Can't sell cheap wines to Milennials

J

Jeff Grossman

Jeff Grossman
What a discovery! Who knew? Apparently, not Constellation... and they think E.J. Gallo doesn't know, either.

What I particularly like in this article is the totally made-up explanations for why they can't sell crap wine: that Milennials don't have money so prefer premium spirits(???), and that they've been "slow getting into careers" (perhaps somebody at Constellation has a 20-something son lingering in the basement?).

Oh, by the way, "crap" here is the $9/btl market. The $11/btl market is doing just fine.

Can't make this stuff up.
 
originally posted by Jeff Grossman:
Can't sell cheap wines to MilennialsWhat a discovery! Who knew? Apparently, not Constellation... and they think E.J. Gallo doesn't know, either.

What I particularly like in this article is the totally made-up explanations for why they can't sell crap wine: that Milennials don't have money so prefer premium spirits(???), and that they've been "slow getting into careers" (perhaps somebody at Constellation has a 20-something son lingering in the basement?).

Oh, by the way, "crap" here is the $9/btl market. The $11/btl market is doing just fine.

Can't make this stuff up.
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It is horseshit. But the key is "Constellation put its U.S. wine business, which includes brands like Clos du Bois, Mark West, Arbor Mist, up for sale last year as part of its push to move further into cannabis. They just think there is more money in weed than in wine.
 
I also find it interesting that E&J Gallo has been quietly beefing up its Italian portfolio. Allegrini and Pieropan, both of which make wines I have enjoyed in the past, are now part of the Gallo empire.

Mark Lipton
 
originally posted by MLipton:
I also find it interesting that E&J Gallo has been quietly beefing up its Italian portfolio. Allegrini and Pieropan, both of which make wines I have enjoyed in the past, are now part of the Gallo empire.

Mark Lipton
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You are clear, I'm sure, that they didn't buy them. A E&J subsidiary is importing and distributing them.
 
originally posted by mark e:
originally posted by MLipton:
I also find it interesting that E&J Gallo has been quietly beefing up its Italian portfolio. Allegrini and Pieropan, both of which make wines I have enjoyed in the past, are now part of the Gallo empire.

Mark Lipton
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You are clear, I'm sure, that they didn't buy them. A E&G subsidiary is importing and distributing them.
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Yes. Sorry, I should have been clearer that it wasn’t an ownership issue. My point, such as it was, was that they’ve moved beyond the crassly commercial ersatz brands such as Mezza Luna and Da Vinci Chianti.

Mark Lipton
 
The wines made by a friend of mine were not selling at a premier restaurant here. They decided to raise the price on the wines and the wines began to enjoy a nice selling trend at the restaurant.

. . . . Pete
 
originally posted by Peter Creasey:

The wines made by a friend of mine were not selling at a premier restaurant here. They decided to raise the price on the wines and the wines began to enjoy a nice selling trend at the restaurant.

. . . . Pete
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Chivas Regal effect.

Mark Lipton
 
originally posted by Peter Creasey:

The wines made by a friend of mine were not selling at a premier restaurant here. They decided to raise the price on the wines and the wines began to enjoy a nice selling trend at the restaurant.

. . . . Pete
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So Josh Jensen was right....
 
Back in the early ‘70’s I spent two summers working for Canandaigua Industries, the precursor of Constellation. One of my many assignments was dumping case after case of returned Aquarius and Bacchus, ‘hip’ wines aimed at young people with throats raw from smoking cheap Mexican dope. So the difficulties of selling low-end wine to the youth market is nothing new.

By the way, the wine was blended into Wild Irish Rose, so it didn’t go to waste. And after two full days of opening old-fashioned screw caps my hands were shredded.

—
Steve Guattery
 
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