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Canadian Millennials and Beverage Alcohol A survey of 1,012 Canadian Millennials (aged 18 to 31)

January 30, 2013 Commissioned by: Prepared by: Jonathan Nadeau and David Coletto

Millennials on Beverage Alcohol Prepared for Bevsupport

Insight by Abacus Data Inc. 2

1.0 Executive Summary ............................................................................................................................................ 3 1.1 Key Findings ..................................................................................................................................................... 3

2.0 The Millennial Generation ............................................................................................................................... 4 2.1 YSegments -‐ Canadian Millennial Generation Segmentation ...................................................... 4 2.3 The Millennial Influencers .......................................................................................................................... 8 2.4 About Abacus ................................................................................................................................................... 9 2.5 About Bevsupport .......................................................................................................................................... 9

3.0 Millennial Alcohol Consumers .................................................................................................................... 10 4.0 Recommending Beverage Alcohol ............................................................................................................ 13 5.0 Shopping and Decision Factors .................................................................................................................. 14 5.1 Store Staff ....................................................................................................................................................... 14 5.2 Decision Making Statements .................................................................................................................. 16 5.3 Samples ............................................................................................................................................................ 17 5.4 Wine Reviews ................................................................................................................................................ 18

6.0 Beer ........................................................................................................................................................................ 19 6.1 Who is Drinking Beer ................................................................................................................................ 19 6.2 Craft Beer ........................................................................................................................................................ 21 6.3 What Millennials are Looking For ........................................................................................................ 23

7.0 Spirits .................................................................................................................................................................... 24 7.1 Who is Drinking Spirits ............................................................................................................................. 24 7.2 What Millennials are Looking For ........................................................................................................ 26

8.0 Wine ....................................................................................................................................................................... 27 8.1 Who is Drinking Wine ............................................................................................................................... 27 8.2 What Millennials are Looking For ........................................................................................................ 29 8.3 Regional Quality vs. Value ....................................................................................................................... 30 8.4 Wine Traits ..................................................................................................................................................... 32

9.0 Conclusion ........................................................................................................................................................... 36 10.0 Methodology ....................................................................................................................................................... 37



1.0 Executive Summary Canadian Millennials are a major market for companies that produce alcohol. They are the emerging generation of consumers and trend setters, and are quickly making up the bulk of the work (and consumer market) force. This report analyzes some of the shopping, buying and decision influencing habits that Millennials exert when purchasing beverage alcohol. 1.1 Key Findings

• Most Millennials are consuming alcohol, and a good portion of those can be considered regular consumers

o The Influencers, Millennials who have the biggest say in the generation, are even more likely to be regular consumers of alcohol.

• Millennials are recommending what they like to other Millennials by word of mouth o Facebook and Twitter also both play a role in how Millennials recommend beverage

alcohol they enjoy to others. o A small portion of Millennials choose not to share what they like with others.

• Millennials want to interact with knowledgeable and friendly staff when they go shopping at the liquor store

o They feel most comfortable with store staff that are older than they are. o There is a small, but significant portion of Millennials who want to be left alone by staff

when shopping for beverage alcohol. • Most Millennials know what they want to buy before they set foot in a liquor store

o There is also a good portion of Millennials who make their decision on what to buy in the liquor store based on what catches their eye.

o Millennials who receive samples in store, say they are more motivated to purchase the product.

• The majority of Millennials said they were beer drinkers o Craft beer drinking was popular among Millennials and of the craft beer drinker, most

would go out of their way to find it. o Price played the key role when influencing a Millennial’s decision to select their beer to

purchase. • Overall, Millennials were spirit drinkers, but a significant portion only consumed them on

special occasions o Price was the dominating factor when it came to influencing a Millennial to buy spirits.

• Wine was very popular among Canadian Millennials, few said they never consumed wine o Young Millennials (18 to 20) were the least likely to be wine consumers. o Price followed by recommendation of family and friends were the most influential

factors when it came to selecting a wine. • Ontario wines performed well in comparison to other global wine regions

o Wines of Ontario bested the rest of the world wines among Millennials living in Ontario. • Canadian Millennials wanted new world wines, with a cork and a classic looking label, in

the $12 to $20 price range o Female Millennials liked new world wines more than men.



2.0 The Millennial Generation Today Canadians are split into roughly five generations; the great generation, the baby boomers, Gen X, the Millennials and those who are 12 and younger. The term “Millennials” is one of many used to name the generation of people born between 1980 and 2000, but within this generation not all Millennials should be seen as the same. This generation spans an extremely diverse group of people at various different stages in their life; people who are still living with their parents, current students, recent graduates, people who have been in the workforce for 10 years, people buying homes for the first time, people having kids of their own and those struggling to find a career they like to make ends meet and pay off student debt. In Canada, Millennials often are not clearly understood. When we asked older Canadians about how they would describe this generation the most common responses were spoiled, lazy, entitled, and young. Our Millennial research team sees that there is a discrepancy between how Millennials are viewed by our parents and grandparents generations. We seek to dispel some rumours about the Millennials and get a real measure of what people in our generation are thinking, highlighting the difference between our generation and others. There are over 8.5 Million people in this generation in Canada, making up just over a quarter of the entire population (26%). By 2020 Millennials will make up over 40% of working-‐aged Canadians. As we exit the current recession and baby boomers seek retirement the Millennials will be the most important emerging market not only for consumer goods and services, but for driving innovation in business and public policy development. Perhaps more importantly, we will bear the load of supporting our families and other Canadians as they retire and increase demand on public services such as health care and public pension plans. We know that Millennials think differently, communicate differently and have different life expectations than any other generation. Our research looks into this generation from the perspective of our Millennial research team. Growing up with the Millennial generation we understand these differences first hand, now entering the workforce generational divides become even clearer. Our approach, integrating primary research, secondary research and our own experience allows us to appreciate these cohort differences and understand how these descriptions apply to various segments within the Millennial generation. 2.1 YSegments -‐ Canadian Millennial Generation Segmentation We’ve identified 14 character traits that Millennials use to describe themselves. Through cluster analysis controlling for gender, these descriptions provide the basis for our YSegments, a proprietary segmentation of the Canadian Millennial market.

