Wineries pour efforts into luring young adults

Published: March 6, 2013 

BIZ WBS-YOUNGWINEDRINKERS 2 LA

Wine Riot, a tasting event focused on millennials, is helping push sales to new records. Events like this one in Los Angeles are being held around the U.S., complete with crash seminars on wine, fake tattoos, deejays and photo booths.

Luis Sinco — MCT

Irreverent labels, easy-drinking wines, singles events and laid-back tastings are aimed at demystifying the elite atmosphere around the industry.

Increasingly, Chardonnays, Pinots and Cabernets are sharing shelf space at your local store with some unusual names, such as Bodacious Brunette red and Buxum Blonde white.

Veteran collectors might turn up their well-trained noses, but the vintners promoting such brands aren't targeting those buyers.

With many of their best customers nearing retirement age and starting to cut back, American wineries are going after younger consumers in a bid to keep their $33 billion industry growing.

"The battle is on" for younger drinkers, said Danny Brager, an alcoholic-beverages expert for global measurement company Nielsen. "Everyone's being aggressive."

The courtship was on display last fall in a former bank building in downtown Los Angeles, where event company Second Glass hosted one of its Wine Riot parties.

To bass-heavy tunes mixed by a disc jockey, more than 1,200 young patrons paid $60 each to wander by booths set up by wineries and get unlimited pours from a selection of about 250 wines.

A free smartphone app helped the mostly twentysomething guests - resplendent in their jeggings and plaid - navigate the event and remember the wines they liked. They flocked to the temporary tattoo station and photo booth, noshing on french fries from food trucks and sipping Rose d'Anjou, touted by posters as pairing well with Thai food and burgers.

"It's fun socializing and getting tipsy," said Ellie Yi, 26, a Playa Vista advertising account executive who attended the Los Angeles event with eight friends. "Nobody's judging you if you don't appreciate the 'complex blends.' "

Second Glass founders Morgan First, 29, and Tyler Balliet, 32, launched Wine Riot in Boston in 2009 to educate and engage young drinkers; they took the events nationwide two years later. Their typical guest: novice drinkers, averaging 27.5 years old. The vibe: unpretentious.

Wineries love the events. In Wine Riot's early days, First and Balliet drew participants from wineries owned by friends and acquaintances. Now, spots for booths sell out six months in advance, creating a waiting list of labels.

Baby boomers have been the main driver of the U.S. wine market for years, making up 40 percent of the customer base today. They are more inclined to buy expensive wines. West Coast wineries depend on the demographic for 44 percent of their sales, according to a Silicon Valley Bank survey.

But boomers born right after World War II are starting to retire. As they adjust to fixed incomes, they are downsizing their wine spending and the amount they drink, according to research group IBISWorld.

Meanwhile, the youngest drinkers, 21- to 34-year-olds known as millennials, are looking more appealing.

For starters, there are about 70 million of them. But many young drinkers already are being wooed by the craft beer craze and the rise of the cocktail culture.

The wine industry wants to convert these adults to Malbecs and Moscatos while they're still young, hoping to create a lifelong clientele.

Young drinkers are enthusiastic wine students, having been more exposed to wine at an earlier age than their parents. And more than half said they're boosting their wine consumption, according to a report from the Wine Market Council trade group.

"The take-away is that while baby boomers are still technically our best customers, millennials as a group … are the single most dynamic target for wine marketers," said John Gillespie, the council's president.

Wine companies also are churning out promotions with an eye toward being less stuffy and more sassy.

Newcomer Calendar Girl Wines makes Bodacious Brunette and Buxom Blonde. Constellation Brands, owner of old-guard label Robert Mondavi, is trying out brands such as Primal Roots and Simply Naked.

Celebrities are lending their names to labels. Early this month, Brad Pitt and Angelina Jolie said they were releasing a vintage rose wine called Miraval from their French estate.

Fergie of the Black Eyed Peas unveiled her Ferguson Crest label in Santa Barbara County last fall. Barrymore Pinot Grigio, created last year by actress Drew Barrymore, reflects her "fresh, dynamic and fun" personality.

Wine magazines are doubling the number of young writers and reviewers. Napa wineries are creating special tours for young guests clad in jeans, yoga gear and flip-flops.

"Top-tier brands that used to be untouchable are ... realizing that they can't just rest on their laurels," said Lara Sailer Long, wine director for the Los Angeles Food & Wine Festival. "They're trying to dust off their images and appeal to the young drinkers, not just the collectors."

Event company Rock N' Roll Wine organizes tasting parties in Las Vegas, such as one last fall featuring indie band Young the Giant. Some 3,000 guests paid $65 a head to participate in the festival at the Mandalay Bay beach resort.

There, said co-founder Chris Hammond, "no one's scared to drink rose."

Though millennials tend to be more sensitive to price and less knowledgeable than older buyers, they still want to be treated as serious wine consumers and not dollar-bin divers, said Mike Veseth, a wine expert and economics professor at the University of Puget Sound.

"Young people are looking for value but not a cheap buzz," he said.

Young wine consumers are willing to experiment and eager to develop more sophisticated palates, said Jesse Porter, 29, who runs a discussion group called Young Winos of LA. But companies that pander to buzzy trends are pigeonholing the demographic.

"Wine producers, retailers, restaurateurs and event organizers have resorted to all manner of gimmickry," he said. "But none of these misguided appeals address the ever-growing desire among young drinkers to know what it is they're drinking, why it tastes the way it does and how that information will help them discover other wines they like."

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