SOUTH AFRICA’S GROWING TASTE FOR PREMIUM DRINKS FUELS FESTIVE ‘SPIRITS’

The festive season presents a major opportunity for South Africa’s On Premise sector as consumers plan to celebrate with premium drinks, according to the new CGA by NIQ On Premise User Survey (OPUS). The survey reveals that nearly half (49%) of South Africans now go out to eat or drink at least weekly, and two-thirds (67%) anticipate visiting even more frequently during the holidays and into 2025. In addition, the research highlights that 27% of consumers value premium drinks more than they did a year ago, while 61% are willing to pay extra for higher-quality options. Super-premium tequila and vodka brands are positioned to benefit most, with two in five (41%) tequila drinkers and nearly half (48%) of vodka drinkers already opting for premium brands.

CGA by NIQ’s Client Solutions Manager EMEA Abhi Sehgal emphasises the festive opportunity commenting, “Super-premium spirits are a relatively small but extremely lucrative part of the On Premise sales mix, and the festive season offers a perfect platform for growth. Celebrations often prompt consumers to spend more freely, and with the right strategies, suppliers and venues can capitalize on this elevated demand.”

Festive Drivers for Premium Choices

With the festive season serving as a key moment for celebratory and social gatherings, it’s clear that many consumers are ready to trade up to premium drinks. Tequila is a leading category in super-premium growth, but vodka also commands significant attention, especially given its versatility in cocktails. Bar staff recommendations are particularly effective in influencing vodka sales, making staff engagement a crucial element of festive strategies. Meanwhile, tequila brands can leverage consumer brand loyalty, as 66% of super-premium tequila drinkers request specific brands.

Super-Premium Consumer Insights

The OPUS data also provides a comprehensive profile of super-premium consumers, shedding light on key characteristics that suppliers and venues can leverage to maximise the festive spending boom. These consumers are predominantly young, urban females, with 82% being women, 89% aged between 18 and 34, and 91% residing in cities. Their spending habits reflect a high engagement with On Premise venues, where they spend an average of R1 292 per month – 13% more than the typical tequila consumer. Moreover, their spending potential is significant, with 24% willing to pay more than R70 for a single shot of tequila and 36% prepared to spend over R400 on a bottle.

Strategies for Capturing Festive Super-Premium Spend

CGA by NIQ’s research highlights several actionable strategies for suppliers and venues to maximise sales during the festive period including:

• Seasonal Promotions: Special holiday offers and promotions can encourage consumers to indulge in super-premium choices.
• Celebrity Endorsements and Branding: High-profile endorsements and visible branding in venues can elevate the appeal of premium products.
• Staff Training: Equipping bar staff to recommend premium spirits effectively is critical for converting festive customers.

Overall, South Africa’s festive season presents an unparalleled opportunity for suppliers and venues to capitalise on the growing demand for premium beverages. Seghal says, “As consumer preferences increasingly prioritise quality, particularly among younger, urban demographics, super-premium spirits like tequila and vodka are well-positioned to lead the charge. Key strategies such as brand loyalty, staff recommendations, and targeted promotions, will allow venues to meet and exceed consumer expectations during this period of heightened celebratory spending.”