Pubs boost vodka sales in Australia

Vodka continues to lead the way in Australia with a third of the country’s on-trade spirits sales, driven by lower-priced variants in pubs and restaurants.

Using its On Premise Measurement (OPM) tool, CGA by NIQ noted that vodka accounts for 32 cents of every Australian dollar spent in the country’s licensed outlets in the last 12 months.

Furthermore, this means that vodka represents 34% of all spirits sales by volume in the on-trade, and that seven of every 20 spirits sold are vodka.

While vodka remains ahead of the pack, CGA data in February found that whisky, gin and rum were the three categories behind it, and together, account for 80% of the country’s on-trade spirits sales.

Examining vodka’s overall performance in Australia, CGA noted that the category’s distribution is ‘evolving’, with bars losing 3.2 percentage points of their share of volumes in the last 12 months. Vodka has seen a boost in pubs and restaurants, which increased their percentage points of share by 0.5% and 1.7% respectively.

CGA attributed the growth in pubs and restaurants to consumers leaning towards lower-priced vodkas to save money, as vodka in bars has a ‘much higher average’ selling price. CGA added that hotels – which typically have a premium vodka offering, like bars – have also lost share, at a ‘time when consumers are conscious of value’.

Exploring vodka sales by state in Australia, Queensland has the highest volume share (at 27%) and has surpassed New South Wales (24%) as the most valuable region over the last year. New South Wales (16%) and Victoria (13%) both posted double-digit drops.

Summing up vodka’s outlook in the country, Tom Graham, CGA by NIQ’s senior manager, customer success – Australia and New Zealand, said: “Vodka’s versatility and resonance across different venues and populations makes it comfortably Australia’s top out-of-home spirit.

“However, in line with global trends, sales have been under significant pressure in 2024, and vodka is increasingly challenged by alternative drinks. To protect sales and share, suppliers must precision-target the right outlets in the right locations and adapt to people’s changing needs.”

In August, the CGA by NIQ Consumer Pulse Report found that on-trade spirits sales in Australia fell by 7.7% in the 12 months to May 2024. Inflation and the country’s bi-annual tax increases were cited as the main reasons.

Meanwhile, Australia is also considering new alcohol labelling standards, which would add carbohydrate, sugar and energy values to alcohol labels

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Author: Rupert Hohwieler