From actors to musicians to the world’s richest man, high profile figures have built their own category within the alcohol industry: celebrity spirits. But as celebrity-owned or endorsed brands become the norm, what makes them succeed or fail?
Over the past decade A-listers have gravitated to agave spirits in particular, with actors like Dwayne “The Rock” Johnson’s Termana Tequila and George Clooney’s Casamigos striking deals with Mast-Jägermeister and Diageo, respectively. Sean Combs (a.k.a. P. Diddy), Maroon 5’s Adam Levine, Michael Jordan, and Elon Musk are among other names that have acquired or founded their own agave spirit brands. From 2018 to 2019, there was a 31.7% volume surge of tequilas endorsed by influencers, according to research firm IWSR.
But the onslaught doesn’t stop with agave: when Esquire ranked every celebrity spirit and liquor in 2021 the roster landed at 63 bottles, nearly double the number available three years prior. There’s now even a site dedicated to celebrity alcohol brands, Grapestar, with over 200 spirit expressions.
Retailers are keeping up with the trend, and ranked “celebrity ownership” third in terms of products they intentionally stock, lagging behind “organic and natural” by just two points, according to an 2021 annual Retail Report from BevAlc Insights by Drizly, which surveyed 500 adult beverage retailers nationwide.
Over at agave spirits mecca Old Town Tequila in San Diego, Termana and Casamigos remain the highest selling celebrity brands, echoing their placement on Drizly’s and Drinks International’s top selling lists. The convergence of the Hollywood stars’ popularity and a value that’ll earn repeat purchases is what contributes to their success, according to Zack Romaya, owner of Old Town Tequila. Termana is typically priced for retail around $30, and Casamigos ranges towards $50.
“Ultimately, what it all boils down to is if it tastes good and it’s priced at a price that people are willing to pay for a brand like that,” he said. “And those two celebrities are just so well-liked that people want to support them.”
Maps to the Stars
Other brands are coming under the microscope: shoppers are quicker to judge big names hopping on the spirits bandwagon, Romaya said.
An effective counter-strategy was employed by Codigo 1530 Tequila, according to Romaya Despite an active partnership with country music star George Strait, the brand grew organically, he said, until it leveraged its ties several years later through a special product launch that gave the brand a sales boost. On Grapestars, Codigo 1530 Rosa is the top selling tequila, according to co-founder and president Robert P. Pelletier. One important note Romaya pointed out, as well: country music stars in general seem to earn the most loyal customers, with repeat purchases coming in every two to three months.
In contrast, Breaking Bad leads Aaron Paul’s and Bryan Cranston’s Dos Hombres Mezcal earned an eye-roll among mezcal aficionados. Nevertheless, the actors’ involvement with the brand, plus their increasing emphasis on the producers and social projects in Oaxaca have tempered shoppers’ skepticism. “Aaron Paul was actually really cool, he sent video messages to the staff’s family, took pictures with all the customers who were in the store when he came in, and it wasn’t an event it was just an account visit,” Romaya said.
Last year Constellation brands acquired a minority stake in Dos Hombres, a move categorized as a strategic investment in high-potential brands in growing categories like mezcal by Vice President of CBI Ventures, Chris Huels.
“Constellation Brands believes in the potential of brands with strong founders to connect with consumers in exciting ways,” he said.
Get on the ‘Gram
A high level of personal engagement is part of what seems to be setting some brands apart: as Gen Z purchasing decisions are driven by social media and influencers, celebrities are not just lending their names as endorsers but engaged as creative officers and using their platforms to reach their audiences.
For Onda, a tequila-based RTD which made a splash in media outlets when it launched in 2020, having actress Shay Mitchell on board has been key to cementing the canned cocktail as a lifestyle brand. In the brand’s first year and a half they expanded distribution to over 10,000 retail accounts in 31 states.
“Shay provides invaluable insight and is so much more than just a ‘face’ of the brand – she is our co-founder,” said Noah Gray, Onda’s co-founder and CEO. “She has contributed immensely to brand awareness through the content she creates, and her massive social following gives us a media channel that is very differentiating and powerful.”
Gray said that Mitchell, who has nearly 33 million Instagram followers, is involved in product development, branding, content creation, marketing and partnerships. He added that Mitchell’s personal lifestyle aligns with Onda’s beachy branding.
Matching a demographic to the right celebrity has been key for some of the successes and flops, according to Romaya. Villa One, the tequila founded by Nick Jonas and John Varvatos in 2019, tapered off in sales after launching.
“I think they failed to realize that most of Nick Jonas’s audience is under 21,” said Romaya.
Kendall Jenner’s 818 Tequila may have received the loudest criticisms, entering into the market at a flashpoint of conversations around cultural appropriation (although some cried sexism as her male peers have largely avoided negative attention). When Romaya included 818 Tequila in an email campaign promoting female-founded spirits, his inbox was full of complaints. But the number one clicked link and seller that day?
“818 Tequila, by not even a close competition,” he said, adding that the spirit’s sweeter notes and marketing campaigns reach the demographic intended: new spirit drinkers.
“The market that’s drinking Kendall Jenner’s tequila is probably in the 21 to 25 age range, and think about what you drank when you were that age,” he said.
But celebrity brands aren’t just for younger generations, according to Pelletier. In the year and a half since launching, the site and app has curated premium celebrity brands, which he said brings in an older demographic with more disposable income. British singer Rita Ora’s Próspero tequila doesn’t sell well on his platform, for example, nor do many brands backed by younger celebrities. Spirits without good distribution or a strong push of celebrity engagement also seem to perform poorly, such as Channing Tatum’s Born and Bred Vodka, which hasn’t posted on its Instagram feed since 2018.
“The older actors and older actresses are performing better on our platform,” he said. “I think at this point alcohol has become a lifestyle for everyone and the brands that are coming out and doing well are here to stay.”