As the off-trade has emerged as the primary channel of engagement between brand and consumers, the on-trade’s role in brand building and in sales generation has had to change. On-trade exclusives; targeting under-represented on-trade demographic groups; harnessing the power of social media; and making the on-trade experience both interactive and experiential will be vital going forward.

1. On-Trade Alcoholic Drinking Trends: Differentiating consumer on-trade drinking
occasions to capitalize on value generating opportunities
ReportsnReports.com adds Datamonitor Publishers Market Research Report “On-Trade
Alcoholic Drinking Trends: Differentiating consumer on-trade drinking occasions to capitalize
on value generating opportunities’’ to its store.
As the off-trade has emerged as the primary channel of engagement between brand and
consumers, the on-trade’s role in brand building and in sales generation has had to change.
On-trade exclusives; targeting under-represented on-trade demographic groups; harnessing
the power of social media; and making the on-trade experience both interactive and
experiential will be vital going forward.
Browse: On-Trade Alcoholic Drinking Trends
Features and benefits
 Achieve sales growth by identifying how alcohol manufacturers are tapping into
underlying consumers trends to drive sales growth
 Enhance credibility during sales pitches by understanding the differing drivers of on
trade drinking globally
 Stimulate ideation and invigorate brands by learning from best practice examples from
the beer, wine and spirits segments
 Enhance your market positioning and concept development efforts and reduce risk for
new product launches and increase the chances of success
Highlights
 The off-trade dominance across most markets presents a dilemma due to the value
generation advantages that on-trade sales present and the fact that the traditional
routes to market for new products are through that channel.
 However, marketers must consider that the on-trade still presents the best way to make
an impact in the market and achieve brand differentiation (particularly in a controlled
bar environment where the product can stand out from the competition), which can be
followed by a retail roll-out.
Table of contents:
OVERVIEW
Catalyst
Summary
EXECUTIVE SUMMARY
There is a contrasting global picture for the fortunes of the on-trade
The fortunes of LDA–24-year-old consumers is constricting the on-trade’s appeal
Consumer on-trade needs are becoming increasingly polarized
The shift to alcohol consumption in moderation is working to the detriment of the on-trade
Older consumers and female drinkers remain target consumer groups for the on-trade

2. Consumer dynamics are changing in the restaurant sector
Premiumization is the key way forward for the on-trade in core developed markets
Exclusivity, interactivity, and connectivity must be harnessed in the future
THE FUTURE DECODED
Introduction
On-trade visits have been harmed by a confluence of trends within individual countries
The on-trade hits the sweet spot in “experiential” marketing
Embracing experiential marketing is the key to on-trade success
Congruency is key to encouraging consumers to pay more for a brand
TREND: on-trade alcohol occasions continue to be overshadowed by the off-trade
China leads in the number of on-trade occasions
Beer occasions are emblematic of the changing fortunes of the on-trade
The UK has the greatest number of on-trade cider occasions
Consumption of flavored alcoholic beverages is highest in Russia and is growing
Spirits occasions are growing fastest in the emerging markets but declining quickest in
Russia
Key take-outs and implications: it is vitally important that manufacturers monitor the
changing nature of the on-trade market and selectively tap into the category opportunities
that are present
TREND: price is a key factor influencing channel drinking behavior, but not the only one
In core developed markets, the on-trade is caught in a pincer between rising business costs
on one hand and low consumer confidence on the other
The importance of price in alcoholic beverage choice varies significantly from country to
country
In addition to price, legislation limits the on-trade’s appeal
Contemporary lifestyles mean that consumers have less time to visit the on-trade
Key take-outs and implications: the off-trade’s dominance is here to stay, and the on-trade
will no longer be the primary point of engagement with alcohol brands for consumers
TREND: the development of emerging markets is shifting the landscape of the global
alcohol sector
The economic situation in the emerging economies is very different to that seen in Western
economies
Patterns of consumption in emerging markets vary significantly and are influencing
developments in core Western markets
Key take-outs and implications: consumer demand is polarized between the core developed
markets and the emerging markets, and it is imperative for alcohol companies to align
themselves accordingly
TREND: urbanization is emerging as a key driver of on-trade visiting
Younger consumers are migrating to cities
The process of urbanization is driving the on-trade’s development
Key take-outs and implications: in capitalizing on the urbanization trend in the on-trade,
alcoholic drinks companies must consider a wide number of cultural issues to be truly in
touch with the urban consumer

