Under challenging market conditions, Australia’s bars and pubs have experienced a decline in spirits sales. However, despite the negative outlook for key spirits categories, rum has managed to gain a share of the spirits market.
The latest CGA by NIQ On-Premise Measurement Report, which assesses alcohol sales in pubs, bars, and restaurants across Australia, revealed an 8.1% decline in spirits sales by volume over the past 12 months. This decline is consistent with the year-on-year trend.
Conversely, sales by value have seen a modest increase of 0.6%, primarily due to inflation-driven price hikes.
The report highlights that gin has been the hardest hit, with an 8.9% drop in sales volume and a 1.5% decrease in sales value. Vodka and whiskey have also seen declines in sales volume, at 7.1% and 5.2% respectively, though both spirits experienced slight rises in sales value.
Despite the overall decline in the on-premise market for spirits, the report presents a more optimistic scenario for rum. Rum has recorded a 2.5% rise in sales by value and an 8.7% increase in price, leading to a 0.3% gain in market share for spirits consumption.
James Phillips, Client Solutions Director – Total Liquor ANZ for CGA by NIQ, notes that macroeconomic conditions are directly impacting on-premise trade but still present growth opportunities.
“With many consumers still facing pressure on their spending, it’s clear that trading conditions in Australia’s spirits market are tough at the moment. However, it’s a very nuanced picture with pockets of growth opportunities for venues and suppliers – especially in rum. Businesses need an expert understanding of these areas, and our insights into sales trends and market share are vital to success in this challenging, contracting, and complex area of the on-premise,” he stated.
A closer look at the rum category shows that golden rum is currently the most popular style on-premise, with a 7.6% increase in sales by value year-on-year. In contrast, white rum has seen a 9.3% decline.
Sales analysis by state reveals significant regional differences in consumer behavior. Queensland has reported an 8.8% increase in total rum sales by value, while New South Wales has seen a 7.6% decline.
Overall, while the Australian spirits market faces challenges, rum’s rising popularity offers a glimmer of hope for industry players navigating this complex landscape.
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