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: “The type of commercials that stick in my memory are the ones that make me evaluate my life.”—Female, 28, SD

To Millennials, being a geek is a good thing. Imgur’s research (conducted by Ypulse) reveals that 60% of Millennials consider themselves geeks or are into geeky things, compared to just 38% of Xers and Boomers, and the majority don’t believe the geek label is a bad thing. These Millennial geeks are trendsetters, politically and culturally engaged, and highly influential: 84% say people look to them for advice on a topic, compared to 60% of non-geeks, and 67% say they know about things before they go viral, compared to 48% of non-geeks. However, Millennial geek influencers are not easy to reach, with 76% using adblockers and 32% feeling like brands can’t relate to them. (AdweekMediaPost

Half of 12-18-year-olds feel they are addicted to their phones, according to Common Sense Media’s new poll. Although not enough research exists to define digital addiction currently, teens are clearly dependent on their devices: 80% say they check their phones hourly, and 72% said they feel a need to respond to text and social media messages immediately. Parents are in agreement, with 59% saying their children are addicted, and 36% saying they argue daily with their children over mobile use. The bright side is there are signs they are aware too much time on devices might be bad: 37% say they are very often or occasionally trying to cut down. (CNN)

BuzzFeed, which is producing 600 pieces of content daily, has grown their audience views from 2.8 billion monthly to 7 billion in the past year. They attribute their success to “truly understand[ing] what today's audiences want,” and being able to monitor reactions to content. They report that three quarters of their content is consumed outside of their actual site. Facebook is where they thrive: the social network contributes 33% of their views, more than their own platforms at 23%. Tasty, their food entertainment division, has become "its own BuzzFeed," averaging 360 million users monthly. (Adweek

Going viral is not always a good thing. Down to Lunch is a simple meet-up app inspired by “the experience of living in their freshman-year dorms,” connecting users with their contacts to facilitate lunch, “chill,” or “blaze” meet-ups. But as it began to gain traction, becoming “wildly popular college campuses,” fake reviews claiming the app was used for human trafficking also began to go viral—decreasing user growth by 90% over two days. The founders were able to fight the accusations, and the popular app peaked at  No.2 on iPhone download charts in April. (Business Insider)

According to The New York Times the future of journalism is virtual reality. At the NewFronts this week, the Times outlined their new digital strategy, concentrated on an R&D lab where journalists, technologists, and brands will create video series and 360-degree videos. Last year the publication delivered a million Google Cardboard virtual reality headsets to subscribers, leading to 600,000 downloads of their VR app, which they call “the leading mobile app for high quality VR content.” The company plans to cover the Olympic games in Rio, space exploration, and more in VR this year. (Fortune

Quote of the Day: “A wedding trend I have noticed is not having a photographer, and just having friends take all the pictures.”—Female, 18, CO

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