Using these character traits we formed six clusters that help to define the Canadian Millennial group. The groups are…



Achievers

These go-‐getters want it all, they place a high priority on both having a family and a successful career. While achievers are outgoing, adventurous and willing to try new things, they are not normally described as carefree. In fact, many would consider them a little up-‐tight. Achievers identify themselves as stylish, cultured and eco-‐conscious. They are likely to buy organic foods, go to the gym or a yoga class and would rather avoid technology when they can.

The achievers make up 17 percent of Canadian Millennials surveyed. This group is mostly female (89%) with fewer male Millennials (11%). Half of Achievers (51.5%) are currently enrolled in either University or College and have the highest percentage of Millennials currently enrolled in full time studies at university. 37.4% of Achievers plan to return to school for more education as soon as possible, notably few (only 5.8%) are sick of school.

Pacers

While they may be shy, pacers know that people look to them for information. They grew up as important trendsetters in certain areas, like the technology industry, and they know this is their strength. Pacers prefer to congregate with people who have similar interests instead of following the flock to malls and parties. These self-‐professed “couch potatoes” may prefer to stay home but they are more likely to communicate with people from all over the world through social networks, online groups, and multiplayer videogames online.

Pacers make up only 16% of Millennials surveyed. This group is made up of 62% males and 38% females. Four in ten (41%) pacers have at least one parent that was born outside of Canada and for 32.7% of pacers both parents were born outside of Canada. 18.6% of Pacers are of East Asian or East Indian origin. Few pacers (24.2%) are interested in returning to school anytime soon. However 28.7% would consider returning after they gain some work experience.



Sparks

Artsy-‐Green-‐Millennials are eco-‐conscious, creative and want to make a difference. They tend to be more shy than outgoing. They value having free time and like living in the city where they can be close to everything. Most artsy-‐greens are working part-‐time jobs just to get them by and aren’t driven by career success right now. Artsy-‐greens would rather have a quiet night in than go out to a party.

Sparks make up 17% of Millennials surveyed. The sparks are made up of 64% female Millennials and 36% male Millennials. This group is made up predominantly of Millennials with European ancestry. Many (38.7%) sparks would be happy to return to school as soon as possible and 29.5% would like to return to school after they gain some work experience. With many sparks working only part time notably few sparks (3.7%) see the cost of education as a barrier to returning to school.

Stampeders

Stampeders are a unique male segment. They like to be in the centre of it all and tend to be outgoing, athletic, stylish, cultured and adventurous. They like to party, play videogames, watch sports and enjoy gambling. They are creative, eco-‐conscious and aware of new technology. Right now they are focused on their career and don’t mind living at home until they can afford a place of their own. Stampeders are confident of themselves in most things and, for example, most believe that they would do better than average in a fistfight.

The Stampeders make up only 14 percent of Millennials surveyed. Among the 100% male group fully 18.2% of Stampeders are French Canadian. Around 3% of Stampeders have African ancestry and 1.5% said they have Arabic ancestry, more than any other group. 38.2% of Stampeders would like to return to school for more education as soon as possible. Additionally, 33.1% feel that they would like to return to school after they gain work experience.



Fireflies

These footloose Millennials like to go out and have a good time. They are adventurous, outgoing and carefree. Driven by spontaneity they don’t usually make plans in advance. Whether they are in the gym or outdoors most footloose Millennials like to be active. Despite their wild ways, they hope to make a difference in the world someday.

Fireflies make up a large group of the Millennials surveyed (18%). This group is mainly female (84%) with fewer males (16%). One third of Fireflies have a university degree, and another third are currently enrolled with a university full time. Over half (54%) attended college and 9% currently are enrolled with a college. While this is not the most academic group 35.3% of footloose Millennials would like to return to school for more education as soon as possible, however, 21.2% do not think returning to school will make them better off.

Simple Lifers

Simple lifers have worked to get where they are. They are content working for a large company and hope to own a comfortable home in the suburbs someday. These Millennials like to wear nice but functional clothing and drive nice but functional cars. Most simple lifers do not consider themselves eco-‐conscious or creative and in their free time they prefer to kick back and watch a sports game.

Simple Lifers make up a large group of the Millennials surveyed (18%). This group is closest in representation from both males (52%) and females (48%). 20.7% of all Simple Lifers are French Canadian. Most Simple Lifers have either a university degree (46%) or attended college (46%). 36% are currently enrolled at university and 10% at college. Relatively few simple lifers would like to return to school for more education. They are more likely than any other group to be sick of school (12.4%) or think that more school will not improve their situation (23.2%).



