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: “Calling doctor offices takes too much time. If they don't have a patient portal where I can do everything online, I find another doctor. I couldn't find a dermatologist in my area who didn't require several phone calls, so I gave up.” –Female, 30, FL

Mobile devices are the first thing that 80% of Millennials reach for in the morning, and their digital dependence is seeping into more than just wake-up media. 88% have or would deposit a check by snapping a picture of it and 45% would want to pay bills the same way. The camera is the number one most important smartphone feature among this generation, and 33% even think a photo of their driver’s license could be put to good use as a way to enroll in anything from gym memberships to credit cards. (USA Today)

While online dating seems to give Millennials increasing hope of a modern day “happily ever after,” their happiness may be short-lived. Researchers from Stanford and MSU have found that breakups are more prevalent among couples, both married and unmarried, who met online than those who met in more traditional social settings. These stats are credited to simple facts: the mystery and risk of who is behind the other side of screen causes online relationships to take much longer to form into something real. (Jezebel)

To help heighten Millennial traffic, Jack-in-the-Box will feature an instant-win game promotion with prizes ranging from date night movie tickets to a two night VIP experience in Las Vegas. These big ticket offerings will capitalize on the healthy performance of their late-night menu, accounting for 16% of their sales in the first three quarters of this year. The chain has lost its once strong hold on the late-night market, and hopes to regain Millennial consumers with a menu of savory, mash-up items that they may not crave for lunch or dinner but become must haves after dark. (Huffington Post)

Millennial parents are more practical than ever, a trend we explore in-depth in the new edition of Ypulse Quarterly releasing tomorrow. Upcycling used clothing and embracing swaps are the kind of sustainability minded and money-conscious initiatives they support, so it’s no wonder that Kallio, a children’s clothing line made entirely from upcycled men’s shirts, reached its full funding on Kickstarter today.  The Brooklyn-based brand intends to invest in both the clothing line as well as a community workshop to teach sustainable design technique. (Fast Company)

While social media platforms like Instagram and Twitter seem to be dominating for innovative marketing efforts, Facebook still holds steady ground. In a small study of marketing professionals, digital platform Offerpop found that 92% of social marketing budgets will be spent on Facebook this holiday season. The survey from Offerpop also shows that 16% plan to spend money on Snapchat, but finds that 48% are hesitant to invest their budget in untested networks such as Yo and Wanelo. (The Drum)

Every other week we tap into our panel of 150,000+ Millennials in a survey of 1,000 14-32-year-olds to keep our finger on the pulse of trending topics, changing attitudes, and new norms among young consumers. The question library in the My Library tab on Ypulse.com allows Silver and Gold subscribers to see every question we’ve asked and how we’ve asked it for our entire history of bi-weekly surveys, and a search of Ypulse surfaces all the relevant related data that we’ve collected from young consumers. (Ypulse)

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