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

“[Anna Victoria is] a good role model to women and is changing the way the world looks at fitness and body image.”—Female, 21, CA

Abercrombie & Fitch is going gender-neutral for their new kids’ clothing line. The “Everybody Collection” features “tops, bottoms, and accessories” for five-14-year-old boys and girls. A&F’s Brand President explained their decision to appeal to The Genreless Generation: "Parents and their kids don’t want to be confined to specific colors and styles, depending on whether shopping for a boy or a girl.'' The line of 25 new styles will be rolling out online and to 70 stores, starting this month. (Today)

Millennials & Gen Z already think the Nintendo Switch is cool, and now the brand is giving them more ways to use it. They’re introducing Nintendo Labo, “cardboard-based, interactive DIY experiences” for the Switch, tapping into the “toys-to-life” trend. The variety kit lets players construct five different “Toy-Con” experiences that include turning the Joy-Con controller into a motorbike handle complete with a throttle that can be twisted to accelerate, and creating a piano that senses which keys are pressed to produce the correct musical note. (Kidscreen)

YouTube is pulling Tide Pod Challenge videos from its platform. Teens started eating Tide pods when memes showcasing their Gusher-like colors went viral. The brand has since issued warnings not to eat the pods, and some stores have even begun locking up the product. YouTube has explained the decision to take down the popular pod-eating videos as a continuation of their policy to “prohibit content that’s intended to encourage dangerous activities that have an inherent risk of physical harm." Some are suggesting that pressure from parent company Procter & Gamble may have also been a factor. (Mashable)

The streaming wars are continuing, but audiences are turning to Netflix, Hulu, and Amazon Prime for very different kinds of content. Hub Entertainment Research found original content is winning users' time on Netflix, while over half watch Hulu for its syndicated collection, and movies are most popular on Amazon Prime. The study also found that most Americans overall spend their entertainment time watching TV (40%), but 18-24-year-olds are most likely to engage with gaming and online video, like YouTube. (Quartz)

Outdoor Voices embraced Millennials’ minimal moment to break onto the athleisure scene. The brandless brand goes for a minimalist aesthetic with pops of color, and sees itself as an anti-Nike of sorts. The founder explains that they’re “a recreational Nike” because “With Nike and so many other brands, it’s really about being an expert, being the best. With OV, it’s about how you stay healthy—and happy.” Whatever they’re doing, it’s working: the company has grown rapidly since it was founded in 2013, climbing a startling 800% in 2016 alone. (Vogue)

“I saw some heartbreaking stories in the internet, and decided to look up some international charities and donate to them.”—Male, 20, WA

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