The Rise of Star-Studded Spirits: Exploring the Surge in Celebrity Alcohol Brands

Aaron Paul co-owns a mezcal brand for a simple reason - he enjoys drinking. In 2019, he and his former "Breaking Bad" co-star Bryan Cranston co-founded Dos Hombres Mezcal. This venture adds them to the growing list of celebrities who have launched their own alcohol brands.

At the Oscars on Sunday, celebrities like Robert de Niro, Issa Rae, and Dwayne Johnson can enjoy their own brand of spirits if they don't win. De Niro has Vdka 6100, Rae has Viarae Prosecco, and Johnson has Teremana Tequila. Other famous faces like Matthew and Camila McConaughey, Eva Longoria, and Kendall Jenner also have their own bespoke tequilas.

This trend marks a significant shift from the past in Hollywood. In the past, it was uncommon for even the biggest stars to endorse alcohol products. But now, there are numerous celebrity-branded spirits competing for attention, with more expected to enter the market soon.

In the midst of a cocktails boom, and with thousands of liquors world wide trying to set themselves apart, brands are knocking down Hollywood doors in search of star power.

Aaron Paul and Bryan Cranston serve Dos Hombres Mezcal at the Food Network New York City Wine and Food Festival in 2023.

Aaron Paul and Bryan Cranston serve Dos Hombres Mezcal at the Food Network New York City Wine and Food Festival in 2023.

Rob Kim/Getty Images for NYCWFF

Cranston mentioned to CNN that celebrities are drawn to the spirits industry due to their influence and relationships. This creates an opportunity for them to enter the market. The decision to join is left up to the individual.

Casamigos is a notable player in the industry, known for its financial success.

That open door resulted in a big business opportunity for another brand that uses agave as a base: Casamigos Tequila.

Founded in 2013 by George Clooney and Rande Gerber, Casamigos quickly caught the eye of the public. Just four years later, they sold the tequila brand to the liquor giant Diageo for a staggering $1 billion, sparking a frenzy in the industry.

The side of a Casamigos delivery truck promoting George Clooney and Rande Gerber's tequila brand in a 2015 photo.

The side of a Casamigos delivery truck promoting George Clooney and Rande Gerber's tequila brand in a 2015 photo.

In 2020, Ryan Reynolds' Aviation Gin brand was bought by Diageo for $610 million. Then in 2021, Conor McGregor sold a majority stake of his Proper No. Twelve Irish Whiskey to Proximo Spirits, the maker of Jose Cuervo, for about $600 million. This happened less than two years after the whiskey was launched.

The bottom line

Windfalls like these catch attention in Hollywood.

Celebrities who create spirit brands typically aim to sell to larger holding companies, according to Michael Yanover, head of business development at Creative Artists Agency. He mentioned that having equity in a company is more attractive than just endorsing it because if the brand is sold, it results in a cash payout.

Ryan Reynolds in a 2018 photo promoting his Aviation American Gin.

Ryan Reynolds in a 2018 photo promoting his Aviation American Gin.

"Lisa Hawkins, senior vice president for public affairs for the Distilled Spirits Council of the US, shared that having a star status can quickly boost brand recognition and attract consumers' attention."

She mentioned that the trend of celebrities investing in spirits is only getting stronger. Not just actors and musicians, but now sports stars, models, and comedians are also joining in on the trend, capitalizing on consumers' interest in spirits and cocktails.

This growing fascination with spirits was partly fueled by the pandemic. With more people staying at home, there has been a surge in home cocktail-making, leading to spirit sales outpacing wine and beer for the last two years, as reported by DISCUS data.

Tequila is popular among celebrities for two main reasons. Firstly, its popularity is on the rise with US sales increasing by 8% last year to $6.5 billion, according to DISCUS. It is expected to surpass vodka as the best-selling spirit in the coming years.

Secondly, tequila is a faster product to produce and sell compared to whiskey or scotch because it does not need to be aged.

Retailers are big fans of celebrities endorsing products. In a survey conducted in 2022 by Drizly, an alcohol delivery service that is no longer operating, it was found that about 54% of retailers intentionally carry spirits owned by celebrities because it attracts customers. Additionally, having a celebrity's name attached to a product may even increase its retail price.

