This year, WineDirect and Enolytics partnered to create their ground-breaking 2021 DTC Impact Report: What Wineries Need to Do Now, pairing WineDirect’s robust consumer behavior and purchase-pattern raw data with Enolytics’ technology and expertise in processing and analyzing complex Direct to Consumer (DTC) data.
A primary goal of the report is to move data from “raw numbers” to meaningful information, so the teams worked together to turn the insights found in the report into actions that wineries can implement now to build their DTC business. The following are some of the findings we found personally very interesting and valuable.
While boomers remain the biggest spenders on wine, millennials and Gen X are growing quickly, combining for about 55 percent of net sales in 2021. As younger generations continue to increase as a percentage of wine sales, women are overrepresented in the youngest wine-drinking generations, Gen Z and millennials, and are nearly equal in Gen X. Women overall increased their percentage of DTC cases sold from 40 percent in 2017 to 44 percent in 2021.
Wineries looking to grow shortly would benefit from engaging with these important consumers. Here are a few ways to successfully drive growth among women and younger consumers.
Gen Z, for example, skews high in net sales onsite and at winery events, with more than half of Gen Z net sales coming from these channels. Anecdotally, we know younger consumers often gravitate to experiences and opportunities where they feel part of a community and can fully engage with products. This, combined with the trial opportunities provided, suggests onsite tasting rooms are the ideal channel to begin a relationship with these important younger consumers.
Wineries need to create experiences that will establish strong relationships with this demographic. Some suggestions for doing exactly that include:
Women consume a wide range of varietals but tend to skew higher for white wines and rosé wines. On average, they also spend less per bottle than men. Ensure you have some approachable options available for trial as a first step to attracting these consumers. Don’t be afraid to break with tradition and offer things such wine-based cocktails or fun recipes made with wine.
Gen Z has a significantly lower percentage of net sales coming from the wine club channel when compared with all other generations. Whether it’s onsite in your tasting room or online through the website, don’t push them too hard initially for case purchases or to commit to membership. Focus instead on smaller offerings, such as two- or three-bottle bundles. Always capture their contact information so you can continue to engage with them. This is the first step in their journey with your winery. Over time, as they enjoy your wines, they can be guided toward more expensive channels and wines.
Data in the 2021 Direct-To-Consumer Impact Report points toward engaging women and younger consumers as even stronger growth drivers for winery DTC. With creativity and imaginative strategies to involve them in your winery’s story, you can take the next steps to turn that data into actionable information that benefits the future of your business.