Marketing matters: how to engage millennials

Wines & Vines, April, 2009 by Kate Lavin

Millennial' was the No. 1 buzzword at the Unified Wine & Grape Symposium this year, and the topic on everyone's mind was how to reach the tech-savvy generation. According to a study presented by Wine Market Council president John Gillespie, nearly half of millennials surveyed say they consumed more wine in 2008 than they had the year before, and their consumption continues to grow, even as the industry's overall sales volume slows.

"(Millennials) are part of this generation that could be our salvation," New York Wine & Grape Foundation president Jim Trezise said while moderating the Unified session entitled "Changing Trends in Changing Times."

What is a millennial?

Wine marketers think of millennials as the generation of young people who started reaching drinking age around the turn of the millennium--in other words: those currently between the ages of 15 and 32. At 70 million strong, millennials are the largest generation of Americans since the baby boomers born between 1946 and 1964.

Researchers describe millennials as being civic-minded team players with an affinity for technology. They're suspicious of commercial messages and tend to rely more on the recommendations of friends and social networking sites. They gravitate toward things they perceive as authentic, not contrived or over-hyped.

Carol Phillips, president of the market research and brand consulting firm Brand Amplitude, said, "I think they're a fascinating generation. ... Already we've seen what they can do as a generation with the (2008 presidential) election, and I think they are going to make a mark, just like the boomers did."

On the downside, at least from the perspective of a wine label looking to build a loyal customer base, millennials are never completely satisfied. They're always looking for the next "best" thing--whether it is a new gadget, a new job or a Canadian ice wine they've never tried.

According to Amy Hoopes of Wente Vineyards in Livermore, Calif., who belongs to the age group herself, you have just three seconds to engage a millennial. So without further ado:

Why millennials are pivotal

In a survey that asked whether respondents were drinking more wine in 2008 than they did the year before, millennials reported a net gain of 46%, said Gillespie, whose Napa Valley-based Wine Market Council (WMC) commissioned the consumer tracking study. Other age groups didn't come close to hitting the same number. Millennials also were the most likely to belong to a wine club--in the WMC study, 20% said they were members of such a group--and 38% of millennials reported that they'd visited a wine bar within three months of the survey, as opposed to 26% of Gen Xers, 13% of baby boomers and 7% of those age 63 and over, Gillespie said.

But in spite of millennials' obvious affinity for wine, and their wealth of disposable income (fewer than 41% of Americans under age 35 are homeowners, according to 2008 figures from the U.S. Census Bureau), wineries haven't been paying a whole lot of attention to millennials, making the assumption that wine is a taste that appeals to an older, more discerning palate.

And that's where there's room for improvement.

Making contact

For all of the statistics indicating that millennials are going to buoy the wine industry, many advertisers are still perplexed as to how to reach them.

Courtney Cochran, founder of Los Angeles-based Your Personal Sommelier, said the web is full of opportunities that foster connection with millennials, whether through Facebook (which claims to have more than 175 million active users), MySpace (110 million users, but losing web traffic to Facebook), Twitter (a mini-blog that lets users send 140-character reports to contacts), or networking groups such as Wine 2.0 and the Open Wine Consortium. Best of all, joining most of these sites is free.

"I run some promotional campaigns, and Facebook is one of the most profitable places," Gillespie said. Facebook allows advertisers to buy space based on demographics and areas of interest, meaning that wineries and retailers can target users likely to buy wine and maximize their dollars spent. "You can fish where the fish are," he said.

Also, with more than 4 million Americans turning 21 each year, it's the perfect time to launch a marketing campaign with your millennial audience in mind. "You've got wine drinkers in the pipeline, if you will," Gillespie said.

Making wine fun

Until recently most Americans viewed wine as something they saw on the table at holiday parties and fancy restaurants. Beer was the everyman's drink, and wine was for special occasions.

"A luxury approach does not work for millennials. Even if they have a lot of money, they do not see themselves as being wealthy," said Phillips, the Stevensville, Mich.-based marketing and branding executive. "You're better off thinking of it as something they've earned or something that's necessary. (Millennials) see an iPhone as being necessary, not a luxury."

Phillips points to Fat Bastard as a label that appeals to millennials, because its marketing persona is fun rather than fancy. Online, the label offers several ways for millennials in the U.S. to connect with the French winery. The Fat Bastard website contains links to contests and promotions, has a place where you can share your own Fat Bastard story, and also includes a blog, or online diary, though it is updated infrequently.