Marketing to Millennials in a Recession

At first it was 'a financial crisis' but now everyone calls it a 'recession'. With only 19.7% of new college grads who apply for jobs getting them and 65% moving into Mom's basement, the reality of the 'new frugality' has finally settled in with Millennials. However, new research from JWT (see chart) shows, the recession hasn't yet affected spending across the board. For adults 18-29, some things are indispensible (Internet), others less critical (dining out), and some are completely forgettable (magazines).

Marketing to Millennials now is not fundamentally different from any other time, because Gen Y has always considered itself cash strapped. (I am always amused to hear my students complain about how poor they are). Now, as they graduate and get jobs, Millennials continue to see themselves as careful shoppers, even as they outspend other generations on everything from cell phones to wine. They wouldn't think of making a major purchase without careful and exhaustive research, online and via word of mouth. One of my favorite Gen Y blog posts declared that if you are not Gen Y, you probably overpaid.

With money dearer now, and the tools for discovering preferences of friends becoming ever more accessible and powerful, I expect they will become even more careful in the future.

Of course, it's not just Millennials who are affected. According to new IRI research, the recession has created what they call the "Downturn Generation", a "new generation of Americans adopting practices similar to Depression-era shoppers, implemented both to weather the recession and to keep a close eye on spending long after the recession ends." The strategies characteristic of this 'new generation' sound a lot like practices Millennials have been implementing for years. Here's a sample:

"Consumers are becoming more resourceful and strategic when planning their purchases for meals, wardrobe, home and automobile maintenance and personal care. New approaches identified include consumers turning to the plethora of information available on the Internet to help prepare for purchases, clip online coupons and research reviews, commentary and opinions on products and services before making a purchasing decision. In fact, more than 44 percent of shoppers are using online resources to find coupons today, and 55 percent of them plan to continue this practice into the future."

How do we market to a generation of tight wads who are programmed to avoid impulse shopping? Very carefully.

According to the JWT study, "77 percent of young adults, people18-29, feel nervous and anxious about the impact of the recession."

Extra reassurance is needed for each decision, and that reassurance will be trusted most if it comes from a friend or neutral party. The key is to make sure they find the right information, not necessarily make your brand per se the go to source for the information. In other words, it’s very important to allow them to market to each other. Information is a form of social currency. Give Millennials information they value and they will share it with their friends. According to the article mentioned above, authored by Northwestern Medill Journalism student, Inyoung Hwang, here's how it could work in video games:

Morris Levy, senior at the University of New Hampshire, said even if a new product like a video game sparked his interest, he would hold off on purchasing it until he understood it better. “I’d look into it more – look at reviews online, ratings from different companies and news sources,” he said. Gary Rudman, the president of GTR Consulting, a market research firm, said video game companies will sometimes provide free clips of games to websites like IGN Entertainment. It’s a simple but successful word-of-mouth strategy that allows young people to feel like they’re finding things on their own and then talk to friends about it. “It doesn’t feel like a marketer is forcing something down your throat,” he said. “You’ve gone to a place to find it, you’ve discovered it, and you share it with the world.” Very successful brands understand there’s nothing better than having something “bubble up from the bottom,” according to Rudman.

Music and movie marketers have used this approach to reach Gen Y for years. If it is that effective for entertainment, imagine how powerful it could be for restaurants, wine, automobiles, financial services, higher education, and more.

Millennial Wave Hits Wine

Those of us in higher education were among the first to notice Millennials were different from other generations. Then it was politicians. Now managers, recruiters and HR professionals are scrambling to adjust. What's next? Most likely food and wine marketers.

Millennials are discovering wine in record numbers. Domestic wine volume increased 11% between 2003 and 2007, and imported wine volume increased 27%. According to the Wine Council, Millennials accounted for 46% of the growth (see chart). Savvy wine marketers are aware of the sea change and, excuse my torture of the metaphor, are preparing for what is shaping up to be a tsunami of wine drinking.

Those reading along with me over the past year, already know that Millennials' love of wine is unique to the U.S. - in fact, French Millennials are forgoing wine. You will also know that it is part of a larger affinity for gourmet, premium and imported food and drink in general.

But what do we know about Millennial wine drinkers, and especially about enthusiasts that can help wine marketers?

First, wine drinking appears to start in earnest as Millennials graduate from college and start careers. Incidence of wine drinking increases from 23% among 21-24 year olds to 32% among 25-34 year olds (Mintel, Oct 08), approximately the same as adults in general (35%). However, the wine preferences, attitudes and behavior of Millennials are quite different. They are more sophisticated in their preferences, and more willing to spend to indulgence their preferences.

