The Wine Market Council has identified younger Millennials and Gen Z as crucial to wine's future in the US The catch? These two demographics appear to be much less interested in wine than their parents and grandparents, and wine’s sales in the US have suffered accordingly.
So how does the wine business reach these two heretofore unreachable generations? We assembled a virtual roundtable of five top wine marketers to answer that question. The email discussion centred around wine’s inability to reach these groups and what needed to change in the wine business’ marketing approach, looking for proven examples of success.
The marketers: Jane Kettlewell of Creative Palate Communications, with experience working for producers and importers large and small; Gino Colangelo, whose self-named public relations agency is one of the most respected in the US; and Dan Fredman, an independent West Coast marketer. In addition, Denise Clarke, who works with US regional producers; and Canadian marketer Leeann Froese added much-needed perspective.
A lack of marketing dollars
Not surprisingly, the discussion identified marketing dollars — or their lack — as one of the biggest obstacles facing the wine business. The industry is notorious for not spending money on marketing, especially in comparison to its beer and spirits competitors.
“The 19 Crimes campaign is classic, and Whispering Angel also got the vibe just right,” says Kettlewell. “But campaigns require money, and to embark on a far-reaching, impactful campaign you need the investment that comes with being a larger-scale brand. To go viral on social media requires a special magic that requires a rare stroke of genius.“
Which, so far, has been out of the reach of too many of even the most successful wine brands. Still, the marketers say, there have been successful campaigns, for both big and small brands.
Froese’s Town Hall Brands agency worked with social media influencers and several local Chinese cultural organizations on a Lunar New Year promotion focusing on Asians — a key British Columbia demographic — that is overlooked in the rush to sell wine to aging white Baby Boomers. In Texas, Clarke says, several urban wineries that are located near where younger consumers live, “are well positioned to create the next generation of wine enthusiasts.” Programs like those at San Antonio’s Re:Rooted 210, which offer kegs and growlers (or jugs), as well as marketing that emphasises sustainability, have been successful.
On a more national scale, says Colangelo, there is the example of his agency’s nine-year-old, week-long National Prosecco Week. The project, in conjunction with the Prosecco DOC, works with retailers and influencers to reach young and diverse audiences. “Prosecco is quality wine that's approachable, priced right, versatile and fun,” he says. “It's right on target with Millennials and Gen Z. For all of these reasons, Prosecco continues to sustain growth — unlike most wine categories.”
And, says Fredman, don’t overlook natural wine just because the traditional wine media and wine audience don’t care for it. Some of the criticism around natural wine is valid, “but even if it is confusing to Boomers and Millennials, it resonates with younger consumers,” he says. “They’re drinking something their parents and ‘the experts’ don’t necessarily understand. And it’s important to understand that its approach to winemaking becomes a demarcation line of generational shift and that leads to word-of-mouth and thus sales.”
The discussion
Where has the wine business gone wrong in marketing to younger Millennials and Gen Z?
Froese: As a wine marketer, I hate to admit that as an industry we have lagged to adapt our messaging and methods to engage with the Zillennials. The wine industry must shift from a traditional, education-heavy approach to one that prioritises connection, fun, and inclusivity.
Fredman: The traditional focus of the “if you drink wine, you must be a classy person” approach has been a mistake since the 1990s, even though this line of thinking worked fine until around 2008. That’s about when the target generation realised that their discretionary income wasn’t the reality for them that it was for their parents — they owed a gazillion dollars for college tuition, they had no room to store wine in their smaller residences, and they didn’t have time (or interest) in devoting resources to learning about wine.
Kettlewell: The industry emphasis on premiumisation doesn’t favour adventure and discovery among younger folk with limited means and discretionary spending. When it comes to entry-level wines retailing for under $12, the industry has all but walked away from diversity, excitement, and innovation. What’s exciting about seeing the same-old, same-old brands on too many store shelves that your parents and grandparents saw?
Colangelo: Older executives and business owners, like me, need to allow younger people, like my team members, to make decisions. Younger Millennials and Gen Z will take their cues from their peers. We have to trust our younger and diverse colleagues, loosen the reins on decision making and move faster.
What themes should drive a successful marketing program?
Clarke: Show your personality. Wineries should tell their brand story that highlights their personality and differentiation. Make your brand approachable. Wineries and their teams often talk in wine lingo that is intimidating. Use storytelling instead of preaching.
Kettlewell: Introduce humour and poke some gentle fun at some of the snottier aspects of the wine business. Make wine approachable, amusing, entertaining and all-round more relatable to younger people. Stop with nerve-wracking food-wine pairings but do introduce younger audiences to the social , communal enjoyment of sharing wine with meals in casual contexts that younger folks can readily relate to. Take risks with more innovative, eco-friendly packaging.
Froese: Wine marketing should revolve around the following accessibility — offer tiered pricing and approachable price points, so flights are a great idea for this age group. Understand the difference between experiences and education. Position wine as part of a fun and memorable experience, to tie wine to moments of joy and connection. This cohort is not great in getting off their phones, so give them a social reason to gather and let wine be part of it.
Colangelo: Price matters. In the US, we need to proudly champion the $15 bottle. There's a lot of very good wine at that price point which is accessible for younger people. Seventy-five percent of Millennials and Gen Z have never spent $50 on a bottle of wine. We have to dispel the narrative that “good” wine starts at prices most young (or older) people will never pay.
Fredman: We need to get across the experience of drinking wine, whether it’s the way that sharing a bottle of wine leads to good things, a unique history of the brand or its location, who’s in the winery’s community (figurative, but maybe literally too). Why should they drink this bottle when the same money can go toward a competing brand, or category like cider, distillates, beer, cannabis, or zero-alcohol products?
How can media – TV, Instagram, influencers, and so forth — be used to reach this target audience?
Colangelo: Achieving “awareness” is not just getting your picture on the cover of Wine Spectator any more. There are many channels to reach the market, and you need to use an array to meet your target consumer where they spend their time. Maybe it’s Instagram, maybe it’s Facebook or TikTok, depending on your target demographic. These latter-day generations are more about the experience than they are [about] the ownership. Brands targeting them should be seen in travel shows, adventure shows, online posts involving fun things, etc. Wine viewed on its own can be kind of boring, but put it into a fun or interesting context, it becomes more than a beverage.
Kettlewell: Maybe we need a Sideways or Bottle Shock for the new era, with characters, actors, in contexts and settings that relate to a younger generation.
Froese: This group does not watch TV. Utilise TikTok shorts and Instagram Reels for behind-the-scenes content and playful tasting notes — short and dopamine-hitting with a couple of takeaway nuggets. Encourage user-generated content and collaborate with influencers who resonate with younger audiences. This cohort likes to gather at festivals. Host experiential pop-up events and collaborations with food trucks, music festivals, or art shows. Use short, story-driven ads on platforms like Hulu and YouTube, and sponsor podcasts and digital media that align with Gen Z interests.
