Younger and older wine drinkers mix happily on a recent visit to Abbot’s Passage in Glen Ellen. [Duncan Garrett Photography]
T he domestic wine industry is in trouble. Silicon Valley Bank’s “State of the U.S. Wine Industry Report” predicts that total wine sales will remain negative in 2024, with the bleak data to back the claim that consumer demand for wine continues to wane. In the face of these struggles, industry professionals, winemakers and analysts look to the generational shift underfoot for answers. The baby boomers, arguably the shepherds of our modern wine culture, are aging out and making way for Generation X and millennials to shape the country’s changing relationship to wine. For a brief generational recap, baby boomers, aged 60 to 78, came of age post-World War II, experiencing a prosperity in stark contrast with the austerity their parents lived through during the Great Depression. Some boomers exercised this wealth to prop up the American wine industry—visiting wine country, joining wine clubs, seeking out wine education and generally valuing wine as a large portion of their alcohol consumption. Gen X, aged 43 to 59, were born between the mid-1960s and '80s and came of age during times of economic uncertainty and political turmoil. This shaky upbringing fostered a self-reliant, pragmatic and skeptical mindset which has made this generation and its habits hard to pin down. Millennials, aged 27 to 42, came of age during the rise of the internet and globalization, valuing work-life balance and adopting digital tools of communication and commerce. As millennials enter maturity, the wine industry anxiously speculates whether they will By Emily Fair Weber
value wine with the gusto of their forebears. Following millennials comes Gen Z, aged 12 to 26, a young generation whose shifting attitude toward alcohol in general has been the cause of much handwringing. According to SVB’s report, they are a healthy, sober- curious bunch, not always invested in spending on alcohol, but their relative youth means it will take time to see a clearer picture of their true habits. The truth remains that overall wine consumption in the U.S. is dwindling, with supply continually outpacing demand. Despite this fact, recent reports indicate that Gen X and millennials are consuming ample wine—they're just doing so differently than previous generations. By listening to younger consumers and understanding their fresh perspectives, wine businesses can reimagine their offerings and revitalize their marketing strategies to form genuine connections with younger audiences. WineGlass Marketing survey seeks answers Among many insightful studies tracing these emerging trends is a recent survey conducted by Napa-based, full-service agency WineGlass Marketing. WineGlass sought answers to explain the drop in demand for their clients’ products and decided to dig deeper into generational trends to find them. As Susan DeMatei, founder of WineGlass Marketing, explains, “The press has been overwhelming, saying the market is down, and saying it’s all the winery's fault because they don’t talk to millennials—OK, so what do [millennials] want?”
36 NorthBaybiz
October 2024
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