* Millennials who drink wine are twice as likely to belong to a wine club (20%) and to drink at wine bars in the past three months (38%) than older groups, (Wine Council).

* Forty-one percent of Millennials who drink wine say they drink imported wine most often vs. only 24% of Boomers and 31% of Gen X'ers. For example 31% of Millennials have drunk a wine from NZ, compared to only 15% of Gen X'ers (Wine Council).

* Millennials are much more likely to purchase their wine at a winery (33%), specialty liquor store (40%) or gourmet food store (20%). (Mintel)

* Millennials say they spend about $10 more per bottle than average across a wide variety of wine buying occasions. For example, Millennials say they would spend $40 on a bottle of wine for a special occasion compared to just $24 for all adults. (Mintel)

* Forty percent of 25-34 year olds agree that more expensive wine tastes better compared to 31% of adults on average. (Mintel)

* Millennials' criteria in wine selection tends to favor more familiar wines and wines with fun, casual names. (Mintel)

These facts don't completely relate the sheer enthusiasm of young drinkers for wine. They see wine as part of their move into adult life. It is a passion that drives them to look for new ideas and authentic experiences. For example, here is a comment left by Therese on this blog:

Really enjoyed this. I'd have to say that especially as a millennial, drinking wine is also about the experience. This helps explain why I LOVE and other "millenniels" LOVE drinking imported wine. What better way to escape from stress than to sit outside with friends drinking a Spanish Rioja, eating tapas and discussing life's little pleasures?

For wine marketers, the biggest adjustment will be learning work with younger drinkers' high degree of connectedness. Millennials are naturally social. They share their interests in everything from music to philanthropy through social networks, and it looks as if wine will soon be getting the same treatment. Twitter tasting networks and Millennial wine blogs are appearing almost daily. I have already mentioned the Millennier and Just yesterday, Yvette launched her new blog, millennialtastelive, with this introduction and an invitation to all Millennials to share their love of food and wine.

While researching popular wine groups, I found they were heavily slanted toward the more mature wine consuming demographic, particularly the group Twitter Taste Live, now Taste Live! Wine is popular among Millennials for three reasons: Wine is a social drink and Millennials are arguably the Social Generation There is so much variety in wine and Millennials tend to be attracted to constant change: "What's new?" "What's hot?" and "What's different?" And simply: Wine tastes good! It is my hope that this blog and Twitter Feed helps 20 and 30 somethings connect with one another to share our common bond of love of wine and propensity for social networking for the pure FUN of it MINUS the snobby elitest crap.

Efforts to engage this group will need to go well beyond the traditional web site. They are looking for wine knowledge and experiences and ways of sharing them with their friends. Marketers will need to explore leveraging existing networks, such as the 45,000 member online group, Womenwine, or creating new ones. Millennials want social currency they can 'spend' - and savvy wine marketers will be there to provide it.

Perfect Pairing: Social Media and Millennial Wine Enthusiasts

Social media creates communities of interest, so what could be more natural than reaching young wine enthusiasts through Twitter? Wine is inherently social - you drink it with other people. It's also inherently discussable and recommendations are a form of social currency.

Given the affinities, it's no great surprise that it's pretty easy to find young wine marketers on Twitter. Yesterday I spoke with Shana Ray (@sharayray), an ex-ad agency strategic planning professional and social media strategist who works with the Sonoma County Tourism Bureau to help wineries with their social media strategies. Shana says there is a lot of interest in Millennials among wine marketers. She is considering doing some of her own ethnographic research to help them get insight into young wine enthusiasts.

Other fascinating Millennial wine marketers I've friended online include Sasha Kadey, (@skadey, King Estate Winery), and Leah Hennessey (@millennier).

Most of the tweeting is around books, wine news, wines tasted. But there has already been at least one real time 'Twitter wine tastings', sponsored by Project Vino. (This technique was first used by bloggers has been going strong for over a year at WinebloggingWednesday.org).

As more Millennials join Twitter, I suspect wine marketers will be among the first to engage them with real social currency -- knowledge of and news of wine, where to find it, and connections to real wine authorities. What makes these conversations so powerful is that they can happen right in the store or restaurant. Mike McGowan, aka @WineGuyMike is creating in-store kiosks and a few months ago I blogged about Drync Wine, a cool mobile app for easy access to wine recommendations. Mintel data suggests that it will be worth the effort: adults 18-24 are more likely than average to say they 'stick with the brands they know' and more decided based on brand than on price.

