Diageo- Latest Market Trends in Hospitality
Staycations, Premiumisation and Cocktails
Cian O'Mahony, Diageo Ireland
IHF Associate Member

Looking at the latest market trends in hospitality, Cian O’Mahony - Category Development Manager at Diageo, shares industry insights.

Hotels have recently been the best performing sector of the on-trade, gaining share of total LAD (Long Alcoholic Drinks) and total Spirits sales in July 2021 vs July 2019*. This has been driven by strong total LAD performance in Hotels*.

In particular, Guinness performed exceptionally well in Hotels, becoming the #1 choice for consumers in Total LAD at just under 1 in every €4 spent.*

This performance could be driven by the increase in “staycations”, as well as the premiumisation trend – as consumers are treating themselves when they are out in on-trade venues.

We’re also seeing this Premiumisation trend happening in Spirits, especially seen in the increase in demand for cocktails. Throughout 2020 and 2021, we’ve heard from the trade that the demand for cocktails has skyrocketed.

This is supported by our research partners CGA, who report that in the UK, 53% of consumers were treating themselves more on every on-trade occasion, driving an increase in spend.

Not only that, but in the 4 weeks to 12th June 2021, GB saw a +96% increase in sales of cocktails in Indoor Trading outlets, vastly out-performing every other drinks sector***.

The right menu is essential to maximise your cocktail sales, as 1 in 3 consumers will consult the menu before making their drinks choice – and 90% of consumers will stick to their first drink for the rest of the night ****.

For more information about Diageo, visit their profile page HERE.

* CGA July 2021 vs 2019

** CGA Tiers, Fears, and the Road to Recovery

*** CGA GB State of the Nation July 2021

**** Diageo Bar Academy

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