How influential are celebrity-backed liquor brands?

Over the past decade, the number of celebrity-backed liquor brands available on the global market has increased year on year. Despite the rate of growth slowing since 2022, celebrity-backed brands have continued to outperform the global liquor market overall.

Nowadays, celebrity-backed brands span everything from wine - including Australian examples by Ricky Ponting and Daniel Ricciardo - to spirits. Recent analysis by the IWSR suggests that tequila has been especially well positioned to cater to celebrity brand growth due to category growth and due to the discovery-oriented nature of tequila consumers. 

“When a category is trending, like tequila, you can see celebrity brands outperforming,” said Emily Neill, Chief Operating Officer of Market Research at the IWSR. 

“But when a category is beginning to struggle and the boom has ended – like gin – being a celebrity brand doesn’t always insulate you from that downturn.”

Analysis provided by the IWSR reveals that, whilst the overarching tequila category grew 13% by volume in 2022 and 3% in 2023, celebrity-branded tequilas grew at almost four times the rate each year. As it stands, celebrities such as Dwayne Johnson, Mark Wahlberg, Michael Jordan, Jennifer Hawkins, Kendall Jenner, and Mike Skinner have all endorsed tequila brands, with varying levels of involvement and production input. 

Similarly, celebrity-endorsed rums have also registered strong growth since 2022, with celebrity rums growing 16% by volume in 2022 and 11% in 2023 despite the overall rum category growing 9% in 2022 and receding 4% in 2023. 

The other categories involved in the IWSR’s analysis, gin and whisky, revealed different growth comparisons. Following 32% growth in 2022, celebrity gin then receded 1% last year, whereas the overall category was more consistent at 8% and 4% growth. Celebrity whisky growth was 5% and was just outstripped by the 8% overall category growth in 2022, only to outperform total whisky volume growth by growing at four times the rate in 2023.

While the strong growth performance of celebrity-endorsed products is notable, it is important to recognise that each category is starting off a much smaller and less established base when compared to overarching spirits volumes. However, to understand where the celebrity-endorsed subcategory might be headed, it is necessary to recognise the reasons why celebrity brands are an attractive proposition for consumers. 

One factor is the strong brand foundations that follow on from integrating an already influential ambassador into a product’s marketing program. Additionally, brands endorsed by celebrities directly appeal to their fan base, often broadening the product’s reach and also increasing trust among these consumers. 

“With celebrity involvement, a brand immediately has a personality ready-made,” said Neill. 

“Non-celebrity brands, by contrast, have to work over a period of time to create their personality and positioning.”

Two strong examples of this are Conor McGregor’s Proper No. Twelve Irish Whiskey brand, which grew to a value of more than $300 million in its first to years, and Dwayne ‘The Rock’ Johnson’s Teremana Tequila brand, which became the fastest premium spirits brand to sell one million 9-litre cases to the US market within a 12-month period. Teremana Tequila recently announced Spirits Platform as its Australian distributor. 

“Following the success of Teremana since it launched in the US three years ago, we are excited that the brand is now reaching Australian shores and are delighted to be its official partner,” said Ian Atherton, Spirits Platform CEO.

“With a substantial launch investment, we anticipate this will be one of the biggest spirits launches Australia has ever seen, and we look forward to partnering with Dwayne Johnson to bring the brand’s ‘Share The Mana’ philosophy to life.”

Flecha Azul, the Tequila brand endorsed by Mark Wahlberg, also achieved Australian distribution earlier this year via Vanguard Luxury Brands.