Millennials' love affair with wine is part of a larger relationship wtih gourmet foods. Millennials think of food and wine as an 'art form', and eating and drinking with discrimination as another means of self-expression. Although it may seem counter intuitive, a love for gourmet actually decreases with age. 22% of young people 18-24 agree with the statement "I try to eat gourmet food whenever I can", a figure that is 20% higher than that of all U.S. adults. Their love of fine food extends to wine. Unlike French Millennials, young adults in North America are increasing their wine consumption. A Gen Y blogger who calls himself 'The VinoBandito' describes the appeal this way:

I’d like to let you in on a little secret about young people. Just around the time we reach legal drinking age we also start to have a desire for sophistication or a desire to be seen as an adult. We’ve done a lot of moving on from our teenage years and, contrary to popular belief, the majority of us are not a bunch of binge drinking, hard partying, pierced, and tattooed hooligans as we are portrayed in the press. The majority of young people today are smart, ambitious, inquisitive, and above all we’re sophisticated and discerning consumers (even if we’re not yet, we like to think so). This is where wine can compete. Make us feel sophisticated, after all this is one of the ways it is marketed to adults. Wine is a complex and beautiful drink with a great history and a great culture. This is something a lot of the Millennial Generation would love to learn about but the marketers don’t think we want to learn the story. Sure we have our idiosyncrasies and like cool stores, but most of all we want to be treated like the adults that we are.

Millennial Food and Wine Enthusiasts: Announcing A New Exploratory Study

Evidence that Millennials are food and wine enthusiasts isn't hard to find. When my daughter, Ariella (right), went to Hong Kong two summers ago, most of her photos were of the things she ate -- both before and after they were cooked. The title of her Facebook album "Adventures in Cuisine", sort of says it all.

Two of our Millennial researchers, Sara and Marty of Portland, OR record their meals in area restaurants in a blog, knowourvelocity.com and regularly post reviews on yelp.com. While doing taxes they "discovered a shocking amount of money was spent on dining in and out for just the two of us last year." In March, they travelled to Ireland.

Ariella, Sarah and Marty are all fairly typical of their age group:

• According to Mintel, two out of three Millennials are Cooking Enthusiasts who make an average of 4.4 ‘elaborate’ or ‘gourmet’ meals every six months.

• Millennials’s spend a disproportionate amount of their income on food, food away from home and alcoholic beverages.

• Millennials are driving growth in the beer, wine and bourbon categories. They tend to prefer premium / imported brands.

• Millennials are trading up from fast food in their restaurant choices: 18-24 year olds were the only age group to show a decline in the average number of meals eaten at QSR’s between 2007 and 2008.

• 18-24 year olds are 17% more valuable than the average customer to the leading seven chains of casual restaurants.

With their absolute size and aggregate income expected soon to exceed that of Baby Boomers, it is critical for marketers to understand how Millennials think about their food, beer and spirits choices. But learning about Millennials, and especially trendsetters, can be tricky. They are unlikely to respond to traditional surveys, and their answers are likely to be superficial when they do. By definition, their tastes can change rapidly.They are hungry for newness, and want to know what is emerging and coming next. Because of this mindset they don't get stuck being literal and instead thrive on new ideas and can envision how or why something not yet a part of their world might fit in.

Here's how Marty describes his desire to stay on trend:

I think one of the challenges is always keeping a brand or product 'new' while maintaining the core brand characteristics that drew Millennials to it in the first place. That's certainly true of my own experience anyway. Whether we're eating out or I'm cooking, the underlying motivation is almost always avoiding boredom...hate doing the same things again and again. I think there's a related tendency to want to avoid things (brands, idea, anything) that seems too mainstream. SEEMS being the key word. We've actually shifted our grocery shopping away from Whole Foods for that very reason, in part. All the excitement over 'natural' and 'organic' foods was new and exciting at first, but after awhile it seemed a little too..typical...like we were doing it just because it was the thing to do. Why do I want organic chicken again? What does that even mean? Why do two small chicken breasts cost me $15?

Understanding Millennial food and wine enthusiasts proves to be a very real challenge to marketers who want to learn how to make their offerings appealing. That's why we are starting a unique research project designed to investigate these questions. Here are some of the topics we plan to investigate:

• What motivates their interest in new tastes, flavors and experiences? What is emerging in terms of new tastes, flavors and experiences? What motivates these desires?