3. INSIGHT: the nature of occasion types dictates consumption patterns and preferences in
the on-trade
Category consumption patterns are strongly influenced by national drinking preferences
Key take-outs and implications: understanding the cross-over between the suitability of
alcoholic beverages for different drinking occasions and national drinking preferences is an
imperative to effectively unlock the opportunities of on-trade occasion-based targeting
INSIGHT: restaurants have high visiting rates owing to their wide consumer appeal, but
local pubs and bars are visited the most regularly, a consequence of the dominance of
informal frequent occasions
Restaurants are the most important venue type, highlighting the importance of food to the
on-trade, although there are some notable exceptions to the rule
Restaurant spend is typically higher value and highly sensitive to the prevailing economic
conditions
The decline in fine dining occasions will detrimentally impact the top end of the alcoholic
beverage sector
The casual dining element of the market is growing and will exert influence over more mid-
priced brands
Fast food outlets are subject to slightly different consumer behavior
Alcohol can provide a useful way of differentiating the fast food experience
Key take-outs and implications: it is imperative to have a nuanced understanding of the
structure of the on-trade within individual markets to fully understand and unlock the often
niche growth opportunities
INSIGHT: On-trade visiting behavior shows a strong age-related consumption pattern, with
LDA–34s the key on-trade consumer group
Younger age groups are declining in importance to the overall population mix
Younger consumers are more likely to be unemployed with the onset of the global financial
crisis in developed markets
Key take-outs and implications: one of the key consequences of the reliance of the on-trade
on younger consumers is the necessity to grow the on-trade’s appeal among older
consumers
INSIGHT: The historical legacy of men being the key on-trade visitors continues, despite
efforts to increase its appeal among women
Men are more likely to drink twice a month in the on-trade in most markets
Female drinkers are more likely to visit restaurants than other venues
Key take-outs and implications: it is imperative for the alcoholic beverage sector as a whole
to have an understanding of the needs of women in the on-trade
INSIGHT: heavy or sessional drinking is a feature of consumer drinking behavior that is
more strongly associated with the on-trade
Younger male consumers are the most likely to “binge” drink
Consumers in South Korea are most likely to consume five drinks or more
Key take-outs and implications: the switch away from heavy drinking behavior is
detrimental to the on-trade but can also open up new target occasions
INSIGHT: there is an element of polarization in consumer spend evident in on-trade
purchase behavior

4. Consumers in emerging markets are the most likely to trade up
Trading down behaviors tend to be most prevalent in developed markets
Where to target consumers is the key to unlocking polarizing behavior
National distribution networks often dictate the point at which consumers make their brand
choice
Key take-outs and implications: understanding how the economic situation is influencing
consumer behavior is vital in addressing and anticipating polarizing consumer behavior
ACTION POINTS
ACTION: develop more exclusive on-trade propositions, so that the experience is
irrefutably different from the off-trade
Limit the availability of brands or certain variants to the on-trade to drive exclusivity
Make on-trade concepts time-limited to achieve “a get it while you can” approach among
consumers
Tie in with other areas of consumer leisure spend
ACTION: make interaction and experimentation a central part of the on-trade experience
for consumers
Use brand ambassadors to encourage younger consumers – core on-trade visitors – to
experiment
Make interactivity a key part of the on-trade experience
ACTION: develop an on-trade offering that meets the needs of under-represented
consumer groups (with food a central element to that)
Closely monitor trends in the food market and develop a significant food offering that
appeals to women and older consumers
Develop new beverage and in-store concepts which have female appeal
Closely monitor hip urban bars, as they are often the breeding ground for new ideas
ACTION: harness social media in all its forms to drive footfall into on-trade establishments
Select the optimal social media platform based on a campaign’s marketing objectives
Harness social media to target under-represented groups
Embrace mobile marketing, as it is a perfect fit for on-trade consumption
Align with the photo-sharing trend to encourage consumers to tag brands in their pictures
Develop an online ordering tool to make takeaway services more accessible for consumers
APPENDIX
Secondary Sources
Further reading
Ask the analyst
Disclaimer
LIST OF TABLES
Table: Overall on-trade drinking occasions across Europe, Asia Pacific, the Americas, and
the Middle East and Africa (millions), 2005–15
Table: Overall on-trade beer drinking occasions across Europe, Asia Pacific, the Americas,
and the Middle East and Africa (millions), 2005–15
Table: Overall on-trade cider drinking occasions across Europe, Asia Pacific, the Americas,

