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Forbes
02-06-2025
- Business
- Forbes
How One California Winery Is Reinventing Wine Clubs For Millennials And Gen Z
A growing number of younger consumers are opting out of traditional wine clubs in favor of more flexible, personalized membership models. The traditional wine club—long defined by quarterly shipments, fixed selections and rigid commitment structures—is showing signs of strain. Amid shifting consumer behavior and mounting pressure to adapt, some wineries are beginning to rethink a model that has remained largely unchanged for decades. In El Dorado County, California, a few hours north of Napa Valley, Edio Vineyards has introduced a new approach that challenges the standard template. The winery now offers a monthly, pay-as-you-go membership in which funds accumulate in a customer account that can be used at their discretion—for wine, cider, food or goods from an on-site bakery. Christine Noonan, co-owner and general manager, says the motivation to rethink the system emerged from personal experience. 'Being in the wine industry for a while now, I have felt and learned that the traditional wine club system is a little archaic,' says Noonan, via Zoom. 'It's dated. Consumers don't want to be forced to take certain wines and are more interested in customizing.' Traditional wine clubs continue to serve an aging demographic, with a 2024 study showing that the average member is 59 years old and more than 75% are over the age of 50. Nearly 50% are retired, and about 33% earn more than $400,000 annually. This entrenched model faces increasing pressure as younger consumers—particularly millennials and Gen Z—show limited interest in rigid, quarterly-shipment clubs and instead favor flexible, personalized options. According to the 2024 Silicon Valley Bank Direct-to-Consumer Wine Survey, 19% of wine club members canceled their memberships, reflecting widespread dissatisfaction with the conventional structure. Despite this, 40% of wineries do not track member churn, limiting their ability to address retention issues and respond to shifting expectations. Flexibility is at the center of the model. Members pay a monthly fee—starting at $39—which builds over time and never expires. The funds can be redeemed on a timeline that suits the customer. The structure is designed to resemble a digital wallet rather than a subscription. 'We don't like calling it a 'subscription club' because it is so much more than that,' Noonan says. 'The word 'subscription' can be overused, often not even providing you with that much. Subscriptions can also be shady, continuing to charge people without them even realizing it.' Instead, Edio calls it a 'member account.' The goal is to eliminate surprises and remove the pressure to purchase unwanted products. Members can choose when and how to engage. For some, that might mean a single annual visit to restock. For others, it could mean smaller, more frequent visits with the option to use funds on a bottle of cider and a cheese plate. The approach is rooted in a generational shift. With Millennials and Gen Z consumers driving most new membership sign ups, wineries are facing increased demand for personalization and transparency. 'With all of us owners being Millennials, we obviously think a lot about what we would like,' Noonan says. This shift hasn't been without challenges. Moving away from fixed shipments complicates forecasting and inventory management. 'For larger wine brands, it might be hard to know what wines will move,' she says. 'Will you have an inventory issue? Will you find you shouldn't be making a particular SKU now?' Edio's solution is to release wines first to members, adopting a first-come, first-served model. Once a product is gone, it's gone. Communication is key. 'We've had to focus a lot on communication,' Noonan says. 'We frequently reach out to encourage members to make an order once their funds build up.' The model also addresses a longstanding concern for wineries: financial predictability. Even with flexible redemption, Edio still receives a steady monthly income. 'That was my biggest challenge when trying to figure out a new club structure—we need the dependable income,' Noonan says. 'But the beauty of this club structure is that we still get it. It's just monthly now.' So far, the results appear promising. 'The cancellation rate is significantly lower than what our traditional club was, and we are seeing a better retention rate,' she says. 'Our customers love the customization as well as smaller monthly payments instead of larger quarterly charges.' Other wineries are watching the shift with interest, but many are not ready to overhaul their own models. At Romeo Vineyards and Cellars in Napa Valley, general manager Mary Simmons says tradition still holds value. Romeo does allow members to adjust or skip shipments, but the core structure remains fixed. She says the model offers benefits of its own. 'Our members value the consistency and quality of our traditional biannual shipments, which offer a thoughtfully curated selection without overwhelming them with frequent deliveries,' Simmons says. 'This approach allows us to maintain a meaningful connection with our members while ensuring they receive just the right amount of wine at well-timed intervals.' Still, she acknowledges external pressure. 'There is a growing industry trend toward more customizable memberships, particularly among younger wine enthusiasts who appreciate flexibility.' Wayfarer Vineyard, located on the Sonoma Coast, takes a hybrid approach. The winery offers three annual shipments and allows full customization, including alternate selections and access to library wines. 'Why set ourselves up for failure by forcing our members to take a set selection of wines or quit the membership?' says Cleo Pahlmeyer, proprietor and general manager. 'Our club membership receives top priority in all that we do.' For Wayfarer, club tiers are deliberately limited. 'Our entry-level tier membership receives 18 bottles per year and the majority of our bottlings are $100 or over,' Pahlmeyer says. Still, the winery has introduced a second label, WF2, at a lower price point in an effort to reach younger audiences. 'We are finding these wines, with their value proposition and affordable price point, are resonating with younger audiences,' Pahlmeyer says. 'We have clientele who only purchase our WF2 [pinot noir] wines at the moment—but we hope with time they'll engage with the rest of our portfolio.' That long-term vision—creating a lower barrier to entry and building loyalty over time—is shared by Edio. 'A pay-as-you-go structure could serve as a stepping stone for customers who may later transition into a more traditional membership,' Simmons says. Pahlmeyer echoes the importance of deepening customer relationships over time, regardless of the model. 'The goal is to provide a compelling value proposition that also drives deeper engagement with our wines,' she says.
