Treasury Wine Estates continues its successful pivot towards millennials
Millennials already account for 30c of every dollar spent worldwide – and that figure is set to increase sharply over the next decade. That’s why so many brands are suddenly taking them seriously. One company that got a head-start with the millennial generation is Australian wine producer Treasury Wine Estates (TWE). A focus on innovation, marketing, and culture has helped TWE branch out into younger demographics with greater success than its peers – now, it wants to take that strategy to Britain.
Treasury Wine Estates’ share price has risen by 2% over the last five days
Source: Yahoo Finance
Millennials can be challenging for alcohol companies. They drink far, far less than previous generations. About a quarter of Brits under 25 are tee-total… and the percentage of people under 45 who have a drink on five or more days of the week is close to zero. Additionally, younger drinkers have a taste for novelty and quality: they’re more likely to buy exotic premium rums or craft beers from a local brewery than the traditional drinks their parents preferred. What’s the solution? According to TWE, gin fizz – “a sparkling blend of white wine, botanical-infused water and a dash of gin.” At 8.5% its midway between a beer and a wine in strength, but more refreshing than either – perfect for summer days (and it’s no surprise TWE is looking to have it in shops and bars by then).
But how it will be sold is the differentiator. TWE has experience in using storytelling devices and augmented reality to shift previous brands (like 19 Crimes), where it’s seen incredible success. We’ll have to wait and see how the company deals with gin fizz, but the company’s manager for the millennial market has a clear idea of what’s needed: “They don’t necessarily care about vintage, varietals or terroir – they care about storytelling. They don’t just want to drink the wine, they want to experience it.”
Karen McCosh, TWE’s European marketing director, adds: “They want brands to speak to them in a way that’s authentic, and to use storytelling in a way that allows them to tell their friends about it.”
Dominion holds Treasury Wine Estates in its Global Trends Luxury Fund.
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