US: Spirits sector sees "squeezed middle" in on-trade sales

By | 28 November 2012

The study used POS data from bars and restaurants

The study used POS data from bars and restaurants

The "super premium" and "value" end of the US spirits market have grabbed on-trade sales in the US from an underperforming middle, a new study claims. 

The top and bottom ends both gained 40 basis points of market share in the spirits category, according to sales data from bars and restaurants collected by GuestMetrics.

“Premium” lost 80 basis points while “high-end premium” remained flat, GuestMetrics said today (28 November).

"Super premium" vodka is recognised as a 9-litre case that costs more than US$170, while "value" is a case between $1-$70. 

GuestMetrics CEO Bill Pecoriello said the results, based on a database of point-of-sale transactions, look familiar.

“This disparity in share performance across the four price segments in spirits suggests a hollowing out the middle, which is consistent with what we’ve been seeing in other consumer products categories, even outside of the alcohol and beverage space,” Pecoriello said.

“The consumer appears to be making a decision to either trade up to more expensive brands in the spirits category that have greater differentiation, or conversely, to trade down to value brands.”

Another GuestMetrics study released earlier this week claimed craft beers are taking sales from premium and import beers in the US on-trade.

Sectors: Spirits, The on-trade

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