On Premise opportunity for NPD & brand innovation

CGA's latest on-premise research shows that 3 in 5 Australian consumers likely to trial new drinks brands in the On Premise.

From a sample group of 750, CGA says that consumers visiting on-premise has increased over the past month, largely drive by food led visits.

However, the frequency of visits remains stable with 2 in 5 On Premise consumers going out the same amount as usual. Those who are going out more often are going out o treat themselves, try new places, or because they are less concerned about COVID-19.

Consumer spend in the On Premise has largely remained the same, with those who have increased their spend doing so to treat themselves more. CGA says the research suggests that despite cost of living concerns, consumers are still prioritising eating and drinking out as an affordable treat.

CGA also says that On Premise is a gateway through which to trial new drink products, brands, and categories with 38 per cent of Australian consumers stated they like to experiment and enjoy trying new drinks, and 62 per cent of these consumers saying they are more likely to trial these new drinks at a bar, restaurant or similar venue.

Over half of On Premise consumers said that they have noticed either a new product or branded event in Australian venues over the last three months, particularly with new product development (NPD) more noticeable in ready-to-drink alcohol, beer, and no/low alcohol categories. Whereas for branded and merchandised events, consumers are more likely to notice this across the categories of beer, ready-to-drink alcohol and spirits.

Both NPD and branded or merchandised events help to build positive brand positioning amongst consumers, with brands that launch recognisable NPD perceived as ‘trendy’, ‘exciting’, and ‘innovative’. The On Premise also demonstrates a high conversion rate, with 60 per cent of consumers trialling new products on exposure to them in the channel.

This experimentation and trial drives purchases in both the On Premise and for at-home consumption with 62 per cent of consumers who tried a new drink and enjoyed it likely to re-purchase in a bar, restaurant or similar venue. Half said they’d buy the same drink in a bottle shop or supermarket.

James Phillips, Director of Client Solutions: Asia Pacific, said: “Drinks brands need to work hard to optimise product launches and enhance brand experiences in venue to cut through the noise, particularly in the RTD and beer categories. Brand activations in this channel can be a great promotional tool for drinks suppliers to leverage consumer engagement and build positive positioning, but brands need to explore the occasions during which consumers are more likely to engage with branded events and which factors will help to drive positive experiences."

Download the latest Australia Consumer Pulse Report here.