Napa's Age Problem

  Napa has a problem similar to Buick's. Huh? Buick was traditionally an old people's car. Something you bought when you retired. The marketing folks at Buick have always worried about their customer base dying off so they tried to invent ways to attract younger buyers.

  Millennials, aged about early 20s to mid-30s, make up 17% of the premium wine market. The main reason for it being so low is, of course, price. Traditionally it's been folks in a more comfortable earnings bracket that buy $25-up wines. People have more choices now and most of the new trends are aimed at the younger people. Alternatives like craft cocktails, craft beer, cider, and cannabis.

  There are quite a few Millennials in the booming high-tech biz in the Bay Area and they can afford to spend more on wine. However, it seems most are still living in apartments meaning little wine storage space. I've talked to more than one younger couple in a tasting room saying, "I'd love to buy more wine, but we're in an 800 square foot apartment." With high housing costs it's damn near impossible to buy that starter home -- something with a spot to store a lot of wine.

  Napa is most definitely in the over $25 wine category -- way over. Visitation in Napa Valley is down, but the dollars spent per visitor are up and this works just find for now. The wines are known for their high prices, but even tasting fees are averaging $40 per person now. Add in expensive restaurants and very expensive lodging and you're talking real money.

  Tasting rooms have mostly gone "loungey" with seating, music, cheese plates, and an experience of some kind. A few try to be hip for the younger crowd, but I don't know if that on its own is going to work. You'd want to throw in $15 tasting fees and $25 wines, but I don't see that happening in Napa. I'm not sure they should even be worrying about the 28 year old wine taster though some see it as, "If we don't get their attention now we'll lose them forever." Maybe, maybe not. Maybe Napa is now something to aspire to.

  This isn't just Napa. Any premium wine region is feeling it though not to the same extent. In Sonoma County you'll find a number of seated tastings, fees probably average $15-20, but there aren't too many $25 wines left. I don't think the problem is just Napa as other areas are pricing most younger folks out of the market, but it's more exaggerated there.

  In those old days of the 1980s I was able to visit Napa Valley any time as tastings were zero to $5 and wines were maybe $25. That is, I didn't feel priced out. There's no denying their success today and it will continue at least in the near future. The question is, "Is it sustainable?"