POOR BEER MARKETING HELPING WINE?
Millennials play a very important role in defining what alcoholic beverage is cool or popular to drink, and single-handedly as a group can determine a large percentage of sales and volume. The latest success of the wine industry can be attributed in part to the growing interest of millennials, among other things, such as the overall improvement in quality and attainability. Also, modern consumers want variety, which is synonymous with the wine category’s ever growing blends and ranges
"The trend is here to stay," said Alain Barbet last month to a group of investors. "The evolution of the general population, particularly among the younger [generation] away from beer to more taste, to more diverse and more interesting beverages is going to continue as more and more consumers come into the market."
And what, exactly, has drawn millennials towards wine? Kaumil Gajrawala of UBS suggests that the beer industry's failure to effectively market its products in the past could be one reason. Millennials were hesitant to buy into the somewhat sophomoric image beer companies built for themselves through advertising in the 1990s, which resulted in lost share points. However, newer beer ad campaigns have refrained from using bikini-clad women and slapstick humor, and are more likely to appeal to millennials – which could eventually turn the tide on the wine industry’s staggering growth.
Many wine companies are realizing the importance of millennials, and have even set up separate divisions in their businesses to focus solely on marketing to that age group. Kendall-Jackson, for example, has a division called White Rocket, similar to The Wine Group’s Underdog Wine Merchants.
In 2005, Americans consumed a record 279 million cases of wine, continuing a 12-year trend of consecutive growth. Overall consumption is expected to increase another 3% this year and reach 316 million cases by 2010. Increases in the number of young people at the legal drinking will account for most of the market's expansion thru the next ten years as millennials remain top growth drivers. Just last year alone, millennials’ wine consumption rose 39% according to the Wine Market Council.
"The trend is here to stay," said Alain Barbet last month to a group of investors. "The evolution of the general population, particularly among the younger [generation] away from beer to more taste, to more diverse and more interesting beverages is going to continue as more and more consumers come into the market."
And what, exactly, has drawn millennials towards wine? Kaumil Gajrawala of UBS suggests that the beer industry's failure to effectively market its products in the past could be one reason. Millennials were hesitant to buy into the somewhat sophomoric image beer companies built for themselves through advertising in the 1990s, which resulted in lost share points. However, newer beer ad campaigns have refrained from using bikini-clad women and slapstick humor, and are more likely to appeal to millennials – which could eventually turn the tide on the wine industry’s staggering growth.
Many wine companies are realizing the importance of millennials, and have even set up separate divisions in their businesses to focus solely on marketing to that age group. Kendall-Jackson, for example, has a division called White Rocket, similar to The Wine Group’s Underdog Wine Merchants.
In 2005, Americans consumed a record 279 million cases of wine, continuing a 12-year trend of consecutive growth. Overall consumption is expected to increase another 3% this year and reach 316 million cases by 2010. Increases in the number of young people at the legal drinking will account for most of the market's expansion thru the next ten years as millennials remain top growth drivers. Just last year alone, millennials’ wine consumption rose 39% according to the Wine Market Council.
posted at 1:01 PM
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