Diddy’s Ciroc Vodka, Bethenny Frankel’s Skinnygirl, Danny DeVito’s Premium Limoncello, Post Malone’s Maison No.9 and most recently Kendall Jenner’s Tequila 818 are all testament to the rise of celebrity-owned alcohol brands.
But why do celebrities launch their own alcohol?
The simplest answer might be that the rich want to get richer. The alcohol market is unquestionably lucrative, particularly in light of the Covid pandemic’s significant rise in online alcohol sales. Additionally, Statista projects that the global market for alcoholic beverages would surpass $2.2 trillion by 2025. Therefore, it stands to reason that celebrities would gravitate towards this market segment in search of lucrative business prospects. But of course, we can’t just assume this.
It all comes down to lifestyle branding and the normalisation of alcohol in society, according to Mark Haas, CEO and president of the food and beverage CPG company The Helmsman Group. He argues that celebrities have influence over the media and a platform for communication. In addition, he asserts that alcohol is no longer a taboo topic, unlike in the past. Celebrities are now able to use a marketing strategy where alcohol is a more attractive equity market.
A celebrity endorsement is, of course, also advantageous to the brand itself. Numerous studies have proven that celebrities can influence consumer behaviour, particularly if the celebrity’s image complements the brand, claims Clint Proctor, editor-in-chief of Investor Junkie. Customers may be willing to pay “premium” pricing for spirits if their idol consumes them and owns a portion of the company. In addition, those types of investment remain a fantastic option for celebrities as it differs from more conventional investments such as cosmetics, apparel, or fragrances.
Finally, celebrities also pay attention to the alcohol industry’s turnaround times. In fact, some alcoholic beverages, like tequila, can be produced, shipped, and sold very quickly, which is still another key benefit of this industry.