Taverns and shebeens offer untapped potential for drinks brands
With around 14% of South Africans frequenting these establishments, they represent a significant and often underestimated route to market for drinks brands.
These findings stem from the latest On Premise User Survey (OPUS) conducted by CGA by NIQ.
The research, based on insights from hundreds of South African consumers, sheds light on evolving behaviours and preferences in pubs, bars, and restaurants across the country.
CGA by NIQ EMEA client solutions manager, Abhi Seghal says while taverns and shebeens, are often located in the heart of townships and communities and have long influenced consumer behaviour outside of the formal economy. But succeeding in this space requires a nuanced understanding of its distinct culture and dynamics.
“Informal taverns may not have the penetration of some channels, but there is rich potential for brands to drive trial and loyalty here. Understanding what drives these consumers is essential if suppliers want to unlock sustainable growth,“ he cautions.
Value is king, but premium has pull
To achieve this, it’s vital to understand the nuances of these more informal tavern and shebeen outlets.
For example, the OPUS research reveals that spending averages R175 per head - R23 below the broader On Premise average.
However, while the spend may be lower, consumers are willing to pay for products and experiences they perceive as offering value.
According to Sehgal, “Value doesn’t mean cheap. It means offering something worth the price - something people are happy to come back for.”
These consumers are also thirsty for new flavours with two-thirds of shebeen-goers (67%) reporting being more likely to try new drinks in these venues, and 68% are open to paying more for a better-quality option.
This appetite for experimentation and premiumisation underscores a major opportunity for brands that are willing to innovate.
Afternoon is the new primetime
Patterns of foot traffic also differ from traditional bars. Thirty-one percent of visitors frequenting these establishments between 2pm and 5pm, a notably higher proportion than in other restaurant and bar settings.
This mid-afternoon window presents a strategic opportunity for brands to engage with consumers or roll out targeted promotions.
The decision-making process in these venues is also fluid. While 54% of visitors arrive with a specific brand in mind, 36% only know what type of drink they want, and 10% remain fully open to suggestion.
This highlights the importance of strong in-venue visibility, effective menu design, and staff engagement at the point of purchase.
Operator influence remains strong, with 24% of patrons saying staff recommendations affect their drink choices.
In community-based venues where relationships between staff and regulars are common, a trusted endorsement can have more impact than a national ad campaign. These findings all send a clear message: brands that continue to overlook South Africa’s informal drinking venues do so at their own risk.
“With high-frequency foot traffic, influential staff, and consumers hungry for new and premium experiences, taverns and shebeens are not fringe markets - they’re frontlines. For any drinks brand serious about long-term growth and cultural relevance, understanding and investing in this space is no longer optional, it’s essential,” stresses Seghal.