Generation Y-Future of the Wine Industry?Isabelle LesschaeveConsumer Insights and Product InnovationJune, 2010            ...
Outline• Who are the Gen Y consumers?  – Definition  – Lifestyle, Attitudes, Values• Gen Y wine consumers  – Wine consumpt...
Who are the Gen Y consumers?• Millenials, Echo Boomers:   – Follow Gen X   – Children of Baby boomers• Birth dates span va...
Large cohort• New Zealand in 2009                           15-39          40-64          65 Years     Age        0-14 Yea...
Generational differences, New ZealandManagement, Nov 1, 2007 by Ellen Read• Baby Boomers: 46 to       • Gen X: 27 to 45 ye...
Attitudes, Values, Lifestyles (Wright, 2006)• Millennials are not only environmentally sensitive, socially  aware, and cul...
Generation Y wine consumers• Several studies conducted in the US   –   Wine Market Council (2003, 2007)   –   Thach (2005)...
Introduction to wine   Study                  Millenials                     Gen.Xers          Baby            Traditiona ...
Case study: Ontario residentsBruwer and Lesschaeve (2007)• Analyse wine tourist demographics and behaviours• Conducted in ...
Demographics of visitors  Bruwer and Lesschaeve (2007)                                       Baby                Millennia...
Reason for visiting today     Millennial   Gen X    Baby Boomer     Traditionalist                                        ...
Visitors wine habitsLesschaeve, Neudorf, and Bruwer (2007)          How often wine is consumed (%)  60.00                 ...
US Gen Y consumers               Study                                          Millenials                                ...
Visitors wine habits         Bruwer and Lesschaeve (2007)100.00               Purchase by outlet type % 80.00             ...
US Gen Y consumers            Study                                       Millenials                                      ...
Visitors behaviours at tasting rooms      Bruwer and Lesschaeve (2007)140                                                 ...
Visitors behaviours at tasting roomsBruwer and Lesschaeve (2007)   50.00            Source of information about this winer...
US Gen Y consumers            Study                            Millenials                                              19-...
Visitors behaviours at tasting roomsBruwer and Lesschaeve (2007)60.00                              Information about this ...
Gen Y and Eco-friendly wines
Eco-friendly winesGunter, Vidal, Ziraldo, Lesschaeve (2010)• Determine what makes a wine organic and if such  practices ar...
Eco-friendly winesGunter, Vidal, Ziraldo, Lesschaeve (2010)• Online questionnaire administered between March  and June 201...
Respondents’ Demographics           Generation spread                             Gen Y         Boomers              39%  ...
Respondents’ Demographics60.000                                                         60.00050.000                      ...
Organic wine purchase• Most Gen Y and Boomers have never purchased  organic wine                                          ...
Organic wine availability     • Availability might be an issue for low       purchasing rate of organic wine1=Strongly agr...
Perception of organic wine quality (p=0.09)1=Lesser Quality,2=Equal quality to conventional   1=Strongly agree,2=Agree,3=N...
Organic products monthly purchase                                   1=None,                                   2=1-3,      ...
Organic products are healthy• Millenials tend to think that organic is  healthier                    1=Strongly agree,2=Ag...
Buying organic is trendy• Both groups tend to think that organic is a  trend                    1=Strongly agree,2=Agree,3...
Generation Y and Eco-friendly wines• Green attitude of Gen Y does not translate into  interest for organic wine or purchas...
Gen Y-Future of the wine industry• Interested in wine, to learn more about wine   – Fun, social, and rewarding   – Experim...
Acknowledgements• Ontario Ministry of Agriculture, Food and Rural  Affairs• Collaborators:   – Dr. Johan Bruwer (U. Adelai...
To stay in contact:Email: isabelle.lesschaeve@vinelandresearch.comBlog (incl. presentations):      www.ilesschaeve.wordpre...
