The recent resurgence of the California winegrape industry has been pretty well documented. There are some interesting aspects to it, however, that growers should really pay attention to if they’re going to reap the rewards.
First, and perhaps most encouraging, is the renewed interest in wine among young people. This generation, ages 21 to 34, is sometimes referred to as the “Millennials,” or, because they are largely the offspring of another well-known generation, the “Echo Boomers.” Whatever you want to call them, they are welcome to winegrape growers, as they consume more wine than their “Baby Boomer” parents. In fact, only seniors, those 65 and over, prefer wine in greater numbers.
Besides being key consumers now, the Millennials in all likelihood will remain an important generation through the years, unless their tastes change dramatically, which seems unlikely. Hard for me to picture a 20-something Chardonnay sipper turning into a 30-something beer quaffer. That means growers should pay attention to what they like, and it isn’t generally traditional varieties. Don’t get me wrong, the aforementioned Chardonnay and the traditional leading red, Cabernet Sauvignon, aren’t going away any time soon, it’s just there are some hotter — much hotter — varietals.
Moscato, a sweet white made from the Muscat grape, is one. Despite many new plantings, some industry analysts expect a shortage of the wine in the future, which is reportedly the drink of choice for many young women in particular. Some nurseries are already reporting shortages of vines. For San Joaquin Valley growers, who produce the bulk of the state’s grapes and about half the nation’s total, it’s especially welcome because Muscat flourishes in the valley heat.
Sales of Moscato were up 60% in the past year, reported Jon Fredrikson, who has studied the wine market for many years. Sales of sweet reds were up even more — an astounding 200%. These sweeter varieties have “cannibalized” the market, said Fredrikson, taking sales away from the traditional varieties. He conceded he’s not certain if what has happened is just a wake-up call or an anomaly, adding that it’s important to keep in mind that Chardonnay is still the largest varietal in the U.S.
U.S. Now No. 1
Clearly, however, change is afoot in the wine industry, and it seems the Millennials are driving it. For one thing, the U.S. surpassed France this year as the largest wine-consuming nation. Incidentally, that’s the most overall consumption and not the most per capita, as several European countries still have far higher per capita rates. But U.S. per capita consumption is rising, and it appears to be partly on the strength of these new “gateway” sweeter wines, just as White Zinfandel did for a time years ago.
Changing tastes in wine is not the only reason the industry needs to pay attention to the Millennials, however. They are also the members of the first generation to get their information chiefly through the Internet, the so-called “Digital Natives.” While virtually all of us employ social media at least to some degree, this generation was essentially raised on it. That person celebrating their 21st birthday today is likely among the first who can’t recall a world in which the Internet didn’t exist.
Marketing to Millennials is going to be completely different than it has been to previous generations. It will be a real challenge, that’s for sure. But you’ve already got a huge advantage, if you’re growing the right varieties. They love your product, and that’s a pretty good start.