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: It wouldn’t be Thanksgiving without buying something and watching holiday movies.” –Female, 29, CA 

Yesterday news that Budweiser would be dropping their traditional Clydesdales in order to appeal to Millennials made the rounds—but the brand says not so fast. In response to the rumors, Budweiser has released their “drink responsibly” ad featuring the iconic horses “earlier than planned” and tweeted that they “aren’t going anywhere.” But they are giving the campaign a twist that could appeal to young consumers, partnering with LYFT to give holiday partiers safe rides home in Boston with the help of the Clydesdales. (Brand Channel)

The appeal of toy unboxing videos may be a mystery to some, but they’re viewed millions and millions of times on YouTube, and Disney wants a piece of that popularity. In case you’ve missed it, these videos consist of opening up toys and talking about what’s in them. The brand’s Maker Studios has signed five toy unboxing digital stars, including HobbyKidsTV, DisneyCarToys, and ToyReviewToys. However, the most popular unboxing channel, DC Toys Collector, who generated 104 million views last week, was not included. (Recode)

Totino’s is continuing their weird, weird marketing campaign to appeal to young consumers’ absurdist humor. In a follow up to “the oddest pizza ad ever,” the brand has taken a BuzzFeed post called "50 Completely Unexplainable Stock Photos No One Will Ever Use" and turned each one into an off-the-wall bizarre ad. They’ve posted the entire collection on their site with the explanation, “We obviously had no choice but to use them. Poorly.” (Adweek)

What influences teen drinking behavior? Recent research has found that ”close friends” are far more influential than the “broader peer group” when it comes to teen alcohol use. This means the idea of  “everyone thinking that everyone else (in a whole school, say) is drinking a lot” being a reason behind drinking might not hold as much water. (NYMag)

The next-generation is growing up hyper-monitored from the cradle, but it’s possible that the high tech baby monitors that have become more and more common don’t actually offer benefits. Onesies and other items that track babies heartbeats and body metrics might be offering parents “false reassurance,” as they haven’t been proven to work. However, makers of those products say that new parents are buying them not to combat specific health issues but for peace of mind. (Mashable)

The Ypulse Back-To-School Special Report is here! The holidays might be starting, but we know retailers, marketers and brand managers are already planning for next year's big shopping seasons. To deliver a forward looking perspective, we surveyed high school and college students throughout 2014, combed that data for insights, and compiled all of the must-know data into a rich BTS special report. Gold subscribers can access the full report and data in the My Documents section of Ypulse.com. One-off pricing for this report is $1,250, contact us here. (Ypulse)

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