5. and the Middle East and Africa (millions), 2005–15
Table: Overall on-trade FAB drinking occasions across Europe, Asia Pacific, the Americas,
and the Middle East and Africa (millions), 2005–15
Table: Overall on-trade wine drinking occasions across Europe, Asia Pacific, the Americas,
and the Middle East and Africa (millions), 2005–15
Table: Overall on-trade spirits drinking occasions across Europe, Asia Pacific, the Americas,
and the Middle East and Africa (millions), 2005–15
Table: Total population across Europe, North America, South America, Asia Pacific, and the
Middle East and Africa (millions), 2004–14
Table: Urban population as a percentage of total population, by country, 2005 –15
Table: Mid-year population of 20–34-year-olds, as a percentage of total population, 2005–
15
Table: Consumer Survey: level of satisfaction with the general direction of how things are
going in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and
Africa, by country, 2010
Table: Consumer Survey: level of influence of price on choice of alcoholic beverage in 18
countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by
country, 2009
Table: Consumer Survey: level of influence of health on choice of alcoholic beverage in 18
countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by
country, 2009
Table: Consumer Survey: level of influence of brand name on choice of alcoholic beverage
in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by
country, 2009
Table: Consumer Survey: level of influence of habit/preferred brand on choice of alcoholic
beverage in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and
Africa, by country, 2009
Table: Consumer Survey: level of agreement with finding it difficult to manage time and
daily obligations in 18 countries across Europe, Asia Pacific, the Americas, and the Middle
East and Africa, by country, 2010
Table: Consumer Survey: preferred alcoholic beverage of choice by occasion in 18 countries
across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2011
Table: Consumer Survey: preferred alcoholic beverage of choice on having a relaxing drink
in a bar, restaurant, or pub when eating in 18 countries across Europe, Asia Pacific, the
Americas, and the Middle East and Africa, by country, 2011
Table: Consumer Survey: preferred alcoholic beverage of choice on having a relaxing drink
in a bar, restaurant, or pub but not when eating in 18 countries across Europe, Asia Pacific,
the Americas, and the Middle East and Africa, by country, 2011
Table: Consumer Survey: preferred alcoholic beverage of choice on having a high-energy
night out with friends in a pub, bar, or restaurant in 18 countries across Europe, Asia
Pacific, the Americas, and the Middle East and Africa, by country, 2011
Table: Consumer Survey: frequency of venue visiting in 18 countries across Europe, Asia
Pacific, the Americas, and the Middle East and Africa, by country, 2011
Table: Consumer Survey: twice monthly venue visiting in 18 countries across Europe, Asia
Pacific, the Americas, and the Middle East and Africa, by country, by venue type, 2011
Table: Consumer Survey: frequency of restaurant visiting accross 18 countries across
Europe, Asia Pacific, the Americas, and the Middle East and Africa, 2011
Table: Consumer Survey: changing eating habits at fine dining restaurants in 18 countries
across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2011

