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: “I want to travel to Washington, because I love the Twilight series and I'd love to see the place it's based on.”

—Female, 23, CA

Just how hooked on streaming are Millennials? According to a recent survey by TV tech firm Roku, 50% of streaming service users say they would give up caffeine over streaming, and 21% would rather give up brushing their teeth for a week than give up streaming. The most surprising: 70% claim they would give up social media than streaming. Not too surprisingly, Millennials are especially streaming-crazed: 59% of 18-34-year-olds say they’ve told others they were doing something else when they were actually streaming, and 40% have ditched other plans in order to watch content online. (We’ll be exploring what we’re calling The Binge Effect even further in our upcoming trend report!) (StreamDaily

Millennial women are making strides as entrepreneurs, and using their extra cash to make gains in the stock market, according to a new U.S. Trust study on wealthy Americans. When compared to previous generations, wealthy Millennial women are 3.4 times more likely to be entrepreneurs, and are more likely to have a higher or equal income to their significant other. About one-third of this group also say they are the primary decision maker when it comes to money within their households. They’re also investing more than wealthy Boomer and Xer females: “Millennial women are 2.8 times more likely to use hedge funds, 1.8 times more likely to try venture capital, and 3.1 times more likely to own impact investments.” (Glamour

The Daily Show’s Trevor Noah isn’t going anywhere and he has Millennials to thank. Since his start as the new host of the nightly comedy news show , Comedy Central has seen live-viewing numbers drop by about 40% from the last days that Jon Stewart hosted. But they aren’t worried. Young viewers are definitely tuning in—just digitally. When it comes to streaming entire episodes, the new Daily Show is the most watched late night comedy show among 18-34-year-olds, surpassing even Jimmy Fallon’s highly rated Tonight Show. The network reasons that traditional TV consumption numbers are at this point irrelevant, because their “core audience are Millennials.”  (Forbes

A few years of decline among young movie-goers have inspired some to rethink the movie-going experience, but according to theatre ad companies, Millennials are in the midst of a movie-attendance resurgence. National CineMedia has reports that their Millennial movie-goer audience grew 16% in 2015, and is up 8% in 2016 so far. Their data shows that Millennials are 50% more likely to name movies as a passion than the general population, and are the age group most likely to purchase movie tickets in advance. According to a Ypulse monthly survey, 57% of 13-33-year-olds prefer to go to the movies on a night out. (Adweek

Lay’s is bringing Instagram into offline marketing and creating hyper-personal packaging with their “Summer Moments Made Better” campaign. The brand is asking consumers for their favorite summer moments, providing 200,000 codes that allow users to have their Instagram photos printed on a bag of chips, and win prizes. According to the brand: “during the summer, Lay’s plays an important role in [consumers’] lives and in their moments,” and they are hoping to see more social moments focused on food. A similar, smaller campaign, which we covered last year, received “overwhelmingly positive” response. (brandchannel

Quote of the Day: “I really want to visit Tokyo, Japan to see the culture behind the growth of video games, and to eat the food.”—Male, 29, MA

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