If you find yourself in need of a refreshing drink, plain water is often the go-to choice. It offers zero calories, effectively quenches thirst, and keeps you hydrated. But let's face it, where's the fun in that? And who really gets impressed? We need a beverage that stands out, something with an iconic and offbeat appeal. A status that only a celebrity backer can bestow. This seems to be the prevailing branding strategy among beverage startups. An in-depth analysis of Crunchbase data reveals that the beverage industry is an unusually star-studded category when it comes to venture investment. From the likes of Beyoncé to Naomi Osaka and Leonardo DiCaprio, a significant proportion of the more heavily funded beverage startups have one or more famous names among their investors. These startups are also highly concentrated in the celebrity-dense Los Angeles area. To illustrate the connection between celebrity investors and hydration-focused companies, we have compiled a list of 10 venture-backed brands along with their famous backers.Healthy and Trendy
It's quite fascinating to observe that A-list celebrities have chosen to lend their names and financial support to a diverse range of relatively healthy drinks. These aren't your typical alcoholic beverages or those loaded with sugar and calories. In fact, two of the standout brands are Liquid Death and ZenWTR, which are renowned for their plain water offerings. There are also others that have jumped on the nonalcoholic beverage bandwagon. The most well-known name here is Athletic Brewing, a nonalcoholic craft beer maker that has raised the most venture funding among the companies on our list. A distant second is De Soi, a maker of alcohol-free aperitifs with pop star Katy Perry as a co-founder. Even Cann, a maker of bubbly drinks containing THC and CBD distillate, manages to generate some buzz. Even Cann's founders add a wholesome touch to their pitch, highlighting the use of organic agave instead of sugar and the drink's ability to help one "rise above the stress of daily life."The Appeal of Celebrity Endorsements
Although we have become accustomed to the idea of celebrity-endorsed drinks, there still remains something peculiar about the strong bond between branding and quenching our thirst. After all, most Americans have access to safe tap water or can easily filter it. Yet, a significant portion of our disposable income still goes towards beverages. Last year, according to Beverage Marketing Corp. data, U.S. retail sales of nonalcoholic packaged beverages reached a whopping $246 billion, with a year-on-year growth of 7.5%. That amounts to over $700 per American annually. By volume, plain old water remains the most popular packaged drink, which explains why we have seen marketing-savvy celebrities like Travis Kelce and Beyoncé enter this space. This isn't a new trend either, as BMC estimates that water has outsold carbonated soft drinks in terms of volume for at least the past eight years. Personally, I have to admit that I have been drawn to many of these celebrity-endorsed beverage choices. While filtered tap water may be the more economical and practical option, it's hard to compete in a world filled with fizzy, low-calorie, probiotic, and heavily advertised beverages, all presented in artfully packaged and chilled forms.The Business Side of Celebrity-Backed Beverages
The presence of celebrity backers in the beverage industry not only adds a certain glamour but also has a significant impact on the business side. These famous names bring with them a level of credibility and visibility that can attract investors and consumers alike. For example, a beverage startup with a high-profile celebrity backer is more likely to catch the attention of venture capitalists and secure funding. Additionally, the association with a celebrity can help create a buzz and generate interest among consumers. It gives the product an edge in a highly competitive market. However, it's not just about the fame; these celebrity-backed beverages also need to deliver on quality and meet the needs of consumers. They have to offer a unique value proposition that sets them apart from the rest. Whether it's the health benefits of certain drinks or the innovative packaging, these factors play a crucial role in the success of a celebrity-backed beverage brand.The Future of Celebrity-Backed Beverages
As the beverage industry continues to evolve, the role of celebrity backers is likely to remain significant. With the increasing popularity of nonalcoholic beverages and the demand for unique and healthy options, celebrities will continue to play a vital role in shaping the market. We can expect to see more collaborations between celebrities and beverage startups, as well as the emergence of new and exciting brands. The key will be for these brands to not only rely on celebrity endorsements but also focus on delivering exceptional products and experiences. By doing so, they can build a loyal customer base and establish themselves as leaders in the industry. In conclusion, the combination of celebrity backers and innovative beverage concepts has the potential to create a new wave of success in the beverage world.
