Wine and Millenials - Worth the Effort or There's Time to Wait?
In beginning my research into the dynamic nature of the US wine industry given recent technological and sociological information, I've come across a reoccuring theme - Millenials are the future of the wine industry. Despite the current economic downturn, the growth in the wine industry has persisted, albeit slowly, but growing nevertheless. And this growth in consumption is largely attributed to the Millenial generation (we love our Red Diamond!). That being said, it's important to note an important distinction - Millenials consume wine
Who are Millenials? "Millenials" is a term used to describe approximately 60 million Americans, between the ages of 21 and 35, who are taking to wine in big ways. Noted for their (our, I should say as I am one) self-absorbed approach to all things, are trying and buying wines based not on reputation and brand but on taste and palette.
From the Wine Market Council:
The millennials, Gillespie suggested, are the future of the wine industry, and their numbers are increasing as younger members reach drinking age. They are the most optimistic about the economy and their wine consumption continues to rise. Millennials take nearly three glasses per occasion, compared to 2.41 for generation-Xers and 2.13 for baby boomers. The report shows that millennials overwhelmingly associate wine with fun times. Millennials are also significantly more likely than older generations to purchase wines costing $20 or more, and they visit wine bars more frequently than those in older age groups. Millenials are also taking to international and foreign wines in greater numbers.
And so I ask - are Millenials indeed the future of the US wine industry and deserving of increased attention at this time, or are we more interested in seeing how millienial wine behaviors and prefers grow and evolve before we (the industry) begins to make our move? What methods have you in your business established at better targeting this new generation of wine drinkers? Or is it simply too early to tell?
And more importantly, what are your thoughts on the best ways to go about attracting the awareness of this generation?
Source: http://www.winemarketcouncil.com/research_slideview.asp?position=5
Views: 16
Replies to This Discussion
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Permalink Reply by Bobby Cintolo on -
Great topic, questions, and information. I firmly believe Millennials are the future of the wine industry.
Being a Millennial I can speak to my behavior and habits for finding, trying, and drinking wine. What influences this? Tastings and Events, Social Media: Blogs and Reviews, and recommendations from peers.
I think anyone in the industry should be very interested in finding out how to tap this demographic of wine consumers. This is where the growth will come from. Millennials are inexperienced, lack knowledge, and are not loyal to brands. Since they are more willing to try different brands I think it is crucial that people in the wine industry give them a reason to try their brand.
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Permalink Reply by Nadiyah Ford on -
Based solely on demographic size, I'd agree that the Millenials are worth the attention. The level of effort that should be directed at our generation remains to be seen. Sure, we're drinking wine in unexpected numbers, but the problem lies in our purchasing behavior. True to form, as a generation of people who were raised on dot-com successes and niche businesses being able to successfully tug at the market share of established players, we love the underdogs.
Another question: Do our attitudes and behaviors present a problem for the wine industry - particularly for the well established brands/players?
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Permalink Reply by Barbara T. on -
Today baby boomers are the main audience for the U.S. However, the industry needs to start courting the Millenials, if not their customer now, they could be tomorrow. Or they will move on.
Education without talking down to the Millenials will make them your customer.
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Permalink Reply by Tracy Gilliam on -
According to Wine Business Monthly August 2006, http://www.winebusiness.com/wbm/?go=getArticle&dataId=42403,
Millennials are extremely interested in learning about wine, but did indicate that they don't feel comfortable in traditional wine education settings. They felt out of place at tastings and events because they were the youngest consumers there, and expressed hopes that the industry would begin to gear events toward their age group.
If you are in wine marketing and would be interested in previewing our prototype to market your wine brands to the millenniers in a new technologically fun way, please contact us Taste Drive America, TracyGilliam5@att.net.
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