Premium adult beverages are providing momentum to the on-premise channel, which grew 3.5% to reach $97.3 billion in 2012, according to new research from Technomic.
Technomic's 2013 "BarTAB Report" shows higher-priced spirits and beer categories in particular are growing in restaurants and bars, although the channel is slowing overall. The on-premise channel grew in total volume (0.7%) to reach 1.9 billion gallons, with sales reaching $97.3 billion in 2012. Projections call for slight declines in volume in 2013 and 2014, but continued dollar growth.
One-quarter of total alcohol volume and half of sales occur in the on-premise channel, which includes restaurants, bars, nightclubs, hotels, casinos and other locations licensed to serve drinks.
Among the fastest growing drinks were Irish whiskey (21.6% increase in volume), craft beer (13%), imported vodka (5.7%), tequila (4.5%), single malt scotch (4.1%), straight American whiskey (2.7%), imported beer (2.7%), imported sparkling wine (1.4%) and domestic table wine (1.2%).
Beer remains the largest category in both volume and dollars. Following a decline in 2011, beer expanded in volume in 2012, although major domestic categories are continuing to decline in 2013.
Spirits was the fastest-growing alcohol in restaurants and bars, expanding 1.9% in volume and 5.6% in dollars in 2012. Total spirits volume is expected to be flat by year-end 2013, although several higher-priced categories continue to grow. Wine's growth trajectory is slowing overall, but the largest segment, domestic table wine, is posting ongoing gains.
Spirits, wine and beer appear to be competing more directly for on-premise occasions; in particular, competition between spirits and beer for Millennial consumer drink purchases has increased.
