NEW YORK -- A lot has been written in recent years about the millennial generation, those U.S. consumers born between 1977 and 1995. They shop differently than older generations, according to several reports, opting for natural and organic products (38% more likely) and quicker to jump on new trends.
But when it comes to alcohol beverages, a category members of this generation has changed radically with their earlier moves into wine and spirits, it's an even different ballgame, according to a Nielsen report.
Value-Minded But Particular
When it comes to retail shopping, millennials are value-conscious and particular. They look for good deals, primarily online, and won’t think twice about downloading a store coupon from an app on their smartphone or tablet, the report said. While they’re deal seekers, millennials won’t give up quality or taste when it comes to their alcoholic beverage purchases. And as a result, a large percentage said they will not spend their money on mass-market alcohol beverages. That’s one factor that has led to the growing popularity of craft beverage alcohol products.
In a survey Nielsen conducted in August, 34% of spirits drinkers said they equate a higher price with higher quality either all or most of the time. Among millennials, however, the percent was a higher 41%, while only 27% of baby boomers associate price and quality. And a craft alcohol survey in May found that consumers ages 21 to 34 desire craft beer that is associated with being handcrafted, artisanal and top quality.
Much like their desires to purchase organic and healthy products, millennials are interested in trying new things and experimenting, and this appetite factors into the alcoholic beverages they choose. In aggregate, millennials are fairly brand promiscuous, especially when it comes to beer and wine, as a result of their adventurousness in general and the likelihood that until they “try” different brands, they don’t know yet what they’ll like or not like.
Pre-Store Buzz
Because of their affection for technology, millennials are generally more highly engaged in advertising, or pre-store buzz, than older generations. As a result, trial and pre-store promotions in the overall CPG (consumer packaged goods) space are critical to reach this group, whereas Generation X and boomer consumers are more interested in browsing and investigating labels when they are in the store. So while there’s a great opportunity to influence in-store decisions among older consumers, retailers and manufacturers need to influence millennial purchase decisions more so before they even get to the store.
But what about alcohol-beverage shopping? While this newest generation of legal-drinking-aged consumers is very planning-oriented when it comes to overall shopping, millennials plan less than Gen X and boomer consumers when they shop for alcohol beverages, according to the study. This makes them more engaged within the store than when they shop for other categories. As alcohol-beverage shoppers, millennials are prone to looking at product details, deals and promotions, providing a significant opportunity for retailer and manufacturer influence.
So for retailers and manufacturers looking to engage with millennials, the bottom line should be about focusing on a few key value propositions: authenticity, originality and value, the study concluded.
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