“The American Wine Industry Has an Old People Problem,” reads the headline from the New York Times. The article dives into the challenge highlighted by a new report: winemakers are missing younger consumers. The biggest growth area is among 70- to 80-year-olds.
“It’s worse than I thought,” Mr. McMillan said in a phone interview. “I thought we would have made some progress with under-60s. I’ve been talking about this problem for seven years and we still haven’t reacted.”
Younger consumers have a plethora of trending alcoholic drinks to choose from, much more than baby boomers. Craft beers, hard kombucha, hard seltzers and canabis-infused cocktails all compete with wine.
Rob McMillan, executive vice president of Silicon Valley Bank and author of the State of the U.S. Wine Industry 2023 report, says he believes wine’s downfall is a marketing problem. His tips:
- Emphasize social responsibility with the environmental sustainability of wine
- Embrace health awareness with ingredient labeling and transparent nutrition
- More introductory wines, like wine coolers, wines mixed with carbonated water and sold in cans, wines sold in smaller bottles
- More advertising and promotion targeted to a younger audience
Read more (New York Times)