As Millennials (1981-1996) and Generation Z (1997-2012) continue to explore wine and how it fits within their lifestyles, the wine industry needs to explore ways to keep these generations engaged. While industry events are strategized to showcase wines by their country, region, body or tasting notes, younger generations are more interested in the branding, story of the wines and environmental impact of their beverages, and the stories of the people that make them.
The 2021 Wine Market Council Benchmark Segmentation Survey¹ of 5,724 American consumers showed growing concern over Gen Z and younger Millennials. The survey determined that only 25% of 20-29 year old consumers drank wine. This group’s interests were floating towards other alcohol beverages, with 38% consuming beer and spirits. There are many factors that play a part in why a small fraction of younger generations consume wine versus Boomers with 34% of 60-69 year olds and 38% of 70+ enjoying wine. Despite these percentages, certain wine trends have stayed popular amongst all generations. This is inclusive of sparkling wines, RTD (ready-to-drink beverages), alcohol free and eco-friendly wines. Many of these beverages are branded as social or party drinks which bring in an aesthetic appeal to younger generations.
Popularity in beer and spirits has steadily increased with the industry’s consistency to stay on popular trends. Whether it is going viral with mixing Disaronno Velvet with Corona beer to create a fake Dr. Pepper, or Sapporo beer launching a seltzer product, these competing industries have creative ways to stay relevant for new generations. The beer and spirits industry has put themselves in a position to promote a single product through influencers, which have a large impact on younger generations. One of these is the Disaronno Velvet Summer Event Series, 3 influencer and media events to bring Disaronno velvet into the eyes of consumers. To spark interest in consumers, the wine industry may consider investing more in influencer marketing. Rob McMillan, the executive vice president of Silicon Valley Bank² reported that in 2021 roughly $122 million was spent by the wine industry on advertising, versus the two competing markets spirits and beer nearly spending triple ($533-$886 million). To bring wines into a brighter and more accepting light for Millennials and Generation Z, the wine industry needs to look at new ways to advertise the category.
Wineries that have devoted time to their image and aesthetic have been able to pivot within the industry, similarly to those in the beer and spirits world. Take Prosecco vs. Champagne for example. While Champagne is notoriously known as the “high end” sparkling wine, between December 2021 to December 2022 there was a 6%³ decrease in sales across the United States. Champagne brands have been known to rely on distributors and retailers to sell their wines rather than promoting through direct to consumer (DTC) ⁴ channels which in turn would restrict their relationship with customers. On the other hand, Prosecco kept their channels of communication open making their brands available to consumers by promoting products through numerous campaigns including National Prosecco Week. In 2022, Prosecco was promoted in over 1,000 retail stores and restaurants, alongside 1,100 online wine merchants. Through influencer partnerships National Prosecco week gained almost 800,000 followers organically⁵. Prosecco has not only made a name for itself in the wine industry but receives constant promotion to keep their image available to all generations whether that be through articles or social media. In turn, Prosecco had a market share increase of 26% from December 2021 to December 2022. Unlike Champagne, Prosecco went directly to customers by hosting 2 events in which over 200 consumers lived within the brand’s lifestyle. Not only having the ability to try several forms of Prosecco ranged at different price points to assist customers on a limited budget, but also being able to connect directly with other curious consumers.
To transition wine industry events to a new generation of drinkers, the industry will need to adapt to the demands of younger consumers. Some solutions include increasing the budget of branding to showcase the lifestyle their wines portray, whether this be a night on the town or a dinner party; adapting to cork to promote a greener wine and help aid the environment⁶; having influencer or consumer events to fully introduce the products rather than promoting them at large trade shows. These adjustments can be showcased at wine industry or smaller intimate events to help industry members select products that will better suit their consumer audiences, eventually, leading to an increase in popularity in wines amongst younger generations.
Sabrina Genovese is an event manager at Colangelo & Partners.
¹ Bratton, D., Smallin, A., & Gallagher, L. (2023, March 30). US wine market research and Insights. Wine Market Council. Retrieved April 25, 2023, from https://winemarketcouncil.com/
² Asimov, E. (2023, January 26). The American wine industry has an old people problem. New York Time. Retrieved April 25, 2023, from https://www.nytimes.com/2023/01/26/dining/drinks/american-wine-industry.html
³ Melnik, P. (2023, January 6). Why prosecco sales are booming. Santa Rosa Press Democrat. Retrieved April 26, 2023, from https://www.pressdemocrat.com/article/lifestyle/prosecco-sales-are-booming/
⁴ Lawrence, J. (2021, February 11). Champagne embraces direct to consumer sales. The Drinks Business. Retrieved April 26, 2023, from https://www.thedrinksbusiness.com/2021/02/champagne-embraces-direct-to-consumer-sales/
⁵ Prosecco doc consortium’s Fifth Annual ‘national prosecco week’ confirms the popularity of Prosecco Doc and prosecco doc rosé in the US market. Colangelo & Partners. (2023, January 4). Retrieved April 26, 2023, from https://www.colangelopr.com/clients-in-the-news/prosecco-doc-consortiums-fifth-annual-national-prosecco-week-confirms-the-popularity-of-prosecco-doc-and-prosecco-doc-rose-in-the-us-market/
⁶ Best for the environment – 100% cork: Produced by nature. preferred by winemakers. 100% Cork | Produced by Nature. Preferred by Winemakers. (2018, August 16). Retrieved April 25, 2023, from https://100percentcork.org/why-cork/best-for-the-environment/
In today’s rapidly advancing world of technology, brands are increasingly recognizing the value of artificial intelligence (AI) as a powerful tool to revolutionize their communication campaigns and transform their public relations (PR) efforts. AI offers incredible opportunities for brands to connect with their audiences in unprecedented ways, gain valuable insights, and deliver tailored messaging. Prepare to embark on a journey through the innovative realm of AI-driven communication, where brands unlock their true potential and redefine the PR landscape.
