March 2026
Despite declining alcohol consumption, there are beacons of growth opportunity for retailers and suppliers as the latest release of Moments in Alcohol reveals.
VISIT FREQUENCY AND THE ENGAGEMENT OPPORTUNITY
Fonto has launched its Moments in Alcohol research, with data revealing that lower purchase frequency has been the major contributor to declining liquor retail sales. The average purchase frequency for the December quarter reduced to 5.8, from 7 purchases for the same period in 2024.
Additionally, 29% of buyers were actively weighing up alternative retailers at the time of purchase. Brands that invest in the last-metre experience: staff engagement, promotions and ranging are best placed to capture this undecided segment.
Fonto's founder Ben Dixon sees this as a key growth opportunity: "Visitation frequency has come under pressure, but the basket size opportunity remains strong particularly when customers are actively engaged in-store. Retailers who win on engagement will win on revenue."
CUSTOMER SATISFACTION
Dan Murphy's led the major chain retailers in the December quarter. 55% of customers stated they were very satisfied. BWS and Liquorland followed at 44% and 41% respectively, with both brands showing strength in staff friendliness.
Dan Murphy's also recorded the highest average basket size ($69) and continued to grow share of wallet (+6.1% YoY), with customers shifting spend from First Choice and Cellarbrations. BWS similarly grew share of wallet by 3.3% to 52% overall.
Liquorland share of wallet grew 4.5% year on year, with customers shifting spend primarily from First Choice and BWS, a positive signal that the brand's consolidation of First Choice Liquor stores under the Liquorland banner appears to be retaining customers.
THE LAST METRE AND UPSELL OPPORTUNITY
There is a significant and largely untapped upsell opportunity in liquor retail. Fonto data shows that when customers interact with retail staff or in-store activations, the proportion who end up buying more than they planned doubles.
Yet staff training remains an area of underperformance. While friendliness and helpfulness of staff rank #1 and #3 in what drives customer satisfaction, staff knowledge of promotions & deals ranks only 6th out of 8 variables measured, a gap that represents real lost revenue across the category.
GEN Z: LOW FREQUENCY, HIGH OPENNESS
Generation Z presents a distinctive profile in liquor retail. Despite similar average basket sizes to other generations ($44), Gen Z shops at half the frequency of Generation X (9.6 vs 20.2 annual visits). Their purchase occasions are predominantly event-driven; 40% are shopping for a specific occasion, which is twice the rate of any other generation. Additionally,1 in 3 enter the store unsure of what to buy. Notably, nearly 30% of Gen Z buyers are still actively considering alternative retailers at the moment of purchase, making them particularly responsive to in-store experience and last-mile engagement.
This combination of event-driven missions and openness to suggestion makes Gen Z uniquely responsive to in-store activation, ranging and staff recommendations, representing a significant long-term engagement opportunity for retailers who get the experience right.
ON-PREMISE: A NEW LENS ON RETAIL DEMAND
In a first for Fonto, this report includes early data from its new on-premise measurement capability, tracking consumer spending behaviour at bars, restaurants, pubs, clubs and sporting venues.
The initial data reveals that beer dominates on-premise drink orders at 31%, followed by soft drinks (28%) and wine including spritzers (9%).
In terms of venue preferences, Gen Z gravitates toward restaurants (37%) and bars or clubs (35%), Millennials are the dominant group in pubs and hotels (44%) and cafes (36%), while Gen X is most strongly represented at RSL and sports venues (37%). For suppliers, these patterns point to distinct opportunities to reach different cohorts through targeted venue activation strategies.
Critically for liquor suppliers and retailers, Fonto data shows a strong link between on-premise trial and off-premise purchase intent. Of consumers who drank rum at a venue, 61% said they were very likely to buy the same product at a bottle shop afterwards. The same was true for 54% of whisky drinkers and 50% of RTD consumers suggesting that on-premise occasions are an important driver of retail demand.
By contrast, vodka (26%), cider (30%) and sparkling wine (31%) showed lower retail conversion intent, indicating that venue trial alone may not be enough to drive retail purchase.
"On-premise and off-premise have always been connected, but until now we have had limited data to quantify that relationship. Our early findings suggest that investment in venue activation and trial can meaningfully influence retail sales, and that the strength of that link varies significantly by category," said Ben Dixon, CEO of Fonto.
INDUSTRY PRESENTATIONS
We are actively presenting early findings of Moments in Alcohol to industry analysts, marketers and insights teams for both retailers and suppliers. To access the data and learn more about how it can power your growth, reach out to the team at insights@fonto.com.au
