The general consensus for wine-selection trends in 2013 focuses on an interest in the unconventional wines from New World producers including Argentina, as well as a resurgence of Old World wines from Spain—both seriously encroaching on the California wine stronghold. 

Demographic Groups to Watch
Millennials edged out other groups as the demographic that will continue to drive wines-by-the-glass sales, with 44.3% of survey respondents confirming that this group will outpace both Baby Boomers and Gen Xers. However, most industry experts (68.9%) reported that Boomers make up a “significant” portion of their wines-by-the-glass revenue. More than 70% of those polled also shared that Boomers account for 20% to 50% of their total wines-by-the-glass revenue. 

Napa Techology’s analysis is that although Millennials may be driving the exploration of new varietals, they most likely are spending less per glass than their more economically stable Boomer counterparts. This provides a huge opportunity to provide education and tasting opportunities for all demographic groups, with the goal of increasing what consumers will spend per glass.

Donna Hood Crecca, Technomic’s wine-industry analyst, reports that wine is firmly positioned as a food-friendly beverage appropriate for everyday occasions. She states that all the stars aligned at the same time—legible and understandable wine labels, familiar varietals and accessible price points—when Millennials came of drinking age. 

According to Gena Carlin, tasting-room manager at Up Valley Vintners in Calistoga, Calif., “Baby Boomers are slowing down on their wine buying. They have the cellar full, so to speak, and they are now making very selective purchases. In Napa Valley, Boomers want small, limited-production, hard-to-find wines. And when they find something they like, they’ll pay a higher price and purchase it by the case.” 

Driving the Wines-by-the-Glass Trend
According to 2013 survey results, value is the most important reason people order wines by the glass (39.5%), with opportunities to taste more wine as the second driver (29.6%) and individual palate considerations as the third-most-important reason (27.2%). Millennial preferences for individualism, adventurous palates and economic restraints contribute to the growth of the wines-by-the-glass trend.

“A strong by-the-glass program allows the customer to make a selection based on food pairings as they progress through the meal,” says Thea Dwell, wine blogger and founder of Luscious Lushes. “It also allows a party of two or more to enjoy their personal favorites, without having to agree on a single bottle.

A whopping 83.4% (more than eight out of 10 operators) report adding more offerings to their wines-by-the-glass programs. The majority (45%) have added three to five additional wine selections.

Varietals Gaining Popularity
Not surprisingly, given that value and adventure are two key traits driving the wines-by-the-glass trends, Malbec and Spanish wines were listed as those that are gaining popularity. 

George Wine, founder of exclusivewineclub.com,sums up the popularity of Spanish wines in the United States: “Spain has a long wine-making tradition and many years of marketing efforts to export to the U.S. market. A huge Spanish-speaking community, an emerging wine-drinking population segment in the U.S., makes it easier to engage with Spanish products. And as wine always goes with food, popular Spanish cuisine makes an appealing pair with Spanish wines.”

Champagne and sparkling wines were noted by 37% as a category that is moving up in popularity just behind pinot noir at 38.4%. While traditionally champagne and sparkling wines have been reserved for special occasions, this survey indicates that they are making inroads into the core rotation of everyday drinkers. According to Michele Smith, proprietor of Vino Bello, a Burien, Wash., wine bar and wine shop, “Bubbles are on the rise. We carry 10 to 12 splits on the menu, from champagne, Prosecco and cava to Brachetto, at all times to keep up with demand. And bubbles are not just for women; men are ordering up as well.”

Chardonnay was the clear loser, with 40% of survey respondents reporting that its popularity is retreating with more adventurous consumers. Many survey respondents believe that the increasing interest in other white wines, such as Albarino and Torrontes, is contributing to the demise of chardonnay. 

Wine, Women & Boomers
Women wine drinkers represent 30% to 50% of total wines-by-the-glass business as reported by our wine experts. Most recognize women, across all age groups, as the key to a robust wine business. 

According to Marian Jansen op de Haar, wine curator for Women of the Vines and the person responsible for choosing bottles for MORE magazine’s new wine club, More^® Uncorked, “Women are much more likely to choose a wine based on a recommendation from a friend and less likely to be as concerned with scores. For women, wine is an affordable luxury that can be enjoyed every day.”

Preservation Adoption
Although wines by the glass are becoming increasingly important to profitability, 55% report still using a dated manual preservation system and more than 18% of operators do nothing to maintain the quality of an open bottle of wine. 

This leaves the door wide open for competitors to capture market share from venues that do nothing to ensure a great glass of wine is poured every time. In a previous Napa Technology wine consumption survey respondents reported that most consumers were savvy enough to know when they were being served an oxidized or otherwise spoiled glass of wine.

The rapid adoption of the WineStation in mid-range and upscale brands, such as Shula Burger and the legendary steakhouse Ruth’s Chris, indicates that sophisticated wine programs are critical pieces to appeal to educated wine drinkers. 

Summary
Napa Technology believes that wines-by-the-glass programs will continue to grow as consumers demand more variety, operators gain positive experiences with wines-by-the-glass profitability, and wine-preservation technology becomes more widespread. 

Industry experts agree that a wide variety of global wines are driving consumers’ insatiable appetite for wines by the glass in restaurants, cruise lines, arenas, hotels and more.  To be successful with wines-by-the-glass programs, operators are deftly keeping up with today’s educated wine consumer by providing choices in varietals, value pricing and developing a deep understanding that each demographic requires a different approach.