From rock legends and movie idols to porn stars to pop icons, the number of celebrity-branded beverages has burgeoned as alcohol marketers seek to leverage our fame-obsessed culture into liquid gold. While the concept is hardly new -- think Billy Beer -- the trend has picked up over the past few years, as more stars lend their names to the chorus of booze.
'Coke and Pepsi will tell you it takes tens of millions of dollars to establish a brand image, but with Trump and Willie Nelson you get instant brand recognition.'
— J. Patrick Kenny, Drinks Americas
It doesn't seem to matter if they're living or dead -- or even out of the public eye: The names Marilyn Monroe and Jerry Garcia are used to sell wines from beyond the grave; the teetotal Donald Trump has his own vodka, as does Ed McMahon; Sammy Hagar just sold his Cabo Wabo tequila brand to Skyy Spirits; and Willie Nelson touts his Old Whiskey River bourbon, complete with a signed guitar pick attached to the neck of each bottle.
With a few notable exceptions, the industry's true behemoths have shied away from linking their goods too closely to unrelated celebrity. Of course, they really don't have to: After all, Johnnie Walker, Jim Beam and Jack Daniel are in many ways bigger household names than any star of today.
That has left much of the field to smaller, niche players, companies like Wilton, Conn.-based Drinks Americas (DKAM : drinks americas hldgs ltd com
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Last: 1.21-0.01-0.82%
DKAM1.21, -0.01, -0.8%) , which has focused much of its business plan on a single premise, according to its chief executive, J. Patrick Kenny.
"Beverages are as much a fashion statement as clothing or music," he said. "We are founded on the concept that you can use an icon to generate trial and deliver to the consumer an experience more than the price point they paid for it." Watch more of the Kenny interview.
Trump Vodka and Whiskey River are among the brands the company markets via "business partnerships" under which profit is split either with the star or a charity of his or her choice. It is busily readying to launch a cognac with a yet unnamed hip-hop star. Nor is it neglecting the softer side of the business, currently rolling out Newman's Own Lightly Sparkling Fruit Juice, the latest entry from the movie star turned food-and-beverage marketer.
"It's really a very simple business plan," Kenny said. "Coke (KO : The Coca-Cola Company
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Last: 52.60-0.07-0.13%
PEP66.22, +0.31, +0.5%) will tell you it takes tens of millions of dollars to establish a brand image, but with Trump and Willie Nelson you get instant brand recognition."
But does it sell? Dozens, maybe hundreds, of new beverage brands launch every year, and many, if not most, are doomed to fail. The marketplace has become incredibly crowded and unforgiving.
Kenny said that Trump has been a "phenomenal success" so far and is on track to move 100,000 cases in its first year -- and at a superpremium price, no less.
Clos du Bois, now part of Fortune Brands' (FO : fortune brands inc com
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Last: 83.09-0.03-0.04%
Beam Wine Estates, launched J. Garcia wine in 2003, and it has steadily built annual case sales to about 30,000, growing by 13% in each of the last two years.
"The brand made sense because it allows us to tap into a built-in consumer fan base," noted Sarah Devaney, a Beam spokeswoman. "There is a natural demographic overlay between Jerry Garcia's fans and core wine drinkers, both of which are centered in the baby-boomer generation."
Further, she said, while people may be attracted to the label or by the Garcia mystique, they come back for the wine itself: "Quality is what is responsible for the brand's current traction in the marketplace. ... It's excellent wine, and I think sometimes people are surprised to find that this is not a gimmick wine."
http://www.marketwatch.com/news/sto...AC1-57C1-44F4-AE05-CC5C641C3A0B}&mod=livemint
'Coke and Pepsi will tell you it takes tens of millions of dollars to establish a brand image, but with Trump and Willie Nelson you get instant brand recognition.'
— J. Patrick Kenny, Drinks Americas
It doesn't seem to matter if they're living or dead -- or even out of the public eye: The names Marilyn Monroe and Jerry Garcia are used to sell wines from beyond the grave; the teetotal Donald Trump has his own vodka, as does Ed McMahon; Sammy Hagar just sold his Cabo Wabo tequila brand to Skyy Spirits; and Willie Nelson touts his Old Whiskey River bourbon, complete with a signed guitar pick attached to the neck of each bottle.
With a few notable exceptions, the industry's true behemoths have shied away from linking their goods too closely to unrelated celebrity. Of course, they really don't have to: After all, Johnnie Walker, Jim Beam and Jack Daniel are in many ways bigger household names than any star of today.
That has left much of the field to smaller, niche players, companies like Wilton, Conn.-based Drinks Americas (DKAM : drinks americas hldgs ltd com
News , chart , profile , more
Last: 1.21-0.01-0.82%
DKAM1.21, -0.01, -0.8%) , which has focused much of its business plan on a single premise, according to its chief executive, J. Patrick Kenny.
"Beverages are as much a fashion statement as clothing or music," he said. "We are founded on the concept that you can use an icon to generate trial and deliver to the consumer an experience more than the price point they paid for it." Watch more of the Kenny interview.
Trump Vodka and Whiskey River are among the brands the company markets via "business partnerships" under which profit is split either with the star or a charity of his or her choice. It is busily readying to launch a cognac with a yet unnamed hip-hop star. Nor is it neglecting the softer side of the business, currently rolling out Newman's Own Lightly Sparkling Fruit Juice, the latest entry from the movie star turned food-and-beverage marketer.
"It's really a very simple business plan," Kenny said. "Coke (KO : The Coca-Cola Company
News , chart , profile , more
Last: 52.60-0.07-0.13%
PEP66.22, +0.31, +0.5%) will tell you it takes tens of millions of dollars to establish a brand image, but with Trump and Willie Nelson you get instant brand recognition."
But does it sell? Dozens, maybe hundreds, of new beverage brands launch every year, and many, if not most, are doomed to fail. The marketplace has become incredibly crowded and unforgiving.
Kenny said that Trump has been a "phenomenal success" so far and is on track to move 100,000 cases in its first year -- and at a superpremium price, no less.
Clos du Bois, now part of Fortune Brands' (FO : fortune brands inc com
News , chart , profile , more
Last: 83.09-0.03-0.04%
Beam Wine Estates, launched J. Garcia wine in 2003, and it has steadily built annual case sales to about 30,000, growing by 13% in each of the last two years.
"The brand made sense because it allows us to tap into a built-in consumer fan base," noted Sarah Devaney, a Beam spokeswoman. "There is a natural demographic overlay between Jerry Garcia's fans and core wine drinkers, both of which are centered in the baby-boomer generation."
Further, she said, while people may be attracted to the label or by the Garcia mystique, they come back for the wine itself: "Quality is what is responsible for the brand's current traction in the marketplace. ... It's excellent wine, and I think sometimes people are surprised to find that this is not a gimmick wine."
http://www.marketwatch.com/news/sto...AC1-57C1-44F4-AE05-CC5C641C3A0B}&mod=livemint