Cocktail report 2012

Recently, one subject has been repeatedly raised by clients – the performance of cocktails.In particular, the often expressed view that cocktails represent a significant volume opportunity and an increasingly critical vehicle for on trade spirits sales. To date however, the absence of hard data has proved a significant stumbling block in the development of effective cocktail strategy. As a result, there are many questions about category shape, penetration and performance. How many outlets serve cocktails? How much volume do they sell? What are the opportunities for growth? In response, this Cocktail Report sets out to answer these questions and more: providing the hard facts to both support the insights and dispel the myths that have grown up in this long misunderstood sector of the market place.

To provide a full spectrum of critical insights we devised and deployed a multifaceted programme of research, making use of the full range of CGA’s research and analytical capabilities. We used quantitative telephone surveys to understand cocktail category sophistication and penetration; ran online research to deliver a consumer perspective; and engaged in advanced analytical and statistical interrogation of our uniquely extensive and diverse range of on trade data sources. We contextualised all data through interviews with industry leading operators providing a front line view.

The result is a new quantification and, ultimately, a new understanding of the cocktail opportunity. An opportunity that lies not just in the 2,900 outlets with sophisticated cocktail capability but across the mainstream 20,000 pubs, bars and nightclubs that are increasingly using cocktails as a central feature in a revitalised on trade offer.

The cocktail opportunity is not just about luxury brands in high end outlets.

For operators across the trade, it can boost back bar performance, generate increased customer interest in spirits and raise profits.

For producers, cocktails can reposition a brand in the consumer consciousness and point the way towards enhanced volume sales.

CGA’s research demonstrates that this opportunity is about bars that sell cocktails as well as cocktail bars. Cocktails should play a key role in meeting the new consumer view of the on trade as an affordable treat; expected to deliver a special experience every time.

Table of contents

INTRODUCTION

EXECUTIVE SUMMARY

IN FULL FLOW.
Bar consultant and owner of celebrated London cocktail bar Purl, Tristan Stephenson offers a view from the cutting edge of UK cocktail culture.

HEART OF GLASS.
A unique model drawing on custom research findings, retailer sales data analysis and CGA Brand Index on trade brand performance data allowed for the size of cocktail spirits to be quantified for the first time at 276k 9LC MAT.
This section charts the process and considers the implications of the outcome.

OUT WITH THE IN CROWD.
The results from our survey into cocktail penetration confirm that 1 in 5 outlets now serve cocktails and reveal growth from some surprising quarters.

BUCKING THE TREND.
Like premium spirits in the on trade, research suggests cocktail sales trends are characterised by a notable resilience. The report considers how consumer trends and retailer activity are supporting this positive performance.

THE CUBAN CONNECTION.
The results of the report’s twin surveys targeting a handpicked selection of outlets with sophisticated cocktail capability and a mainstream sample representative of the total on trade demonstrate a surprising uniformity of outcome – but only at the top of the best seller list.

THE FIX IS IN.
Over 400 consumers told us their favourite serves and why they drink them; we consider the implications of the results for cocktail opportunity and strategy.

SERVES YOU RIGHT.
Research uncovered evidence of serve innovation rippling through into the mainstream. Simultaneously, ready to serve cocktails are gaining traction.

SATURDAY NIGHT FEVER.
Unsurprisingly, Saturday nights account for the lion’s share of weekly cocktail volumes. But in the mainstream, share analysis reveals lost opportunity in this heartland trading session as a number of threats take their toll.

SEASON OF THE WHICH.
Analysis allows the seasonality of the category to be quantified, revealing opportunities to be exploited in the noncore Winter months if the right proposition can be developed.

CHALLENGE ACCEPTED.
Respondents to our mainstream survey cited relevance and training as the main reasons they don’t serve mixed drinks. We consider how these barriers can be overcome.

HOUSE SPIRIT.
Founder and CEO of market-leading bar and nightclub company Tokyo Industries, Aaron Mellor discusses the role of cocktails in clubs and offers an insight into best practice operation in the sector.

MORE TO LIFE THAN MOJITOS.
Rebekkah Dooley of Shoreditch cocktail bar Callooh Callay talks tactics for expanding consumer tastes.

RAISING THE STEAKS.
Founder and operator of the best steakhouse in London, Will Beckett explains why cocktails are critical to the Hawskmoor experience.

THE MASTER PLAN.
This section brings the report’s findings together, proposes a new, cocktail-specific segmentation of the market, and assess the implications of each newly defined segment for a cocktail strategy.

METHODOLOGY AND CONTACTS.

APPENDIX.

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