• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Attracting Millennials With Your Wine Program
 

Attracting Millennials With Your Wine Program

on

  • 2,673 views

 

Statistics

Views

Total Views
2,673
Views on SlideShare
2,644
Embed Views
29

Actions

Likes
1
Downloads
86
Comments
0

2 Embeds 29

http://www.napatechnology.com 23
http://localhost 6

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Thank you Carin for all the hard work organizing this Webinar and thank you all for joining us today. I am nick Moezidis Co-founder of Napa Technology and joining me from our Southern California Offices is Jayne Portnoy Napa Technology’s VP of marketing and Brand Strategy. We’ll this presentation as edgy and exciting as the demographic we researched, however what may lack in excitement we are sure delivers on content and real actionable revenue drivers. To get started I’d like to quickly share with who Napa Technology and why we decided to create this webinar series. . Napa Technology was founded in 2005 and today thanks to all of our valued clients we have become the Number 1 brand of Intelligent wine dispensing System in North America Made in the USA. Our Product the WineStation ® has truly raised the bar in this market segment and today is found in airports, restaurants, arenas, hotels, cruise ships, and retail stores world wide. You might be wondering why we decided to begin providing a Webinar series. Well, In 2011 Napa Technology kicked off a Strategic Initiative exploring ways to help our clients and perspective clients around the country improve the time to profitability with our products. To do so we needed to invest both in funds and in resources to conduct studies and surveys which would lead to our valued clients getting a better view of the overall wine service industry and enabling them to exploit the opportunities that exist with wine service.
  • The clients I am speaking of are of all sizes and serve diverse markets: they are small Independent operators, Regional chains and national brands. it is through these relationships which we have gained unique insights to trends and activities that are dramatically impacting consumer wine consumption and purchasing behavior.
  • I am positive most of the industry veteran's attending today would agree , Wine Retailing has undergone and continues to undergo a significant transformation to address the needs of an ever more demanding customer base… Our Research started by looking at the latest complete years numbers which at the time was 2010.. The overall wine market in 2010 was $29B with approximately 315 million case loads sold at over a 1million outlets . The dramatic growth in wine consumption, brands, varietals and vintages especially here in the US which by the way has 4000 licensed wineries is giving Wine a greater role in driving revenues and profits for the over 1000,000 wine and spirit merchants. I’d like to now kicked over to Jayne in Los Angels to share with you more granular high lights and trends of the research
  • In 2011, Napa Technology set out to understand how the consumer behavior was affecting this surge in consumption and fielded a study of over 150 leading beverage directors, hotel and restaurant operators, sommeliers and retailers. The results of this study, showcasing across all demographics -- is an increasing demand for wines by the glass, “try before you buy” in retail and grocery environments is on the rise and wine drinkers have renewed purchasing habits. Of note: 1.Wines by the Glass Sales now account for 50% of total restaurant adult beverage sales 2. Consumers today are far savvier than they were 4 yrs ago 3. Despite the recession – consumers are still choosing to indulge in small doses – and seeking out hard to find varietals in the upwards of $25 or more And lastly – technology is playing a major role in educating the consumer. Information that was known only to a handful of experts – can now be found on line with the click of a mouse.
  • As we continue to monitor trends in the industry – it was a through a piece of research we launched in the first quarter of this year, that identified a significant demographic leading major changes in the wine industry. We had the opportunity to sit with 16 leading Food & Beverage executives in addition to the insights gleaned from over 3 million ounces of wine poured from WineStation’s nationwide to discover that the population know as Millennials – this growing population of wine drinkers is not to be ignored with over $170 Billion dollars in purchasing power.
  • According to experts in generational behavior; Neil How and William Strauss – Millennials are unlike any other generation in living memory. Not only do they out number those directly before them – but are more affluent, more educated, ethnically diverse and present positive social habits. Let’s take a closer look…….