© 2009 Vineland Research and Innovation Centre
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Nzwbs Gen Y New

  1. 1. Generation Y-Future of the Wine Industry?Isabelle LesschaeveConsumer Insights and Product InnovationJune, 2010 © 2009 Vineland Research and Innovation Centre
  2. 2. Outline• Who are the Gen Y consumers? – Definition – Lifestyle, Attitudes, Values• Gen Y wine consumers – Wine consumption habits – Tasting room behaviour – Perception of eco-friendly wines• Conclusions and perspectives
  3. 3. Who are the Gen Y consumers?• Millenials, Echo Boomers: – Follow Gen X – Children of Baby boomers• Birth dates span varies: – 1982-2001 (Strauss and Howe, 2000) – Canada: 1976-1999 (11-34 y.o.) – Australia: 1982-1995 (14-27 y.o) – New Boomers: 1983-2001 (9-26 y.o)• Our definition: – Generation Y, 19-34 years old; – Generation X, 35-45 years old Source: wikipedia.org/Generation Y – Baby Boomers, 46-65 years old – Traditionalists, 65+ years old
  4. 4. Large cohort• New Zealand in 2009 15-39 40-64 65 Years Age 0-14 Years Years Years and over Total Total NZ 891200 1484600 1387400 552600 4315800 % 0.21 0.34 0.32 0.13 1• USA (15-34 y.o.) : 27% population in June 2009• Canada (15-34 y.o. ) : 26 % population in 2006
  5. 5. Generational differences, New ZealandManagement, Nov 1, 2007 by Ellen Read• Baby Boomers: 46 to • Gen X: 27 to 45 year- • Gen Y: 13 to 26 year- 67 year-olds olds olds• Vietnam • PC computers • Globalisation• Nixon • Crash of 1987 • Global warming• Threat of nuclear war • Market economies • Islamic radicalism• Hippies and flower • Loss of job security • Corporate greed power • Multiculturalism • Iraq• Feminism • Fall of communism • Consumerism• TV • Full employment• Drugs culture • Student loans• Civil rights • Internet• Free tertiary education
  6. 6. Attitudes, Values, Lifestyles (Wright, 2006)• Millennials are not only environmentally sensitive, socially aware, and culturally diverse, but they expect to have a voice in these issues. They support companies that embrace these same beliefs.• Millennials are highly influenced by their peers, they respond to playfulness and fun.• Millennials are technologically savvy. They want instant gratification and expect information will be available wherever they are, regardless of form.
  7. 7. Generation Y wine consumers• Several studies conducted in the US – Wine Market Council (2003, 2007) – Thach (2005) – Wright (2006): attitudes, values, lifestyles – Thach and Olsen: wine preference – Olsen et al 2007: Generational differences in wine behaviour – Nielsen (2007): consumption habits – Thach et al (2008): sparkling wine – Barber et al (2008): advertising – Henley (2009): packaging• Getz and Carlsen (2008): Gen X-Y tourists in Australia• Bruwer and Lesschaeve (2007): Tasting room visitation behaviour in Canada
  8. 8. Introduction to wine Study Millenials Gen.Xers Baby Traditiona 19-34 y.o. 35-45 y.o. Boomers lists 46-65 y.o. 65+ y.o.Olsen et al. •Started by drinking dry red wines •Started by •Started by •Started by2007 on core •Incentives to drink wine: influence drinking wine drinking drinking dryUS consumers of peer, family coolers sweet or fruit red wines •Most likely to drink red wine now, •Most likely to wines •Most likely seconded by whites drink red wine •Most likely to to drink red •Wine imagery: sophistication now, seconded by drink red wine wine now, whites now, seconded by •Wine imagery: seconded by whites sophistication whites Wine Wine imagery: imagery: healthy healthy
  9. 9. Case study: Ontario residentsBruwer and Lesschaeve (2007)• Analyse wine tourist demographics and behaviours• Conducted in summer 2007 in Niagara Peninsula – 3 large wineries, 2 small wineries – Self administered survey (47Q), random sampling• N=996 total, n=599 Ontario residents – Gen Y: 179 – 29.9% – Gen X: 136 - 22.7% – Boomers: 253 - 42.2% – Traditionalists: 31 – 5.2%
  10. 10. Demographics of visitors Bruwer and Lesschaeve (2007) Baby Millennials Gen X Boomers Traditionalists Male 37.43 44.85 42.69 64.52 Female 62.01 55.15 57.31 35.48 Baby Millennials Gen X Boomers Traditionalists19 - 24 years 13.9725 - 28 years 40.7829 - 34 years 45.2535 - 40 years 47.0641 - 45 years 52.9446 - 54 years 53.7555 - 65 years 46.2565+ 100