2.3 The Millennial Influencers While these six segments identify unique personalities within the millennial generation, our research also revealed that there is a different segmentation structure for how millennials make decisions and influence others. Influencers represent Canadians who consume a lot of news and are influential among their peers, family, and friends. They share information, make their opinions known, and influence others. They help move public opinion by being filters between the media, elites, and other Canadians. Abacus Data’s The Influencers is based on The Strength of Personality Scale developed by the Allensbach Survey Center in Germany, which identifies a group of the most active opinion leaders called, the “influential.” We replicate this measure in our surveys by asking respondents a series of 11 survey questions that are statistically weighted according to their correlations with the scale (Noelle-‐Nuemann, 1985). Influencers are opinion leaders who are active communicators on issues that span multiple subject areas. In the Abacus Data version of the measure, Influencers are also identified by their media consumption habits. By testing respondents’ self-‐perceived levels of personal influence we can identify this group within the Canadian population. As tested by the Allensbach Institute the Strength of Personality Scale is shown to validly reflect a measure of real communication flow and level of influence across samples (Weimann, 1991).

The unique characteristics of each millennial segment are considered when explaining their views on consumption and decision making with regard to wine, beer and spirits.

Non-‐Influencers,

74%

Influencers, 26%

Millennial Influencers (n=1,012, weighted)



2.4 About Abacus Abacus Data is one of Canada’s leading public opinion and marketing research firms. Having conducted research for some of North America’s leading corporations and advocacy groups, we deliver global research capacities with the attention to detail and focus of a boutique firm. Our work is guided by our commitment to our clients, the research process, and looking at things differently. These values mean that all reports, recommendations, and analyses produced by Abacus Data are supported by rigorously tested data, and collected following the highest standards in research methodology. 2.5 About Bevsupport Bevsupport Corp. is a fully dedicated tasting company that is 100% designed and engineered to execute premium sampling experiences in the LCBO and at beverage industry events. We are a team of experts who understand both the beverage alcohol and staffing industry. Our in-‐store professional tasting staff consists of both male and female employees, never contractors, that are fully trained, insured, uniformed, Smart Serve & LCBO Serve Ability certified and on our payroll. Each staff member therefore is WSIB covered, CRA compliant and meet Ministry of Labour as well as Health and Safety standards. With over 50 years of combined industry experience, the management staff of Bevsupport Corp knows about connecting people. Our clients benefit from an accomplished team of recruitment specialists, business owners and accomplished wine, beer and spirits professionals with years of experience, contacts and industry relationships. Bevsupport’s continual effort to ‘raise the bar’ of expectations and effectiveness of tasting programs is what has set us apart from our competitors. Through innovative uses of modern social media technology, standardization of execution and simplification of communication, we have the studied industry knowledge that sets us apart from the typical in-‐store tasting company. Our client service oriented approach cultivates a consultative partnership that grows from understanding the market needs and goals of each product. Our goal is to match and prepare our tasting professionals with a specific brand demographic profile through continued training and by making secure dynamic information accessible to them at all times. Our hands-‐on, interactive approach with our clients fosters respect and builds long term relationships. Equally valued is our base of exceptional tasting professionals. Our “employees are our foundation” philosophy and team style allows us to really get to know our tasting professionals and ultimately, retain them with extended and fulfilling employment. The combination and balancing of the two approaches is how we deliver our industry leading service to our clients. With our committed company values, integrity and professionalism to both client and tasting professional, Bevsupport has and will continue to develop an outstanding reputation within a very competitive industry.



3.0 Millennial Alcohol Consumers

Nearly one in three (32%) Millennials are casual consumers of alcohol, this means that they are drinking either wine, beer, spirits or a combination of those only a few times per month. Twenty-‐eight percent of Millennials fall into the category of regular consumers; those are the ones who are consuming alcohol a few times per week to daily. The 17% who are special occasion consumers are those who only consume alcohol on special occasion, only a few times a year. Nearly a quarter (23%) of Millennials are not consuming any alcohol.

17%

23%

28%

32%

Special Occasions Only

No Alcohol

Regular Consumer

Casual Consumer

0% 5% 10% 15% 20% 25% 30% 35%

Millennial Alcohol Consumers (n=1,012, weighted)



Male Millennials are more likely to say they drank alcohol more regularly than female Millennials. More than one in five (22%) female Millennials are special occasion consumers, which is 10% higher than their male counterparts. Likewise, males are 13% more likely to be regular consumers. Among both, males and females there are 23% who are not consuming alcohol, and approximately a third (Male 31%, Female 34%) are considered casual consumers of alcohol.

Stampeders are the most likely to be regular consumers, 44% consume alcohol on a regular basis, with 30% considered casual consumers. Only 11% of Stampeders are special occasion consumers, and the remaining 16% are not consuming alcohol. Achievers have the most casual consumers, at 42%. Thirty-‐nine percent of Pacers are consuming no alcohol. Stampeders are the key segment to target as they are the most likely to be regular consumers of alcohol. They are closely followed by the Achievers (42%) the biggest consumers of alcohol on a casual basis. Fireflies also had a large percentage who consumed alcohol, second to Stampeders as regular consumers and second to Achievers as casual consumers.

23%

23%

22%

12%

34%

31%

22%

35%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Female

Male


No Alcohol Special Occasions Only Casual Consumer Regular Consumer

25%

16%

20%

16%

39%

29%

23%

11%

21%

20%

19%

12%

32%

30%

34%

42%

21%

34%

21%

44%

26%

26%

21%

25%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Sparks

Stampeders

Fireflies

Achievers

Pacers

Simplelifers





More than a third (35%) of influencers are regular consumers, with another 29% being identified as casual consumers. Only 19% of influencers are not consuming any form of alcohol

Bottom Line

Most Millennials consume some type of alcohol. Men were more likely to be regular consumers, but women make up a good deal of the special occasion consumers. Influencers are also more likely to be alcohol consumers, this is important because our research has isolated those in the influencers group as a key target when it comes to advertising and marketing campaigns.

