A surge in on-trade sales of luxury drinks tells us so according to CGA.
43% of consumers are now choosing high-quality drinks when enjoying a night out, or say they are likely to upgrade to a premium option of their preferred tipple when drinking out. With Le Verre de Vin you’ll never miss this opportunity to upsell to a premium glass of wine or fizz, and you won’t incur costly wastage.
When looking at these results amongst the millennial consumer group, the figure rises to more than half (54%) – suggesting that young adults are driving the shift towards more upmarket drinks.
“The appeal of luxury brands in particular is soaring and on-trade operators need to stay on top of drinking trends such as these if they are to generate spend and loyalty in this ultra-competitive market,”
Phil Tate, CGA Chief Executive commented.
The report emphasised the huge value of premium drinkers to everyone operating in the on-trade, from pubs and wine bars to restaurants, he said.
Moving up the quality ladder, drinkers are increasingly looking for alternatives to Prosecco, reckons Chris Harag, Bibendum business development manager. “While Prosecco will remain key in the mainstream market, sommeliers are increasingly looking at top Cava. Llopart is an amazing example, and was recently added to the list at The Red Lion and Sun, as well as Portland Restaurant.”
In addition, the report revealed that consumers who drink premium brands tend to spend much more on eating and drinking out than their non-premium counterparts, averaging at between £116 and £92 a month.
To capitalise on this fast-growing thirst for luxury brands, Tate said key steps operators could take included sharpening focus on range, price point and serving style.
Capitalise on premiumisation with these 5 key steps from the CGA Going Premium Report.
Get the range right
The choice of drinks offered by pubs, bars and restaurants must meet the demands of premium drinkers for high quality and fresh experiences. Use research and analytics to get the range right and you’ll win half the battle.
Target twenty-somethings (also known as millennials)
The 18 to 34 age group is the most likely to favour premium drinks, so brand marketing needs to understand the habits and aspirations of young adults. Millennials want you to shatter traditions (to put it bluntly). Dare to be different, and talk about it on social media. Be ready to change the way you transact. Invest in the experience as well as the story. Give them plenty of choice, empower them to feel in charge. Most importantly, be prepared for change and you’ll win the other half of the battle.
Read more about the Millennial demand here
As the premiumisation trend evolves into super-premiumisation, there is an opportunity to persuade drinkers to trade up to high-end brands for something new. Champagne by the glass is a hot topic, one that operators often shy away from – why? Wastage. Forget about that, we’ve got you covered. Just get the offer right and you’ll be in for much happier customers and of course that important incremental margin for you. If you’re already serving Champagne by the bottle then open it up by the glass- a tempting trade-up from a glass of Prosecco!
Find the right price point
Premium drinkers are willing to pay extra for the right brand – but the drink, service and overall experience still has to deliver value for money.
Perfect the serve
CGA research finds that service is vital to the overall drinking experience. A perfect serve is integral to keeping your customers returning and your profits increasing. Wines at perfect temperature, Champagne and fizz that always pops adds to the theatre of pouring a glass of bubbles.
If you’re experimenting with your wine and fizz offer and indeed going premium, you need some technology that has your back: Le Verre de Vin technology. Experiment with your range and offer each option by the glass- with the comfort that Le Verre de Vin wine preservation technology keeps your open bottles of still & sparkling wine fresh for 21 days.