• Where do they learn about new food, restaurants, recipes, wine and distilled spirits products? What is the role of word of mouth, on premise consumption and off premise parties? Who do they look up to for recommendations?

• How important are characteristics such as ‘organic’, ‘locally grown’ and ‘hormone free’ in their food and wine choices? Everyone talks about it, but do they do more than make more than token gestures? What exactly what are they doing? What more would they like to be doing?

• How interested are they in travel shows, cooking shows, celebrity chefs and other food and wine media? Which ones are most influential and why?

• What are their different restaurant eating occasions? What drives or triggers a night out? What do they look for in a restaurant experience and how does that vary by occasion or who they are with? How important is the dining experience relative to the food? What would get them to eat out more often?

• How is the economic downturn influencing their overall spending and brand choices? Where are they cutting back and what are they holding ‘sacred’? If they had more money, how would they spend it?

The study will focus on Millennial trendsetters who love food and wine. If you are a marketer interested in partiipating, give me a call!

Gen Y to Marketers: All Millennials Are Not The Same

Leah Hennessey is a Millennial with a wine brokerage business. Her blog, "Millennier" offers advice to winemakers wishing to connect with others of her generation. She starts by suggesting that Millennials are a generation, not a type, and a diverse one at that:

"The Millennial generation, like every generation, is a group made up of VERY diverse people who all happened to be born within years of each other. We are rich and we are poor. We are waiters and CEO’s. We are crazy college kids and we are parents. What all of these different types have in common is the world that they grew up in, the universal experiences that shaped both their views and their expectations of the world around them. This is an important distinction and crucial to keep in mind. You truly can’t tell what someone in this demographic group will spend in your shop simply by noticing how old they are. This is a very sensitive subject with young people today, and that young couple in your tasting room are just as likely to assume that you will judge them based on their age… as you are likely to do it."

Of course we are all guilty of painting with a broad brush, and Millennials are right to be sensitive about it. The issue is even more complicated in that Millennials often nurture many different interests and sides to their personality. As one Gen Y'er wisely and succinctly puts it, "We're never all 1 thing."

My marketing students at Notre Dame often struggle with segment-specific marketing because it seems so much like stereotyping. How is it okay to address all Hispanics the same way? All New Yorkers? All new moms? It's more efficient however, to market to the rule, not the exceptions -- the trend not the outliers. Millennials do share characteristics, values and consumption patterns -- in everything from foods to media -- that distinguish them from other age cohorts. Any marketer wanting to connect with this critical age group needs to grasp what makes them different from other age groups. But to stop there is to make light of the complexity of this generation.

There have been some attempts at Millennial segmentations:

Mintel provides a segmentation based on education and income. They note college students are just 15% of the 71 million young adults 18-34 in the U.S., 'Affluent Young Adults' make up another 19%, and the remaining two thirds are 'Minimalists' or 'Unpowered Young Adults'. These groups are quite different in their demographics, buying habits and general outlook on life.

Cone provides a segmentation based on social responsibility. 61% of Millennials are 'Doers' who feel personally responsible for making a difference in the world. 20% are 'Active Doers' who are especially receptive to purchasing brands based on perceptions of social responsibility and cause branding. They volunteer at least once a week.

Pew provides a wealth of data for segmentation on politics, media use, values and religious beliefs.

With all this data at our disposal it's time to stop thinking of Millennials as a monolithic group and start finding some meaningful segmentations. As Leah Hennessey reminds us, "It’s crucial that you don’t make the same mistake by judging and generalizing in this way, even if it’s not on purpose. It will cost you a consumer."

Fussy Drinkers? Wine Brands Matter to Millennials

Wine drinking is exploding in the U.S., driven by lower prices and increased interest on the part of Millenials (see earlier blogpost). Total inflation adjusted sales of wine in the U.S. have increased 20% over the past five years and are expected to growth another 16% in the next five years (Mintel, 2008). Wine outpaced every other non-water beverage category 2005-2007, including beer, although distilled spirits comes close in rate of growth.

So how do Millennials choose a wine? Surprise! Brand names in wine mean more to Millennials than to older wine drinkers. While the 'animal names' may not work with older wine drinkers, popular and memorable names like Yellow Tail can mean a lot to a Millennial. According to Mintel, 29% of 21-24 year olds and 31% of 25-34 year olds say "I prefer wines with casual and fun names such as Red Bicyclette, Three Blind Moose, compared to old-school names such as Bordeaux or Beaujolais." This compares to just 18% for all adults. They are also more brand loyal. Millennials are much more likely than other adults to agree with the statement 'I stick to (wine) brands I know'. The % of 21-24 year olds who say they decide based on brand (55%) is higher than the number who say they decide by price (48%). (See table above).