24%

19%

17%

16%

33%

29%

26%

35%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-‐Influencers

Influencers





4.0 Recommending Beverage Alcohol

Over a fifth (22%) of Millennials said that they did not share with others when they found a beverage alcohol product that they liked. Nearly two thirds (65%) of Millennials said that they recommended alcohol they liked with friends in person, 20% said that they also texted friends. Eighteen percent said when they found a beverage alcohol they liked they posted about it on Facebook, while only 7% said they tweeted about it.

Bottom Line

This shows that although word of mouth is still king, Millennials are using alternate methods to recommend products to friends. Having a social media strategy to market and listen to Millennials is a must to sell to this market. Providing Millennials with tools that help facilitate sharing over Facebook, Twitter and text-‐message help create brand ambassadors out of Millennials.

4%

22%

2%

3%

7%

18%

20%

65%

0% 10% 20% 30% 40% 50% 60% 70%

Unsure

I do not share

Blog about it

Pin it on Pintrest

Tweet about it

Post to Facebook

Text your friends about it

Tell your friends in person

Generally speaking, when you find a wine, beer or spirit you like, how are you likely to share your opinion or recommend it to others? (n=780, weighted, those who consume alcohol only)



5.0 Shopping and Decision Factors Millennials rely on various key factors when it comes to how they arrive at the final decision about what to buy in the liquor store. This section outlines some of the most influential factors in this process. 5.1 Store Staff We gave Millennials a list of factors they face when they go shopping for wine, beer or spirits, and asked them to rank which were the most important to their shopping experience.

Factor Percentage Rank 1st Average Rank Staff is knowledgeable about the product information

29% 2.4

Staff is friendly 29% 2.5 Staff are helpful in finding other product 16% 2.7

Staff leave you alone to make your own decision

23% 3.4

Staff know history of product 3% 4.1

When Millennials entered a liquor store, we asked them to rank what they wanted out of a staff interaction. Nearly a quarter (23%) of Millennials ranked staff leaving them alone as the number one type of staff interaction they wanted. Of those who wanted an interaction, both friendliness and knowledge ranked very high in priority.



Millennials were asked what type of person they would most like to interact with in the liquor store. Overall, nearly half of Millennials wanted to interact with store employees who were older than they were. A third (32%) wanted to interact with other Millennials, and very few wanted to interact with those much older than them. Regular consumers were even more likely to want to interact with older staff.

37%

31%

29%

32%

40%

48%

49%

47%

5%

6%

5%

6%

18%

15%

16%

16%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Casual Consumer

Regular Consumer

Overall

Who would you feel most comfortable talking to about products in a liquor store? (n=780, weighted)

Sales staff about your own age Sales staff older than you

Sales staff much older than you No one



5.2 Decision Making Statements

Overall, Millennials (42%) are going into liquor stores with their minds made up, but over a third (34%) leave the decision to whatever catches their eye. Regular consumers have the highest tendency (26%) to consult the staff while shopping in the store. Influencers and special occasion consumers are the two groups that are most likely to have their minds made up before they even enter the store.

19%

24%

12%

19%

26%

20%

5%

4%

5%

3%

6%

5%

37%

24%

34%

39%

28%

34%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-‐Influencers

Influencers


Casual Consumer

Regular Consumer

Overall

When I enter a liquor store... (n=777, weighted, alcohol consumers only)

I know exactly what I’m going to buy when I go to the liquor store

I consult with staff in the liquor store to make a decision

I do research on my smartphone while I’m in the liquor store

I decide what I’m going to buy once I’m at the liquor store based on whatever



5.3 Samples

In-‐store samples played a role in getting Millennials to purchase product at the liquor store. Over half of Millennials (56%) agreed that a sample made them more inclined to buy a product, 16% strongly agreed and 40% somewhat agreed. This was even high among regular consumers, with 21% strongly agreeing and 50% somewhat agreeing. Influencers were the most likely to strongly agree at 24%. Influencers are more likely to be persuaded by a sample, this is crucial because they are the ones out of a group of Millennials who have the most pull in the decision making process.

41%

38%

31%

50%

50%

40%

18%

11%

17%

17%

18%

16%

11%

12%

14%

7%

5%

11%

17%

16%

19%

9%

6%

17%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-‐Influencers

Influencers


Casual Consumer

Regular Consumer

Overall

At the liquor store, when I get to try a sample I am more inclined to buy a product.

(n=1,012, weighted)

Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree Unsure



5.4 Wine Reviews

Wine reviews play an influential role in motivating the buying of wine at the liquor store. Over half of Millennials (51%) somewhat agreed that a wine review motivated them to select a bottle of wine and 11% strongly agreed. This was much higher among regular consumers (19% strongly agree), as well as influencers (21% strongly agree). Influencers were more likely to be influenced by wine reviews and therefore are key touch points between the review and their network of friends and acquaintances.

Bottom Line

Millennials are looking to interact with sales staff who are older than they are, because they want to interact with staff who are knowledgeable about the product and friendly to them. There is also a good portion of Millennials who want to be left alone while shopping for liquor. These are Millennials who enter the store with a pre-‐determined idea of what they are looking for. Although Millennials are mostly locked in their decision before they enter the store, there are a good deal of them who choose based upon whatever catches their eye. This decision can be ever more swayed through the uses of in-‐store tastings and good wine reviews.

