DISCUSSION
Can The Wine Industry Capture Gen-Z And Millennials?
Written by Tom Ryan
A report published earlier this year provided a bleak assessment of the U.S. wine industry’s prospects.
The “State of the U.S. Wine Industry” report from Silicon Valley Bank found that the only growth in the category came from consumers over 60. Younger consumers increasingly chose spirits, beer, alternative beverages or alcohol abstinence over wine.
The trend of customers being sober-curious, which refers to avoiding alcohol for personal or wellness reasons, was cited among the threats to the wine industry with the movement being popularized by events such as Dry January and Sober September. Rob McMillan, the study's author, wrote, "Neo-prohibitionism is very much alive and well.”
Berenberg Research, as reported by Business Insider, found both Gen-Zers and Millennials drinking less than older generations due to anti-alcohol messaging and personal reputation fears, including concerns over drunken behavior being publicly broadcast on social media.
The SVB study argued that the bigger problem for the wine industry is that younger consumers have significantly more beverage options than Boomers did when they began drinking alcohol.
Wine coolers like Bartles & Jaymes served as “gateway” beverages introducing Boomers to wine.
Hard seltzers and ready-to-drink cocktails are better at reaching beginner alcohol drinkers than less affordable and trendy wine options.
Wine’s messaging, according to the study, needs to be louder and embrace issues younger consumers care about, such as wellness, sustainability and social responsibility. It called on producers to list their ingredients and offer nutritional data, such as calories per serving, to support transparency, although the industry has resisted such labeling.
Existing advertising is mainly directed at older consumers and “selling white-linen hospitality and gracious living, with a nod to the lifestyles of the rich and famous in many cases — information that’s interesting to wine geeks and consumers over 60 but probably not to the vast majority of potential customers.”
Assessing the study, New York Times’ Eric Asimov wrote, “Wine, like network television in a streaming world, will probably never play the same central role for younger consumers as it has with older people. But it can do better.”
Discussion Thread0
The RetailWire Daily
One morning briefing: the retail news, expert perspective, and business context to bring into your next meeting.
Want to know more? Learn more