  • Millennials are born largely between 1977 and 1998. As wine drinkers – they make up the bracket between 21 and 35. As a population – they are three times larger than Gen X – and are 80 million people strong. So influential is this demographic, that one of the worlds leading providers of wine and spirits – Constellation Brands - credits a 29% surge in sales, due to direct marketing efforts targeting this consumer base. Not only are Millennials massive in number – but they are employed – holding entry to associate level jobs. More good news for merchants and the hospitality industry? ….Millennials have more disposable income than their Gen X peers - unfortunately for their parents – they are still living at home -- But avoiding home ownership debt that is plaguing most consumers today. So now that we know WHO they are…let me turn it back over to Nick to share with your their market value and buying habits…Nick, back up to you…
  • Thanks Jayne, so in the next few slides we will look at the immense Market value of Millennia's. As jayne mentioned According to American Express Business insights the millennial direct purchasing power Is about $170B and more impressive is that as recommenders or persuaders their indirect purchasing power is $500B, this group is more involved in purchasing decisions than any other generation AND Oddly enough as the country continued to go through a tough economic battle in 2011 the Millennial increased their luxury goods spending by 33% over 2010 and are the fastest growing segment in travel services, up 20% over prior year. More importantly to our audience today Wine purchase represents 20% of their alcohol consumption. They have gotten so much street cred that Wines targeting Millennials on rise; brands such as Cupcake vineyards , Thorny Rose, Lucky Duck and Big House are targeting primarily millennia's
  • When the center for generational kinetics looked at this demographic, it was clear that the luxury goods purchase and sharing the experience on social networking sites went hand in hand. Personally I would go out on ledge and say that with so many popular sites such as Face book, twitter, four square and others this may be the biggest keeping up with the jones generation ever.
  • With being the face book era, and it no surprise that 86 % of Millennial are members of Facebook, 42% have Twitter accounts. What is interesting is 52% of millennial surveyed had visited Wine Website and wineries and suppliers have increased their spending by 43% to target this demographic.
  • As we dug into the data in regards to the millenial view of wine consumption, we found it to be Fearless, Unpretentious and Nomadic, hence we coined the term FUN. Millennial do have a FUN approach to drinking wine. Think reverse snobbery! Unlike previous generations they are not shy about asking questions, aren't really moved by a big name or high price, they don’t have a sacred location to drive miles to buy their wines. They love tasting events whether at home or out and a fun contemporary label gets their attention. Millennials arent afraid of purchasing less expensive wines as long as its unusual .
  • Considering our findings, you can imagine how much this quote by Garima Goel Lal of Mintel Group resonated with us at Napa Technology. SO much so that I’d like to read it verbatim,. “ Wine has become more approachable, pointing to more creative labels and amusing names for the vintages, as well as to the rise of Whole Foods Market and Trader Joe's, grocers offering a variety of wines in an informal atmosphere. This generation has more access to wine and decreased formality. They don't have to know which wine to drink with what, and that atmosphere was not there for baby boomers.”
  • AS far as consumption patterns go: Most surprisingly, many leading wine experts report that millennials are spending more on wines and wines by the glass than their older wine drinking counterparts almost 3 glasses per occasion. Price per ounce as well as sales of prestigious wines by the glass to Millenials were also on the rise in 2011. It is becoming more prevalent for owners and operators to add wines by the glass of $20 and up to their existing wine lists. In rare occasions, in NY, Los Vegas and LA we saw Screaming Eagle, Château Pétrus, Château d’Yquem, Opus 1 and other rare beauties being sampled for $80 dollars and up by inquisitive young drinkers. Keep in mind these drinker are socially motivated and drink more wine out specially in a comfortable invitng atmosphere rather then a loud ostentatious place.
  • Several wine experts we interviewed believe that Millennials are driving wine making styles and not just variety. Andrew Shipe, Vice President Culinary & Marketing, Aramark refers to young drinkers as the Juice Box Generation and reports, “ The youth that grew up on juice boxes are still looking for those sweet flavors as they move into the wine category. ” To bolster Mr. Shipes point , Sweeter wines and unusual varietals are growing in popularity in general. A prominent WINE CONSULTANT at Vines 57 reported that “ Riesling is growing towards Pinot Grigio levels, especially German Rieslings. A small trend is emerging for dry Rieslings (Germany is producing more of these and are exporting them).” And DAVID M. MORGAN, VICE PRESIDENT OF FOOD & BEVERAGE, OMNI HOTELS AND RESORTS shared that “Whites from traditionally red-famous Rhone Valley are becoming more popular in the United States and are being grown more frequently throughout the New World. Viognier, Marsanne and Roussanne are three whites that are making people forget about the famous white grape just North in Burgundy.” DAVID M. MORGAN, VICE PRESIDENT OF FOOD & BEVERAGE, OMNI HOTELS AND RESORTS. As for price points go. The boomers would take a more expensive wine to a party and millennia's do the opposite. The next segment is where the rubber hits the road. I would like to turn it back to Jayne on LA to share with you nuggets on how to market to millennials