Business Journals
21-04-2025
- Business
- Business Journals
Minnesota State Fair revamps marketing with 4 local agencies
By submitting your information you are agreeing to our Privacy Policy and User Agreement . The Minnesota State Fair is shaking up its marketing approach for the first time in two decades, bringing on board a team of local agencies to freshen its appeal. Story Highlights Minnesota State Fair changes marketing strategy after 20 years. Four local agencies hired to manage different campaign aspects. Campaign aims to diversify fair attendance and reach all Minnesotans. For the first time in 20 years, the Minnesota State Fair is changing up its marketing strategy for the Great Minnesota Get-Together. Instead relying on independent contractors for advertising or other specific jobs, the fair did an official request for proposals for the campaign. The result: Four local agencies to manage different aspects of the campaign. The fair will act as the overall coordinator of the effort. GET TO KNOW YOUR CITY Find Local Events Near You Connect with a community of local professionals. Explore All Events Christine Noonan, marketing director for the Minnesota State Fair, said changing demographics across the state led to the pivot. "When your target market is everybody, but budget is not unlimited, you need to be very strategic about who you reach, when you reach them and how you reach them," Noonan said. "For some Minnesotans, all we need to do is make them aware of the dates. For others, the decision is not as an easy one, so we have a great message of value that we want to convey to folks." Agencies involved: Black Beach Digital Strategy, Minneapolis, will carry out the campaign's social media strategy. Minneapolis-based Hunt Adkins is crafting the creative campaign strategy. La Raza Agency, Richfield, will handle market research. Minneapolis-based Linnihan Foy will oversee media buying. Maya Santamaria, of Santamaria Broadcasting, the parent company of La Raza Agency, said one of her goals for the campaign will be to further diversify the fair. "Like a lot of governmental institutions in Minnesota, and just institutions in general, there has always been kind of a status quo of Anglo dominance, because of the history of Minnesota being a pretty white place," she said. "But that's changed, and a lot of organizations and agencies feel the need to change with the times and change with the community, and as a part of that, marketing departments need to also change how they do their work." Santamaria has been a consultant for the fair in years past as a researcher and anthropologist. She is also the owner of the La Raza, a Richfield-based radio station, that hosted the first ever first-ever Pan-Latina Day at the fair in 2023. Lacey Poppe, Linnihan Foy's account director working with the fair, said the agency is tailoring different messages to various audiences — but with one over-arching theme. "We wanted to make sure that every Minnesotan knew that the Minnesota State Fair is for them, and if they're not there, it's not truly the Great Minnesota Get Together," she said. "So a layered approach, you get multiple messages to multiple different people where they want to hear them at the right time to know that the State Fair is for them." As part of the creative campaign strategy, Hunt Adkins will produce a variety of assets that support TV, radio, digital, print, social and web channels. "The fair is where tradition meets discovery, and we're excited to bring that spirit to life in a campaign that invites everyone to experience it in their own way," Shanna Apitz, the agency's president and chief creative officer, said in a statement. Black Beach Digital could not be reached for comment. Ads for the campaign will start running this summer ahead of the fair, which will span from Aug. 21 to Sept. 1. Last year was one of the fair's best ever, breaking attendance records on nearly half of the days. From Aug. 22 to Sept. 2, over 1.9 million people attended, compared to around 1.8 million in 2023 and 2022, which was a jump from the $1.3 million in 2021.