Dwayne Johnson raises a glass of his Teremana Tequila in a 2022 photo.

Dwayne Johnson raises a glass of his Teremana Tequila in a 2022 photo.

Andrew Chrisomalis, cofounder of Aviation Gin and Pantalones Tequila, believes that celebrities play a key role in promoting a brand. According to him, they help to share the brand's story, increase brand recognition, and offer a great chance for customers to try out the products. He also emphasizes the importance of ensuring that the product meets consumer expectations and keeps them coming back for more.

Despite facing more competition, beverage analyst Ed Mundy from Jefferies remains optimistic about the future of the tequila category in the US. He believes that it still has room to grow and expand its appeal.

However, Mundy cautions that celebrities hoping for a big payday like Casamigos may have missed the boat. He advises that potential buyers may be hesitant to make significant investments in the current market cycle.

Pitfalls, too

A celebrity-backed spirit has its risks, as it’s reliant on a single person’s image.

Not all partnerships end on a positive note. In a recent development, Diageo decided to part ways with Sean “Diddy” Combs after a 15-year collaboration. This decision came after a legal dispute involving allegations of racial discrimination.

The well-known music executive, who also faced accusations of sexual misconduct, filed a lawsuit in 2023 accusing Diageo of neglecting and not adequately promoting his DeLeón tequila. He claimed that the company labeled the product as "urban" in its marketing efforts. Similar allegations were made regarding his Ciroc vodka.

In January, Diageo and Diddy officially ended their partnership, stating in a joint announcement that they have resolved all disputes and that Combs has withdrawn his previous allegations against Diageo.

Jennifer Lopez faced challenges with her Delola line of ready-to-drink bottled spirits last year. Fans criticized Lopez for perceived hypocrisy, as she has been vocal about not drinking. However, Lopez later clarified on Instagram that she does indulge in an occasional cocktail.

Delola being served the New York City Wine and Food Festival in 2023.

Delola being served the New York City Wine and Food Festival in 2023.

Rob Kim/Getty Images for NYCWFF

Expansion

Paul and Cranston are determined to make Dos Hombres a success story by growing its fanbase. Recently, the brand teamed up with Applebee’s to introduce a trio of cocktails, marking the first time the chain has served mezcal in its 44-year history.

Paul noticed a great opportunity in the market to introduce the agave-based spirit to the US. He observed that many people are unfamiliar with mezcal when asked to name their favorite, showing a clear gap in the market.

Applebee’s was always special to Paul because it played a big role in his childhood memories. He recalled how his family would always choose Applebee’s for major celebrations in Iowa, making it a significant place for them. Paul felt honored that Applebee’s chose him to introduce mezcal to a wider audience, considering the sentimental value the chain held for him.

Aaron Paul and Bryan Cranston in a promotional photo for their spirit.

Aaron Paul and Bryan Cranston in a promotional photo for their spirit.

Courtesy Dos Hombres Mezcal

Despite the continuous introduction of new alcohol brands, CAA’s Yanover mentioned that there is a high demand in the alcohol industry. People are always looking for something new, exciting, and unique.

Just recently, Kylie Jenner entered the alcohol market with her own canned vodka-soda brand called Sprinter, following her sister Kendall. Although it's not the first of its kind (hello, High Noon), Kylie expressed in a press release that it is the most delicious vodka soda she has ever tasted, despite trying many others.

Editor's P/S:

The rise of celebrity-endorsed spirits has transformed the alcohol industry. Once considered taboo, it has become increasingly common for Hollywood stars to launch their own brands, capitalizing on their fame and influence. This trend has been fueled by the growing popularity of cocktails and the desire for consumers to connect with their favorite celebrities. The success of brands like Casamigos, Aviation Gin, and Proper No. Twelve Irish Whiskey has demonstrated the potential for high financial returns, attracting even more celebrities to join the market.

However, it's important to note that celebrity-backed spirits come with their own set of risks. The reputation of the brand is tied to the personal image of the celebrity, and any controversies or scandals can negatively impact sales. Additionally, the market is becoming increasingly saturated, with new brands constantly emerging. To succeed in this competitive landscape, celebrities must ensure that their products meet consumer expectations and provide a unique experience that sets them apart.