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: “My dream for the future is to become an entrepreneur so I can become my own boss. I also want to become successful to help other people who are in need.” – Female, 23, CA

Seven years after the release of Harry Potter and the Deathly HallowsHarry Potter is the best-selling book series in history; but it also shaped a generation of children who read it. Millennials—known for their technology reliance—fell in love with these books “about love conquering hate,” waited for their release, grew up with the characters, and found within the books a unifying culture that has lasted far beyond the publishing of the last book. As we’ve said previously, the optimistic story about a unique, special boy destined for great things resonated with Millennials in a time when they too believed they were special and had great expectations for their futures. (BoingBoing)

Millennials are not rushing to tee off, and golf is “suffering from a generation gap.” Over the last five years, participation in the sport has fallen steadily, and the participation rates of 18-34-year-olds dropped 13% from 2009 to 2013, while their rates in other sports has risen significantly. The slow rate of games, the expense, and likely the pretense surrounding golf, could all be contributing to the gap. (WSJ)

An anonymous, adult, toy reviewer is one of YouTube’s biggest stars. DisneyCollectorBR posts videos of toy “unboxings,” watched by millions. Her most watched video is an unwrapping of “egg surprise” trinkets to show what is inside—it has over 90 million views. Apparently, the simple videos of a toy being opened and played with by adult hands are “entrancing” kids, who watch one after another. There is close to no information about the person behind the account online. (BuzzFeed)

Millennial parents continue to be given tools that facilitate their kids’ hyper-monitered childhoods. MamaBear is an “all-in-one worry-free” parenting/monitoring app that recently raised $1.4 million. Through the app, parents can be alerted to where children are, what they’re saying on social media, what photos they’re being tagged in, and even monitors when teen users are speeding. (TechCrunch)

The obesity epidemic has been blamed on many things, from fast food to technology replacing outside play. But one result of the health problem could also be making it tough to conquer: a lot of children who are obese or overweight don’t know it. A recent study found that 76% of kids ages 8-15 who are designated by the CDC as overweight thought they were “about right.” Boys and children from poorer families were more likely to “misperceive” their weight. (NPR)

Quote of the Day: “I unplugged from Facebook and it was one of the best decisions I have ever made. It is such a time suck. I have other online sites that I can browse to relieve stress or take a break from work without having to see what some random kid in high school is eating for breakfast.” —Female, 23, PA

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