Australian Venue Co (AVC), the country’s second-biggest pub group, has converted about 20% of its beer taps to draught RTDs.
AVC CEO Paul Waterson told the Australian Financial Review spirits and cocktails were the company’s strongest-performing category and now made up 37% of total beverage sales, the same amount as beer.
He also noted that the group’s 234 venues had seen a rise in spending since late September, which he attributed to interest rates stabilising.
Recent CGA by NIQ data revealed draught RTDs are fast becoming a preferred choice for many on-premise consumers in Australia and New Zealand.
There has been a noticeable annual increase in how frequently consumers are choosing RTDs during on-premise visits:
- Australia – Almost half (49%) of RTD drinkers are enjoying RTDs every time or almost every time they go out, a jump from 39% year-on-year (YOY).
- New Zealand – 41% of RTD drinkers now drink RTDs every time or almost every time they visit the On Premise, up from 34% last year.
Tom Graham, Senior Manager – ANZ said: “The rise of RTDs in the Australian and New Zealand markets presents a striking opportunity for drinks brands and suppliers to expand their reach in the On Premise sector by providing the familiarity consumers crave, while providing venue operators with the many and varied benefits accompanying tap RTDs.
“It’s clear the key takeaway for industry stakeholders is to focus on innovation in order to meet consumer demand for recognition, taste and convenience.”
Kirin Hyoketsu Lemon, for example, has launched on tap to meet the consumer demand for RTD on tap as drinkers look for alternatives to beer.