51%

52%

35%

53%

57%

51%

22%

13%

24%

21%

16%

19%

8%

6%

12%

9%

4%

8%

11%

8%

25%

10%

4%

11%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-‐Influencers

Influencers


Casual Consumer

Regular Consumer

Overall

When I read a good wine review I am moLvated to go and buy that wine. (n=582, weighted, wine consumers)

Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree Unsure



6.0 Beer This section examines the beer consumption habits of Millennials. It also covers, the Millennial opinion on craft beer, and the important factors that make up the decision process to choose one beer over another. 6.1 Who is Drinking Beer

Over half of Millennials are beer drinkers, only 42% said that they do not drink beer. More than twice as many males as females said that they drink beer at least a few times per week. While over half (52%) of females said they did not drink beer. Older Millennials were more likely to respond that they were beer drinkers. Those in the influencers group were also more likely to drink beer than those who were not. Men are the largest segment that identify as beer drinkers, more than any other demographic, and far more than women. These are the Millennials that are to be targeted with advertising and tasting campaigns in store.

2%

4%

2%

5%

4%

2%

1%

4%

3%

16%

22%

20%

16%

17%

12%

10%

23%

17%

26%

21%

27%

28%

27%

16%

22%

27%

25%

14%

15%

15%

9%

12%

18%

15%

13%

14%

43%

38%

36%

42%

40%

53%

52%

32%

42%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-‐Influencers

Influencers

26 -‐ 31

24 -‐ 25

21 -‐ 23

18 -‐ 20

Female

Male

Overall

How oOen do you consume beer? (n=1,012, weighted)

Almost every day At least a few Xme per week At least a few Xmes per month Only on special occasions I do not drink beer



Stampeders were the segment that had the most beer drinkers, over three-‐quarters said that they drank beer, with 6% consuming it daily, 31% at least a few times per week and 27% at least a few times per month. Stampeders are all men, which is consistent with this broader demographic with the high level of male beer drinkers. Pacers and Sparks both had over half saying that they did not drink beer.

11%

31%

15%

9%

15%

13%

23%

27%

24%

27%

17%

25%

15%

12%

18%

16%

12%

13%

51%

23%

43%

47%

55%

47%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Sparks

Stampeders

Fireflies

Achievers

Pacers

Simplelifers

How oOen do you consume beer? (n=1,012, weighted)

Almost every day At least a few Xme per week At least a few Xmes per month Only on special occasions I do not drink beer



6.2 Craft Beer

Well over a quarter of Millennials (28%) said that they preferred craft beer to that produced by the large breweries. Over half (52%) said that it did not make a difference whether or not it was produced by neither craft brewers nor large breweries. Millennials in the 24 to 25 age range were the most likely to choose craft beer. Influencers were also more likely to choose craft beer over their non-‐influencer counterparts.

56%

43%

52%

39%

39%

55%

56%

50%

53%

52%

18%

23%

19%

23%

23%

20%

17%

21%

21%

20%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-‐Influencers

Influencers

26 -‐ 31

24 -‐ 25

21 -‐ 23

18 -‐ 20

Female

Male

Ontario

Overall

Do you prefer craO beer over products from larger breweries, or does it maQer to you?

(n=592, weighted, beer drinkers only)

I prefer craY beer It doesen't make a difference to me

I prefer beer from larger breweries



The Millennials who identified as craft beer drinkers were then asked if they would go out of their way to buy beer from craft breweries. There was overwhelming support for seeking out craft beer from other than the most convenient source.

61%

60%

58%

58%

68%

64%

55%

64%

53%

60%

39%

33%

38%

42%

32%

36%

43%

33%

44%

37%

0%

7%

5%

0%

0%

0%

2%

3%

3%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-‐Influencers

Influencers

26 -‐ 31

24 -‐ 25

21 -‐ 23

18 -‐ 20

Female

Male

Ontario

Overall

When buying beer, do you go out of your way to buy craO beer? (n=166, weighted, cra4 beer drinkers only)

Yes, I would go out of my way No, I enjoy it buy only buy it if it is in stock at my regular store No



6.3 What Millennials are Looking For

Price History of

Product

Packaging Staff Recommendation

Product Information

Product Reviews

Recommendation of friends or

family

Country/region of origin

Overall 2.3 5.6 5.2 4.8 3.6 4.8 3.7 6.1 Male 2.3 5.3 5.0 4.8 3.7 5.0 3.9 6.1 Female 2.2 6.1 5.4 4.8 3.4 4.6 3.5 6.0 18 – 20 1.9 5.0 4.7 4.6 3.8 4.7 4.7 6.5 21 – 23 2.1 5.5 5.2 4.9 3.3 5.0 3.9 6.0 24 – 25 2.5 5.8 4.7 4.9 3.6 4.8 3.6 6.1 26 – 31 2.4 5.8 5.5 4.8 3.6 4.7 3.3 5.9

Influencers 2.2 5.3 5.2 4.8 3.6 4.9 4.1 6.2 Non-‐

Influencers 2.3 5.7 5.2 4.8 3.6 4.8 3.6 6.0

*The lower the number, the more important the factor

Price was the biggest driver for purchasing beer across all demographics. Younger Millennials (18 to 20) had the lowest overall average when it came to price, meaning that they put the most influence on price. History of the beer and where the beer originated both ranked the lowest. Although, history of the beer ranked much closer to 1 for men than it did for women. Product information and recommendation from friends and family shared the second most influential spot for most demographics. Men are more likely to value the history of the product than women, giving it an importance factor of 5.3 compared to 6.1 for women. Another distinct difference can be seen in the much higher level of importance that younger Millennials (18 to 20) give packaging over the older ones (26 to 31). Older Millennials also put the most value in the recommendation of friends and family.

