Why Every Celebrity Has an Alcohol Brand These Days

Key Takeaways

• The high-end spirit industry is booming
• Celebrities have formed lucrative partnerships in the alcohol space
• You don’t have to be a connoisseur (or a celebrity) to profit from the alcohol space

For the first time this year, spirit sales overtook beer in the U.S., signaling a shift in consumer tastes. Since Covid-19, there’s been an explosion of canned cocktails and high-quality spirits at home (versus just at the bar). In 2022, tequila sales rose 21% and American whiskey rose 19%.

Celebrities are tapping into these trends. George Clooney sold Casamigos, the tequila brand he co-founded, for $1 billion in 2017. Since then, several high-profile actors, musicians, and athletes have also started wheeling and dealing in the booze space. Is it an over-hyped niche or worth a closer look? We’ll get into it below.

The Guilty Pleasures Kit from Q.ai uses the power of AI to tap into investments in brewers, wine brands, distillers, and vineyards (and other guilty pleasures) so you can profit from the proliferation of high-end alcohol brands that are cleaning up right now.

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What’s everyone’s drink of choice?

Steph Curry has a whiskey, Kendall Jenner and The Chainsmokers are slinging their own tequilas, Emma Watson came out with a carbon neutral gin, and Sarah Jessica Parker is the face of — you guessed it — a cosmopolitan in a can.

The rising appetite for high-end spirits is one draw for celebrities looking for a smart investment opportunity. Other incentives include quick production time — specifically for tequila, which doesn’t have to age long — and relatively high margins.

There’s also just a fun factor to trendy alcohol brands that makes sense for big names in entertainment to get behind.

How to profit from the alcohol buzz

For those of us who aren’t celebrities, there are other ways to get in on the alcohol action.

Many ETFs that have a focus on consumer staples allocate part of their portfolio to businesses that sell alcohol. Buying alcohol definitely falls into the category of discretionary spending, but people tend to treat themselves to a drink even if they are cutting back elsewhere.

In fact, sometimes they drink more during tough times. Alcohol consumption reached a 20-year high during the pandemic. The alcoholic beverage industry is expected to reach a market size of $2,684 billion by 2027, growing at a CAGR of 2.4%.

Also worth keeping tabs on? Low- and no-alcohol beverages. Consumer demand for no- and low-alcohol products rose more than 7% in volume across 10 key global markets in 2022. The category is expected to reach an annual growth rate topping 7% through 2026. Celebrities are getting into that game, too: Bella Hadid is behind Kin Europhics and Katy Perry launched De Soi.

Specialty beverages (with and without booze) are certainly categories to watch.

The bottom line

Trendy drinks are on the rise. If you’re comfy with a little hedonism, alcohol, tobacco, cannabis, gambling, and adult entertainment are all “sin stocks” that have a lot of potential.

When you invest in the Guilty Pleasures Kit from Q.ai, you stand to gain a lot more than a hangover. That’s because Guilty Pleasures Kit is a dynamic strategy that rebalances positions and adjusts to find the best opportunities within this investment space.

Download Q.ai today for access to AI-powered investment strategies.