New insights from research by WineGlass Marketing
May 10th – NAPA, CA—A new study completed by WineGlass Marketing with Quest Mindshare illuminates wine drinkers’ behaviors and attitudes during the current market downturn. The study asks Gen X and Millennial wine drinkers why they aren’t joining wine clubs and coming to wine country. The results clearly show the industry that the previous sales models of educational tastings and pre-planned wine shipments do not resonate with modern consumers.
“We had a hypothesis entering the study that the downturn isn’t about the product. It isn’t that people’s tastes have changed. But, the way we are presenting wine and representing wine country is not in tune with their values,” speculated Susan DeMatei, founder of WineGlass Marketing. “We wanted to ask the hard questions on what they think about the wine industry and how they incorporate wine into their lives.”
To execute a survey, WineGlass Marketing turned to Quest Mindshare out of Ontario, Canada. “We were very interested in fielding this study,” said Scott Worthge, the Director of Research at Quest. “The polarity of the consumer groups and potential impact of the results on the industry is the kind of analysis we like to explore.”
The extensive questionnaire was fielded to over 1,600 US wine drinkers in February and focused on similarities and differences between Gen X, who are 43-59 years old, and Millennials, who are 27 – 42.
Perhaps the most startling outcome was that Millennials are not only more likely to belong to wine clubs (38% versus 20% of Gen X) but will spend more money on an “everyday” amount of wine. 49% of Gen X reported wanting to stay $20 or less versus 40% of Millennials.
Another glaring thread was that neither group wanted to be “educated” about wine. Instead, these consumers associate wine with a social, relaxed, and casual experience. “We saw an ongoing thread rejecting the ceremony and precious luxury of wine presentation within this group,” says DeMatei. Instead, the research indicated that both Gen X and Millennials focus on flavors and food pairing with the goal of exploration, not education. “That is why wine clubs don’t resonate,” explains DeMatei. “This group isn’t narrowing down their favorites to stock their cellars. They are all about variety, trial, and adventure.”
This fearless quest is demonstrated by this group’s willingness to buy untested wines online—and expensive wines at that. Both groups indicated significant purchase comfort with online outlets, and channels like Google Search and Facebook topped the list of influencers on purchase decisions.
“This report definitively says that, unlike Baby Boomers, this audience doesn’t need to travel to wine country to become a customer,” says DeMatei. In fact, they find traveling to wine country an unnecessary hassle and expense to try or experience a bottle of wine and are very comfortable having a solely virtual relationship.”
This study also clearly demonstrates the importance of online business tools. Updated websites, a presence on social media channels, well-written tasting notes, and strong eCommerce business practices around shipping and email communications were all cited as vital to these customers.
“I hope this helps wineries focus their attention and assists with planning their efforts,” explains DeMatei. “The industry has some work to do to shift our outdated direct sales model toward this audience, but they are a great target and ready to listen. It is attainable.”
The full report is available for free download at www.wineglassmarketing.com/2024-consumer-report/.
About WineGlass Marketing
Headquartered in Napa but with offices in Oregon, WineGlass Marketing is the premier full-service marketing agency for the adult beverage industry. With a 12-year track record of excellence, the agency specializes in providing comprehensive marketing solutions to domestic and international wine and spirits clients across digital and traditional platforms.
Recognized by Inc. Magazine for two consecutive years as one of California’s top 250 hyper-growth companies, WineGlass Marketing boasts an impressive portfolio of 12 Platinum, 25 Gold, and 14 Silver awards from international design competitions, highlighting their prowess in social media, web design, email marketing, photography, and print materials.
WineGlass Marketing is located at 531 Jefferson Street in Napa and can be reached online at www.wineglassmarketing.com or by calling 707-927-3334.
