Saturday, June 6, 2009

Wine Consumption (3/18/09)

So I took this off a couple weeks ago because I was kinda over this whole blogging thing but alas I have returned bigger and better! My roommate suggested I talk about my drunken endeavors on this. I have some pretty crazy times downtown and I think you all will enjoy. For now I leave you with this paper I wrote for my Wine Trends class. Here it is.

In today’s wine market we are currently seeing a positive growth in wine consumption in the United States. This is due, largely in part, by the millennial generation and their attitudes toward wine. In 2006, wine consumption rose in this group to an impressive 7% from 2004. Part of this increase can be attributed to the current marketing trends directed towards this group, their preference for imported wine, and the overall attitudes and roles wine plays which I will go in depth with later.

The United States is currently the third highest consumer of wine trailing only Italy and France, respectively. If U.S. wine consumption trends continue to rise the way they are we may see the U.S. at the top of this “consumption race” in a reasonably short amount of time. So who can we give credit to this positive trend you say? In part, it is thanks to the wine companies and their unique marketing schemes directed toward the second largest group of U.S. wine consumers-the millennial generation. Before this group came of age and decided to play a big role in the wine market, wine companies stuck with their traditional marketing plans and stagnant group of consumers. They targeted middle to old aged winos who didn’t leave them with many options or room for experimentation. However, this traditional way to market wine has all but gone dead and a different kind of approach has emerged. Now wine companies are specifically targeting millennial’s with unique eye catching labels with such names like Fat Bastard, Smoking Loon, and Twin Fin. To some this may seem to be “dumbing down” or an insult to the once prestigious wine industry, to me I think it is an innovative way for wine companies to reach out to people who may be turned off by traditional somewhat boring labels and it’s a smart way to expand the ever growing wine industry, and it’s working.

A second reason why I believe the wine industry is seeing a positive growth is based on the correlation between millenial’s and imported wine. Patrick Merrill a market researcher in San Mateo stated "They [millennial’s] are learning about the quality of wine from New Zealand and Chile, South Africa and Argentina, for example -- wines that we as Baby Boomers were not aware of.'' The article then goes on to say that the millennial generation is not afraid to explore wines from all around the world that they are more sophisticated than previous generations and willing to take a chance and buy online from any region they choose. Although this may not be particularly good for local producers (aka our Californian industry) I still believe that millenial’s are intrigued by this availability to buy unique wines from all around the world and that because of this they are encouraged to purchase more wine. Being part of the millennial generation I can relate to this sense of wanting to explore and taste wine from around the world and why shouldn’t we? John Gillespie the wine market council president said in that same article “The millennial’s grew up with the assumption they could access just about anything at any price from anywhere and the only question was what suits their personal needs and choices as consumers.'' I agree with this if it’s out there, culturally sound, and reasonably priced you can bet your sweet ass the millennial’s can and will go out and find it.

The last and final point I want to make has to do with the current attitudes and characteristics the millennial generation share that will offer evidence of the current rise in consumption. As current research shows millenialls are geographically challenged which although bad for the validity of the education system is actually good for the wine industry because there is no regional bias to overcome. Millennials will buy whatever wine from wherever as long as the price is right and the varietal sounds good to them. I believe this freedom to buy is linked to the increase in wine consumption because there is more offered to them then say the boomer generation who mostly buy traditional domestic type wines. If this market oversees didn’t exist I don’t think the millennial generation would be as enthusiastic about wine because they view the wines in the U.S. as “ordinary” wines and therefore have less of a reason to buy in the U.S. market.

Another interesting characteristic of the millennial generation is that they are willing to try new wines. They aren’t tied down to a single bottle of chardonnay they like, they are willing to experiment and buy a bottle they’ve never even knew existed. In an article by Jim Clarke, a freelance writer in New York he stated “Millennials often go for a mixed case; 85% of those surveyed by the Wine Market Council said they regularly purchase a wine they've never seen before.” This is good for the wine industry because lesser know labels are becoming more main stream and its expanding the industry.

A third characteristic of millennials is that for the first time in history we have a generation that isn’t intimidated by wine. As Jim Clarke put it “They like it, they drink it, they don't worry about it.” Millennials are revolutionizing the industry and how we should feel about the product. It’s not some extreme status symbol of the rich like it used to be. Millennials don’t feel the need to buy an aged wine or pick wine over beer as a status symbol. And although it still has a classy image attached to it, I feel like the millennial generation is pushing the idea that wine can be a drink for the average Joe, the guy who just wants to sit down and enjoy a nice glass of vino without all the nonsense attached to it. And I believe this, among other ideas stated previously, is why the industry is prospering today. It’s not a matter of ideals or sophisticated mumbo-jumbo anymore, it’s about wine being integrated into everyday life and enjoying something like you’d enjoy any other commodity and thats the way it should be and should continue to be.

-ShaunJohn

Works Cited
http://www.winereviewonline.com/clarke_on_milennials.cfm
http://www.napavalleyregister.com/articles/2007/02/08/features/food_and_wine/doc45cb2cbf0297f266374068.txt
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/02/20/BUGQ8O5SRO1.DTL

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