Bottom Line

Men make up a large segment of Millennial beer drinkers. They are the most likely to be regular consumers, with most drinking beer at least a few times a week. There is also a significant amount of Millennials who seek out craft beer over beers from the larger breweries and those who do almost certainly go out of their way to find it. Making craft beer more accessible to Millennials would most likely win over the large portion who do not care whether or not they are getting craft beer. Price point was critical in the Millennial decision to buy beer, all demographics ranked it as the most important factor. Recommendation of friends and family also played a key role, meaning any improvements in the word of mouth image of a product is key to having a successful beer in the Millennial market.



7.0 Spirits This section is covers the spirit consumption habits of Millennials, as well as outlines what factor make up the decision process to buy spirits. 7.1 Who is Drinking Spirits

More than half of Millennials were spirit drinkers. Only a small portion said that they drank them on a daily basis. Just shy of a quarter, 24% said they drank spirits at least a few times per month, and 20% said they only drank them on special occasions. As the age of the respondents increases, the likelihood of drinking spirits increased as well. Men and women who drank spirits at least a few times per month drank spirits at relatively the same frequency, but while men were overall more likely to be beer drinkers, women were more likely to drink spirits.

7% 9%

8% 7% 9% 7%

7% 8% 8%

23% 26%

26% 28% 25%

16% 24% 24% 24%

21% 19% 26% 22%

14% 14%

25% 16% 20%

48% 43% 40% 43%

51% 60%

44% 50% 47%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-‐Influencers Influencers

26 -‐ 31 24 -‐ 25 21 -‐ 23 18 -‐ 20 Female Male

Overall

How oOen do you consume spirits? (n=1,012, weighted)

Almost every day At least a few Xme per week At least a few Xmes per month Only on special occasions I do not drink spirits



Achievers had the lowest number (38%) of those who did not drink spirits, but nearly a third (29%) of achievers only drank on special occasions. Very few Achievers were regular consumers of spirits, this mainly fell on the hand of the Stampeders. Pacers had the most respondents who said they never drank spirits (63%) as well as having the fewest regular consumers. Stampeders had the highest level of those who drank spirits either daily (2%) or at least a few times per week (10%). Sparks, Stampeders and Achievers were the segments that produced the most consumers of spirits.

0%

2%

1%

0%

0%

1%

11%

10%

8%

5%

4%

9%

25%

28%

21%

28%

16%

24%

20%

18%

21%

29%

18%

17%

43%

42%

50%

38%

63%

49%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Sparks

Stampeders

Fireflies

Achievers

Pacers

Simplelifers

How oOen do you consume spirits? (n=1,012, weighted)

Almost every day At least a few Xme per week At least a few Xmes per month Only on special occasions I do not drink spirits




Price History of

Product


Product Information

Product Reviews


family



Influencers 2.3 5.5 5.2 4.5 3.4 4.8 3.8 6.6 Non-‐

Influencers 2.2 5.8 5.2 4.6 3.4 4.9 3.7 6.3


Once again price ranked the highest as the most influential factor when Millennials selected which spirit to buy. Product information and recommendations from family and friend both ranked second. This was followed by staff recommendation and product reviews. Packaging did not rank very high as an influencer of the decision to buy spirits. Although, history of the product ranked very low, male Millennials put more weight on their decision to select a spirit on history of the product than females did. Country/region of origin ranked last across all demographics. Males once again put more importance in the history of spirits than women did, but women put much more value in the recommendation of family and friends when selecting a spirit. The youngest of the Millennials (18 to 20) were the demographic that gave the highest importance to the packaging of the spirit in their decision making process. Recommendation from friends and family once again ranked high for the older Millennials.

Bottom Line

The majority of Canadian Millennials drank spirits. However, women are more likely to consume than men. There is also a greater proportion of respondents who only consume spirits on special occasions. These special occasion consumers are the group who are the most likely to have their minds made up before ever setting foot in a liquor store, therefore they need the most attention when it comes to advertising in mediums such as social media. The decision making process for Millennials, when it comes to spirits, like with beer, is heavily influenced by the price point of products. They also put emphasis on recommendations of family and friends, which ties back to getting their attention before ever setting foot in a liquor store.



8.0 Wine This section examines the wine consumption habits of Millennials, as well as the factors that lead Millennials to buy wine. Additionally, it covers some of the Millennial preferences when it comes to bottles of wine. Finally, it covers how Millennials view quality and value from wine across the globe. 8.1 Who is Drinking Wine

Wine was the beverage alcohol that the most Millennials said they drank, with only 42% saying they never drank wine. Only 3% consumed it on a daily bases, but one in ten drank wine at least a few times per week. Almost, a quarter (24%) said they drank wine at least a few times per month, and one in five (20%) drank wine on special occasions only. Young Millennials (18 to 20) had the highest percentage of those who never drank wine (59%), while the oldest Millennials (26 to 31) had the lowest percentage (34%). There is a significant jump from the youngest Millennial (18 to 20) to the older one (21+) on the percentage of respondents who drank wine a few times per week and those who drank wine a few times per month.

