Wine: Boomers drink the most, but Gen X is catching up and Millennials want more
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Wine: Boomers drink the most, but Gen X is catching up and Millennials want more

Wine – everyone’s drinking it. Towards the end of last year, Wine Access released results from a 10-year survey that aims to understand the U.S. wine market. The respondents included 1,800 “fine wine consumers” in all legal demographics from around the nation. For investors in the industry, what they had to say makes for interesting reading.

Treasury Wine Estates’ share price is up by 12% so far this year

graph 2802 wine

SOURCE: Yahoo Finance

Boomers are the U.S.’s major wine-buying bloc. Millennials might be the largest demographic that’s into the drink, and Gen Xers might spend the most per person – but Boomers combine a larger number of drinkers than Gen-Xers with a larger per person spend than Millennials, making them top dog for the forseeable future. The differences in how much these groups spend are surprising: Millennials spend $4,163 annually, Boomers spend $4,900, and Gen Xers spend $5,717.

According to the report, when Boomers pass the baton, they will do so to the next cohort in the temporal line, Gen-Xers. Researchers wrote:

“As their careers, and incomes grow, it is Gen X who will be taking over from the baby boomer generation as the dominant fine-wine consuming demographic . Gen X was the most likely to spend $70 on a bottle of wine more than once a month, are the most engaged wine clubs customers and are growing their wine cellars.”

It is important – and heartening, for investors – to learn that Millennials would like to spend more on wine… they just can’t afford it, apparently. They’re also the most adventurous drinkers, with a preference for rare and unusual wines. The reason this is good news is simple: as Millennials (hopefully) make more money in the future, the “thirst” for more wine is there waiting to be sated.


Dominion holds Treasury Wine Estates in its Global Trends Luxury Fund.

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