstrating how customers should safely dispose of the faulty batch whilst donning an array of protective equipment including a hi-vis jacket.
Sources: Drinks Business
Sources: Propel, Restaurantonline.co.uk, Drinks Business
Sources: Drinks Business, Spirits Business