Unlocking Tequila’s Potential in South Africa’s On-Premise Market

CGA’s On Premise User Survey reveals that tequila is the fourth largest spirits category in South Africa, mainly preferred by consumers aged 18-34. Price and brand reputation are crucial factors, with a significant market for super-premium tequila. Opportunities exist in expanding tequila’s role in cocktails and bottle orders, as consumer interest remains high. Abhi Sehgal highlights the potential for growth with strategic positioning and tailored offers for the upcoming years.

CGA’s On Premise User Survey highlights consumer preferences for tequila in South Africa’s dining establishments, illustrating the market’s value. Tequila ranks as the fourth largest spirits category, enjoyed by approximately 26% of patrons, trailing behind gin, vodka, and whiskey. The demographic is predominantly young and female, with 73% of drinkers aged between 18 and 34; moreover, two-thirds of tequila drinkers are female. White silver tequila is favored among consumers.

Pricing plays a crucial role in tequila sales, as evidenced by 34% of consumers considering value for money as a key factor over quality. Additionally, brand image significantly influences purchasing choices, with 60% of consumers requesting specific tequila brands. The super-premium segment presents notable opportunities, appealing to 41% of tequila drinkers who indulge in high-end brands, spending an average of R1,292 monthly—13% more than the general tequila drinker.

Promotional efforts targeted at super-premium consumers can yield positive results, as they are more likely to be female and aged 18 to 34. This demographic tends to explore brands, with an average of 4.1 brands in their repertoire versus 2.8 for all tequila drinkers. There exists untapped potential to enhance tequila’s presence in cocktails and bottle serves, as only 33% currently incorporate it into cocktails despite 59% consuming it as a shot. Celebratory events and promotions can effectively drive bottle sales, with 72% of consumers ordering bottles when dining out.

Abhi Sehgal, Client Solutions Manager at CGA by NIQ, emphasized the growth potential for tequila in South Africa, stating that consumer interest is robust. He noted the importance of strategic positioning and value as consumers navigate their spending. Flexibility in offerings and tapping into interests surrounding cocktails and super-premium options will be pivotal for success as the industry evolves through 2025. OPUS can serve as a valuable resource for understanding consumer behavior in this context.

In conclusion, the tequila market in South Africa presents diverse opportunities for growth, particularly in the super-premium segment and through innovative cocktail offerings. With a predominantly young and female audience, understanding consumer preferences and effectively targeting promotional efforts are essential strategies. As the market continues to evolve, leveraging research insights will be integral to capturing and expanding market share.

Original Source: cgastrategy.com