If you’re feeling dehydrated, plain water is certainly an option. It’s calorie-free and refreshes you, but it may not add much to your social image. In today’s market, it seems that only drinks backed by celebrities really stand out. This trend suggests that beverage startups are increasingly leaning on their high-profile investors for branding support. An analysis highlights that many popular beverage companies are attracting significant venture capital, with numerous celebrity figures stepping in to back various drinks.
From big names like Beyoncé and Naomi Osaka to Leonardo DiCaprio, many of these funded startups boast famous investors. Interestingly, many of these brands are based in Los Angeles, a hub for celebrity culture.
Focus on Health
It’s notable that many A-list celebrities are investing in healthier beverage options. They aren’t promoting sugary or high-calorie drinks; instead, several focus on hydration, with companies like Liquid Death and ZenWTR known for their straight-up water offerings.
There’s also a wave of nonalcoholic options gaining popularity. Athletic Brewing, a major player in the nonalcoholic craft beer segment, has attracted significant funding, while De Soi, which produces alcohol-free aperitifs, counts pop star Katy Perry among its founders.
Interestingly, the only brand in this mix that leans toward the buzzworthy side is Cann, which specializes in sparkling beverages infused with THC and CBD distillate. However, even Cann’s approach promotes health benefits like organic agave as opposed to sugar, framing its products as a remedy for the stresses of daily life.
The Role of Celebrity Endorsements
Despite the commonality of celebrity-endorsed drinks, the connection between fame and beverage branding is a bit peculiar. After all, most consumers have access to safe tap water. Yet, a significant portion of our disposable income is still devoted to beverages. According to recent figures, U.S. retail sales of nonalcoholic packaged drinks exceeded $246 billion last year, marking a year-over-year increase of 7.5%. This translates to over $700 spent per American each year.
In terms of volume, plain water remains the most consumed packaged drink, which may explain the interest of popular figures like Travis Kelce and Beyoncé in this market. This trend is not new, as the data indicates that bottled water has outsold carbonated soft drinks by volume for at least eight consecutive years.
Many consumers are finding it hard to resist the array of celebrity-endorsed beverages available. Even if filtered water is a more budget-friendly and straightforward choice, the allure of bubbly, low-calorie, and well-marketed drinks is hard to ignore.
