Converting 30-somethings to wine lovers is an imperative, says Rob McMillan.
According to estimated consumer preferences, among drinking-age Americans who consume alcohol every decile- age demographic (i.e. people in their 20s, 30s, 40s, etc.) under 60 ranks wine as their third choice (behind beer and spirits). But every decile age demographic over 60 ranks wine first. That said, the age 30 to 39 cohort has the largest overall number of alcohol consumers, therefore it ranks second only to the age 60 to 69 group in total number of drinkers who prefer wine over other choices. Concludes McMillan: “If we present a product that hits their value points, 30- to 45-year- old consumers will choose wine more often.” Will younger consumers ‘age into wine’? McMillan acknowledges that within the current population, the preference for wine grows with age. But he cautions against the view that consumers will switch to wine over the course of their lives simply because they age. “That is and always has been a fallacy,” he writes. Older generations prior to the baby boomers preferred spirits and beer over wine, he points out—and didn’t become wine drinkers in their high- spending years. Generations don’t always copy their parents’ consumption patterns—consumerist boomers proved that to their thrifty Depression-era parents. Patiently waiting for younger people to grow into wine is a losing strategy, he says. Market correction—how long? As wine-consumer demographics shift, industry watchdogs have one common question—how long will this demand
the average age of visitors to Napa Valley dropped from 46 to 40—problematic given younger consumers are more frugal and drink less overall. “Selling expensive premium wine in a 375ml format is one way to appeal to a younger” demographic, says McMillan, pointing out that they are willing to splurge on smaller-ticket luxuries. Given younger consumers’ penchant for frugality, wine businesses may also have to reconsider their tasting room fees, which have increased by more than 200% since 2012 (the average reserve tasting is currently $72; standard is $38), says McMillan. He believes winery owners should rethink their tasting room fee structures—perhaps offering entry- level tastings during slow periods of the week and include live music or games to draw in younger clientele. “There are endless possibilities,” he says.
Bring on the millennials! Noting that the glory years of wine-guzzling and
conspicuous consumption by the baby boomer generation is sunsetting, McMillan calls those aged 31 to 49 the next “opportunity set” for the industry. If they can steer that cohort toward preferring wine over other choices, it could set up the industry for the decades to come. The caveat: Members of that age group aren’t new recruits, they’ve already tried plenty of wine and have an opinion—and in some cases that opinion is that they prefer other beverages. “We need to convert those,” says McMillan. “That is a more difficult task, but it’s the critical one at hand.”
May 2025
NorthBaybiz 23
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