America's new wine drinkers - Wine Intelligence

America’s new wine drinkers

Follow the discussion on Twitter

@wineintell

Lulie Halstead, CEO 25th March 2014 © Wine Intelligence 2013 1

Wine drinkers in the US

224 million adults in the USA

1

145 million wine drinkers in the USA2&4

90 million regular wine drinkers in the USA3 Sources: 1 Adults aged 21+, US Census Bureau / Pew Hispanic Center tabulations of 2011 American Community Survey 2 Wine=still light wine (red, white, rosé) 3 Wine Intelligence, Vinitrac® USA Oct 2013, n=3224 US regular wine drinkers / Wine Intelligence, Vinitrac® USA Nov 2013, n=655 US Hispanics 21+ 4 Wine Intelligence online calibration study with YouGov, Sep ‘11, n=1,995 US adults

2

Looking at the past… TODAY…

90 million regular wine drinkers in the USA

10 years ago…


Sources: Wine Intelligence, Vinitrac® USA 2004 and 2014

3

What else do we know about US market? 10 years ago…

TODAY… Per capita consumption

12.3 L

10.5 L still light wine per adult in 2003

239m thousand 9L cases in 2003

Sources: ©Copyright 2013 - The IWSR

Per capita consumption

still light wine per adult

310m+ 9L cases

4

Millennial wine drinkers


32% of regular wine drinkers are born 1980-2000

28.8 million Millennial regular wine drinkers

Source: Wine Intelligence, Vinitrac® USA Oct 2013, n=3224 US regular wine drinkers

5

Millennial wine drinkers: Who are they? We rule the world We’re the millennial generation, we think the world belongs to us. Male, Millennial, Delaware

6

Why Hispanics matter?

Hispanic population and growth in the USA 127 million (29% of the population) Hispanics

35 million (13% of the population)

52 million (17% of the population)

246 million

260 million

2000

2011

311 million

Non-Hispanics

2050

Source: US Census Bureau / Pew Hispanic Center tabulations of 2011 American Community Survey

7

Hispanics are a considerably younger population in the USA

Hispanic population pyramid

Non-hispanic population pyramid

Hispanic population pyramid 0% 1% 1% 1% 1% 1% 0% 1% 2%1% 2%1%2% 1% 3% 1% 3% 1% 2% 4% 1% 4% 2% 2% 5% 5% 3% 3% 6% 6% 4% 4% 7% 7% 5% 5%8% 8% 6% 6% 8% 8% 7% 7% 9% 8% 8% 9% 8% 8% 8% 9% 8% 9% 9% 8% 9% 9% 8% 9% 9% 9% 9% 9% 10% 10% 9% 9% 9% 9% 10% 10%

Silent Generation

Boomers

Gen X Millennials Gen Z

85 years and over 80 to 84 years 75 to 79 years 70 to 74 years 65 to 69 years 60 to 64 years 55 to 59 years 50 to 54 years 45 to 49 years 40 to 44 years 35 to 39 years 30 to 34 years 25 to 29 years 20 to 24 years 15 to 19 years 10 to 14 years 5 to 9 years Under 5 years

1% 2% 2% 3% 4% 6% 7% 8% 8% 7% 6% 6% 7% 7% 7% 7% 6% 6%

Source: US Census Bureau / Pew Hispanic Center tabulations of 2011 American Community Survey

3% 2% 3% 4% 5% 6% 7% 8% 8% 7% 6% 6% 6% 6% 6% 6% 6% 6%

8

Hispanic wine drinkers

7% English-speaking Hispanic regular wine drinkers3


5.9 million

English-speaking Hispanic regular wine drinkers 6% Spanish-speaking Hispanic regular wine drinkers3

5.8 million Spanish-speaking Hispanic regular wine drinkers

Note: English-speaking - self reported as speaking English very well or better Spanish-speaking - self reported as speaking English less than well Sources: Wine Intelligence, Vinitrac® USA Nov 2013, n=655 US Hispanics 21+

9

Hispanic wine drinkers: Who are they? Connection with “Hispanic” countries of origin

Country of origin repertoire for regular wine drinkers in the USA % who have drunk wine from the the following wine-producing places in the past 6 months Base=All non-Hispanic regular wine drinkers in the USA (n=2,027) Base=All Hispanic regular wine drinkers in the USA (n=256)