  11. 11. Reason for visiting today Millennial Gen X Baby Boomer Traditionalist 3 3 3 3Learn more about wine 8 7 5 7Rural setting 6 6 5 6Find information 5 4 4 4Experience the atmosphere 5 4 3 4Buy wine 5 4 4 4Entertain myself and/or othersTaste wine 3 2 3 3 5 5 4 4Have a day out 10 7 6 8Eat at the winery’s restaurant 10 10 9 10Meet the winemaker 9 6 6 7Purchase this winery’s merchandise 6 6 5 6Find a unique wine 8 6 7 7Socialise with others 6 6 5 6Go on a winery tour Bruwer and Lesschaeve (2007)
  12. 12. Visitors wine habitsLesschaeve, Neudorf, and Bruwer (2007) How often wine is consumed (%) 60.00 Millennial 50.00 40.00 Gen X 30.00 Baby Boomer 20.00 Traditionalist 10.00 0.00 100.00 Consumption by wine type 80.00 60.00 Millennial 40.00 Gen X Baby Boomer Traditionalist 20.00 0.00
  13. 13. US Gen Y consumers Study Millenials 19-34 y.o.AC Nielsen, 2007 • Prefer red wines (51%: Cabernet and Pinot Noir)US consumers • Purchase higher share of Pinot Grigio, Sauvignon blanc, Rieslings • Inclined to buy imported wines • Imagery: Relaxing and sophisticated • Purchase of choice for a formal night out • 34% interested in learning moreWine Market Council, 2007 consumer •Inclined to experimenttracking study •Loyal to importsThatch et al. 2008 on US consumers and • Would purchase sparkling for casual occasions andsparkling wine Champagne for formal ones
  14. 14. Visitors wine habits Bruwer and Lesschaeve (2007)100.00 Purchase by outlet type % 80.00 Monthly household spend on wine ($CAD) 60.00 140.00 120.00 100.00 40.00 80.00 60.00 40.00 20.00 20.00 0.00 Millennial Gen X Baby Boomer Traditionalist 0.00 Millennial Gen X Baby Boomer Traditionalist
  15. 15. US Gen Y consumers Study Millenials 19-34 y.o.Thatch and Olsen, 2006 on • Main reason why they drink wine is the taste and food matchingNorth California college • Focus on value-for-money wines neededstudents • Focus on taste enhancements and environmental emphasis needed • More innovative packaging needed • Need for wine advertising to this group utilising fun, social and related settingsBarber et al. 2008 on US •Advertising should reflect on friends sharing wineconsumers •Ads should include people with diversity in race and gender
  16. 16. Visitors behaviours at tasting rooms Bruwer and Lesschaeve (2007)140 45.00 Amount spent ($CAD) 40.00 How many bottles of wine purchased 35.00120 30.00 25.00 Mean100 20.00 Minimum 15.00 Maximum 80 10.00 5.00 60 0.00 Millennial Gen X Baby Boomer Traditionalist 40 How much spent on this wine ($CAD) 90.00 80.00 20 70.00 60.00 0 50.00 Millennial Gen X Baby Boomer Traditionalist 40.00 30.00 How much spent on tasting fee or wine tour (not refunded) 20.00 How much spent on food 10.00 How much spent on merchandise 0.00 How much spent in total at the tasting room (including wine) Millennial Gen X Baby Boomer Traditionalist
  17. 17. Visitors behaviours at tasting roomsBruwer and Lesschaeve (2007) 50.00 Source of information about this winery 45.00 40.00 35.00 30.00 25.00 20.00 15.00 Millennial Gen X 10.00 Baby Boomer 5.00 Traditionalist 0.00
  18. 18. US Gen Y consumers Study Millenials 19-34 y.o.Nowak and Newton, 2008 •Inclined to use website for wine purchasingOn North California businessstudentsWine Market Council, 2007 •Computer savvy (20% bought wine on-lineconsumer tracking study vs. 5% in 2006)
  19. 19. Visitors behaviours at tasting roomsBruwer and Lesschaeve (2007)60.00 Information about this winery %50.0040.0030.0020.0010.00 0.00 more information newsletter (hard email website wine club about this winery in copy) future? Millennial Gen X Baby Boomer Traditionalist
  20. 20. Gen Y and Eco-friendly wines
  21. 21. Eco-friendly winesGunter, Vidal, Ziraldo, Lesschaeve (2010)• Determine what makes a wine organic and if such practices are understood by the consumer• Determine the differences between organic and biodynamic growing practices• Is this a marketable avenue for Ontario wineries?