Millennials' emphasis on brands helps explain the success of a new mobile phone app, Drync-wine. Launched originally in November, last week Drync added an iPhone application with the explicit goal of reaching "70 million tech-savvy Millennials, the fastest growing segment of the wine industry." Here's how they explain how it works:

Drync, LLC today announced the release of Drync-Wine, simplifying the way people research, remember, share, and purchase wine using their mobile device. Built initially for the iPhone, Drync-Wine is the only mobile wine application that scours multiple databases of nearly a million wine listings in real time to identify the exact wine a user is drinking. Perfect for the wine novice and connoisseur alike, Drync-Wine delivers expert reviews, ratings, descriptions, and pricing. Users may snap a photo of the label, save the wine to their own virtual wine cellar, add their own tasting notes, and even purchase the wine all from their mobile phone.

A million wine listings? With that many brands to choose from, this category seems perfect for social networking. Community features allow users to share wine information among friends. Future upgrades "enhanced community features such as twitter integration, enhanced sort and filtering of cellar data and wine recommendations." Sounds smart to me. Click here to learn more from Drync's blog.

Millennial Spirits: Make Mine Sophisticated

My Millennial friends tell me they are more likely these days to open a bottle of wine with friends than a six pack of beer. The data suggests they are right on trend. Overall, sales gains for wine and spirits are outpacing beer. And within the beer category, growth in imports and microbrews is outpacing regular beer. This trend, like so many, appears to reflect a growing sophistication in the tastes of young drinkers.

In June, Mintel released two new reports, one on drinking at home and another on drinking away from home. Both reports show similar trends by age: young people are increasingly opting for wine and vodka over beer. 32% of 21-25 year olds say they are 'drinking more liquor/spirits than last year'. The average number of microbrewed beers drunk by 21-24 year old microbrew drinkers increased from 3.0 in 2005 to 3.8 in 2007. And a full 38% of 21-24 year old drinkers say vodka is their top spirits choice in a restaurant or bar.

Diageo, a close watcher of Millennial trends, is among the first to really capitalize on the sophisticated appeal of vodka. Today, a new campaign is breaking for their new ultra premium vodka, Ciroq. Here's what Mediapost says about the new campaign, called "The Art of Celebration" featuring Sean "Diddy" Combs:

"Shot in black and white at one of Sinatra's former California homes, the 15- and 30-second commercials depict Combs as a high-spirited host amidst a chic crowd during an impromptu private house party. Combs is serving Cîroc, one of the world's only vodkas made from grapes, while engaging with his modern-day "Rat Pack" entourage. Sinatra, along with Dean Martin, Peter Lawford, Joey Bishop and Sammy Davis Jr., were the original packers. In the spots, Combs mingles, dances and jokes during the intimate party, before finally stealing a private moment to gaze into the night as the crowd enjoys a fun-filled evening inside. The spot represents a continuation of the brand's commitment to defining "sophisticated celebration"--a concept Combs embodies and cultivates both personally and professionally as a lifestyle and entertainment icon. During the holiday season, the campaign will evolve to focus on safety."

The combination of high style, celebrity and music is likely to appeal to Millennials, who are most likely less interested in 'luxury' than in what wine Fat Bastard calls 'Livin' Large'. As we have noted before, Millennials do not think of themselves as well-off, despite their relatively high disposable incomes. They do, however, see themselves as discerning consumers who value authenticity and quality. This campaign seems to hit the mark in both respects.

Millennial Target: Fat Bastard

With their above average earnings and sophisticated tastes, Millennials are an untapped market for 'luxury' goods -- you just can't call them luxuries. French Millennials are forgoing wine; U.S. Millennials are embracing it in large numbers. According to Nielsen, beer drinking among 21-30 year olds dropped 12 percentage points in the last 10 years, twice as much as those over 30. (Beer still accounts for 83% of Gen Y alcoholic beverage purchases, so don’t expect Beer Pong to lose popularity anytime soon.) Why are Millennials embracing wine? Well, it’s not because its hip or cool – wine is considered too elite to be cool. The answer is that Millennials have sophisticated tastes, a function of early exposure to the finer things in life by their boomer parents. (Most Millennials who like wine say they were introduced to it by their parents).

