Gen Z is not drinking wine - what do you think?
The main theme of today’s newsletter surrounds young people (Gen Z) and their turn away from wine, a trend making headlines lately following a comprehensive report by Silicon Valley Bank on the state of the US Wine Industry. Would be interested to hear your thoughts on the topic in the comments.
🗞️ THE HEADLINES
📺 Oh my… ITV launches Gary Barlow wine show! Barlow will travel to South Africa, where he will visit a number of vineyards on a grand tour of the country. (The Drinks Business).
UK wine sales decreased by 10 million bottles in the build-up to Christmas 2023 compared to 2022. Industry leaders blamed the situation on the government’s decision to increase taxes last August. Cash-strapped shoppers must now pay an extra 20% in tax on most bottles of wine. (Decanter)
🇬🇧 In the UK, English sparkling wine, although a small percentage of the total sparkling market, is growing with volumes up 6.4% year-on-year in the sector. By contrast, Champagne has been experiencing a dip in demand with a 22% decline in the on-trade. (Harper’s)
BUSINESS
Gen Z snubs wine? In America, at least.
Lindsay Parrill (The Manual) looks at the data on young people and wine consumption, from one of the most comprehensive studies on the wine industry (SVB’s 2024 report).
To summarise:
In the US, For the last three years, wine sales have been declining steadily.
58% of wine consumers are over the age of 65.
Younger drinkers “just aren’t interested in wine as much as they used to be – not by a long shot”.
Cited causes:
Cannabis, which is now legal in many states, has replaced the demand for alcohol.
The growing sober movement.
🥈 Silver lining:
It appears that only the cheapest wines are suffering. The premium wine business is still doing surprisingly well, as wine volume sales above $12 have remained positive, according to the study.
OPINION
Younger consumers are curious - but we are failing to engage them
Yes, younger consumers are drinking less wine but Ryan Opaz (for Medium) believes this can be overcome if we stop the over-preoccupation with education and allow customers to enjoy wine without the formal rules and etiquette.
“Why can’t we just ask people to choose a glass of wine based on what they like, not what we think they should like? Or pick their next wine by finding a label they connect with?”
Younger generations don’t lack curiosity. The problem, Opaz suggests, is that the industry can’t let go of how they have historically sold and marketed wine.
Some suggestions to improve the situation:
Mix Up Packaging: new labels, formats, sizes, and closures. [To expand on this: break boundaries and look to other drinks categories and industries for inspiration].
Drop Education: “we don’t need to be educated to enjoy a beverage”. Leave the learning to the wine enthusiasts who will actively seek it out anyway.
Embrace Sustainable: drop heavy bottles, do more to show younger consumers you care about our planet!
Listen: the oldest trick in the book. What does your consumer want? Follow their lead rather than expecting them to follow yours.
PODCAST
What I’m Listening to this week
Hannah Crosbie in interview for the FT’s Life and Art podcast. Listen here.
Asked what she’s drinking recently, arguably the most relevant wine influencer in the UK, recommends Petnat from Tim Wildman.
“I was really surprised to find a winemaker called Tim Wildman on there [Wine Society’s website]. Astrobunny and Piggy Pop. They’re very funky labels… They look like your classic low-intervention, natural wine. The Wine Society, with over 150 years of quite classic wine history are buying a natural icon wine (!) The reason that Freddie [wine buyer for the Wine Society] gave, is that it’s by far the most consistent wine that he has ever tasted in that category, and for a buyer, consistency is everything.”
Filling in for JR, Hannah also wrote an excellent piece for the FT Weekend last month (What Young Drinkers Want), which you can read here.
If you have any ideas about how to engage Gen Z when it comes to wine, please share (especially if you work outside the wine trade). Us wine professionals tend to operate in an echo chamber.
No newsletter next week as I’ll be travelling for Prowein.