  • thanks again nick……I hope that you find this emerging population as interesting as I do. As a marketer – I find this society that is dialed in, on line, and socially motivated – very easy to appeal to from a marketing perspective. Now that we know how they like to be spoken too – we have identified a few action opportunities that can be manipulated to fit a wide range of venues from retail, hotel, arena and restaurants. As we described earlier – Millennials thrive on new discovery; so using Blind Tasting events that challenge their knowledge or themed evenings that appeal to their curious nature…will be highly successful. Take advantage of their uninhibited perception of price points and range your Blind Tastings and Theme events to introduce new and exciting brands on both sides of the purchase spectrum. Furthermore, Millennials are well traveled – either in real life or through on line connections – choose wine offerings that will allow them to connect their experiences through what they savor in their glass. French, Italian and Spanish are languages not entirely foreign to this demographic – appeal to their global conscientiousness with a wine list that is equally worldly.
  • “ Don’t judge a book by its cover, right? In the case of Millennials – wrong. It’s the cover that counts! So use your point of sale materials wisely by creating edgy and unique displays….provide information that feeds their thirst for knowledge. And don’t be afraid to suggestively sell – this is the consumer base that welcomes the insights on what to buy for a great dinner at home (remember – they don’t own it so they have the money to splurge) or to take as agift. Millennials aren’t picky about WHERE they buy their wine – which also means they’re going to make wine purchases where it fits into their lifestyle. Think about optimizing the sales of your Millennial friendly wines by placing them at end-isles, paired with other items such as cheeses or in highly visible/well trafficked areas. Restaurateurs – this means re-tooling your menus and creating innovative touch points – a great example is program we executed when I was with Roy’s Hawaiian Fusion Cuisine, in which we created a series of wine charms that came with select wines. It’s these simple tools that will get your Millennials talking – and more importantly – coming back. Also, don’t shy away from using technology to appeal to this important customer base. Even if you’re not tech savvy – they are! Try to incorporate the use of Ipads in to the ordering process, or create wine related gaming that you can use in your venue or Website and Facebook pages. We also live in an “App friendly world” so use these free wine applications or information provided by your distributors as content resources
  • With nearly 85% of this population feeding the Facebook-nation, it goes with out saying that social media platforms are critical in your success in reaching, connecting and motivating this group. Reward your on line advocates with special discounts and product offers, keep the content fresh and innovative, and encourage video and Youtube posting about your venue and offering. Let this audience do the influencing to their peers fro you. Speaking of groups – this demographic indulges on being surrounded by friends. Create events and surroundings that appeals to this demographics' desire to travel in a herd. Banquet seating, community tables, discounts on large parties or “bring a friend” events are what motivates these shoppers. And finally, not only the one of the largest populations on our globe – but highly influenced by social responsibility. A staggering 85% of respondents claimed they would switch to brands with a social moral compass and pay-it-forward programming. Get involved in your community and generate good will AND increased sales through recycling and charity focused efforts. Turn your next wine dinner into a recycling project or community fund raiser. Millennials are a unique, highly motivated, highly engaged and extraordinary wine drinking population – I hope you have found these few actionable ideas some that you can begin using immediately to help drive individual business. And to that – I will turn it back over Nick……
  • Thank again jayne. So to summarize the millennial impact on the wine industry is huge. They have an Extraordinary purchasing power, they have the ability to influence others buying decisions as well as they are highly influence-able in their purchases by their peers. They are Fearless of unknown wines and varietals and Technologies such as Ipad Menus and WineStation Dispensing Systems. They Unpretentious big brands and lables don’t impress them and they are nomadic so to attract them utilize Socially responsible, Theme Driven Group Events
  • This slide does not appear in presentation