This is a huge opportunity for winemakers, and Fat Bastard is among the first to jump on it. Their irreverent web site does its best to take out the mystery and put in the fun:

The theme, “Are you Livin’ Large?”, strikes just the right note of luxury that doesn't take itself too seriously. The fifties motif gives the site a retro feel.

The 'hippo' logo is enough of an non-sequitur that it works to heighten the sense of whimsy; this is a wine brand that doesn't take itself too seriously. The hippo logo is nice extended into 'Hippo Couture' t-shirts and 'Hippo Culture'.

The site provides many opportunities to engage: a short fun survey, an invitation to 'share your story' and a contest to design a summer t-shirt. The tone is light and witty: "Tell us how you have reveled and regaled friends and family with the Fat bastard. Send photos of you and your fellow partygoers, enjoying Fat bastard in any lively (and legal!) scenario. Share with us your thoughts and impressions of the Fat bastard."

There is the obligatory advice on food pairings, recipe ideas and restaurant recommendations.

There's even a nice Breast Cancer cause marketing effort with $.25 donated for each bottle sold.

Above all, the site gives us a plausible back story for the product as well as the implausible brand name:

Thierry Boudinaud, a renowned winemaker who had crafted wines from California to France, from Chile to South Africa was sitting in a cold damp wine cellar one winter day when the door burst open. It was Guy Anderson his dear friend from London who had just arrived to sample the recent vintage. “It’s cold enough to freeze the balls of a brass monkey” Guy was a rebel in the wine industry believing that quality was paramount in a wine but that the average consumer hated the traditional intimidation heaped on them by most of the wine industry..... Thierry thought he would have Guy try an experimental wine he had in a few barrels in the back of the cellar. “Dis is a experiment wine we left it on de lees. We try it no?” “Sure Thierry, you know how hard it is to get me to try a new wine.” Both friends had no idea that leaving the wine in barrel on the lees (yeast cells) would result is such a dramatic difference from the wine they tried the day before. It had a wonderful color and rich, round palate. Both men stood and stared at each other for what seemed like five minutes until Thierry exclaimed “now zat iz what you call eh phet bast-ard” Guy laughed with a belly laugh you could clearly hear in the neighboring town. He had used the expression Fat bastard often to describe things that were great but hearing it in a French accent made it so much funnier.

Changing Spirits of the Times

In an earlier posting, I noted French Millennials are forgoing wine, Mon Dieu! Now Nielsen is reporting U.S. Millennials are forgoing beer in favor of wine. Shocking but true, beer drinking among 21-30 year olds dropped 12 percentage points in the last 10 years. For comparison, over thirty's beer consumption dropped just 6 percentage points. According to Nielsen, most of the 'slack' is being picked up, you guessed it, wine! (Before we get too carried away with this insight, Nielsen also points out that beer still accounts for 83% of Gen Y alcoholic beverage purchases.) Research by Gallup and another study by the industry group, Wine Market Council, confirm the trend. The Boston Globe speculates that "Millennials have the potential to become the next generation to embrace wine in numbers not seen since the baby boomers."
What does this trend tell us about the tastes of U.S. Millennials? A lot, according to qualitative research by Liz Thach, Sonoma State University. First the research revealed that only 18% of Millennial wine drinkers see wine as "hip or cool". Most in fact think it is too 'elite' to be hip or cool and wish that marketers would portray wine drinking as more 'fun'. Instead, the Millennials who drink wine regularly drink it because they like the taste and think it goes well with food. Furthermore, (big hint here), half said that they were introduced to wine through a family member. This suggests Millennials tastes are influenced by their Boomer parents. The Boston Globe put it this way:

Thach's (focus group) respondents seemed to have sophisticated culinary interests. She says they watch cooking and decorating shows, throw dinner parties, and eat interesting, diverse foods. ''They like wine with food," she says. ''This is where I see a trend happening in this country, which also happened in Australia several years ago -- what they call the cafe society. We are starting to be more interested in the good things in life: good wine, good food, friends, taking time out to relax and enjoy things. This is actually one of the values we identified of this generation...The generation who grew up with free-range chickens, organic vegetables, and working moms who stopped for take-out on the way home were exposed to all kinds of food from an early age. Add to that the array of imported foods and beverages available to them -- this demographic moves from Swiss chocolates to Hershey's bars with ease -- and you have one possible explanation as to why the diversity of flavors in wine are appealing to this group.

This insight confirms my earlier assertion that Millennials, with their above average earnings and sophisticated tastes, are an untapped market for what many consider 'luxury' goods. You just can't call them luxuries.