Young people prefer wine subscriptions to traditional clubs
Wine clubs, which thrived with the baby boom generation, seem inflexible to those under 40, who prefer the flexibility of subscriptions.
A wine club is a recurring sales model that allows wineries to reach high-spending consumers directly, bypassing traditional distribution channels. Members receive a selection of wines chosen by the winery, at a discount, delivered to their homes monthly or quarterly, along with priority access to new releases and invitations to exclusive events.
According to an article by WineGlass Marketing, the model has worked well with the baby boomer generation, but consumers under 40, accustomed to more variety and immediate access, perceive it as rigid. Millennials, in particular, prefer not to receive the same wine regularly and seek flexibility and variety.
Subscriptions offer more control: consumers manage their orders online and choose the frequency and quantity of shipments. They are popular among young people and provide access to new brands and products, with a particular emphasis on attractive packaging and engaging information.
Clubs and subscriptions work differently. Clubs are like a marriage, with long-term relationships, while subscriptions are more like a blind date, ideal for trying new wines without commitment. Subscriptions raise brand awareness, but they tend to have higher cancellation rates.
For wineries, subscriptions are useful in the initial trial phase, but they don't replace loyalty clubs. Clubs have proven to be an effective direct sales channel that fosters loyalty and remain important for the most loyal consumers. Differentiating the sales and technology approaches is crucial to adapting to this shift. In short, wineries should consider both models together.