6. Table: Consumer Survey: changing eating habits at casual dining restaurants in 18
countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by
country, 2011
Table: Consumer Survey: changing eating habits at fast food restaurants in 18 countries
across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2011
Table: Consumer Survey: appeal of fast food outlets selling alcohol in 18 countries across
Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2011
Table: Consumer Survey: appeal of coffee chains selling alcohol in 18 countries across
Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2011
Table: Consumer Survey: on-trade venue visiting in 18 countries across Europe, Asia
Pacific, the Americas, and the Middle East and Africa, by age, 2011
Table: Consumer Survey: frequency of visiting local pub/bars to drink alcohol in 18
countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by
country and gender, 2011
Table: Consumer Survey: frequency of visiting city center pub/bars to drink alcohol in 18
countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by
country and gender, 2011
Table: Consumer Survey: frequency of visiting restaurants to drink alcohol in 18 countries
across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country and
gender, 2011
Table: Consumer Survey: frequency of visiting sports/leisure venues to drink alcohol in 18
countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by
country and gender, 2011
Table: Consumer Survey: frequency of visiting nightclub venues to drink alcohol in 18
countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by
country and gender, 2011
Table: Consumer Survey: frequency of visiting cafés to drink alcohol in 18 countries across
Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country and gender,
2011
Table: Consumer Survey: frequency of visiting KTV/karaoke clubs to drink alcohol in 18
countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by
country and gender, 2011
Table: Consumer Survey: frequency of drinking outdoors in 18 countries across Europe,
Asia Pacific, the Americas, and the Middle East and Africa, by country and gender, 2011
Table: Consumer Survey: number of alcoholic beverages drunk when alcohol is usually
consumed, in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East
and Africa, 2010
Table: Consumer Survey: number of alcoholic beverages drunk on a weekend night when
alcohol is usually consumed, in 18 countries across Europe, Asia Pacific, the Americas, and
the Middle East and Africa, by country, among weekly on-trade drinkers, 2010
Table: Consumer Survey: number of alcoholic beverages usually drunk on a weekday night
when alcohol is usually consumed, in 18 countries across Europe, Asia Pacific, the Americas,
and the Middle East and Africa, by country, among weekly on-trade drinkers, 2010
Table: Consumer Survey: changing approach to choosing higher quality drinks when
drinking in the on-trade over the past six months, in 18 countries across Europe, Asia
Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer Survey: changing approach to buying cheaper alcoholic drinks when
drinking in the on-trade in the past six months, in 18 countries across Europe, Asia Pacific,
the Americas, and the Middle East and Africa, by country, 2010

7. Table: Consumer Survey: approach to how alcoholic drinks are chosen when drinking in the
off-trade and on-trade in 18 countries across Europe, Asia Pacific, the Americas, and the
Middle East and Africa, 2011
Table: Consumer Survey: approach to how alcoholic drinks are chosen when drinking in the
on-trade in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and
Africa, by country, 2011
Table: Consumer Survey: appeal of ethically sourced alcohol in 18 countries across Europe,
Asia Pacific, the Americas, and the Middle East and Africa, by country and gender, 2010
Table: Consumer Survey: appeal of alcohol-free beverages for adults in 18 countries across
Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country and gender,
2011
Table: Consumer Survey: appeal of lower-alcohol versions of existing products in 18
countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by
country and gender, 2011
LIST OF FIGURES
Figure: It is imperative to have an understanding of the key drivers of channel consumption
Figure: In capitalizing on opportunities in the on-trade, the alcoholic drinks industry must
tap into the growing desire for experiences to be truly in touch with consumers
Figure: Price is a more important factor in choice of alcoholic beverage among weekly off-
trade drinkers than weekly on-trade drinkers
Figure: “Price of a pint – Where does your money go?” in Ireland explains to consumers the
elevated prices in the on-trade and how little of the price paid at the till the licensee
receives
Figure: Price is the second-most important factor influencing the purchasing decisions of
consumers in the alcohol sector, but is low down the list in emerging markets
Figure: Popular stereotypes about smokers’ propensity to consume alcohol are supported by
global research findings
Figure: Consumers are generally more time-pressed in the emerging economies, although
there are certain national exceptions
Figure: The BRIC countries are driving sales in the global alcohol sector, whereas the
European and North American markets are respectively declining and stagnant
Figure: The generally positive outlook in markets unaffected by recession is very different to
that in other parts of the world
Figure: The Absolut City series and the Carlsberg Copenhagen brand highlight how pertinent
urban areas are now in global marketing activities in the alcohol sector
Figure: It is vital to recognize that consumers’ alcoholic beverage drinking patterns are
occasion-driven
Figure: The consumer preference for wine at on-trade meal occasions is greatest in Western
Europe, highlighting the strong cultural associations between food and wine in Europe
Figure: The preference for beer on non-food on-trade occasions is greatest in Western
Europe, highlighting its easy drinking nature
Figure: Spirits are most associated with up-tempo on-trade occasions, especially in India
where whisky consumption is notably prevalent
Figure: Restaurants are the most likely to be visited at least twice-monthly, whereas local
pubs and bars are the most likely to be visited on at least a weekly basis
Figure: The propensity to visit restaurants tends to at its hardest in the emerging markets
although there are certain national exemptions to the rule
Figure: As a consequence of the global financial crisis, fewer consumers are visiting fine