Attracting Millennials With Your Wine Program Attracting Millennials With Your Wine Program Presentation Transcript

  • Attracting Millennials With Your Wine Program Nick Moezidis, Vice President, Sales & MarketingJayne Portnoy, Vice President Marketing & Brand Strategy
  •  Napa Technology. Discovering the millennial potential. Millennials - Trend Makers. Attracting Millennials to drive profits. Actionable Operations and Marketing Tactics.
  • Napa Technology is the designer and manufacturer ofthe WineStation®, an innovative Intelligent Dispensingand Preservation solution, with the ability to preservewines for a period of 60 days and provide productcontrols that maximize the profitability of each bottle,while enhancing the customer experience.First introduced in 2005, the WineStation® has beenwidely adopted by the hospitality and food serviceindustries as an improved way to serve and preservewines, while capitalizing on the increasing consumerdemand for more expensive wines by the glass.The WineStation® can be found in airports,restaurants, arenas, hotels, cruise ships, wine bars,retailers and grocery stores world wide.
  • Wine consumption in the United States has risen dramatically over the last 5 years, andin 2011 contributes to 26.3% of all alcoholic purchases. Today’s wineries, distributors andretailers are meeting the demands and reaping the benefits mintel
  • Napa Technology
  • In 2012 Napa Technology identified a dynamic and vast ideological gapin wine consumption behaviors between Millennials and their older,more affluent peers.Coupling the insights of 16 top executives in the wine, food & beverageindustry with the data from over 3 million ounces of wine poured fromWineStation systems across the country, Napa Technology has discovered agrowing challenge for operators, retailers and wine program directors asthis emerging group of consumers has a unique and diverse relationshipwith wine consumption and spending habits.Totaling over $170 billion dollars in purchasing power, we will show youhow to identify this valuable consumer base and tap into the power of theirprofitability.
  • “As a group, Millennials are unlike any other youthGeneration in living memory. They are more numerous,more affluent, better educated, and more ethnicallydiverse.More important, they are beginning to manifest a widearray of positive social habits that older Americans nolonger associate with youth, including a new focus onteamwork, achievement, modesty, and good conduct.” Neil Howe & William Strauss (Yale & Harvard professors, respectively), experts on generational cohort theory. From “Millennials Rising: The Next Great Generation
  •  Age  Wine Drinkers Aged 21-34  born between 1977-1998 National Population  80 million people, 2nd largest buying population behind Boomers and three times larger than gen x.  Fastest growing segment of US wine drinkers.  In 2010, Constellation Brands credits Millennials to a 29% surge in sales due in part to direct marketing efforts to this valuable population.  Wine Accounts for 20 % of alcohol purchased by Millennials in the US.  Up from 13 % a Decade ago College Educated & holding entry to associate level employment Largely still living at home, with additional disposable income & lack of home ownership debt
  •  Purchasing power equates to $170 billion per year The annual indirect spending power of millennial generation is $500 billion.  Millennials are more involved in purchasing decision than any other generation before them. In 2011 US Millennial consumers increased their spending on premium luxury goods by 33% and travel service by 20% over prior year – outpacing every other demographic  Wine Purchases represent 20% of Millennials alcoholic beverage consumption. American Express Business Insights Wine Market Council Ad Age
  • “When we look at the luxury market, Millennials are thegrowth engine going forward, and with every move trackedthrough social media, luxury goods provide a strong visualrepresentation "that either Ive made it or I want to tell youIve made it.” Jason Dorsey, Chief Strategy Officer, The Center for Generational Kinetics
  •  52% of Millennials cite visitation to wine websites within the past 3 months to influence purchasing decisions In 2011 Wineries and suppliers have increased social media spend by 43% American Express Business Insights Wine Market Council Ad Age
  •  Fearless  Not afraid to ask questions and like to learn  43% of US Millennials cite tasting events or parties as their desired mode of experiencing wines Unpretentious  Think reverse snobbery  Aren’t impressed by big brands or “in your face” labels  Millennials will buy wine anywhere.  62% cite convenience as a primary driver in the selection process Nomadic  The less traditional the better  89% of Millennials will purchase brands they have never seen or heard of before.  60% of Millennials site “fun and contemporary ” labels as factors when choosing wines. Wine Market Council 2011 Napa Technology 2011