3%

4%

3%

4%

3%

3%

2%

4%

3%

9%

14%

12%

11%

13%

4%

12%

9%

10%

24%

25%

29%

23%

25%

16%

27%

22%

24%

21%

16%

22%

17%

18%

18%

21%

18%

20%

43%

40%

34%

45%

42%

59%

39%

46%

42%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-‐Influencers

Influencers

26 -‐ 31

24 -‐ 25

21 -‐ 23

18 -‐ 20

Female

Male

Overall

How oOen do you consume wine? (n=1,012, weighted)

Almost every day At least a few Xme per week At least a few Xmes per month Only on special occasions I do not drink wine



The key segments when it comes to wine are the Stampeders, Sparks, Achievers, and Fireflies. These segments represent the largest number of wine consumers. Less than a third of Achievers (32%) said they never drank wine, compared to 57% of Pacers who responded that they never drank wine. Stampeders were the mostly likely, again, to consume wine on a daily (6%) and at least a few times per week (12%)

0%

6%

2%

3%

1%

4%

12%

12%

11%

12%

8%

6%

27%

24%

23%

32%

15%

25%

22%

16%

23%

21%

19%

19%

39%

41%

41%

32%

57%

46%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Sparks

Stampeders

Fireflies

Achievers

Pacers

Simplelifers

How oOen do you consume wine? (n=1,012, weighted)

Almost every day At least a few Xme per week At least a few Xmes per month Only on special occasions I do not drink wine




Price History of

Product


Product Information

Product Reviews


family



Influencers 2.4 6.0 5.4 4.8 3.8 4.7 3.6 5.5 Non-‐

Influencers 2.5 5.7 5.5 4.5 3.9 4.5 4.0 5.5


Price ranked as the primary factor that motivated Millennials to buy wine on average. Recommendation from family and friends just edges out the product information when selecting a bottle of wine at the liquor store as an important factor on average. This was followed by product reviews and staff recommendations. Packaging and country of origin both ranked low as influential on the decision, although country of origin had its higher level of importance when compared to beer and spirits. History of the product was least important on average. Younger Millennials (18 to 20) once again put the least amount of value on staff recommendations and recommendations of friends and family, they are the group who are the least likely to listen to other, and want to make decisions on their own. Not surprisingly, men put much more value in the history of the product than women did.



8.3 Regional Quality vs. Value We provided Millennials with a list of wine producing regions across the globe and asked them to rank their top three on the basis of value and the basis of quality produced. Below are the percentages that each region ranked in the top three for value and top three in quality. The power score is the combined scores from both the top three for value and top three in quality, this is representative of the overall performance of the region.

Value Quality Power Score France 24% 32% 56 Italy 24% 30% 54 California 21% 20% 40 Ontario 19% 15% 33 Australia 15% 16% 31 Spain 14% 13% 28 British Columbia 16% 11% 26 Chile 11% 12% 22 Argentina 10% 10% 20 South Africa 8% 7% 15 New Zealand 7% 6% 13 Washington/Oregon 4% 3% 7

Washington/Oregon

Ontario

BriXsh Columbia

France

Spain

Italy

California

Australia

Chile ArgenXna

South Africa New Zealand

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Percen

tage Ran

ked in Top

3 fo

r Qua

lity

Percentage Ranked in Top 3 for Value

Canadian Millennials



Wines of Italy and France both ranked the highest in value and quality, ranking them the highest in the overall power score. This was followed by wines from California. Canadian Millennials ranked wines of Ontario in the top three for value 18.9% of the time and 14.5% of the time for quality, ranking it 4th in overall power score. Wines from Washington/Oregon ranked the lowest for both.

Value Quality Power Score Ontario 32% 28% 60 Italy 24% 31% 55 France 19% 30% 49 California 20% 18% 38 Argentina 18% 8% 26 Australia 12% 14% 26 Spain 11% 10% 21 Chile 10% 11% 21 British Columbia 14% 7% 21 South Africa 8% 7% 15 New Zealand 8% 6% 14 Washington/Oregon 5% 3% 7

Washington/Oregon

Ontario

BriXsh Columbia

France

Spain

Italy

California

Australia

Chile

ArgenXna South Africa New Zealand

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Percen

tage Ran

ked in Top

3 fo

r Qua

lity

Percentage Ranked in Top 3 for Value

Ontario Millennials



When the same question was broken out for Ontario Millennials only wines of Ontario ranked the highest by far for value at 32.2% and came third in quality to Italy and France, but only by a slim margin (France 29.8% vs. Italy 31.1% vs. Ontario 28.2%). This gave Ontario the highest overall power score. 8.4 Wine Traits

Cork (60%) was the preferred method of closure to screw cap (40%). The difference was greatest among the 24 to 25 year old demographic and closest in the 21 to 23 demographic. Men preferred cork (65%) more than women (56%).

40%

38%

36%

30%

49%

47%

43%

36%

40%

60%

62%

64%

70%

51%

53%

57%

65%

60%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-‐Influencers

Influencers

26 -‐ 31

24 -‐ 25

21 -‐ 23

18 -‐ 20

Female

Male

Overall

Which do you prefer, cork or screw cap? (n=582, weighted)

Cap Cork



The ideal price point for Millennials was the $12 to $20 range, with 66% choosing it. Males (17%) were slightly more likely than females (9%) to go over the $20 price point. Surprisingly, nearly a quarter (24%) of young Millennials, 18 to 20, said that they prefer to spend over $20 per bottle.

