How The Wine Industry Aims To Make Wine Lovers Out Of Gen X, Z And Millennials

Last week in this space I wrote about a study that indicated the Gen X and young people in general, worldwide, have not developed the interest in wine their parents did, and that sales among that age group have decreased. To see how the industry is coping with that situation I spoke with Catherine Fallis, Master Sommelier at Bright Cellars, a wine delivery service based in Milwaukee, Wisconsin.

With Wine Sales Dropping Among the Younger Generation, How Is the Industry Trying to Change Its Image?

All the current stats about wine sales show that older generations in America and Europe are still drinking wine, but there has been a fall-off in sales to the Gen-Xers and others for whom the market is crucial to allow growth. I interviewed Catherine Fallis, Master Sommelier at Bright Cellars, as to how the appeal to younger people must change in order to make them wine lovers.

Why does the wine industry have to make efforts to appeal to a younger generation? Are there statistics to prove that?

The 2023 Silicon Valley Bank State of the Wine Industry Report sees a difficult era for wine. It found that wine consumption is growing only among people 60 and older, with 70- through 80-year-olds growing the fastest. Younger people are drinking; the report found that 35% of people 21-29 drink alcohol, but not wine. The fact is, wine sales have been declining for years, and it means that the industry needs to get better at appealing to younger consumers. One way to do that is to demystify wine culture and bring wine down to earth and make it easier to get to know and more fun to drink. Bright Cellars and I share that opinion, and it’s one of the reasons we’re working together. It’s about being less intimidating and making delicious wine, at any price, more fun to discover and experience.

By “younger generations” whom do you mean?

The Silicon Valley report cited Gen X, Millennials and Gen Z as the underperforming cohorts, but that’s a large range spanning ages 21-60. The industry needs to focus on Millennials, who represent the largest population, and Gen Z, many of whom are now 21.

You say that it is necessary to “Use approachable language with no technical terms.” Such as what?

The industry tends to speak to consumers as if they know the “inside” language of wine, using words such as nose, palate, tannins, robe, legs, etc. Odds are, the average consumer does not know what these terms refer to. If someone from the famous food lab in New Jersey used their industry lingo to describe the makeup, aromas, flavors, structure and taste of Doritos, no one would buy them. The wine industry needs to follow the example of other food and beverage brands by using language and descriptions already familiar to people. Keep it simple by talking about flavor and when it comes to pairings, make suggestions using real, everyday meals they might make at home.

When you say to utilize simple, appealing descriptions, what do you mean specifically?

I like to use simple, easy-to-digest sentences that anyone can understand. For example, when we describe Ochavado Verdejo on the Bright Cellars website, we say it’s “Light and zingy with notes of lemon zest, lime, dried herbs, and sea salt,” with images of these items alongside the bottle. When it comes to what to pair it with, grilled asparagus and crab cakes both make the list—two things someone might be eating at home on a weeknight. This type of language is now appearing on Bright Cellars’ wine content, on wine cards, on product pages and more. We have also added everyday food pairings for real people such as Cheetos, Glazed Doughnuts and Hot Pockets.

Low alcohol, zero alcohol, zero sugar brands should be mainstream and tasty. Easier said than done. How can this be accomplished? It runs against the whole idea of drinking wine as a healthy alcoholic beverage.

It starts with broader beliefs and preferences. Gen Z and Millennials have made it clear that they read labels closely and care about what’s in their food and drinks. A report last year by Food Insight found that nearly half of Gen Z tends to purchase beverages because they are labeled as “natural,” one-third does so on the basis of “clean ingredients,” and nearly one third because the product is organic. According to online alcohol marketplace Drizly, wellness, moderation and health are top of mind for Gen Z, even factoring into their alcohol purchasing behavior. For example, two of our newest releases are in the lower alcohol category, at 9% alcohol. They are both delicious as is and are not singled-out as lower-alcohol on the label. Zero alcohol is harder to get right, but with the massive global growth in that beverage category, and the appealing results in gins, beers, and more, wineries are already working hard to create a tasty zero alcohol product.

What about the “Ready to Drink“ category that includes Wine Margaritas, Wine-based Cosmos, Lemon Drops.

RTD’s don’t have to exclusively come in cans. At Bright Cellars, when we talk about RTDs, we mean any wine-based cocktail that is ready to be opened and poured, whether that’s a can, box or bottle. Recent data from Drizly shows that this category is a favorite of younger generations. The wine business writ large needs to see this not as a threat, but an opportunity, by expanding the market for wine-based cocktails. Done right, wine stands in spectacularly for a neutral-base spirit. We are working on a line of wine-based RTDs offered in traditional, 750ml wine bottles. The multi-serve opportunity that bottles like these provide is key to accommodating social occasions and from a price-value point of view.

But if you switch to fun alternative, environmentally friendly packaging such as glass-lined plastic bottles, bag in box and cans, that would seem to attract the lowest common denominator.

Again, we have to take Gen Z’s values into account. Environmental issues weigh heavily on this generation and directly influence their shopping choices. According to a 2021 First Insight report, 73% of Gen Z consumers say that sustainable product packaging is important in purchasing decisions. It’s time to think outside the box, or in this case, the glass bottle, when packaging wine for Gen Z. Wine’s Old Guard would say that wine only tastes good when it comes in glass bottles, but that’s simply not true. Our industry already packages wine in more sustainable formats, like boxes, cans, tetra packs and more, with no effect on taste, especially as these wines are being consumed quickly, not sitting in wine fridges or cellars. Again, it comes down to making wine more approachable, and less intimidating for younger generations.

What about eliminating cork on inexpensive wine? Corks may be outdated but you always get the argument that the consumer wants the cork and hates screw caps etc. How do you change that perception?

I would agree that those over 60 may still have that perception, but not so with Millennials. In general, cork-finished wine it is one of the most tedious products to open. If folks needed a special tool and complicated technique to open a beer, would that beverage be so popular? And don’t get me started on those heavy “wax” capped bottles.

The wine industry may sell a lot of low-end wine but it promotes premium wines and above. And restaurants don’t carry low-end wines. How can that change?

Premium wines need promotion, due to their price. The entry level, under $10 retail wines, are purchased on price, and a pleasing label. Restaurants do carry low-end wines, but the consumer just doesn’t realize it in many cases. In fact, low-end wines with a high markup allow restaurants to sell higher-end wines with a lower markup. I always recommend avoiding a restaurant’s cheapest wine. Always go up a few dollars. It’s a very good investment in quality.

Do you think that lower mark-ups on wines in restaurants will help? It seems that all restaurateurs are committed to 200-300% mark-ups.

Restaurants mark up food and beverages based on their business model. Not every restaurant uses industry standard wine markups. Look at wines on a list in Manhattan vs. Cleveland, Las Vegas vs. Milwaukee, Paris vs. Montpellier. Large metro areas have higher operating costs and tend towards higher markups, just as highly touristed areas do as well. Also, to put things in perspective, bar programs have much higher markups. A martini may have 2-3 ounces of premium gin or vodka, costing the establishment less than $1, while the cost to the consumer is $9 to $22, or more! I do not think lower markups on wine will help. I think better buying strategies will. The restaurant wine buyer should be open to exploring new grapes and regions, finding great value where others wouldn’t have. It just takes a little more legwork, an open mind, and support from management/owners.