Millennials Have No Taste for Premium Wine

Mom and Dad are willing to pay up for a quality cab, but their children are saying, “No more.”

Premium wine, defined as wine priced at more than $10 a bottle, is “nearing its apex as a trend, indicated by the decline in total wine sales volume,” according to Silicon Valley Bank’s annual report on the wine industry.

The category is falling because of the difficulty in passing price increases on to consumers, and too many grapes. The current global pandemic, which is resulting in record unemployment rates, isn’t helping either.

“With an oversupply and the fact that price increases are nearly impossible against the backdrop of slowing sales, the trend and mantra of premiumization that pushed volume and price higher for the past 25 years is nearing an end,” Silicon Valley Bank’s report said.

Read the full article on Dimensional Insight.