Image courtesy of Michelle McSwain Photography; Art direction by Vanessa Price
Dear Wine Industry,
It’s time to stop blaming millennials for a lack of interest in overpriced and overhyped wine. Since the 1970s, vintners and landowners have steadily inflated bottle prices: cult brands like Screaming Eagle and Colgin command an incomprehensible $1,000 per bottle.
The problem is, Millennials don’t buy it (and can’t buy it, more on that below) — they are not buying into the aura of prestige that previously bolstered sales among older generations. “You put ‘Napa Valley’ on a toothpaste, you can sell it as a luxury product,” Andy Beckstoffer is quoted as saying in a recent New York Time Article. No longer, according to the Silicon Valley Bank’s most recent annual report on the U.S. wine industry — probably the most influential analysis of its kind. For years, its author, Rob McMillan, has preached about the alarming convergence of two trends: higher and higher bottle prices at the premium end of the market, and millennial indifference. Some farmers and winemakers have brushed Mr. McMillan off, and this time, he amped up the urgency, writing plainly: “The issue of greatest concern for the wine business today is the lack of participation in the premium wine category by the large millennial generation.”
Let’s face facts: our industry needs to evolve. Millennials consider wine a positive lifestyle choice and many consume it on a regular basis. As the category’s most lucrative demographic, the baby boomers, ages out of its prime consumption years and a new cohort takes their place, how will brands respond: will they play an active role in adapting to the new reality, or will they dig in with outdated expectations?
If you fall into the first category (we hope), you may be wondering: how do you engage millennial wine drinkers? The key, our agency team has found, is building your brand into their experience-driven world. Here are our top findings:
Tie your brand to their favorite occasions.
Millennials covet experiences, not things, which is why they will shell out $400 for Coachella tickets but won’t buy a bottle of wine over $20. Take advantage of these occasions and build your brand experience into them: have presence at popular music festivals, create digital pairing guides for their Netflix movie nights, share a themed Spotify playlist. Creating an occasion for millennials to drink wine is a relevant and often overlooked marketing strategy.
Add value and tell stories.
If a millennial is going to pay for something, they want to feel the value-added. Contribute to the greater good and share your stories about giving back. Millennials are interested in topics like sustainability, women and minority ownership, and sourcing local, but if you don’t speak from a place of authenticity, these efforts will fall flat.
Be more fun.
We are still learning how to educate millennials, many of whom have limited knowledge and exposure to wine. Find people with great personalities, not necessarily wine experts, who can explain your wine brand in approachable terms.
Format is key.
This goes back to the point about being more “fun.” Millennials engage more with dynamic and rich content. Video, music, social media, podcasts, time-lapse stories, and virtual reality: learn how to leverage these tools and tell your story digitally, and you will be on your way to winning over the tech-native millennial consumer.
Access is opportunity.
All of the above becomes null and void if millennials don’t have easy access to your products. Convenience and user experience are key: does your brand have an e-commerce storefront? Is your brand available for at-home delivery? It’s true what they say about millennials and instant gratification — they want to try new things, and they want it now.
One last note.
Things were tough before COVID, and they’re only getting harder. This April, 60% of millennial-registered voters told pollsters at Quinnipiac University that the pandemic has them concerned about being unable to afford food, rent, mortgage, or medical expenses. Wine brands that deliver real value to millennials – and that connect in meaningful ways – will come out ahead.
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