Celebrities and liquor endorsements have been synonymous since the days of Prohibition, and in the black community, the link between the two has come with big dividends and some criticism. However, one can’t deny the bankability of a celebrity endorsement in expanding the exposure and sales of a spirits company.
In 2001, after Busta Rhymes released his hit “Pass the Courvoisier,” the company saw a 30% sales increase in U.S. sales. Fast-forward over a decade later and you’ll notice an influx of celebrities such as Sean Diddy Combs, Ludacris and Jay-Z, who are not only lending their name to endorsing liquor brands, they’re fully immersed in the creative process as well.
Whether it’s simply mentioning the brand in a hit song, marketing the product through social media or taking a 50-50 profit split for brand positioning, these are lucrative deals for both the brand and the artist.
According to David McCallen, CEO of Straight Up Brands Inc., a
producer of wines and branded spirits in conjunction with hip-hop stars and nationally known celebrities, the quality of the wine isn’t the main point–it’s all about placement and cross-promotion. Typically, the artist “owns a piece of the brand” and shares in revenue as a creative partner. “We give them signing bonuses, just like a record deal,” he explains. “I want the artist to literally work [the name] into their songs, rap about it, have it in their videos. It’s all product placement.”Check out a breakdown of popular entertainers who have famously raised the bankability of liquor brands.
Sean Combs & Ciroc Vodka
In 2007, Sean Diddy Combs agreed to become a brand ambassador for Ciroc, a brand struggling at the time–only selling 40,000 cases a year. According to Forbes, on top or receiving a percentage of profits from Ciroc each year, Sean Combs could receive millions if the brand is ever sold.
Diddy’s creative marketing team, The Blue Flame Agency, proved that successfully marketing a product is about selling a lifestyle. Cîroc is frequently featured in viral video campaigns, the lyrics of popular songs, sponsored events, and more than likely Diddy doesn’t let a day go by without promoting the bottle on one of his social media channels. And, Cîroc’s parent company Diageo has reported 2.1 million cases sold as of December 2012, making it the second ultra premium vodka in the world.
Most recently, Sean “Diddy†Combs added DeLeon tequila to his brand portfolio.
Chris “Ludacris†Bridges and Kim Birkedal Hartmann
Founded in 2009, Ludacris successfully went beyond simply endorsing the liquor brand to being involved in the blending of Conjure. In recent years, Ludacris added Soul By Ludacris and Conjure cognac to his portfolio, taking a small equity stake in the former and half of the latter. According to Forbes, Ludacris declined to give specifics on what sort of royalties he gets, saying only that they’re “non-stop†and “continuously flowing.â€
And, one of the wine and spirits best known personalities, Journalist Dan Dunn†named Conjure Cognac one of the Top Ten Spirits of 2009.
Jay Z & Armand de Brignac Champagne
The days of celebrities name-dropping with minimal control over distribution may be over.On November 5, 2014, a new company led by Jay-Z acquired Armand de Brignac Champagne from Sovereign Brands, for an undisclosed amount.
According to Forbes magazine, Jay Z, considered the third richest hip-hop artist in the world with an estimated net worth of $520m, also launched D’usse, (pronounced dew-say) with Bacardi a new brand of cognac.
Jermaine Dupri & 3 Vodka
Record Producer, Songwriter and Rapper Jermaine Dupri is a partner and owner, 3 Vodka, touted as the only vodka in the world distilled from soy and the first spirit to receive government approval to state zero carbohydrates.