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…

 
 

Want to talk to us about the article
or dive into a custom study?


Millennial News Feed

According to Pew, a third of Millennials frequently use their phones in public for “no particular reason,” and 13% say they frequently use their mobile devices to avoid interacting with other people. (Queue the “anti-social Millennial” pieces.) But another study might shed some more light on their “for no reason” phone use: 60% believe their smartphones enhances their leisure time. The research hypothesizes that young consumers are using phones for moments of “micro-leisure” throughout the day. (Washington PostSocialTimes)

Malia Obama has grown into a bit of a style icon. Though the fashion world has been watching her mother since their first day in the White House, now that Malia is a little older, and interning for HBO’s Girls in NYC, her looks are beginning to influence her young fans. One designer, whose look nearly sold out after Malia was photographed in, it tells the New YorkTimes that she is “a blossoming influencer.” (JezebelNYTimes)

Millennials are all hopped up on fancy coffee. The CEO of coffee chain Peet’s says that young consumers are “driving a shift in coffee consumption away from traditional economy brands and towards pricier, higher-quality beans." Millennials reportedly are looking for the best cup of joe, instead of the cheapest, and higher price coffee chains are benefitting from their high-end java tastes. (Eater)

You would think that with all the horror stories of cyber-bullying that have become national news stories in the past few years, parents would live in fear of their own kids being victims of bullying—but there is something else that they fear even more. Homework. A new study by notorious social platform Ask.fm found that 52% of parents say they are worried social media use will be a distraction from homework, compared to 21% who worry they may be bullied. (Business Insider)

Google has launched YouTube Gaming, a new platform that aggregates over 25,000 gaming channels into one place so that gamers can find the content they want more easily. Gamers are some of the most popular YouTube creators, and YouTube Gaming “is already a hit with advertisers”—and not just gaming brands. Kotex, Wendy’s, and NBCU have all purchased ads on the site, another sign of the mainstream embracing the gaming world. (Adweek)

Quote of the Day: “Forever 21 is my favorite store to shop in, the clothes are affordable and I can find every type that I might be looking for.” –Female, 27, NY

Netflix is entering the teenage world. Their latest programming plans include shows and movies for teens and tweens, including YouTube celeb vehicle Smosh: The Movie, in an effort to attract more young viewers, “known for their elusive and fickle tastes.” Netflix’s new focus on teens is a part of their goal to be a place for every kind of audience, and could help them gain more subscribers overall, as teens tend to influence their parents’ entertainment decisions. (NYTimesFortune)

Sign Up Now

Subscribe for premium access to our content, data, and tools.

Already a subscriber? Sign in.

Upgrade Now

Upgrade for full access to the best marketing tools for understanding the next generation.

View our Client Case Studies