Will this new Sonoma County wine be a hit with millennials?
The label Billy D. Wines, produced in Sonoma County, is a new arrival on many retail shelves, and the vintner behind it hopes it will pique the interest of millennials, a sought-after market, for its unique varietals and its eco-savvy 500-ml bottlings.
“There comes a time when there’s a need for some disruption,” said vintner Billy Davies. “We can’t let wine disappear with seltzers and liquors. Wine has a great story. If we want to make wine provocative going forward, we have to do something else.”
Millennials, ages 25 to 40, are estimated at 1.8 billion worldwide and vintners like Davies are competing to snag the market share of the largest generational group on the globe.
“Craft cocktails are making a resurgence, and you can see the theater of the bartender making the cocktail,” Davies said. “Why would I want to pay $16 for a glass of pinot noir?”
Indeed, the competition for millennial dollars is fierce, according to wine analysts like Rob McMillan, author of Silicon Valley Bank’s highly regarded annual “State of the Wine Industry Report.”
McMillan said health-conscious, budget-savvy millennials aren’t drinking as much wine as expected and they’re often substituting craft beers and craft spirits for wine.
“In a way, we’re getting beat by non-wine alternatives like seltzers and craft cocktails,” Davies said.
In the past, wine coolers and “fighting varietals” were the gateway to wine. Fighting varietals are mainstream varietals like chardonnay and cabernet priced at roughly $5 to $7, a step above jug wine and just below the less-expensive estate-bottled varietals.
Billy D. Wines, Davies said, are a portal to wine because they’re budget-wise, low-alcohol everyday libations.
Bucking convention
Davies, 59, is the oldest son of the late Jack and Jamie Davies, the vintners of Calistoga’s Schramsberg Vineyards. A billy goat is the logo of his private label; it’s a nod to millennials he’s bucking convention.
Over coffee at the Calistoga Roastery, Davies shares his lineup of wines. His salt-and-pepper hair is more salt than pepper, but he has a boyish grin and visible enthusiasm when he talks about Billy D. Wines.
The label features three uncommon varietals — French Colombard, a rosé of valdiguie and a mountain barbera — in 500-ml bottles with prices ranging from $11 to $13.
The alcohol levels for the French Colombard and the rosé of valdiguie are 11.5%, with the mountain barbera at 14.1%.
“You can actually drink this wine and not need a wheelchair and not get a DUI,” Davies joked.
Five-hundred-ml bottles, which serve three to four glasses of wine, are scarce on retail shelves. They only account for 1% of the market, with the standard 750-ml dominating at 74%, according to Nielson, the company that tracks consumer behavior.
“There’s very little marketed in 500-ml bottlings, but they allow people to try more wine at a lower cost,” Davies said. “I call it the cafe bottle because it’s a nice size for two.”
Local retailers said they’re happy to be the litmus test of this label’s popularity. It’s already drawing attention, they said.
“I’m carrying the label partly because it’s novel but the wine is also good,” said Barry Herbst, wine director of Santa Rosa’s Bottle Barn. “It’s a little early to tell if it’s popular with millennials, but I think it is. They are really drawn to what’s new or different like cans, orange wines or petillant natural (sparkling wine).”
Matt Smith, owner of Sunshine Foods in St. Helena, said he’s excited to have the label on his shelves because it stands out, since few domestic brands use the 500-ml bottles.
“I would expect the label to be popular with millennials, but I don’t have much feedback from that particular group,” he said. “Those I have access to say they like the eco benefits because the packaging offers a reduced carbon footprint.”
The entrepreneur gene
It’s not surprising that growing up on a mountain vineyard with two entrepreneurial parents would inspire Davies to be just as undaunted as they were.
“It’s just fate or DNA, but I just wanted to create something from scratch,” Davies said. “I’m like my mom and my dad.”
Davies’ family moved to Calistoga from Los Angeles in 1965 after purchasing Schramsberg, a neglected winery dating back to 1875, even though his parents had no formal training in winemaking. The Victorian home on the property was full of bats, but Davies’ parents had a vision to create an American version of Champagne.
While a few wineries in the region were making sparkling wine with the traditional French method, no one else was using the classic Champagne varieties of chardonnay, pinot noir and pinot meunier.
UPDATED: Please read and follow our commenting policy: