Wine Not: Lessons in Shifting a Luxury Product for the Millennial Market

They’re young, thirsty, and ready to pop the cork—but Millennials aren’t drinking wine like their parents did. Boomers value the snobbiness of wine, while Millennials care more about authenticity and adventure than luxury, looking to spend an average of $10-12 per bottle. But Millennials are on the brink of outspending their Boomer predecessors, and will be the dominant group in purchasing power by 2017. Suddenly, luxury products that in the past might have lured consumers and built their brands around exclusivity and lavishness need to prepare for a new generation of consumers who aren’t necessarily looking for an elite-only experience. As wine importer Melissa Saunders was quoted, “[T]his generation is blowing all [the pretense] out of the water. They don’t care about the pretentiousness of a wine, they want something that is authentic and speaks to them. This is a huge marketing opportunity.” The industry is shifting to serve this generation who represents one third of core drinkers, and in doing so, they’re forging new paths in how a previously luxury-focused market can creatively evolve to open up to a consumer with drastically different purchasing values.
 
New startups are seeing great potential in Millennials as the next generation of winos. Uproot Wines targets the affluent segment of Gen Y with minimalist labeling that graphically represents flavor notes and original blends in limited quantities. Club W sources lower-priced wines using big data to appeal to the “Palate Profile” of Millennials who can’t afford to buy top-tier wines but still want a regular glass of the good stuff. Meanwhile, lower-end retailers are getting into the wine game to attract Millennials who have a little bit more to spend. 7-Eleven recently added “ultra-premium” wines for an average of $19.99 a…

 
 
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Millennial News Feed

Quote of the Day: “I'm trying to save roughly $5,000 to buy a vehicle. It will take me another 6 months or so.” –Male, 16, NC

The year started with a report that teens are leaving Facebook, and it’s ending the same way. A report this week showed that 88% of 13-17-year-olds were using the network in 2014, a drop from 94% in 2013. We’ve looked at the reasons that teens just aren’t as interested in Facebook before, and Ypulse’s latest social media tracker survey actually showed that currently only 63% of 13-17-year-olds say they use Facebook. (Mashable)

Millennial tastes are shaping the future of fast food, and majorly impacting longstanding brands. But what chains are keeping them happy now? YouGov BrandIndex ranked the restaurant chains that 18-33-year-olds would consider going to again to gauge their current brand loyalty. Gourmet sandwich chain Jimmy John’s topped the list, with 83% saying they would return. Chipotle, Chick-fil-A, Whataburger, and Subway made up the rest of the top five, in that order. (Business Insider)

Video sharing competition is heating up. Former Hulu CEO Jason Kilar has launched Vessel, his new subscription video service, which has been predicted to be a YouTube competitor. To entice creators to post content, they’re being offered $50 for every thousand views in the first three days they are posted, ifthey are only posted on Vessel. After a “72-hour exclusive window” the content can be shared on other sites. Currently Vessel is only open to creators, and a consumer launch “is pending.” (StreamDaily)

Kids are often shielded from adult content, usually because it is deemed too violent. But in reality, their bright cartoons might feature more carnage than grown-up fare. A recent study looked at the biggest children’s and adult movie hits in the same year and found that “two thirds of the 45 highest grossing children’s animated films feature an onscreen death of a major character” compared to half of the top “non-kid” films. “Death and destruction” are just a regular part of your average animated classic. (NYMag)

‘Tis the season for gift swaps, including the sinister favorite White Elephant—also known as Yankee Swap and Nasty Christmas. Old Navy is featuring the game in their holiday Vine campaign. Each day a video reveals gifts, from a high-end trip to a pogo stick, that will be given out, and every person who re-Vines or likes the clips is entered to win. The brand has also tapped 12 popular Viners to create their own clips in which they steal a previously opened gift or stay with the gift of the day. (Old Navy)

That image at the bottom of our newsletter is a gateway to insights and expert commentary on current and future Millennial trends. Clicking on it takes readers to our daily insights article, available to Silver and Gold tier subscribers, which illuminates a facet of Millennial culture and helps subscribers to understand the "why" behind the "what." Drawing from our ongoing collection of proprietary data, our deep-dive desk research, and our 10-year history of studying this generation, we figure out what it all means for brands and marketers. (Ypulse)

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