The rest of this blog post was written by Michelle Erland:
As someone immersed in the world of PR, I can’t help but get excited about the incredible potential of AI technology. I mean, just look at how it effortlessly crafted the paragraph above in a matter of seconds! AI technologies excel at processing vast amounts of data, identifying patterns, and performing complex “routine” tasks with remarkable speed and accuracy. They have transformed various industries, allowing businesses to optimize operations, personalize customer experiences, and obtain valuable insights. But amidst all this AI buzz, let’s not forget the heart and soul of what makes a brand stand out in a crowded world (and some would argue the reason we even have civilization), the one thing that will elevate the values of your communications agency to new heights AI can’t replace: human connection. Despite their remarkable capabilities, AI systems still fall short when it comes to the depth and nuances of human connection.
In this post we explore why genuine human connection is more essential for brands than ever before and how communications agencies will play a critical role in navigating this ever-evolving landscape, bridging the gap between AI and genuine human connections.
Human connection goes beyond the basic transactional interactions facilitated by AI. It encompasses the ability to truly understand and resonate with the emotions, needs, and desires of individuals. It is the human touch that inspires content and builds brand relationships with authenticity, empathy, and value. While AI can enhance these aspects of a brand, it is ultimately the fusion of human creativity, insight, and emotional intelligence with the capabilities of AI that unlocks the full potential of communications and relationship-building.
Before we explore the significance of communications professionals in the context of AI, let’s take a moment to celebrate the incredible work of our counterparts — journalists. While AI can lend a helpful hand in content generation, it’s the talented journalists who truly bring stories to life, uncovering authentic and captivating narratives. Upholding ethical standards, they ensure information is interpreted with integrity. With a deep sense of responsibility, journalists strive for accuracy, fairness, and transparency. Their dedication and expertise allow human connection to shine, enabling readers to form genuine bonds with a brand, feeling seen, understood, and valued. This connection paves the way for loyalty and repeat customers, making the third-party endorsement of journalists crucial for your brand’s success.
So what is the essential role that communications professionals play in this equation? They are the ones who research, provide leads and sources, and help your brand stand out amidst fierce competition. Working hand in hand with journalists, communications professionals ensure your brand’s message resonates with the right audience. Together, humans and AI can create a winning formula that keeps your brand thriving and strengthens your connection with your audience on a deeper level.
Here are several compelling reasons why PR agencies will become increasingly indispensable in a fostering human connection for your brand in a future dominated by AI.
Creativity and Storytelling:
AI excels at quickly processing and analyzing data, but it cannot offer creativity and craft compelling narratives. Communications agencies, on the other hand, thrive in the art of storytelling, combining creativity and strategic thinking to engage audiences on a deeper level. By understanding the values, aspirations, and pain points of their customers, brands can leverage human connection to craft narratives that resonate deeply. These stories humanize the brand, setting it apart from competitors and creating a unique identity. Through the power of storytelling, communications agencies authentically communicate a brand’s purpose, values, and mission, forging connections that leave a lasting impact on their target audience.
Human Insight and Emotional Intelligence:
Understanding human behavior and emotions is a fundamental aspect of communications, something that AI struggles to replicate. While AI can analyze vast amounts of data, it often falls short in comprehending the subtle nuances and emotions that form human interactions. Communications agencies have a deep understanding of human insight, emotional intelligence and perception, enabling them to craft compelling narratives that resonate with target audiences. They tap into the human spirit, leveraging emotions to drive engagement and build meaningful connections that AI cannot replicate.
Relationship Building and Trust:
Establishing trust with stakeholders is key for any brand’s success. Communications agencies excel at not only developing relationships but also in nurturing connections with key influencers, media outlets, and the public. While AI can facilitate data-driven analysis of consumer sentiment, it is communications professionals who have the expertise to interpret and respond to these sentiments in ways that build trust. By leveraging their network and interpersonal skills, communications agencies can foster authentic connections with the media and other key stakeholders that surpass AI’s capabilities, ultimately enhancing a brand’s reputation and credibility.
Crisis Management:
In today’s fast-paced digital age, crises can escalate quickly and have a significant impact. This is precisely where communications agencies prove to be invaluable. With their extensive experience in handling various clients and crises, they excel in navigating complex situations with speed and precision. While AI can assist in monitoring social media and identifying potential issues, it falls short when it comes to crisis management due to its limited ability to problem-solve. On the other hand, communications professionals are trained to swiftly assess the gravity of a crisis, devise customized strategies, and implement timely responses to minimize reputational damage. Their critical thinking, effective communication skills, and real-time solutions are truly irreplaceable when it comes to managing crisis situations. By having communications agencies by their side, businesses can confidently confront crises head-on and safeguard their reputation in the ever-changing world.
The power of human insight, emotional intelligence, relationship building, crisis management, and storytelling goes beyond what AI can replicate. These qualities are deeply rooted in our human nature—our ability to understand and empathize with others, adapt to unique situations, and strengthen trust through personalized experiences. While AI can enhance certain aspects of communication, it can never fully replace the profound and irreplaceable nature of human connection. However, by harnessing the synergies of AI, communications agencies can achieve an integration of data-driven insights and human expertise on behalf of their clients. This synergy propels brands to new heights in the developing world of AI. As we evolve into a future influenced by AI, human connection will remain an indispensable aspect of our lives, ensuring that authenticity, empathy, and creativity continue to shape successful communications strategies and build brands.
