new york
CNN
—
Why is actor Aaron Paul co-owning a mezcal brand? The answer is simple: “I like to drink.”
The pair co-founded Dos Hombres Mezcal in 2019 with former “Breaking Bad” co-star and close friend Bryan Cranston, joining a long list of celebrity-backed alcohol brands launched in recent years.
At Sunday's Oscars, Robert De Niro, nominated for “Killers of the Flower Moon,” can console himself if he loses with a sip of his own brand of Vdka 6100. “American Fiction” actress and Oscar presenter Issa Rae can toast with her new prosecco brand, Viarae. Fellow presenter Dwayne “The Rock” Johnson is sipping Teremana Tequila. Celebrities who have sipped on custom tequilas include Matthew and Camila McConaughey (Pantalones), Eva Longoria (Casa del Sol) and Kendall Jenner (818).
The proliferation of these deals marks a break with Hollywood's past. For decades, even big stars rarely took risks to promote alcohol. Shirley Temple never spiked “Dirty Charlize” with alcohol, and there was no Warren Beatty-branded champagne. Now, dozens of celebrity-branded booze lines are vying for space at the bar, with more on the way.
In the midst of a cocktail boom, and with thousands of alcoholic beverages around the world trying to differentiate themselves, brands are knocking on Hollywood's door in search of star power.
“Honestly, this is an opportunity,” Cranston told CNN, explaining that celebrities are attractive to the alcohol industry because of their influence and connections, and the industry is “opening the door: 'Do you want to get in? It's up to you.'”
That open door has led to big business for another agave-based brand, Casamigos Tequila.
Founded by George Clooney and Rande Gerber in 2013, Casamigos shot to mass attention. Four years later, they sold the tequila brand to liquor giant Diageo for $1 billion, catapulting the industry into a gold rush.
In 2020, Diageo acquired Ryan Reynolds' Aviation Gin brand for $610 million, and in 2021, UFC fighter Conor McGregor sold a majority stake in his Proper Number Twelve Irish Whiskey to Jose Cuervo maker Proximo Spirits for a reported $600 million, less than two years after it was launched.
These windfalls are catching attention in Hollywood.
Michael Yanover, head of business development at a major creative artists agency, told CNN that celebrities who create spirits brands typically hope to ultimately sell them to “one of the larger holding companies.”
Owning an equity stake in a company is more appealing than an endorsement deal, which offers cash payments if the brand sells, Yanover said.
“Star status can generate instant brand awareness and consumer interest,” Lisa Hawkins, senior vice president of public affairs for the Distilled Spirits Council of the United States, told CNN.
This trend “shows no signs of slowing,” she said: “Actors and musicians have been investing in spirits for some time, and now athletes, models and comedians are capitalizing on consumer interest in spirits and cocktails.”
This popularity has been driven in part by the pandemic, as more people are mixing cocktails at home and spirits sales have surpassed those of wine and beer over the past two years, according to DISCUS data.
Tequila is especially popular with celebrities for two reasons. First, it's growing: Tequila sales in the U.S. increased 8% last year, According to DISCUS, the market is worth $6.5 billion and is expected to overtake vodka as the best-selling spirit in the next few years.
Secondly, tequila doesn't need to be aged like whiskey or scotch, so it's quicker to produce and sell.
Retailers welcome Star's support: Some 54% of retailers surveyed in 2022 said they intentionally stock Star's products on Drizly, the now-defunct alcohol delivery service. Celebrity-owned alcoholic beverages attract shoppers because the celebrity name attracts them, and the celebrity name can also add a premium to the retail price.
“Celebrities can provide a fantastic opportunity to tell a brand's story, drive brand awareness and trial,” Andrew Chrysomalis, co-founder of Aviation Gin and Pantalones Tequila, told CNN, adding that “the product has to satisfy the consumer so they come back again and again.”
Despite the increased competition, Jefferies beverage analyst Ed Mundy told CNN he believes the category has yet to peak, with tequila in particular “continuing to grow in popularity in the US.”
But for celebrities looking for an exit the size of Casamigos, it may already be too late. “We think potential buyers will be cautious about making large investments at this point in the cycle,” Mundy said.
Celebrity-backed booze is risky because it relies on one person's image.
And not all partnerships are successful: Last year, Diageo ended its partnership with Sean “Diddy” Combs, ending a 15-year deal that led to a racial discrimination lawsuit.
The embattled music mogul, who was later accused of sexual assault, alleged in a 2023 lawsuit that Diageo misrepresented his DeLeon tequila as an “urban” product in its marketing and misrepresented it. He made similar claims about his Ciroc vodka.
In January, Diageo and Didi formally ended their partnership, saying in a joint statement that they had “agreed to resolve all disputes between the two companies” and that Combs had “withdrawn all allegations” about Diageo.
As another example, Jennifer Lopez's Delora Line bottled, single-serve spirits got off to a rocky start last year. Fans accused Lopez of being hypocritical because she had publicly stated that she didn't drink alcohol, but she later clarified in an Instagram post that she enjoys “a cocktail every now and then.”
Paul and Cranston want Dos Hombres to be a success story and are working to grow its fan base: The brand recently partnered with Applebee's to release three cocktails, the first time the chain has served mezcal in its 44-year history.
Paul said he saw a “clear opportunity” in the market to bring agave-based spirits to the U.S. “Because if you ask someone, 'What's your favorite mezcal?', they're like, 'Um, mezcal? What's mezcal?'”
Applebee's was appealing to Paul because of its widespread name recognition and his own childhood experiences: “Whenever there was a big celebration in Iowa, we celebrated at Applebee's. For us, it was a big night. It was huge that they trusted us as a brand to represent mezcal to the masses.”
Despite the flurry of new alcohol brands, CAA's Yanover said “there's a huge demand in the alcohol industry” — there's always a desire to create “the next thing that's exciting and vibrant and different.”
This week, Kylie Jenner followed in her sister Kendall's footsteps by launching her own brand of canned vodka soda called Splinter. It's not the first brand to do so (think High Noon), but she raved in a press release that the brand is “the best vodka soda I've ever had, and I've tried a lot of vodka sodas.”