8. dining restaurants more frequently than mid-scale or fast food restaurants
Figure: Consumer tendency to visit fine dining restaurants more is greatest in the emerging
markets
Figure: Casual dining is a growth element of the foodservice sector
Figure: India and South Africa stand out as two countries where greater accessibility has
driven an increase in consumers visiting fast food restaurants
Figure: Consumers in Brazil, India, and China have the greatest preference for coffee
outlets selling alcohol
Figure: Consumers in China and India have the greatest preference for fast food outlets
selling alcohol, although interest is also high in Italy, Singapore, and Brazil
Figure: Younger consumers aged LDA–34 are the most likely to consume alcoholic
beverages in on-trade venues
Figure: Youth unemployment (15–24) has soared since the onset of the global financial
crisis
Figure: Popular gender stereotypes about the propensity to consume alcohol are supported
by global research findings
Figure: Men are more likely to drink in the on-trade than women, although there are certain
national exceptions to the rule
Figure: The importance of restaurants in attracting women to the on-trade is particularly
important to the alcoholic drinks industry
Figure: The propensity to usually drink five drinks or more is greatest in the on-trade
Figure: Popular gender stereotypes about the propensity to binge drink are supported by
global research findings
Figure: The propensity to binge drink in the on-trade at the weekend is most notable in
South Korea
Figure: Although an equal proportion of consumers are trading up and looking for cheaper
brands, there are strong differences both between and within regions
Figure: Consumer attitudes to trading up are at their hardest in emerging markets
Figure: Consumers are most likely to choose cheaper brands in those countries that have
been negatively impacted by the global financial crisis
Figure: Drinkers are more likely to choose what they want to drink when in situ in pubs,
bars, and restaurants than in grocery outlets for when drinking at home
Figure: There are strong regional variations as to when in the decision-making hierarchy
consumers actually decide which brands they should choose
Figure: Japanese spirit manufacturer Suntory limits brand distribution to the on-trade to
maintain exclusivity and a high price tag
Figure: Developing bar-specific alcoholic beverages can pull consumers into that
establishment
Figure: On-trade-only variants help create an effective brand architecture that is extremely
influential in strategic brand planning
Figure: The use of unique packaging stands out as a definitive trend in the differentiation of
on-trade specific variants
Figure: Pop-up bars and restaurants, due to their time-limited nature, create an element of
exclusivity
Figure: A number of alcohol brands have developed a strong association with film to connect
with consumers’ wider interests and target lower-tempo, more sophisticated on-trade
drinking occasions
Figure: QR codes provide notable opportunities to entice consumers into on-trade
establishments and make the experience truly interactive, to encourage experimentation

9. Figure: In capitalizing on the female opportunity in the on-trade, alcoholic beverage
manufacturers must consider a wide array of lifestyle issues to be truly in touch with female
drinkers
Figure: The appeal of ethical alcohol consumption emphasizes the contrast between male
and female preferences in alcoholic beverages
Figure: Encouraging different drink sizes entices consumers to take a “less of the best”
approach to consumption, reaching out to new consumer groups
Figure: Social media, when effectively harnessed, can generate a high return on investment
for quite a limited initial outlay
Figure: Patron Tequila has a web-based club, Patron Social Club, using its own social media
platform as part of an added-value-led marketing strategy
Figure: Chivas Regal engages consumers by encouraging them to visit bars and check-in to
gain points redeemable for cocktails made with the brand
Figure: Corona Light tapped into the trend for photo-sharing, encouraging those who “like”
them on Facebook to share an image with them projected onto a billboard in Times Square
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