With wine sales -1.2% last 52 weeks in retail, operators are looking for ways to garner the attention of their sipping patrons. Boomers led all cohorts in their share of consumption of wine, but finding growth in this demographic has its challenges. The palates of this generation lean toward the much-loved varietals of Chardonnay, Cabernet, and Merlot. Younger drinkers on the other hand are choosing to spread their attention across alcohol categories, exploring cocktails and RTDs, with wine being a slice of their consumption. When they consume wine, they are more adventurous with their choices choosing varietals ranging from Sauvignon Blanc for Millennials to Gewürztraminer for Generation Xers, or Cab Franc to Bordeaux, respectively.
Because of these younger drinkers and their love of exploration, new trends are emerging including the growth of varietal and regions lesser known to their previous cohort. Since 2020 there's been an uptick in sales of lighter-bodied, chillable red wines like Gamay and Lambrusco between the months of May and August, and in 2023, rosé sales on the platform dipped by nearly 10 percent. This past summer, Barbera experienced a 16 percent increase in share within the red wine category compared to the same time period, while Gamay saw a six percent increase.
With so many players competing for a piece of the pie, there is a great opportunity for up-and-coming regions. Price inflation has led many people to expand beyond their established regions and into varietals that can provide a similar experience at a fraction of the cost. Operators should continue to focus on the core varietals but then use the remaining space to add variety, generational appeal, and good value to attract a range of wine drinkers.
Fastest-growing Wine Varietals On-Premise
Technomic: 10,519 menu items across 396 operators with five-year historical menus in Q2 2022-Q2 2023
Source: Technomic Ignite Menu national food trends data
