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Wile the brewers and distillers unabashedly target the entry-Level just barely-legal-age-if-that drinker, the wine industry for the most part seems to be sitting on the sidelines, its dance card unfilled. Is that because wine is basically unattractive to the beginning drinker or because the wine industry is too proper for its own good?

First, let's do the numbers.

The fastest growing age group in the U.S. today is legal age to 27 years old. That age group will continue to grow in double digits over the next several years. Are they drinking wine? Despite the best efforts of groups like Wine Brats, that age group is not exactly whipping out its corkscrews to deal with the world glut of wine.

Example: There is a category called flavored malt beverages (FMB) or malternatives, brewed beverages with various flavorings added. This new category grew by 26% in 2001 and was certainly in double digits again in 2002, although the numbers aren't in yet. FMBs are often branded with a spirits name, like SKYY Blue (vodka), or Jack Daniel's. In on-premise sales, FMBs grew almost 70%, with most of that sold to 21- to 27-year-old drinkers. Ann Stickler, who is with Miller Brewing, said these entry-level drinkers represent well over one-half of FMB sales. "In their view, flavored malt beverages are distinctly different from beer. These consumers offer tremendous growth potential for the future," she said.

Miller has a growing portfolio of FMBs, including Stoli Citrona, Sauza Diablo and Jack Daniel's. "We offer retailers a portfolio of strong trademarks that deliver high impact at retail, and build on the established brand equity consumers recognize: SKYY, Sauza, Stolichnaya and Jack Daniel's," Stickler said.

"Jack Daniel's is one of the strongest spirit trademarks available and it has an established 21- to 30-year-old consumer audience," Stickler was quoted as saying.

Paul Wagner, owner of Balzac Communications, a Napa marketing and public relations firm, believes the wine industry is simply too cautious in its approach to entry-level drinkers. In fact, the very name "entry-level drinker" is pretty much a wine industry invention. Wine producers, for the most part, simply cannot bring themselves to say "young drinkers."

John Gillespie, whose Wine Market Council has done some excellent work on marketing wine, said, "From the very beginning, our efforts have aimed at people who already drink wine." He agreed that it was an "interesting topic" because of the large number of younger people who are reaching legal drinking age.

At a recent London seminar called "Reaching the Young Adult Market," Daryl Roberts, the publisher of Wine X, warned that not enough younger drinkers were drinking wine to support the amount of wine coming to market. Roberts, as quoted in Harpers, the wine and spirit weekly, said: "You have to remember that the big wine boom isn't due to people growing older and starting to drink wine. It's a result of a whole generation 'discovering' wine when they are moving through their 20s. They're drinking wine now because they were drinking it then, when they were establishing their consumption patterns for life. It's that simple. Yet the wine industry continues to market only to those drinking now, the 40-plus age group. Thus, after the baby boomers die off, consumption will fall back to where it was before the late 1960s, averaging 1% per year growth."

Other points made at the seminar:

* Wine is not cool.

* Wine is not fun.

* Wine is not as refreshing as beer or as alcoholic as spirits.

* Younger drinkers today have far more options available than previous generations, including RTDs (ready to drink single servings).

* Young people are more media savvy--wine has to be a lifestyle choice.

Constellation Brands

One company that is targeting entry-level drinkers very effectively is Constellation Brands, a division of Canandaigua. Constellation has, of course, a very wide range of wine products, but its Alice White, Arbor Mist, Talus Cellars and Almaden Sangria have introduced packaging and promotions which acknowledge that people under 40 do, in fact, drink wine.

The Talus Cellars brand offers fruity wines at a good price that are designed to appeal to new wine drinkers, Lisa Farrell, director of communications for Canandaigua said via e-mail.

"Talus has focused some of its marketing, advertising and promotions to help attract new wine consumers," she added. Talus recently added a Shiraz and a Pinot grigio to its line, two of the hottest varietals in the U.S. Last year, after it was acquired by Constellation, Talus underwent a packaging change that included an updated label for both red and white varietals, but the common theme--"the perfect grape" -- remained the focal point. The label image for the red wines features a single red wine grape floating over the breaking waves of an expansive ocean, while the image for the whites is a single white grape floating over an exotic, sun-parched desert scene.

Talus has also sought product tie-ins that would appeal to entry-level drinkers. They formed a partnership with Netflix, the online DVD rental service, to encourage people to "Wine, Dine and DVD" by offering a two week trial membership in Netflix when they buy a bottle of Talus.

"We know our consumers are looking for new ways to entertain and enjoy life," said Don Enos, brand manager for Talus when the partnership was formed in 2002.

Talus has also offered consumers discounts on ACT II popcorn, Stella Cheese products, and new all-in-one frozen Birds Eye Voila! meals. The current promotion offers consumers special in-store discounts (55 cents off) of any carton of ACT II popcorn.

Sangria In A Box

Early this year, Almaden Vineyards, a leader in the box wine category, released a red and a white sangria. The wines were introduced in a new package with high-impact vibrant colors and a festive theme that sets it apart from the traditional image of the segment. The core target for box wines is the 35 to 55 age group.

"Almaden is taking the box wine category in a new direction with two new flavors and a fun, energetic and vibrant design," said Diana Pawlik, Almaden brand manager. "The new positioning will broaden our consumer base while still appealing to our core users." Farrell said the goal was to attract a younger demographic. "It really takes the brand in a new direction," she added.

"The sangria flavor profile, which includes natural fruit additions, higher sugar levels and low alcohol, is an easy-to-drink product and an easy step to take for introductory wine drinkers. The new look and convenience factor associated with the sangria product is attractive to the younger, active lifestyle consumer," she said. Perhaps the Canandaigua brand that appeals most directly to younger drinkers is Arbor Mist, which is the No. 1 wine-with-fruit brand and has obvious appeal to younger drinkers. It was introduced in 1998. The target audience for Arbor Mist is primarily women aged 21-34.

"Today, the brand has attracted a loyal following, especially among younger people," Farrell said. "Much of the reason for the popularity of fruit-infused wines is their unassuming air. Acquiring wine knowledge can be a daunting task for the novice. In the case of Arbor Mist, the brand has demystified the selection process and made it easier for younger people who have grown up on sweeter drinks, such as soft drinks, to drink and enjoy wine. The brand satisfies expressed consumer demand for varietal wine with popular fruit flavors, moderate carbonation, low alcohol content, a moderate price and social acceptability," she said.

Last year, Arbor Mist introduced a single-serve plastic 375ml. It was the first wine-with-fruit brand to go plastic. "These bottles are perfect for the beach or those venues where glass is not allowed (sporting events, concerts, etc.) This new packaging line extension has been popular among young adults who enjoy an active lifestyle," Farrell pointed out.

Arbor Mist has just introduced Arbor Mist Wine Blenders, a kind of wine smoothie and the first on the market. It is the only blender drink made with wine--just add ice and blend. Arbor Mist Wine Blenders will be available in three fruit flavors: strawberry, blackberry and peach.

Have A Glass With Alice

One of the most innovative of Canandaigua's entry level brands is Alice White. Priced at under $10, the wines are fruit forward and affordable and the "Have a Glass With Alice'" campaign has been a huge success. (Alice is portrayed by a friendly kangaroo.)

A few months ago, Alice White updated its packaging with each wine getting its own vibrant front-label color and matching colored synthetic cork. The brand also became the first Australian wine brand to offer its wines in 187m1 bottles called "Lil' Joeys." Joey is also featured in Alice White advertising, which stays away from the vineyard/winemaker/bottle of wine theme.