New data shows cost-of-living challenges are taking their toll in the Australian on-premise, with a substantial drop in consumer activity.
The recently introduced CGA Pulse+ Sales Report has explored category and brand sales performance to reveal insights into local sales dynamics.
The new report, with quarterly data to week ending 26 August, has revealed a significant decline in velocity (16%) vs the same period in 2022. CGA said this decline can be attributed to a reduction in traffic (-14%) and average check value (-2%).
Exploring category performance, beer (-10%) and spirits (-13%) have experienced similar trends, with both seeing sales dip compared to 2022. The wine category has seen a bigger drop in sales (-25%) compared to beer and spirits, evidenced by the category losing out to spirits in eating-led venues over recent weeks.
These figures align with recent CGA consumer research, with almost two in five consumers stating they have been going out less in August and September due to cost-of-living increases (75%), and price increases when eating and drinking out (56%).
The data suggests the biggest challenge the on-premise is facing is driving footfall, with declines driven primarily by traffic. having for brands, identifies which sub-channels are most affected and how trends are seen across regions in the market.
Client Solutions Director ANZ James Phillips said: “As the cost of living affects consumers behaviour in the on-premise, it’s becoming increasingly important to have a full view of the market. CGA’s BeverageTrak data provides a granular view of sales velocity, traffic and check value, paired with our consumer insights gives clients a magnified view of the current state of play, identifying gaps and enabling brands, suppliers, and operators to adapt their strategies to fully appeal to all audience types.”