1. Attracting Millennials
With Your Wine Program
Nick Moezidis, Vice President, Sales & Marketing
Jayne Portnoy, Vice President Marketing & Brand Strategy

2.  Napa Technology.
 Discovering the millennial potential.
 Millennials - Trend Makers.
 Attracting Millennials to drive profits.
 Actionable Operations and Marketing
Tactics.

3. Napa Technology is the designer and manufacturer of
the WineStation®, an innovative Intelligent Dispensing
and Preservation solution, with the ability to preserve
wines for a period of 60 days and provide product
controls that maximize the profitability of each bottle,
while enhancing the customer experience.
First introduced in 2005, the WineStation® has been
widely adopted by the hospitality and food service
industries as an improved way to serve and preserve
wines, while capitalizing on the increasing consumer
demand for more expensive wines by the glass.
The WineStation® can be found in airports,
restaurants, arenas, hotels, cruise ships, wine bars,
retailers and grocery stores world wide.

5. Wine consumption in the United States has risen dramatically over the last 5 years, and
in 2011 contributes to 26.3% of all alcoholic purchases. Today’s wineries, distributors and
retailers are meeting the demands and reaping the benefits
mintel

6. Napa Technology

7. In 2012 Napa Technology identified a dynamic and vast ideological gap
in wine consumption behaviors between Millennials and their older,
more affluent peers.
Coupling the insights of 16 top executives in the wine, food & beverage
industry with the data from over 3 million ounces of wine poured from
WineStation systems across the country, Napa Technology has discovered a
growing challenge for operators, retailers and wine program directors as
this emerging group of consumers has a unique and diverse relationship
with wine consumption and spending habits.
Totaling over $170 billion dollars in purchasing power, we will show you
how to identify this valuable consumer base and tap into the power of their
profitability.

8. “As a group, Millennials are unlike any other youth
Generation in living memory. They are more numerous,
more affluent, better educated, and more ethnically
diverse.
More important, they are beginning to manifest a wide
array of positive social habits that older Americans no
longer associate with youth, including a new focus on
teamwork, achievement, modesty, and good conduct.”
Neil Howe & William Strauss (Yale & Harvard professors, respectively), experts on generational cohort theory. From “Millennials
Rising: The Next Great Generation

9.  Age
 Wine Drinkers Aged 21-34
 born between 1977-1998
 National Population
 80 million people, 2nd largest buying population behind Boomers and
three times larger than gen x.
 Fastest growing segment of US wine drinkers.
 In 2010, Constellation Brands credits Millennials to a 29% surge
in sales due in part to direct marketing efforts to this valuable
population.
 Wine Accounts for 20 % of alcohol purchased by Millennials in the
US.
 Up from 13 % a Decade ago
 College Educated & holding entry to associate level
employment
 Largely still living at home, with additional disposable
income & lack of home ownership debt

10.  Purchasing power equates to $170 billion per year
 The annual indirect spending power of millennial
generation is $500 billion.
 Millennials are more involved in purchasing decision than any
other generation before them.
 In 2011 US Millennial consumers increased their
spending on premium luxury goods by 33% and travel
service by 20% over prior year – outpacing every
other demographic
 Wine Purchases represent 20% of Millennials
alcoholic beverage consumption.
American Express Business Insights
Wine Market Council
Ad Age

11. “When we look at the luxury market, Millennials are the
growth engine going forward, and with every move tracked
through social media, luxury goods provide a strong visual
representation "that either I've made it or I want to tell you
I've made it.”
Jason Dorsey, Chief Strategy Officer, The Center for Generational Kinetics

12.  52% of Millennials cite visitation to wine websites
within the past 3 months to influence purchasing
decisions
 In 2011 Wineries and suppliers have increased social
media spend by 43%
American Express Business Insights
Wine Market Council
Ad Age

13.  Fearless
 Not afraid to ask questions and like to learn
 43% of US Millennials cite tasting events or parties as their desired
mode of experiencing wines
 Unpretentious
 Think reverse snobbery
 Aren’t impressed by big brands or “in your face” labels
 Millennials will buy wine anywhere.
 62% cite convenience as a primary driver in the selection process
 Nomadic
 The less traditional the better
 89% of Millennials will purchase brands they have never seen or
heard of before.
 60% of Millennials site “fun and contemporary ” labels as factors
when choosing wines.
Wine Market Council 2011
Napa Technology 2011

