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News
Valentine’s Day and Superbowl set to boost US on-trade after flat January
The US on-trade is anticipating a boost from Valentine’s Day and the Superbowl this month, following a strong Martin Luther King Day in mid- January that helped lift slightly positive sales.
Sales in the on-trade throughout January were consistent with 2019 and 2020, the latest data from CGA’s BeverageTrak showed, which it said was proof that the on-trade hasd returned to normal seasonal trading patterns.
The latest data showed a relatively flat but slightly upward curve, with sales up +3% increase to January 22, compared to pre-COVID-19. This slightly outperformed2019 by +&% and 2020 by +2%. Performance in the last week was driven primarily by an increase in traffic (+3%), but the check value also rose +1%.
Growth was strongest in the first two weeks of the month in Illinois (+13%) and New York (+9%), following a larger drop in the previous week.
Martin Luther King Day, on 17 January – a Monday – also saw a boost, with sales velocity in double-digit growth.
Matthew Crompton, CGA regional director, North America, pointed out that there should be an uptick in both traffic and overall sales, with two big on-trade events around the corner. “The significant impact that key dates have on sales velocity also highlights the importance of understanding how different occasion types can drive the decision making process across outlets,” he said.
The Superbowl kicks off on February 13 – and although this traditionally favours booze sales in the off-trade, sports bars definite benefit, with sales at least +30% higher. This year it is being hosted in LA – and typically, the host city benefits over the course of the Superbowl weekend, driven by strong Friday and Saturday velocities. In recent years, Atlanta (+42%), Miami Gardens (+43%) and Tampa (+20%) all saw an uplift when they hosted the event.
Following hard on the heels of the Superbowl is Valentine’s Day which last year saw a velocity boost of 18% – typically concentrated in restaurants and eating outlets (up 23% last year) although drinks-led venues – notably premium bars and neighbourhood bars – also saw a boost of around 80% compared to the average weekend.