  22. 22. Eco-friendly winesGunter, Vidal, Ziraldo, Lesschaeve (2010)• Online questionnaire administered between March and June 2010: N=202• Consisted of 26 questions: – Demographic – Wine knowledge – Terminology: perception and knowledge of terms – Motives behind purchasing behaviour Focus on organic wines
  23. 23. Respondents’ Demographics Generation spread Gen Y Boomers 39% 43% Gen X 18%Gunter, Vidal, Ziraldo, Lesschaeve (2010)
  24. 24. Respondents’ Demographics60.000 60.00050.000 50.00040.000 40.00030.000 Boomers 30.000 Gen Y20.000 20.00010.000 10.000 0.000 0.000 Male Female Single Married Common Law Divorced Widowed 25.000 20.000 15.000 10.000 5.000 0.000 < $25,000 $25,001 - $50,001 - $75,001 - $100,001 - $150,000 plus $50,000 $75,000 $100,000 $150,000 Gunter, Vidal, Ziraldo, Lesschaeve (2010)
  25. 25. Organic wine purchase• Most Gen Y and Boomers have never purchased organic wine 0=Never, 1=Once a week, 2=Several times a month, 3=Once every 3 months, 4=1 to 3 times a year Gunter, Vidal, Ziraldo, Lesschaeve (2010)
  26. 26. Organic wine availability • Availability might be an issue for low purchasing rate of organic wine1=Strongly agree,2=Agree,3=Neutral,4=Disagree,5=Strongly Disagree Gunter, Vidal, Ziraldo, Lesschaeve (2010)
  27. 27. Perception of organic wine quality (p=0.09)1=Lesser Quality,2=Equal quality to conventional 1=Strongly agree,2=Agree,3=Neutral,4=Disagree,wine,3=High quality,4=Indifferent 5=Strongly Disagree Gunter, Vidal, Ziraldo, Lesschaeve (2010)
  28. 28. Organic products monthly purchase 1=None, 2=1-3, 3=3-6, 4=> 6 Gunter, Vidal, Ziraldo, Lesschaeve (2010)
  29. 29. Organic products are healthy• Millenials tend to think that organic is healthier 1=Strongly agree,2=Agree,3=Neutral,4=Disagree, 5=Strongly Disagree Gunter, Vidal, Ziraldo, Lesschaeve (2010)
  30. 30. Buying organic is trendy• Both groups tend to think that organic is a trend 1=Strongly agree,2=Agree,3=Neutral,4=Disagree, 5=Strongly Disagree Gunter, Vidal, Ziraldo, Lesschaeve (2010)
  31. 31. Generation Y and Eco-friendly wines• Green attitude of Gen Y does not translate into interest for organic wine or purchase – Is wine still perceived as a “natural product”? – Is organic wine quality still an issue? – Is “organic” a trend and “eco-friendly” here to stay?• No differences among generations on environmental responsibility statements• No difference between generation in associating eco- friendly with certain practices (Organic, Biodynamic, LEED certification, Use of alternative Energy Sources)
  32. 32. Gen Y-Future of the wine industry• Interested in wine, to learn more about wine – Fun, social, and rewarding – Experimenters• Need to adapt marketing strategy – From sophistication to casual – From exclusive to accessible – From print to digital communications Web 2.0• Green wines? – Maybe not local wines – Sustainable: fuzzy concept Eco-friendly
  33. 33. Acknowledgements• Ontario Ministry of Agriculture, Food and Rural Affairs• Collaborators: – Dr. Johan Bruwer (U. Adelaide) – Erika Neudorf, Nicolas Mathieu, Amy Bowen
  34. 34. To stay in contact:Email: isabelle.lesschaeve@vinelandresearch.comBlog (incl. presentations): www.ilesschaeve.wordpress.comTwitter: @innovinum
  35. 35. © 2009 Vineland Research and Innovation Centre

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