Celebrity-backed and celebrity-owned beverage brands seem to be everywhere, including oat milk giant Oatly, which is backed by Oprah and Natalie Portman. G-Spot, actor Gillian Anderson's adaptogen- and nootropic-infused soft drink brand, or Prime Drinks, owned by influencers Logan Paul and Olajide “KSI” Olatunji.
But celebrity endorsement of drinks is not a new phenomenon. Celebrity-backed or celebrity-owned drinks have been around for “decades,” according to alcoholic beverage market analysis firm IWSR. The turning point came in 2013 when Casamigos Tequila, founded by actor George Clooney (also the face of coffee brand Nespresso), was sold to alcohol giant Diageo for $1 billion (930,000 euros). That's what happened.
“It wasn't until Casamigos was sold to Diageo that celebrities started entering the market with their own brands,” says Adam Rogers, IWSR's North American research director.
Dwayne 'The Rock' Johnson is another successful example who launched Teremana Tequila in 2020. The company recently surpassed sales of more than 1 million cases. David Beckham also associated himself with the alcohol brand when Haig became the face of his club His Whiskey in 2014. “It may not have been his own brand, but his consumers certainly didn't differentiate and it was always seen as David Beckham whisky. But he recently pulled out of this partnership.” explained Tom Harvey, co-founder of transatlantic food and beverage marketing business YesMore Agency.
But not all celebrity endorsements go as planned, and not everyone agrees with superstars promoting alcoholic beverages. Who wins and who loses when fame is linked to the consumption of drinks?
How can celebrities and brands benefit from interaction?
When a celebrity endorses a beverage product, it provides an association with a lifestyle brand. According to IWSR, this is attractive to stars, whether they own a beverage brand or simply have a relationship with a beverage brand.
But reputation aside, the financial benefits of brand association are also attractive. If celebrities don't invest in the business, they only make money from their time and presence, YesMore Agency's Harvey explained. “Celebrities typically become famous through sports, music, movies, and television, which requires a physical presence…so it makes sense to invest in something that can earn you money without having to be involved on a day-to-day basis. Masu.
“I don't think it's unreasonable for celebrities to want to use their influence to jump-start the growth of brands that can make money without them. I don't think it's unreasonable for celebrities to want to use their influence to jump-start the growth of brands that can make money without them. I don't think it's unreasonable for celebrities to want to use their influence to jump-start the growth of brands that can make money without them.” , long after it was considered ugly.”
Consumer audience can be a big factor in how brands benefit from celebrity connections. Celebrities have a ready-made audience, and that audience (and potential consumer base) can prove invaluable, especially when a new beverage product starts with nothing.
“Audiences are often already loyal to celebrities. This makes the cost of paying a celebrity or offering equity to a celebrity worthwhile when compared to traditional forms of finding an audience through marketing spend.” “It means there is,” Harvey explained.
From a public relations perspective, “celebrity power” can work wonders when trying to get your brand into the press, and the same goes for social media. “Celebrities always have a lot of followers on social media, and their fan groups also have a lot of followers, which spreads their message far and wide.”
Why consumers trust celebrity-backed beverage brands so much is another question entirely. IWSR's Rogers believes it comes down to the belief that celebrities drink more expensive drinks than the average person. “This allows fans and consumers the ‘affordable luxury’ of drinking the same drinks as their favorite celebrities.
“This is also a social media-friendly badge value proposition, allowing consumers to connect with other fans.”
Brands can benefit greatly from celebrity endorsements
Celebrity-backed or owned beverage brands can definitely benefit from that association.
For YesMore Agency's Harvey, the “best” celebrity partnerships have authenticity, and the stars have a “genuine interest” in the brands they promote. One example is opera singer Katherine Jenkins' Welsh gin brand Signet. When working with Jenkins, the YesMore team was keen to first establish “why you and why Jin?”
“We learned new things from her and her expertise as musicians. Straight spirits are easiest on singers' vocal cords, and many singers only drink spirits straight or over ice. Plus , she created Signet 22 Gin by adding Manuka honey, which is known to soothe the throat.”
The power of celebrity endorsement is obvious when it's working well. YesMore Agency tracks follower growth for over 200 beverage brands each month and observed that celebrity Kendall Jenner's 818 tequila brand follower count decreased for the first time in January 2024. They started posting sly, traditional-style content about tequila production, not Kendall Jenner's party like they did last month.”
Marketing experts believe that brands and marketing agencies can also leverage their brands to empower and strengthen celebrities. The benefits don't all have to be one-sided.
Harvey's favorite example was when NFL star Colin Kaepernick took a knee during the national anthem to protest racial injustice. “There was an immediate outcry and debate around the world, during which his sponsors [Nike] It soon ran an ad with his face on it, along with the phrase “Believe in something.” Even if it means sacrificing everything. Just do it. 'This is how you gain serious brand equity, and another board-driven brand would cut ties and cut your losses. ”
Celebrity influencer Dylan Mulvaney, who briefly worked with AB InBev-owned Bud Light last year, criticized the brand on social media for doing the opposite. The transgender star felt unsupported and “publicly ridiculed” following consumer backlash. “I think it's worse for a company to hire a transgender person and not publicly support them than not hire a transgender person at all…”
But what happens when a star falls from grace?
Celebrity organizations don't always go as planned, and brands risk reputational damage if their stars fall.
In the UK, former TV presenter Phillip Schofield is one example. Brands were quick to distance themselves from the long-time ITV employee after he left The Morning under cloud cover last year. Around that time, the brand collaboration with the wine and gin company ended.
“A brand's reputation is inherently tied to the reputation of the celebrities who front and back it. You have to be ready to stand up for them. [if things turn sour] Or dump it and cut ties with them, which I personally don't agree with,” Harvey said.
This is where crisis communication comes in handy. A “essential” part of working with celebrities is having a contingency plan in place in case something goes wrong.
“[Comedian] Ricky Gervais, new co-owner of Dutch Barn Vodka, a former client of Eller's Farm Distillery, is a perfect example of the value of creating a crisis communications plan, especially as cancel culture grows . ”
Other concerns also exist, such as the marketing of alcohol to underage drinkers. Research shows young people in the UK are aware of a wide range of alcohol marketing, with almost one in five owning an alcohol branded product. In modern beverages, alcohol marketing awareness is associated with increased consumption and increased likelihood of high-risk consumption.
British watchdog Advertising Standards Authority (ASA) has ordered rapper ArrDee and brand Litty Liquor's advertising and social media accounts after complaints that their Instagram posts breached rules for posting people under the age of 25. Content was banned (ArrDee was 20 years old at the time).
Will the celebrity drinking trend continue?
Celebrity endorsement of drink brands is likely to continue. why? FoodNavigator understands that there are at least two reasons for this.
First, alcoholic beverages, especially spirits, are a high-margin sector that is attractive for external investment. “Fans especially resonate with celebrities who are authentic in their collaborations and investments,” IWSR's Rogers told Barron's.
“While this trend is likely to slow in the coming years, we expect the industry trend to continue.”
YesMore Agency's Harvey believes this trend is here to stay, but for another reason. “Our society has had a consistent obsession with fame for centuries, and we expect that to remain the same. But what may change is that our society has a consistent obsession with fame. and how we perceive celebrities. We're seeing young audiences consume content in different ways, not through Hollywood movies, but through social media and gaming. Masu.”
However, as audiences become more conscious and knowledgeable about morals and ethics, consumers will increasingly hold celebrities and their brand partners accountable, especially if they are not upholding a certain level of standards and values. Marketing experts predict it will.
