Mark Wahlberg captivates the audience with his impressive Flecha Azul Tequila launch at Palms Casino Resort in Las Vegas on June 15, 2023.
Denise Truscello | Getty Images
As more consumers seek out premium spirits, a growing number of celebrities are leveraging their fame and financial resources to elevate luxury liquor brands.
According to the Distilled Spirits Council of the United States, volume sales of premium spirits increased by 4% last year compared to the previous year. Consumers’ willingness to spend more on high-end spirits has contributed to the surge in sales of liquors such as tequila, which saw a 21% rise in 2022.
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The high-end spirits industry has become an attractive venture for individuals with both capital and celebrity status, according to Chris Swonger, President and CEO of DISCUS.
“Celebrity-owned spirit brands have been around for a while,” Swonger stated. “However, the recent surge in consumer interest for superb distilled spirits has generated significant celebrity engagement and excitement.”
DISCUS tracks celebrity-affiliated brands and has identified dozens of them in the market.
From movie stars to athletes, models, and musicians, celebrities from all walks of life are aligning themselves with top spirits brands, forming lucrative partnerships within the industry, and actively promoting their products.
This trend has gained particular traction in the flourishing tequila market.
Actor Mark Wahlberg has taken on the role of a bartender this summer, personally serving customers his Flecha Azul Tequila brand at bars and restaurants across the United States. This promotional push is part of the brand’s global expansion, which, according to Wahlberg’s business partner Aron Marquez, would not have been possible without Wahlberg’s involvement.
“Mark’s extensive network has opened numerous doors for us,” Marquez explained in an interview with CNBC. “While we have always believed that our product is superior to any other on the market, having someone like Mark endorse and amplify it has made consumers more willing to try it.”
Marquez founded the company in 2020 in partnership with Mexican American pro golfer Abraham Ancer. Wahlberg joined the team in the following year and, according to Marquez, sales have since skyrocketed.
“Mark has not only made a significant capital investment but has also dedicated his time to the brand,” Marquez added. The trio plans to continue their promotional tour across the United States and Canada.
Clooney’s Casamigos sets the standard
(L to R) Founders of Casamigos Tequila Mike Meldman, George Clooney and Rande Gerber attend the launch of Casamigos Tequila at Ushuaia Beach Hotel Ibiza in Ibiza, Spain, on Aug. 23, 2015.
David M. Benett | Dave Benett | Getty Images
The Flecha Azul team has some catching up to do as other celebrity-owned brands, like George Clooney’s Casamigos Tequila, have gained significant market share on the U.S. e-commerce platform, Drizly. Clooney was one of the first celebrities to demonstrate the immense profitability of the premium liquor business, particularly when partnering with an established buyer.
Clooney founded Casamigos in 2013 and subsequently sold it to spirits conglomerate Diageo in 2017 for a whopping $1 billion. The brand currently commands a 19% share in the tequila subcategory on Drizly, making it the top-selling tequila brand on the platform.
Other spirits brands owned by the rich and famous have also experienced success in recent years.
Newer celebrity entrants to the tequila market, such as Dwayne “The Rock” Johnson’s Teremana Tequila (ranked 8th on Drizly) and Kendall Jenner’s 818 Tequila (ranked 15th), have seen impressive growth. Johnson and Jenner launched their brands in 2020 and 2021, respectively.
“While consumers can be skeptical of celebrity endorsements, celebrity-owned brands that effectively leverage their star power in an authentic manner and provide a high-quality product have demonstrated long-lasting success,” stated Liz Paquette, Head of Consumer Insights at Drizly. “These brands have experienced tremendous achievements on Drizly, often becoming top sellers in their respective categories.”
Celebrity reach goes beyond tequila
In addition to tequila, Drizly reports that actor Ryan Reynolds’ Aviation Gin is the third best-selling gin brand this year, capturing a 9% share of the category. Reynolds sold the gin to Diageo in 2020 and received a payout of up to $610 million.
Furthermore, Jay-Z’s D’USSÉ ranks as the second best-selling cognac brand on Drizly to date, claiming a 14% share of the market.
Jay-Z, whose real name is Shawn Carter, sold a majority stake in D’USSÉ to Bacardi in February for a payout reportedly worth up to $750 million.
While many celebrity-owned brands have thrived in the recent market surge, others have struggled due to heightened competition.
Last month, Diageo terminated its partnership with rapper and music producer Sean “Diddy” Combs after he filed a lawsuit against the company, alleging racial discrimination. Combs, who had collaborated with Diageo for 15 years, claimed that the company marginalized his brands, Ciroc vodka and DeLeon Tequila, as “Black brands” in favor of promoting Clooney’s Casamigos and Reynolds’ Aviation Gin.
Diageo responded to the lawsuit with a motion to dismiss and subsequently ended its partnership with Combs.
“Mr. Combs’ actions have demonstrated bad faith and clearly breached his contracts, leaving us with no choice but to dismiss his baseless complaint and terminate our business relationship,” the company stated in a response to CNBC. “We have exhausted all reasonable remedies and see no alternative path forward.”
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