  • “Wine has become more approachable, pointing tomore creative labels and amusing names for thevintages, as well as to the rise of Whole Foods Marketand Trader Joes, grocers offering a variety of wines in aninformal atmosphere.This generation has more access to wine and decreasedformality. They dont have to know which wine to drink withwhat, and that atmosphere was not there for babyboomers.” Garima Goel Lal, Beverage Analyst, Mintel Group
  •  Buying The Glass  The desire to explore drives increased “by the glass” consumption  They Consume on average 2.92 glasses per drinking occasion  Millennials are consuming higher priced wines by the glass than Gen X (those born between 1964 -1982) Socially Motivated  Millennials are motivated by social experience and consume more wine out than any other demographic.  Although the “mobile phone generation” Millennials seek comfortable, inviting atmospheres when they “log off.”  Millennials are also socially conscience  85% of US Millennials will switch to brands that are socially responsible. Kraft Foods Emarketer Napa Technology
  •  Exotic and open to unusual varietals  Millennials buy more French, Italian and Spanish wine than any other age demographic  Older Millennials, those 25 to 34, are particularly partial to Italian wines  the Juice Box Generation for their appeal to sweeter wines Purchase price point is highly influenced by occasion:  $10-15 to bring to parties or gathering with friends  $20-30 to enjoy at home  $50+ when dining in a restaurant Mintel 2011 Napa technology
  •  Blind Tasting Events  Enhance the idea of new discovery  Challenge knowledge of worldly varietals  Unleash their inner sommelier Theme Driven Evenings  Choose regions, wine makers or unique varietals that will entice this curious consumer  Wine Flights and Paired Menu offerings Feature Worldly Offerings & Selections  Millennials are well traveled, let them connect their experiences through your wine selections and offerings  Offer well known regions as well as unique blends and varietals  Strong appeal to French, Italian and Spanish wines
  •  Informative Point of Sale Materials  Feed their thirst for knowledge  Identify unique characteristics about your wine program  Create Edgy and unique displays highlighting value and flavor profile  Identify wines by their occasion; dinner at home, as a gift etc  Utilize winery and brand representatives to host events Easy To reach  Millennials are buying wines where most convenient, ranging from grocery to Convenience store Incorporate Use of Technology  Millennials are the “cell phone” generation and appeal to technology to enhance their wine drinking experience.  Utilize Ipad ordering  Create wine related gaming  Utilize available apps and winery information to create content on your websites and facebook pages.
  •  Fuel Social Media Conversations  Encourage Facebook and Twitter commentary about your wine offerings & events.  Reward on line advocates/followers with special discounts, products and offers.  Make sure Website is on shareable sites like Pinterest and Facebook.  Actively update your social sites with events and information  Encourage video and YouTube postings about your venue and offerings Group Activity  Appeal to Millennials social nature by offering group events  Offer seating to accommodate their larger party size Social Responsibility  No longer just a marketing buzz word, Millennials are driving their purchase decisions towards companies that are socially conscience and responsible.  Create altruistic events (ex: wine bottle recycling) that stimulate increased loyalty and use.
  •  Extraordinary purchasing power Significantly influenced, highly social and well traveled Driving industry tends on flavor profiles and varietal production They have F.U.N View of Wine and Technology And to attract them utilize Socially Responsible, Theme Driven Group Events that feed their thrust for knowledge The Napa Technology provides an efficient and effective solution to reaching this highly profitable demographic:  Ability to feature unique, boutique and worldly brands with zero risk or waste  Taste, half and full glass pouring options to support their explorative nature  No strangers to technology, Millennials have begun to expect and demand such tools as part of their wine drinking experience  Innovative wine tastings and menu pairings are easily accomplished
  • Thank You Please Join Us For our Next Webinar:Visit NapaTechnology.com for details