Non-Hispanics

33%*

15%

Argentina

55%

53% 37%*

30%

France

34%

Italy

34% 8%

Portugal

Australia

39%*

16%

Chile

Other USA

39%*

20%

Spain

California

Hispanics

11%

42%*

24% 25%*

16%

* Statistically significantly higher than the other group at a 95% confidence level Source: Wine Intelligence, Vinitrac® USA, November 2013, n=655, Hispanics over 21 years old Source: Wine Intelligence, Vinitrac® USA October 2013, n=3,836 Non-Hispanics alcohol drinkers over 21 years old

10

10 rules for engaging America’s new wine drinkers

Get personal

Tribe

I care Speak my language

Look & feel good

Not so confident

Take me seriously

Looks count

Experience

Online 11

Get personal

When you visit vineyards, they open up bottles that you wouldn’t otherwise get to try. Male, Millennial, NYC

Wine shops are like mini libraries, you get to go in and read the stories. Female, Millennial, NYC 12

Getting personal in wine

13

I need my tribe

Every month I go with 3 friends to a steak house and 3 of the 4 of us will bring a bottle of red wine. We all get to try each other's wines an the 4th person gets to judge who’s is best. Male, Millennial, NYC

14

Tribal in wine

My friend told me about WTSO. That’s more fun and a reason to buy online. Female, Millennial, NYC

15

Help me feel and look good

I see Fairtrade coffee and know I should buy it but I don’t see that in a wine store. It’s not clear which wines are ‘best’ produced. Male, Millennial, NYC

Wine is a farm to table product, that you get to really experience when you visit a vineyard. It’s beautiful, its relaxing. Female, Millennial, NYC

16

Feeling & looking good wine

17

I care what you think of me

I always try and find a wine that makes me look wealthy, but is not actually too expensive. Male, Millennial, Delaware

Sometimes I look up about types of wine online so that I can contribute to a conversation. I try and learn some ‘easy wine speak’. Male, Millennial, Delaware

18

Wine that talks about me

19

I’m not as confident as I seem

I feel like I’m not as knowledgeable as I should be. Male, Millennial, Delaware

I feel overwhelmed when in my wine store…and end up just wandering round. Female, Millennial, Delaware

20

Help me with wine

21

Talk my language, mirror my lifestyle

I’m in a wine social club. We get together and bring food and we try different wines to see what we like, but we don’t talk about notes or scents or cherries or wood. Female, Millennial, Delaware

Franks, by local store’ does this really cool thing where you can play table tennis in store to earn discounts on wine. Female, Millennial, Delaware

22

Wine ‘my way’

23

Let me in on the experience

I find myself seeking out wines that I’ve had when I’ve travelled, it connects me to past experiences. Male, Millennial, NYC

24

Wine as an experience

25

Take me seriously

I don’t think they are very polite to younger people like us in my local wine shop. They don’t take us seriously as wine buyers. Male, Millennial, Delaware

Sometimes the guys in the wine store can be a bit demeaning which I think is because of my age. Female, Millennial, Delaware

26

Looks are important

I really like the kitchy type labels, they draw me in. Things like Bitch and Cupcake. Female, Millennial, NYC

I look first of all for Pinot Noir, and the look around for what has the coolest label in my price range. Female, Millennial, Delaware

27

Wine that looks good

I know Apothic is good. I didn’t care where it came from or what grape variety it is. Female, Millennial, Delaware

28

My online life is not for everybody

I would never buy wine online, I love the personal interaction in store. Female, Millennial, NYC

People our age or younger tend to stay away from alcohol associations on Facebook. Male, Millennial, Delaware

29

Wine online

30

Craft beer ticks the boxes

The craft beer people have got it right for us. Their names are fantastic, they look great visually and they are really affordable at $10 or so for a 6-pack. Male, Millennial, Delaware

I don’t feel like I’m taking a risk buying a 4 pack of beer for $15 like I would with a $15 bottle od wine. Female, Millennial, NYC

31

Wine is all about connections

When my girlfriends are over, we drink wine to relax but really it’s about being with each other. Female, Millennial, Delaware

If somebody has drunk a bottle of wine they want you to know about, they’ll take a picture of it and # it. Female, Millennial, Delaware

32

10 rules for engaging America’s new wine drinkers

Get personal

Tribe

I care Speak my language

Look & feel good

Not so confident

Take me seriously

Looks count

Experience

Online 33

Thank you!

Wine Intelligence 109 Maltings Place . 169 Tower Bridge Road . London . SE1 3LJ Telephone: +44 (0)20 7378 1277 Email: [email protected] Web: www.wineintelligence.com Twitter: http://twitter.com/wineintell Facebook: http://www.facebook.com/wineintelligence

© Wine Intelligence 2013

34