Sport & beer, human touch, Barbie drinks.

Research news 

Sport is a key driver of beer volume in GB on-trade

PROOF Research finds 9% of GB on-trade beer volume comes from consumers watching sports. Consumers are equally likely to drink premium lager (30% of volume) and mainstream lager (31%) when watching sports on-trade, creating opportunities for brands across the standard-premium spectrum. Compared to other on-trade occasions, consumers see alcohol content and sessionability as more important when watching sports on-trade. With 47% of beer drinkers opting for the category to “stay in control” and 59% considering alcohol content when purchasing, clear ABV labelling on menus and taps is a good way to win for on-trade venues showing sports.

Furthermore, new research from Sky Business and CGA by NIQ revealed the positive impact of live sports for on-trade operators. When live sports are showing, 87% of consumers said they would stay out longer, and 75% would visit the on-trade with a bigger group than they usually would. Sports can also help build loyalty for on-trade venues, with 89% of consumers saying they would be more likely to revisit a venue if they know it shows live sports.

Sources: PROOF Insight Consumption Moments Research, Sky Business and CGA by NIQ, Propel

Find out about Consumption Moments 

Industry news 

Growing preference for tech, but consumers still want human connection

More consumers are using technology while in the on-trade. 71% prefer to use technology exclusively or combined with human interaction. In 2020, just 43% of consumers used tech-based solutions to order and pay for food. Speed (50%) and convenience (49%) are the key benefits of tech for consumers. However, 3 in 5 still want to place orders and pay bills face-to-face and have their food and drink prepared by people.

Sources: Propel, Technology report from Zonal & CGA by NIQ

Workers prefer to forgo after-work drinks and have a meal instead

6 in 10 consumers are now avoiding having drinks with colleagues after work, with 35% of workers seeing them as a complete waste of time. Ten years ago, 80% of people would go to a pub with workmates at least once a week. Workers also feel that after-work drinks aren’t inclusive as they don’t cater to non-drinkers. Instead, 62% would prefer a foodie evening with no alcohol. This year, corporate businesses plan to increase their spending on staff events by 80%, creating opportunities for the on-trade.

Sources: Propel, Daily Mail

Strange brews & news 

Think pink: the drinks industry gets Barbie-inspired

Cocktail bar group Tonight Josephine and Fulham’s Neverland are among the venues hosting Barbie-themed parties celebrating the film’s launch on 21st July. But what will fans be drinking? PROOF predicts the tequila-based Pink Paloma with grapefruit soda will be in demand, along with pink Prosecco and strawberry Malibu-based cocktails, now that Malibu has overtaken Aperol as the number one specialty liqueur on-trade.

Sources: Spirits Business, PROOF Insight Summer Serves report

Investments, acquisition & openings 

• Kliro Capital Partners have acquired Intercontinental Brands
• Heineken has invested £25m in sustainable technology at their Manchester brewery
• Proof Drinks has partnered with Gruppo Montenegro on their UK distribution
• Drinks One has become the exclusive UK distributor for Altamura Distilleries
• Roxy Leisure has opened their first King Pins site in Trafford Palazzo, Manchester
• Diageo has opened a cocktail bar within Dublin Airport
• SSP Group has opened a food court at Dublin Airport
• A new cocktail, craft beer and natural wine bar named The Pearl will open in Sheffield’s Park Hill in August
• Tom Ginn, the Norfolk operator, has acquired a site in Norwich, formerly Frank’s Bar
• Richard Reynolds, the North Wales operator, has acquired Alferdo’s restaurant in Conwy

Sources: Drinks Business, Spirits Business, Propel

Product launches & campaigns

• Chivas Brothers have publicised the design of their carbon-reduction technology
• Mad Squirrel Brewery has released Post-Ride beer in partnership with Volt e-bikes
• Attic Brew Co has released a “Brave Noise” beer to combat discrimination in the beer industry
• Havana Club has released a limited edition 11-year-old expression
• Quayside Distillery has released a new Limoncello, Naracello and Limecello
• Double Dutch has released an elderflower-flavoured tonic water
• Bruichladdich distillery have redesigned the bottle of The Classic Laddie, reducing carbon emissions by 65%
• Champagne Catelnau has unveiled a new visual identity styled on “The Art of Delicacy”
• Johnnie Walker has partnered with actress Hannah Waddingham on a campaign to promote women’s sport
• Jameson has partnered with Dickies workwear on their campaign Crafted Together

Sources: Drinks Business, Spirits Business

Duty, Espresso & Tonic, Competitive Socialising.

