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On-premise drinking stats: Craft beer sales continue to show growth; domestics ‘challenged’

September 1, 2016Chris Crowell

craft beer restaurant sales
Is that menu really that heavy?

Getting your craft beer into the restaurant scene can sometimes prove challenging, but the drinking habits of restaurant patrons are trending in your favor. You see, while the overall restaurant industry has been experiencing stronger momentum, slower traffic at major casual dining chains and an evolving consumer dynamic are resulting in a “new normal” in which consumer drink purchase patterns have changed. These revelations are drawn from Technomic’s Adult Beverage Planning Program, which is a membership-based program delivering suppliers with research on key topics and trends related to the adult beverage on-premise industry.

For 2016, Technomic expects overall consumer spending on beverage alcohol in the away-from-home channel to grow at a modest 2.3 percent, with similar expectations for 2017. In looking at specific categories of adult beverage in on-premise locations, beer is an underachiever, with expected consumer spending growth of 2.0 percent.

RELATED: Craft beer consumer stats: How will they affect your business plan?

“Craft and imports are trending positively, but domestic beer — which still accounts for over half of on-premise beer volume, remains challenged,” stated David Henkes, senior principal at Technomic and head of the firm’s beverage practice.

“It’s true that the operating environment is better for many restaurants and bars, but consumer occasions that include an alcohol beverage at these establishments are not growing,” Henkes continued. “We see a number of underlying factors, including a different consumer mindset, with many consumers drinking less, but higher quality when in a bar or restaurant. There’s also growth in takeout and delivery — both areas that negatively impact the beverage occasion — as well as increased competition from new channels in both retail and food service for the alcohol occasion.”

Spending on spirits is expected to grow at a rate of 2.8 percent, the fastest expansion of all categories due to the popularity of whiskey and craft cocktails and the ongoing premiumization trend. Spending on wine is forecasted to grow at 2.0 percent.The beer segment is projected for lower than the overall growth (2 percent), but half of that volume is from domestics, which remain flat at best. Any growth seen in beer is due to craft beer and imports.

Henkes cautiond that restaurant and bar operators must ensure that the value proposition of their beverage program is aligned with their consumers’ expectations. “We continue to stress to our clients the importance of a strong adult beverage program — it drives customer satisfaction and is obviously a source of incremental profitability” he noted. “But with consumers still cautious on spending, it’s important to stress the quality and creativity of a beverage program.”

2016 Growth Expectation by On-Premise Segment

On-Premise
Segment

Overall Alcohol Consumer

Spending Growth 2016

Fine Dining

4.2%

Casual Dining

2.3

Bars/Nightclubs

1.7

Lodging

4.5

Recreation

2.0

All Other

2.2

Overall On-Premise

2.3%

Source: Technomic, Inc.

2016 Growth Expectation by Alcohol Category

Type of Product

Overall Alcohol Growth

2016

Beer

2.0%

Wine

2.0

Spirits

2.8

Overall On-Premise

2.3%

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Comments

  1. tips4leads says

    September 4, 2016 at 8:00 am

    On-premise drinking stats: Craft beer sales continue to show growth; domestics ‘challenged’ https://t.co/EFJ9na32j7 https://t.co/6xQVgOQiSH

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  2. Columbus Brew Adventures says

    September 3, 2016 at 5:36 pm

    Columbus Brew Adventures liked this on Facebook.

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  3. Benjamin Fisco says

    September 2, 2016 at 5:36 pm

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  4. headspacecreatv says

    September 2, 2016 at 2:57 pm

    On-premise drinking stats: Craft beer sales continue to show growth; domestics ‘challenged’ https://t.co/PAgXnXqptI

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  5. NewEnglandBeers says

    September 2, 2016 at 11:04 am

    RT @CraftBrewingBiz: On-premise drinking stats: Craft beer sales continue to show growth; domestics ‘challenged’ https://t.co/rSH53alJS4 ht…

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  6. SunKingDavid says

    September 1, 2016 at 4:25 pm

    On-premise drinking stats: Craft beer sales continue to show growth; domestics ‘challenged’ https://t.co/H7wCtoE86j

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  7. KCHopTalk says

    September 1, 2016 at 1:25 pm

    On-premise drinking stats: Craft beer sales continue to show growth; domestics ‘challenged’ https://t.co/kEf6uakxUB

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  8. crsimp01 says

    September 1, 2016 at 12:43 pm

    On-premise drinking stats: Craft beer sales continue to show growth; domestics ‘challenged’ https://t.co/XwhPhSW43i via @craftbrewingbiz

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  9. tim_henningsen says

    September 1, 2016 at 12:10 pm

    RT @CraftBrewingBiz: On-premise drinking stats: Craft beer sales continue to show growth; domestics ‘challenged’ https://t.co/bxn3xoOxNp

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