The spirit market has recently grown in the Republic of Ireland, following an extended period of poor performance, according to CGA by NIQ.
These results indicate a potential bumper period of trading over Christmas and New Year’s.
The group’s On-Premise Measurement (OPM) service shows that sales in June through August of this year totalled €169.9 million – an increase of €19.1 million, or 12.7%, on the same period in 2023.
There has been year-on-year growth in the sector every month this year – excluding January – with gains driven by a 3% increase in the rate of sale and price rises, but with solid volume growth of 1.8%.
Growth began in earnest in March, when St Patrick’s Day, Easter, and the end of Ireland’s successful Six Nations rugby tournament combined to drive sales above 8.2% for the month.
Tourism, as well as live music, such as Taylor Swift’s concerts in June, and the Euro 2024 soccer tournament boosted trade over the summer by triggering extra spending.
OPM category data showed that liqueurs and specialities were among the fastest growing in the quarter, increasing the volume rate of sale by 11.2% and adding 1.4 percentage points to its share of total spirit sales.
Suppliers’ and operators’ attention is now turning to Christmas, which should deliver much better trading than it did in 2023.
Then Vs Now
Spirit sales were down by 19.9%, year on year, last December, as many consumers opted to save money by staying at home, buying fewer drinks when in pubs or bars, or switching to other drink categories that have longer serves – such as beer and cider, which are sometimes perceived as better value for money.
Encouragingly, the number of consumers feeling severely impacted by high costs in Ireland fell from 33% last October to 19% in August.
This means that consumers should feel freer with spending this Christmas, and CGA’s Consumer Insight Report shows that suppliers need to target the 18-34 demographic, which is vital to spirit sales.
Some 83% of young adults went out during the festive period last year, making an average of 4.3 visits in the month, with vodka and cocktails among the most popular drinks sold in the spirit category.
Speaking about the data, CGA’s senior client manager for Ireland, Katie Lawton, said, “The cost-of-living crisis has put Ireland’s spirits sales under severe strain in the last few years, but good summer trading shows suppliers and venue[s] may have turned the corner, at long last.
“With more money in their pockets, many consumers will be looking to reward themselves this Christmas, and activations or promotions that effectively target the treat mentality of younger adults should earn good returns on investment.”
Lawton added, “However, it’s important to remember that some consumers are still struggling with the effects of price rises, so value remains a core component of strategies.
“In a complex market, and with so much at stake over Christmas and New Year, identifying the latest on-premise motivations and preferences of consumers is more important than ever.”
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