Sobering thoughts (pardon the pun) on Millenials' wine consumption

There are reasons to think that wine consumption will slowly decline in the US, according to this article by Rob McMillan.

Crushing student loans are keeping Millennials from owning homes at the same rate as Boomers when they were that age. This means that Millennials don't/won't have as many wine cellars to fill as Boomers do. And, because premium hard liquor is a bit cheaper than premium wine, thrifty Millennials tend to drink the hard stuff instead. And the anti-alcohol movement is momentarily succeeding in vilifying all alcohol, using bad science to dispute the long-proved notion that moderate wine consumption has health benefits.

All this, coupled with the aging of the Boomers, will tend to reduce wine consumption in the US. Wineries need to be careful about expanding, and lower-cost premium wines may win out over wines that are clearly-overpriced.  Epona (both the winery and the virtual wine shop) focuses on making/finding good wines at lower prices, and so we hope we're well-positioned for these trends. Three Epona wines just won Double Gold, Silver, and Silver at the state's-best Seattle Wine Awards. And of course we're one of the most-sustainable "Green" wineries in the country, with modern grape varieties that are grown organically and never need spray or netting, that don't see fruit having to be trucked over the mountains, to get wine to consumers. And we are 100% powered by solar energy. You just cant get more "Green" than that!

Growth in wine demand is slowing as Boomers age:

Silicon Valley Bank released its State of Wine Industry report. Highlights:

1. Growth in "premium" wines (wines costing more than $10--that shows you how far up in the wine price curve you are!) is slowing dramatically, probably due to the movement of Boomers away from wines (as they develop age-related health issues, and/or die), and the relatively higher support among Millennials for hard liquor, with less demand for wine. Also, many Boomers who still drink a lot of wine are transitioning to slightly less-expensive wines, as they begin to adjust to a retired life on a fixed income.

2. Ultra-high-priced wines will have difficulty raising prices.

3. Most wine consumers are still moving up in the price curve, but this is predominantly moving up out of the $4-$7 price range, to prices barely higher than that.

Here's the article.

(photo credit to google.com; pictured are some hyper-expensive wines)