14. “Wine has become more approachable, pointing to
more creative labels and amusing names for the
vintages, as well as to the rise of Whole Foods Market
and Trader Joe's, grocers offering a variety of wines in an
informal atmosphere.
This generation has more access to wine and decreased
formality. They don't have to know which wine to drink with
what, and that atmosphere was not there for baby
boomers.”
Garima Goel Lal, Beverage Analyst, Mintel Group

15.  Buying The Glass
 The desire to explore drives increased “by the glass”
consumption
 They Consume on average 2.92 glasses per drinking
occasion
 Millennials are consuming higher priced wines by the glass than Gen X
(those born between 1964 -1982)
 Socially Motivated
 Millennials are motivated by social experience and consume
more wine out than any other demographic.
 Although the “mobile phone generation” Millennials seek
comfortable, inviting atmospheres when they “log off.”
 Millennials are also socially conscience
 85% of US Millennials will switch to brands that are
socially responsible.
Kraft Foods
Emarketer
Napa Technology

16.  Exotic and open to unusual varietals
 Millennials buy more French, Italian and Spanish wine than any
other age demographic
 Older Millennials, those 25 to 34, are particularly partial to
Italian wines
 the Juice Box Generation for their appeal to sweeter wines
 Purchase price point is highly influenced by
occasion:
 $10-15 to bring to parties or gathering with friends
 $20-30 to enjoy at home
 $50+ when dining in a restaurant
Mintel 2011
Napa technology

17.  Blind Tasting Events
 Enhance the idea of new discovery
 Challenge knowledge of worldly varietals
 Unleash their inner sommelier
 Theme Driven Evenings
 Choose regions, wine makers or unique varietals that will entice this
curious consumer
 Wine Flights and Paired Menu offerings
 Feature Worldly Offerings & Selections
 Millennials are well traveled, let them connect their experiences
through your wine selections and offerings
 Offer well known regions as well as unique blends and varietals
 Strong appeal to French, Italian and Spanish wines

18.  Informative Point of Sale Materials
 Feed their thirst for knowledge
 Identify unique characteristics about your wine program
 Create Edgy and unique displays highlighting value and flavor
profile
 Identify wines by their occasion; dinner at home, as a gift etc
 Utilize winery and brand representatives to host events
 Easy To reach
 Millennials are buying wines where most convenient, ranging from
grocery to Convenience store
 Incorporate Use of Technology
 Millennials are the “cell phone” generation and appeal to
technology to enhance their wine drinking experience.
 Utilize Ipad ordering
 Create wine related gaming
 Utilize available apps and winery information to create content on
your websites and facebook pages.

19.  Fuel Social Media Conversations
 Encourage Facebook and Twitter commentary about your wine
offerings & events.
 Reward on line advocates/followers with special discounts,
products and offers.
 Make sure Website is on shareable sites like Pinterest and Facebook.
 Actively update your social sites with events and information
 Encourage video and YouTube postings about your venue and
offerings
 Group Activity
 Appeal to Millennials social nature by offering group events
 Offer seating to accommodate their larger party size
 Social Responsibility
 No longer just a marketing buzz word, Millennials are driving their
purchase decisions towards companies that are socially conscience
and responsible.
 Create altruistic events (ex: wine bottle recycling) that stimulate
increased loyalty and use.

20.  Extraordinary purchasing power
 Significantly influenced, highly social and well traveled
 Driving industry tends on flavor profiles and varietal
production
 They have F.U.N View of Wine and Technology
 And to attract them utilize Socially Responsible, Theme Driven
Group Events that feed their thrust for knowledge
 The Napa Technology provides an efficient and effective
solution to reaching this highly profitable demographic:
 Ability to feature unique, boutique and worldly brands with
zero risk or waste
 Taste, half and full glass pouring options to support their
explorative nature
 No strangers to technology, Millennials have begun to
expect and demand such tools as part of their wine drinking
experience
 Innovative wine tastings and menu pairings are easily
accomplished

21. Thank You
Please Join Us
For our Next Webinar:
Visit NapaTechnology.com for details