CGA’s On Premise User Survey highlights that tequila ranks as the fourth largest spirits category in South Africa, appealing primarily to young female drinkers. Pricing, brand image, and a focus on super-premium products are crucial for market success. There is significant growth potential in cocktails and bottle serves as well. Abhi Sehgal of CGA shares insights on leveraging consumer trends for improved sales.
CGA’s On Premise User Survey reveals key insights into tequila consumption in South Africa’s pub and restaurant scene. Tequila is the fourth largest spirits category, with 26% of consumers regularly drinking it when out. The market is predominantly young and female, with 73% of drinkers aged 18-34 and 67% being female, favoring white silver tequila as their primary choice.
Price plays a significant role, with 34% of tequila drinkers considering good value for money more important than quality. Additionally, brand image influences purchasing decisions, as 60% of consumers seek specific tequila brands. This suggests that positioning and perceived value are critical for sales growth.
There are promising opportunities within the super-premium tequila segment, as 41% of consumers in the On Premise prefer these brands, spending an average of R1,292 per month—13% more than average tequila drinkers. Super-premium consumers are more likely to be younger and female, and they have an average of 4.1 brands in their repertoires, compared to 2.8 among all tequila drinkers.
Currently, tequila is predominantly consumed as a shot (59%), with only 33% blending it into cocktails, highlighting potential growth areas. Additionally, nearly 72% of consumers have ordered a bottle when out, with 33% doing so regularly; thus, celebrations and promotions may further drive bottle sales.
Abhi Sehgal from CGA emphasizes, “We’re seeing tequila delivering good rates of growth in many territories, and consumer interest is particularly strong in South Africa.” He notes that focusing on cocktails, bottle serves, and the super-premium segment will help unlock sales as we progress into 2025. CGA’s OPUS platform offers a comprehensive understanding of consumer behaviors in the On Premise market.
CGA’s findings reveal a dynamic opportunity for tequila in South Africa’s On Premise market. The youthful, predominantly female demographic underscores the potential for targeted promotions in the super-premium segment. By enhancing value and leveraging consumer interest in cocktails and bottle serves, brands can increase sales. With strategic positioning, tequila stands to experience significant growth in the coming years.
Original Source: cgastrategy.com
