NielsenIQ expands on premise measurement for beverage alcohol brands

NielsenIQ, a global consumer intelligence company, is expanding its On Premise Measurement (OPM) service to help beverage alcohol brands track market share and sales performance in a changing market.

The On Premise channel, which refers to sales in bars, restaurants, and other venues where alcoholic drinks are consumed, accounts for a significant portion of beverage alcohol sales globally (61% excluding wine). 

Key Findings of the NielsenIQ On Premise Study

On Premise remains important for consumers: Despite some moderation in alcohol consumption, 83% of legal drinking age (LDA) consumers globally visited On Premise establishments in the last 3 months, with 62% visiting weekly. Social connections are a key driver of these visits, with three of the fastest growing reasons for visiting being connecting with family and friends, celebrating, and having fun.

Shifting consumer preferences: While visitation rates remain stable, global On Premise sales volume for beer,malt beverages, and cider have declined by 4.0% in the last year. Spirits have seen a steeper decline of 7.6%. A third of consumers (37%) report drinking less alcohol compared to the previous year, with Generation X and infrequent On Premise visitors leading this trend.

Younger demographics show promise: Gen Z and younger Millennials (up to age 34) are most likely to increase their On Premise visits in the next 3 months, indicating a potential growth area for brands.

Opportunities despite volume declines: There are reasons for optimism. A quarter (26%) of global consumers plan to increase their On Premise visits in the next three months, and some cost pressures are easing. This,combined with the social importance of On Premise experiences, creates opportunities for brands to build brand equity and loyalty.

NielsenIQ's OPM Solution

NielsenIQ's OPM service provides beverage alcohol brands with data-driven insights into the On Premise market. This includes:

• Brand and category sales performance: Track sales trends across different On Premise channels and territories.
• Market share analysis: Understand brand share and identify areas for growth.
• Competitive benchmarking: Compare your brand's performance to competitors.
• Pricing and distribution analysis: Gain insights into pricing trends and distribution patterns.

OPM is powered by CGA, a leading On Premise data and analytics provider acquired by NielsenIQ in 2022. The service is currently available in key markets like the UK, US, Canada, Australia, Germany, and France, with South Korea planned for soon.

The NielsenIQ study highlights a complex picture for the On Premise beverage alcohol market. While overall consumption is moderating, On Premise establishments remain a vital touchpoint for consumers. Understanding these evolving trends and adapting strategies accordingly will be crucial for beverage alcohol brands to succeed in the future.