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 haven’t had children yet because I prefer to breed with an intelligent female, but none of them are single.” –Male, 30, KY

Instagram is reporting that their first native advertising tests have been a success. According to the network, Taco Bell reached 12.5 million 18-44-year-olds in the U.S. with their campaign, and saw a significant lift in ad recall. Chobani reached 4 million 18-54-year-olds, and was able to shift perceptions away from the idea that their product was only for breakfast. Chobani’s tips for Instagram success include avoiding professional looking shots, and not overbranding. These results echo our prediction that Snapshot Marketing is an essential next step for brands, and that content should fit in with what is already being created by consumers. (Mashable)

Instagram is reporting that their first native advertising tests have been a success. According to the network, Taco Bell reached 12.5 million 18-44-year-olds in the U.S. with their campaign, and saw a significant lift in ad recall. Chobani reached 4 million 18-54-year-olds, and was able to shift perceptions away from the idea that their product was only for breakfast. Chobani’s tips for Instagram success include avoiding professional looking shots, and not overbranding. These results echo our prediction that Snapshot Marketing is an essential next step for brands, and that content should fit in with what is already being created by consumers. (Mashable)

Today’s teens and tweens might be finding much of their entertainment online and in short doses, but in other ways they are being given an entertainment experience that sometimes feels photocopied from older Millennials’ childhoods. Case in point: Sony is producing a reboot of the I Know What You Did Last Summer franchise, continuing the trend of ‘90s films and TV being revisited for a new wave of young viewers. (Jezebel)

Millennials drew the short stick when it comes to economic security, but they may be getting their financial bearings. In 2013, the income of young Americans' households actually rose 10.5% from the year before. In previous years, households headed by 15-24-year-olds generally dropped more than other age groups. While this doesn’t necessarily mean that the recession's impact on the generation is overcome, it is a hopeful sign that not as much damage was done as was feared. (WSJ)

We’re in the midst of a fashion speed tug of war, with some brands leaning into fast fashion and others extolling a less is more attitude. But those brands who feel they need to keep up with the Forever 21s of the world should take note: Patagonia’s “anti-fast fashion” message is paying off. The clothing company has been encouraging customers to buy less, famously running ads that say “Don’t Buy This Jacket,” and their profits have tripled since 2008. (Business Insider)

Teen drug use, binge drinking, and smoking are all on the decline, according to a new federal report. The study found that substance dependence or abuse problems among 12-17-year-olds dropped from 8.9% to 5.2% from 2002 and 2013, and rates of drug abuse went from close to 12% to under 9%. However, the reasons behind these drops is somewhat of a mystery, as the percentage of teens who have seen prevention messages during the same time period has actually declined. (CBSNewsweek)

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