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
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
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