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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The Newsfeed

“I love watching movies and shows uninterrupted.”—Female, 18, CO

Mattel just made the first hijab-wearing Barbie. She’s based on Ibtihaj Muhammad, who won the Olympic bronze medal for fencing for the U.S. while wearing a hijab. Brands are bringing diversity to the toy aisle to appease The Diversity Tipping Point generation’s appetite for inclusion, and this new doll is a step in the right direction. She gives girls a new role model and (in Muhammad’s words) encourages them "to embrace what makes them unique." Mattel has plans to create an entire line of Barbies based on inspirational women next year. (BBC)

Another ‘90s classic, Are You Afraid of the Dark, is coming to the big screen and revisiting Millennials’ childhood nightmares. Nostalgia entertainment is big business for the entertainment industry, who are hoping to capitalize on Millennials and Gen Z’s trademark wistfulness, and it doesn’t hurt that this screenplay for the remake is being written by It’s screenwriter. With horror proving it can bring in massive audiences these days, this mixture of dark content and nostalgia is a good bet to get them in theaters. (Collider)

Millennials are causing a “baby bust”—they aren’t having enough kids to keep the U.S. population at the “replacement level.” According to the Negative Population Growth Inc., the birth rate has dropped below the death rate, with women are having an average of just 1.8 births compared to the 2.1 needed to keep the population steady. The research blames all Millennials for the drop, reporting that “irth rates for all age groups of women under 30 fell to record lows in 2016.” (Washington Examiner)

Kellogg’s is coming back to NYC, with a bigger (and maybe better) cereal café than last year’s Times Square popup. The 5,000 square foot Union Square space will be a permanent place for Millennials to try crafty concoctions from Kellogg’s, who hopes getting the demo to rethink the product will keep Millennials from “killing” cereal as we know it. The company claims “It’ll be a destination for foodies and people to chill, create and explore the endless possibilities of cereal all in one place, whether it be for breakfast, lunch or a snack later in the day.” (CSA)

People are binging Netflix in public—at work, in line, and even on the toilet. A new study from Netflix found that 67% of viewers have watched a show or movie in public, 37% admit to tuning in at work, and 12% have pressed play in a public restroom. One in five have cried during a public streaming session, and 11% have seen a spoiler on another public streamer’s screen—but that’s not stopping them. The Binge Effect is real and bigger than ever: 60% of respondents said they binge more content than they did last year. (MashableMarkets Insider)

“I really enjoyed Breaking Bad and Better Call Saul does a really good job capturing the same intensity and intrigue that the original series did…”—Male, 28, NY

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