U.S. Wineries shift gears, targeting the younger demographic

The wine industry in the United States, particularly in California, is undergoing a significant transformation. Recognizing the potential of the younger market segment, wineries are realigning their strategies to appeal to consumers aged between 21 and 35. This shift is evident through novel packaging formats, innovative brand concepts, and offerings with reduced alcohol content.

Californian wineries have been at the forefront of this change, actively trying to grasp the attention of a younger demographic. Their efforts are predominantly targeted towards innovations that resonate with consumers in the 21-35 age bracket. One can observe these transformations in various aspects of the industry, from packaging to branding and product development.

David Brown, the President and CEO of C. Mondavi & Family, articulated the sentiment of many in the industry when he said, "The Californian wine sector is zealously working to connect and engage with a younger and more diverse set of customers by offering new experiences and innovative products." He highlighted the need for establishing robust brand identities to attract this demographic. Brown specifically pointed to initiatives like innovative packaging and a renewed focus on sustainability and organic farming.

As part of their adaptive strategy, C. Mondavi & Family ventured into the premium canned wine market, launching West + Wilder in 2022, an attempt to secure a larger share of the legal drinking age consumer market.

New Labels, New Brands: Innovations Abound

The wine industry's transition isn't limited to one or two establishments. J. Lohr Vineyards & Wines has also embraced the trend, unveiling Monterey Roots, a collection of two cool-climate estate wines. A notable mention from this collection is the J. Lohr Bay Mist White Riesling, retailing at $13 for a 750 ml bottle. This wine stands out with its captivating label featuring waves crashing against cliffs, a solitary Cypress tree, and seagulls. Steve Lohr, the firm's President and CEO, emphasized how this distinctive packaging differentiates the brand on store shelves compared to traditional labels.

Furthermore, Constellation Brands is formulating strategies specifically to appeal to the elusive Gen Z and Millennial audiences. A testament to this is their brand, The Prisoner Wine Co., which introduced Blindfold, a brand focusing on white varietals targeted at young female consumers. Additionally, they expanded their product line with Woodbridge's Sparkling Infusions. Matt McHargue, Senior Vice President of Fine Wines and Craft Spirits at Constellation, shared that the goal is to "capture flavor profiles that welcome new consumers to the wine category."

Trends in Taste and Packaging

Delicato has amalgamated the trend of low and non-alcoholic offerings with alternative packaging through the launch of Bota Box Breeze. Jon Guggino, Vice President of Marketing at Delicato, mentioned the brand's intent to highlight the functional benefits of wine as a lifestyle choice, integrating it into a healthy lifestyle or opting for eco-friendly and convenient packaging.

Companies also discern that robust and often sweeter wines resonate with younger consumers. Correspondingly, Trinchero Family Estates unveiled a Sweet Collection under the Ménage à Trois brand in 2021. Brie Wohld, Vice President of Marketing at Trinchero, noted a strong connection with younger, multicultural consumers.

Furthermore, both Delicato and Trinchero are capitalizing on the trending preference for Sauvignon Blanc. Guggino stated, "It seems Americans' love affair with red blends is over, ushering in a new era with bright and light whites."