CGA predicts on-trade big hitters in 2013

By Emily Kearns

Published: 13 June, 2013

Café-wine bars, premium spirits and cask ales are seen as the big winners in the on-trade in the year ahead, according to a new market report from trade insight specialists CGA.

Its findings reveal the UK on-trade was worth £39 billion in food and drink retail sales, of which wet sales account for £24 billion. Whilst on-trade volumes may be declining quicker than off-trade volumes, the on-trade still represents 61% of the value of alcohol sales in the country and is growing value share.

But the sector remains as competitive as ever and CGA predicts 7,704 outlets will close over the next five years, the majority of which will be in the next two years. Outlets that do not adapt to changing consumer trends and eating out habits will be most affected in the next two years.

CGA's Alex Eyre said: "On the retail side we're seeing a multiplicity of successful retail models, from the slick operational excellence of the major national chains to entrepreneurial and creative dynamism of emerging local talent both continuing to drive onward growth. On the supply side, a proliferation of new premium brands and products feed and cultivate demand from consumers. It's the consumer's thirst for discovery and experience that will drive the on-trade forward sustainably.

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