How should venues cater to the 8% of Aussie consumers influenced by celebrity brands?

In September, Drinks Trade published this article outlining the growth of celebrity-backed brands in the global liquor market. In this article, the IWSR explains how celebrity-backed brands have continued to outperform global liquor, especially in trending categories such as tequila and rum.

Since then, NielsenIQ has published similar research exploring the potential for celebrity-backed brands within Australia’s on-premise.

“NIQ sought to observe the impact that celebrity endorsements are having on drink type and brand choice when it comes to on-premise - in-restaurant and bars - spending by consumers,” said Tom Graham, CGA by NIQ’s Senior Manager for Customer Success.

“The data suggests that 8% of all on-premise visitors have been influenced by celebrity endorsements in at least one category when choosing brands in 2024.”

By category, celebrity-backed hard seltzers had the greatest impact on purchases overall, influencing 12% of Australian on-premise consumers. Following this, energy drinks influenced 10% of consumers; alcoholic ginger beer 9%, tequila 7%, and rum 6%.

Out of the 8% of on-premise visitors influenced by celebrity endorsements, more than 4% are under the age of 35. While NIQ found this age bracket to be most influenced by celebrity-backed hard seltzers, energy drinks, and alcoholic ginger beers, it found 34-54 year olds to be most likely to be influenced by celebrity-backed tequilas.

However, while celebrity endorsements should have a role to play when making ranging decisions, Tom Graham believes they should not be a main factor in deciding drink or brand choice.

“There are certain categories that lend themselves to this more than others, they offer greater opportunity to leverage endorsements as a factor in drink choice,” he said.

Instead, alternative purchasing habits of Australian on-premise consumers should also be taken into account. According to NIQ, 41% of Australians say they are most likely to trial new drinks brands in on-premise venues, with the number increasing to 45% when trialling expensive/premium drinks brands.

Graham said, “restaurants and bars represent a key channel to push and market celebrity brands, as this is where consumers are most likely to try new and/or premium brands (celebrity brands are often in these categories). These venues allow for bartenders to directly connect with customers and explain the unique origin story of celebrity brands, while also giving venues status.”

When analysing celebrity-backed brands globally, the IWSR concluded that different categories will respond differently to celebrity-endorsements due to current growth forecasts and general consumer nature.

The IWSR’s Chief Operating Officer of Market Research Emily Neill believes Tequila is especially well positioned to cater to celebrity-brand growth due to overall 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,” she said.

“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.

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.