Is your winery missing out on “the largest growth opportunity for most wineries?” According to American Express, Gen Xers have more spending power than any other generation!
It seems like every industry wants to reach Millennials, and with good reason. Pew Research reports there are 83 million Millennials in the U.S. and this audience has recently surpassed Baby Boomers in size.
Yet a potential market of 65 million Gen Xers who are more established in their careers, have higher household incomes, and money to spend is definitely worth your notice.
Plus, as a Gen Xer, and with many friends that are Gen Xers who all drink wine, this got me thinking why is no one talking about Generation X? For example, here is a recent photo from a summer BBQ we had with a group of friends:
Consider this informative excerpt from a recent Wine Opinions report – American Wine Generations:
“According to the Bureau of Labor Statistics, the average household spending by generation in 2014 was $43,942 for Millennial households, and $58,202 for Baby Boomer households. But for Generation X, average household spending was $63,137. And the same report showed that average household spending on entertainment was highest among Generation X households.
Moreover, Gen X consumers are willing to spend on higher priced wines. A recent report from an online wine seller shows that the average bottle price of wines sold to Generation X customers was higher than that paid by either Millennials or Baby Boomers.
Recent Wine Opinions consumer surveys also point to the importance of Generation X wine drinkers. Among all high frequency wine drinkers surveyed, Generation X wine drinkers have, on average, made more winery visits than Millennials in the past year. And though conversion in tasting rooms to winery club membership is still highest among Baby Boomers, some 35% of Generation X winery visitors in the past year joined a wine club, compared to 24% of Millennials who did so.
Wine marketers – especially those selling wines over $20 – would be well advised to pay attention to consumers between the ages of 40 – 51. They are spending more than any other generation, they spend nearly as much on wine as Baby Boomers, and they are outspending Millennials.”
Still not convinced? The 2016 SVB Wine Report concluded that Gen X is “the second largest consumer of fine wine in the U.S. today and are the largest growth opportunity for most wineries.” Just take a look at the forecast from SVB for wine purchases by generation below:
Born between 1965 and 1980, Gen Xers are expected to replace Baby Boomers as the dominant fine wine consumer around 2021. As a target audience, this generation is often overlooked so your winery could really stand out if you start connecting with them now.
Members of Generation X are known for being savvy, skeptical, and influential. So where do these wine drinkers fall into the updated 6 Different Wine Consumer categories (Overwhelmed, Image Seekers, Enthusiasts, Everyday Loyals, Price Driven, or Engaged Newcomers) provided by Constellation Brands?
Gen Xers are currently 36 – 51 years old. We already know they don’t mind spending more on the wine they drink so Price Driven is out. Image Seekers and Engaged Newcomers are two categories comprised primarily of Millennials. Therefore, the majority of Gen Xers will fall into the Everyday Loyals and Enthusiast groups with perhaps a small percentage in the Overwhelmed category.
For example, my marketing expert, Michelle, is a fellow Gen Xer who most identifies with Everyday Loyals. She has a favorite brand of wine and sticks with it, though occasionally she likes to try something new. She views wine as a treat and occasionally has a glass to relax after she puts her son to bed. Michelle said she was definitely Overwhelmed when she first started drinking wine. She didn’t know much about it, and there were always so many choices. She’s since evolved. 🙂
Now that we know more about what kind of wine drinkers Gen Xers are, how can you reach them?
- According to Forrester Research, traditional media is still important to Gen X (48% listen to the radio, 62% still read newspapers and 85% have favorite TV shows).
- Yet Gen X also is very savvy when it comes to digital media; 60% of Xers use a smartphone each day, and 75% are regularly on social networks per a survey by Millward Brown Digital. Additionally, Xers check their email often, and love watching videos.
Knowing who you are going to target also greatly helps companies like us, Bauerhaus Design, create packaging that appeals to Gen Xers.
Each demographic influences the type of font, images and overall design we use to create for your wine brand.
In conclusion, your winery should take an omni-channel approach in order to connect with Gen X wine drinkers. This means that consumers should be able to engage with you in your tasting room, on your website or mobile app, in their inbox, and on social media sites that matter to them. The experience should be seamless regardless of channel or device used, and your branding must be cohesive across the board.
Want to create a wine brand that targets Gen X wine drinkers?
As a full service branding and marketing agency, we provide a variety of services to help you build relationships with customers and sell more wine. Contact us to discuss your needs and we’ll provide a free estimate customized specifically for your winery.