Chicago, IL, April 18, 2016 – Nielsen and CGA Strategy, through their Nielsen CGA joint venture, released today the first ever fully projected on-premise measure for the U.S. beverage alcohol market. This first U.S. market report by Nielsen CGA takes a side by side look at the state of the U.S. beverage alcohol market compared to Great Britain, a market in which full measurement has been available for 10 years. Great Britain is a gateway for U.S. on-premise retailers and drinks businesses into Europe given the similarities between the two regions. The insights from this report highlights opportunities both domestically and internationally.
“This information aims to create a new industry standard by offering brand owners in the U.S. the same comprehensive view of the on premise marketplace enjoyed by Nielsen CGA’s clients in Great Britain,” said Jon Collins, President Nielsen CGA. “For beverage alcohol suppliers, distributors and retailers, this enhanced view of the on premise market will highlight new opportunities, based on projectable data, revealing trends at a category, segment and brand level.”
Nielsen CGA’s best in class on-premise data and insight is founded on a methodology refined over 25 years to incorporate multiple disparate data feeds, a world class coding function and a highly sophisticated multi-stage validation process with inputs covering the majority of beer and spirits sold in the U.S. on-premise.
Nielsen CGA’s On Premise Measurement Program will not only allow for a comparison to Nielsen’s off-premise measurements, but also between the U.S. and Great Britain. While there are a number of similarities within the on-premise between the two countries, it is the differences that can support the identification of opportunities both in the U.S. and Great Britain.
At a headline level, we see volume growth in spirits in both markets and a decline for beer. One major factor here is the change in the nature of the on premise market itself as traditionally beer-led venues such as the U.S. neighborhood bar and British pub continue to close. There is a six-fold differential in spirit volumes between the U.S. and Great Britain, driven by both the larger serving size and more established cocktail culture in the U.S. Within spirits, vodka has the largest volume share in both markets with tequila and rum also performing well. Differences are apparent when we consider two iconic categories – the performance of Bourbon drives the U.S. to outperform in Whiskey; while the quintessentially British spirit, Gin is significantly stronger in Great Britain. Beyond spirits could a cultural exchange be in order given the respective positions of craft beer and cider? British craft has a long way to go to match its U.S. counterparts; while cider in the U.S. could see further significant growth if the U.K. is any guide.
Comparing the Nielsen CGA on premise data for each market we can see that:
All numbers are taken from Nielsen CGA on-premise data and represent unit volume performance for U.S. to Jan. 30, 2016 and GB to Jan. 23, 2016
Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen's Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content — video, audio and text — is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry's only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen provides its clients with both world-class measurement as well as analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the world's population. For more information, visit www.nielsen.com
CGA Strategy is an innovative, flexible and creative marketing information company specialising in the on premise market. Through a product portfolio covering brand metrics, outlet universe evolution and retailer performance, CGA provides clients with solutions to their individual business needs. Established in 1990, CGA Strategy now works with producers, retailers and regulators in multiple countries across Europe and North America. For more information, please visit, www.cgastrategy.co.uk.
Genevieve Lee Aronson: 646.654.5742; Genevieve.Aronson@nielsen.com