Why so Many Celebrities Have Alcohol Brands...
Celebrities often have a wide range of investments to help their money grow, but of recent there's been a growing trend of celebrities venturing into the liquor space...
Happy New Week,
A few days ago I found out something very interesting. George Clooney is behind the popular tequila brand Casamigos. I’ve noticed a popular trend behind popular celebrities starting alcohol brands. Deadpool actor Ryan Reynolds has Aviation Gin, Dwayne ‘The Rock’ Johnson has Teremana Tequila, Kevin Hart has Gran Coramino, Breaking Bad stars Bryan Cranston and Aaron Paul has Dos Hombres Tequila, Nick Jonas has Villa One Tequila, Post Malone has Maison No. 9 rose wine and Idris Elba has Porte Noire.
“Acting used to be how I paid the rent, but I sold a tequila company for a billion f — ing dollars. I don’t need money.” George Clooney
The alcohol industry is a very lucrative industry. According to Market Research Future, The Luxury Wines and Spirits Market share is expected to reach USD 1,213.8 Billion by 2028. Celebrities are able to leverage and monetise their brand and get a slice of the pie by creating their own alcoholic beverages and as you can see many are interested in the tequila business. Tequila is usually the spirit of choice because it can be brought to market relatively quickly and is considered a healthier option as it's sugar-free.
Consumers are prepared to pay “premium” prices for alcohol when they see their favorite celebrity not only drinking it but owning part of the company. For example, in the late '90s and early 2000s, Jay Z widely popularised the French brand of champagne, Cristal by using it in his music videos and name-dropping it in his songs. In 2006 the now CEO of Cristal, made a comment Jay Z and others considered racist so he set out to create his own champagne, Armand de Brignac also known as Ace of Spades.
Celebrities are taking it a step further by actually creating and owning their own brands rather than just being endorsed by the brand. George Clooney and Director friend, Rande Gerber started Casamigos by accident. They decided to make tequila for their friends based on their tastes. The main criteria were ensuring they wouldn’t get a hangover. After two years and 700 samples they had a tequila they were happy with and started distributing it to their friends then it soon expanded. In 2017, Clooney and partners sold Casamigos to alcohol giant Diageo for $1 billion. Not bad for a product that was supposed to be just for their close friends!
Some celebrities buy into an existing alcohol company, attach their brand to it and grow it, some like Dwayne Johnson build theirs from the ground up. According to PR Newswire Teremana Tequila has been the most successful launch of a spirits brand in U.S. history. With more than 640,000 9L cases sold in 2021.
It’s not always a success story. Kendal Jenner got a huge backlash for launching her own tequila company, 818 tequila. She was criticized for appropriating Mexican culture and failing to credit the local agave farmers. In an ad campaign, she shot on an agave farm in Jalisco, Mexico. Viewers claimed she was disrespectful to native workers, appropriating and spreading harmful misconceptions about Mexican culture by wearing the traditional dress as a costume for the photoshoot.
Authenticity plays a huge role in the success of celebrity alcoholic brands. Consumers can see a cash grab from miles away so it is important that the alcoholic brand they build is aligned to their personal brand. Ryan Reynolds and his brand Aviation American Gin is a perfect example. The company was very strategic in its brand positioning, making Ryan’s witty humor central in its marketing and brand communications. The authenticity paid off for Ryan in the end when the company was sold to Diageo for 600 million in 2020.
It’s obvious that there are huge financial returns for celebrities venturing into the liquor industry.
To gain huge success in this space as a celebrity, they have to be authentic, transparent and actually have a brand that is tailored to their audience. It’ll be interesting to see which other celebrities pop up with an alcoholic brand in the future.