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Mark Wahlberg shows off his Flecha Azul Tequila at the Palms Casino Resort in Las Vegas, June 15, 2023.
Dennis Trucillo | Getty Images
With more drinkers seeking premium spirits, an increasing number of celebrities are using their star power, and money, to elevate premium liquor brands.
Sales volumes for spirits brands at the upper end of the spirits market were up 4% last year from a year earlier, according to the US Distilled Spirits Council. Consumers’ willingness to spend more on premium bottles has led to a boom in sales of alcoholic beverages such as tequila, which rose 21% in 2022 from the previous year.
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Chris Songer, president and CEO of DISCUS, said that because shoppers are looking for expensive bottles, the high-end spirits venture has become an enticing venture for those with the right capital and goodwill.
“Celebrity-owned brands have been around for a while,” Swonger said. “But the growing consumer interest in great distilled spirits has certainly generated a lot of celebrity engagement and enthusiasm in recent years.”
DISCUS tracks celebrity brands and said it has counted dozens of brands in the market.
From movie stars to athletes, models, and musicians, celebrities of all kinds keep up in high spirits, forge profitable partnerships within the industry, and even hit the road to publicize their products.
The trend seems to be taking hold in the burgeoning tequila space.
Actor Mark Wahlberg took on the role of bartender this summer, giving customers a taste of his brand of Flecha Azul Tequila at bars and restaurants across the country. The installment is part of the brand’s global expansion, which Wahlberg’s business partner, Aron Marquez, said would not have been possible without the actor’s involvement.
“Marc has a tremendous network that opened a lot of doors for us,” Marquez said in a phone interview with CNBC. “We always felt our product was superior to anything else on the market but having someone like Mark amplifies it and our message made people more willing to taste it.”
Marquez started the company in 2020 with Mexican-American golfer Abraham Unser. Wahlberg joined the team last year with an ownership stake, Marquess said, and since then, “sales have gone up exponentially.”
“He’s fully invested not just from a capital perspective, but with his time,” Marquez said. The trio plans to continue their promotional tour through the United States and then Canada.
Clooney’s Casamigos sets the standards
(L to R) Casamigos Tequila founders Mike Meldman, George Clooney and Rande Gerber attend the launch of Casamigos Tequila at the Ushuaia Beach Ibiza Hotel in Ibiza, Spain, August 23, 2015.
David M Bennett | Dave Bennett | Getty Images
The Flecha Azul team has plenty of catching up to do, as other celebrity-owned brands like George Clooney’s Casamigos Tequila are gaining significant market share on US e-commerce platform Drizly. Clooney was among the first celebrities to show others how lucrative the premium liquor business could be, especially if they were looking for an established buyer.
Clooney started Casamigos in 2013 and then sold it to spirits giant Diageo in 2017 for $1 billion. The brand now owns a 19% stake in Drizly’s tequila sub-category. The platform said it was the best-selling tequila brand in its market to date.
Other spirits run by the rich and famous have fared well in recent years.
The latest celebrity entry into the tequila space includes Dwayne “The Rock” Johnson’s Teremana Tequila, which is the eighth best-selling version on Drizly, and Kendall Jenner’s 818 Tequila, which has climbed to the fifteenth spot. Johnson and Jenner launched their brands in 2020 and 2021, respectively.
“While consumers can be somewhat skeptical of celebrity endorsements, there seems to be real staying power to celebrity-owned brands that have been able to harness their star power in a real and meaningful way, while bringing a quality product to market,” he said. Liz Paquette, Head of Consumer Insights at Drizzly. “Celebrity-owned brands have seen Drizly run wild, often becoming best-selling brands in their respective categories.”
Celebrity reach goes beyond tequila
Along with tequila, Drisley said actor Ryan Reynolds’ Aviation Gin is the year’s No. 3 selling brand and commands a 9% share in the category. Reynolds sold Gin to Diageo in 2020 for damages of up to $610 million.
Meanwhile, Jay-Z’s D’USSÉ is Drizly’s best-selling brand of cognac to date. It owns 14% of the cognac area on the stand.
Jay-Z, whose given name is Shawn Carter, sold a majority stake in D’USSÉ to Bacardi in February for a payout of up to $750 million.
While many iconic brands have thrived during the recent rush, others have flopped as competition heats up.
Last month, Diageo severed ties with rapper and music producer Sean “Diddy” Combs after his death He sued the Spirit Maker, alleging racial discrimination. Combs, who has partnered with Diageo for 15 years, claimed the company made Ciroc vodka and DeLeon Tequila as “black brands,” instead pouring resources into Clooney’s Casamigos and Reynolds’ Aviation Gin.
Diageo filed a motion to dismiss the lawsuit and terminate the partnership.
“Mr. Combs’ misconduct clearly violated his contracts and left us no choice but to move to dismiss his unfounded complaint and terminate our business relationship,” the company said in a statement to CNBC. “We have exhausted every reasonable remedy and see no other way forward.”
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