The up-and-down journey of on-premise beer

Written by Sep 25, 2024The Shout

The latest insights from CGA by NIQ’s On Premise Measurement (OPM) highlight both good news and bad news for beer sales in Australia’s on-premise and the need to understand what is not working and where the opportunities are for venue operators.

CGA by NIQ’s OPM shows that over the last 12 months beer sales by volume have actually increased by 0.5 per cent year-on-year, however there are more immediate challenges facing operators as sales by volume have dropped by five per cent over the last 12 weeks.

The picture is slightly brighter by value, with year-on-year growth of 6.5 per cent in the last 12 months and 0.3 per cent over the latest 12-week period.

Thomas Graham, CGA by NIQ’s Senior Manager – Customer Success, Liquor, said: “Beer volumes in the last year have been resilient, certainly in the first three quarters as consumers turned to beer to adapt to cost-of-living pressures, with the category seeing the benefits of value-driven consumer mindsets.

“The decline more recently is due to the economic situation in Australia. As the household savings ratio is now at a 17-year low, and those all-important 35–54-year-olds who are most likely to drink beer being the ones more-likely to be affected by these economic challenges.

“For brand owners, having a clear idea of the factors contributing to these shifts in trends is crucial, and it’s more important than ever to pinpoint drinkers’ preferences, and understand how they vary throughout the various demographics, location, and channel. CGA’s On Premise Measurement (OPM) solution gives clients insights showing a full view of Australian On Premise, identifying pockets of growth, highlighting the areas that need the most attention, and enabling those brands to respond with localised and effective strategies.”

The data also shows what is happening state-by-state with New South Wales and Victoria being Australia’s two biggest states for beer sales, with volume shares of 32% and 28% respectively.

However, they have also seen some of the steepest drops in sales. Volumes in the second quarter of 2024 were six per cent and two per cent behind the same period in 2023. There were even sharper falls compared to the first quarter, at 13 per cent and 17 per cent. Smaller states have been slightly more resilient in recent months, with Queensland’s volumes from April to June down by only six per cent quarter-on-quarter.

In terms of beer styles, craft beer trends reflect lager as Australia’s favourite beer by style, taking 51 per cent of all volumes, but sales have fallen 12 per cent quarter-on-quarter.

Spending has also dropped by double digits in other popular styles, including pale ale (down 15 per cent), ale (down 11 per cent) and Pacific ale (down 15 per cent). There has also been a shift towards lower alcohol beer styles, with light strength volumes level with 12 months ago and mid-strength losing the largest proportion of share.

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