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: “A ‘foodie’ to me is someone who takes pictures of every meal and follows multiple food blogs and pins a lot of food pictures on Pinterest.” –Female, 17, TX

ABC Family wants to be there for young women 14-29-years-old as they “navigate the next step” in their lives. To do so, they’re doubling their original programming with both scripted and reality series in the coming years, and stepping away from “trash-talking, train-wreck reality TV shows” to focus on more aspirational content. To keep up with their socially engaged audience, who spends an average of three hours a day on mobile, they’re launching a revamped Watch ABC Family app this summer. (Adweek)

Online voters could put a transgender Millennial man on the cover of Men’s Health. The magazine’s “Ultimate Guy Search” looks for men that embody their ideals of health and wellness, and thanks to social media and a strong LGBTQ community, 27-year-old trans male Aydian Dowling is the competition frontrunner by a landslide. There are both judges and a “reader’s choice” component to deciding the winner. A 2014 Ypulse monthly survey found that 87% of Dowling’s generation believe that LGBT individuals should be able to live their lives without discrimination and judgment. (The Daily Beast)

Michael Kors seems to have captured the hearts of teen girls: 39% of average-income girls choose Kors as their preferred handbag, up from 7% in 2012, while previously beloved Coach fell from 46% to 17% in that same amount of time. Teen shoppers are a powerful and influential bunch, and they’ve brought Kors “to new highs.” However, when brands become ubiquitous, as Coach did and some think Kors could become soon, sales can slow, making room for “hard-charging upstarts” like Tory Burch and Kate Spade. (Bloomberg)

For some time now YouTubers have been garnering just as much popularity as Hollywood celebrities, and it’s beginning to pay off, big time. According to Outrigger Media, CharlisCraftyKitchen, the largest food and cooking YouTube channel, is bringing in an estimated $127,000 a month. We should mention that CharlisCraftyKitchen stars 8-year-old baker Charli and her 5-year-old sister, Ashlee. Their amateur videos are among the successful channels that are providing marketers with a “tidy revenue stream” as they continue to garner millions of views. (AdAgeBusiness Insider)

Disney is tapping into the next generation’s interest in STEM to promote their upcoming movie Tomorrowland. The Create Tomorrowland – XPRIZE Challenge is asking kids and teens to envision themselves in the future and share what inventions they think would be impactful. Starting next week, creative thinkers between the ages of eight and 17-years-old can submit videos, images, or stories about their imagined invention or innovation and the influence it could have. Six winners will receive prizes to help move their ideas forward in real life, like a mentorship with a leader in their area of interest and a 3D Printer. (XPRIZE Challenge)

If you haven’t already noticed, Millennials care about their food. 47% consider themselves “foodies,” and 89% say that they’re open to trying new foods. How do we know? It’s not telepathy. Every other week, we reach out to our Millennial panel of over 60,000, asking 1,000 13-32-year-olds about current events, seasonal trends, changing attitudes, and new norms. The results of these monthly survey results are delivered to our Gold subscribers, and can be downloaded from our site. (Ypulse)

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