21%

22%

22%

19%

25%

18%

25%

18%

21%

68%

61%

70%

67%

62%

58%

66%

66%

66%

11%

17%

9%

14%

13%

24%

9%

17%

13%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-‐Influencers

Influencers

26 -‐ 31

24 -‐ 25

21 -‐ 23

18 -‐ 20

Female

Male

Overall

Which do you prefer, wines priced under $12 or $12 to $20 or over $20? (n=582, weighted)

Under $12 $12 to $20 Over $20



New world wines were preferred to those of the old world. Nearly two-‐thirds (65%) of Millennials wanted new world wines. Males had the higher percentage of those who preferred old world wines at 41%, compared to females at only 30%. Sixty percent of influencers preferred new world wines to old world. Female Millennials are more likely to choose new world wines compared to their male counterparts.

67%

60%

61%

70%

70%

64%

70%

59%

65%

34%

40%

39%

30%

30%

36%

30%

41%

35%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-‐Influencers

Influencers

26 -‐ 31

24 -‐ 25

21 -‐ 23

18 -‐ 20

Female

Male

Overall

Which do you prefer, new world or old world? (n=582, weighted)

New World Old World



Classic labels just slightly edged out trendy labels 45% to 55%. Females had the highest percentage for preferring trendy labels (49%) to classic labels (51%).

Bottom Line

Millennials are wine consumers, and the older they get the more likely they are to drink wine. Once again Stampeders, are the group with the highest level of regular wine consumers, but Achievers are more likely overall. These are two of the most outgoing segments and they will also make up much of the influencers. Price dominated overall when it came to selecting a wine, but it had its lowest influential score of all three main categories. There was more value placed on a wine’s region of origin than with beer and spirits. Millennials selected wines bottled under cork and have classic looking labels, meaning they want to give the appearance of more affluence when it comes to wine consumption. They selected new world over Old World and the $12 to $20 price range. Value, meaning and innovation are key attributes that appeal to Millennial wine drinkers.

45%

47%

46%

45%

47%

40%

49%

41%

45%

55%

53%

54%

55%

53%

60%

51%

59%

55%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-‐Influencers

Influencers

26 -‐ 31

24 -‐ 25

21 -‐ 23

18 -‐ 20

Female

Male

Overall

Which do you prefer, trendy label or classic label? (n=582, weighted)

Trendy Classic



9.0 Conclusion Canadian Millennials are currently a major consumer of beverage alcohol. More importantly, they are becoming the key market for all types of alcohol and a good portion of them are considered regular consumers. Millennials are information hungry, they need as much information as they can get their hands on when it comes to beverage alcohol. They are in need of knowledgeable, approachable staff to interact with in-‐store, to ensure that they are getting the most information possible to make their decision on what to buy. Millennials concern themselves most with the price of the product when making their final decision, this is to be expected when not all have entered the work force, and it can be seen that as they get older this concern grows slightly lower. Millennials seek out the recommendation of friends and family and exhibit a strong readiness to make recommendations to others when they find a product they enjoy. It is critical to get Millennials talking about product amongst themselves, they are most likely to listen to one another than to listen to anyone else. This means that there is an importance on marketing programs that have been put in place to help ease this sharing process through social media outlets. Not only will Millennials drive sales, but their overall tastes will set trends in the market. But not all Millennials are the same, as our segmentation demonstrates. Stampeders are the segment that represents the largest overall consumers of alcohol. Their drink of choice is beer, and they like to socialize around it. They are the segment who are known for partying with friends and living their lives to the fullest. They are aware of new technologies and the most outgoing, they are the ones who will be recommending product they like to friends through all social mediums. Achievers also represent a large cross section of Millennial alcohol consumers. Their drinks of choice lean more towards spirits and wine. They are mostly made up of outgoing and adventurous females, but do not describe themselves as carefree. This is important because they exhibit a willingness to try new products but not without informing themselves first, giving opportunity for producers to provide them with as much information as possible. They also consider themselves cultured. This means they want to try as many new products to educate themselves and are going to be recommending and sharing their preferences with friends. The Influencers group is a very key demographic across this report. They are the major decision makers of the Millennials, and they are more likely to be regular consumers. Interestingly, influencers were the most likely to be influenced by things like samples and wine reviews, showing the importance of both. If influencers can be properly harnessed they have the potential to become brand ambassadors. Identifying the influencers and engaging them can lead to growth in sales, reputation and market share.



10.0 Methodology The purpose of public opinion research is to measure attitudes and behaviours of a study population within reliable and acceptable statistical margins of accuracy.

Survey Administration

The survey was conducted online with 1,012 Canadians aged 18 to 31 in English and French using an internet survey platform licensed by Abacus Data. A random sample of panelists was invited to participate in the survey from a larger internet panel of over 500,000 Canadians. The survey was completed between January 15 to 18, 2013. Steps were taken to ensure that the survey respondents were representative of the Canadian population aged 18 to 31. Sample balancing was set to match the distribution of actual census data for age, gender, education, language, and region. Moreover, statistical weighting was applied to the data after the completion of the survey for age, gender, education, and region according to the Census of Canada.

Sample Distribution

A sample of 1,012 drawn from the Canadian population would be expected to provide results accurate to within plus or minus 3.1 percent in 95 out of 100 samples. Since a random sample was not generated for this project, a margin of error cannot be calculated.

Demographic Unweighted Count (All Respondents)

Weighted Count (All respondents)

18 to 20 years old 169 220

21 to 23 years old 227 224

24 to 25 years old 155 141

26 to 31 years old 461 428

Atlantic Canada 71 71

Quebec 243 246

Ontario 386 383

Western Canada 310 310

North 2 2

Documents

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