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: “For Halloween, I’m dressing as Angelica from Hamilton (dress in period clothing and write unsatisfied across my chest).”—Female, 26, MA

Amazon is on track to take over the apparel industry. Their clothing and accessory sales are expected to grow by 30% next year, surpassing Macy’s apparel sales to make them “the biggest apparel seller in the U.S.,” according to a new report from Cowen & Co. The site has ramped up fashion efforts in recent years by launching private label brands, and sponsoring fashion week. Although respondents in a recent shopper survey did not rate Amazon Fashion highly in “site personalization and ease of use," they did mention the convenience and free two-day shipping of Amazon Prime as the biggest draw. (Business Insider)

In just 15 months, Tasty has not only become the driving force behind BuzzFeed video, it has also become one of top three publishing brands on Facebook. According to an analysis by Tubular Labs, in the last three months Tasty’s Facebook videos averaged 22.8 million video views in just the first 30 days, while BuzzFeed’s main Facebook page only averaged 4.7 million in the same timespan. Known for their “overhead shots of hands assembling delicious, bizarre and everything-in-between recipes,” the brand has recently expanded to include celebrity chefs in the mix. (Digiday

Millennials’ desire for convenience is leading the food delivery revolution. According to Mintel, Americans are increasingly choosing to order in than go out, and 45% of U.S. adults have ordered food delivery in the past three months. That percentage increases to 69% among 18-34-year-old males who live in urban areas, with Millennial women not too far behind at 58%. Among all respondents, the top reasons for ordering in were to catch up on TV shows and movies (41%) and eating alone (25%). (St. Louis Post-Dispatch)

Bordeaux is releasing a new video series to make itself seem approachable and less stuffy to young drinkers. Beyond Bordeaux is a 10-episode YouTube series where the founder of a food magazine visits the best BYOB restaurants to drink Bordeaux wine at, from “neighborhood pizza places in New York to taco joints in L.A. to sushi spots in Chicago.” The brand wants to shed its exclusive and expensive image, and show Millennials their wine can be fun, affordable, and accessible. (Adweek)

Disney and the Los Angeles County Museum of Art are pairing fairytales and fine art for a “fresh” Snapchat campaign. In bi-monthly stories that will be featured on both Disney’s and LACMA’s accounts, the duo will visually retell classics like Beauty and the Beast using works of art and hand-drawn overlays. Disney calls the partnership, “a natural way to add a little magic to art and storytelling to reach a new generation of art and Disney fans alike." LACMA has been using Snapchat since 2014 to playfully highlight and spread awareness of their artwork, winning a Webby for their efforts. (Ad Age)   

Quote of the Day: “For me being an adult means being entirely independent. I pay my own bills, make all decisions in my life, and feel very in control.”—Male, 20, NY

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