Research news 

Change in alcohol duty price rises unlikely to deter alcohol buyers

Over half of consumers would be willing to pay the price increase on their usual drink purchase, if the change in alcohol duty is passed on to consumers from August, PROOF research shows. Many alcohol drinkers (66%) are unaware of the changes in alcohol duty coming into effect from August which could make their favourite drink more expensive. However, when shown the possible price increases of different types of alcohol beverages they consume, more chose to go ahead with the purchase than those who would switch to a lower priced product or leave the category completely.

62% of off-trade wine purchasers would spend 44p more to get their favourite wine at its current alcoholic content. When thinking about their favourite spirit, on average 1 in 2 spirits drinkers would be prepared to pay the extra pence at supermarket/shop despite this category seeing some of the highest price increases per bottle. Out of those buying beer and cider at a supermarket/shop, 66% of lager drinkers say they would spend 4p more to get their favourite lager and 57% of apple cider drinkers would be happy to pay 5p more for a bottle of apple cider.

While there is a risk of losing a small percentage of category shoppers if retailers are to pass on price rises as a result of the change in alcohol duty, this is unlikely to have a significant impact on consumer behaviour in the on- and off-trade, outside of the continued pressure on volumes as a result of inflation.  

Sources: PROOF Insight POURTRAITS June 2023

Find out about PROOF’s Duty Research

Industry news 

13% growth in competitive socialising since 2019

Since 2019, participation in competitive socialising has risen by 13%, according to research from Mintel. 71% of consumers say they have partaken in competitive socialising in the past year, including 93% of Gen-Z. Despite willingness to participate, consumers remain cost-conscious – with most refraining from spending over £20 on an activity. With consumer budgets squeezed and competition growing in the space, operators need to provide an affordable experience for consumers.

Sources: Mintel, Propel

Economic pressures continue to impact businesses and consumers

In the three months to May, wages were at the highest level since records began in 2001, up +7.3%. Inflation continues to drive the real value of wages down with the consumer prices index measuring inflation at around 8.7%. Mortgage rates are at the highest level since August 2008, the sterling is also at its highest level against the dollar in the past 15 months. Consumers are already having to make cutbacks in their lifestyle, 24% say their spend on alcohol decreased in the three months to May 2023.

Sources: ONS, BBC

Strange brews & news 

Wake up to Espresso & Tonic…

Espresso & Tonic is the latest mixed drink to piggyback on the Espresso Martini and iced-coffee trends of recent years. To save you the time, the PROOF team taste-tested the concoction – reviews were mixed, it made for a bitter concoction so may only hold appeal to those who enjoy bitter drinks like Negroni. Just be careful with the pour… your drink may end up with bit too much head.

Sources: Mashed.com

Investments, acquisition & openings 

• Co-founder of Corbin & King, Jeremy King, announces plan to open a restaurant in Hyde Park called “The Park”
• Pub People Company boosts investment into its existing businesses and accelerates expansion plans
• The Zero Carbon Forum launches Marketplace, a services directory designed to connect supply chain businesses with hospitality businesses to help them reach net zero
• Speciality Drinks launches monthly educational series, Speciality Sessions, to educate bar teams about their products
• Lyre’s, the non-alcoholic spirits producer, raises nearly £18m to fund expansion plans
• Alan Lau, founder of Wagamama, announces plans to open a restaurant and retail concept selling plant-based ramen

Sources: Propel, The Spirits Business, RestaurantOnline

Product launches & campaigns

• Shakespeare Distillery launches Kaffir Lime & Orange Gin in time for the summer period
• Gipsy Hill, based in South London, states it has launched the first ever carbon negative beers, Swell Lager and Trail Ale
• Gary Barlow releases an Organic Sauvignon Blanc and Blush wine
• Hive Mind Mead and Brew Co collaborated to launch Nectar, a Pilsner style beer with British honey
• NICE, a canned wine start-up, releases its first sparkling wine
• Wine brand, Jam Shed, launches ‘Jamgria’ cocktail kit to help operators tap into the growing trend for wine cocktails
• Yolk, the ‘Fine Fast Food’ brand, launches a fundraising campaign to help increase its number of sites

Sources: The Spirits Business, The Drinks Business, RestaurantOnline