Beverage Startups Thrive on Celebrity Endorsements
Beverage startups seem to have found a winning formula – get a celebrity backer and watch the investments roll in. A recent analysis of Crunchbase data has revealed that many heavily funded beverage startups have famous names among their investors. From Beyoncé to Leonardo DiCaprio, celebrities are flocking to support hydration-focused companies.
What’s interesting is that these celebrity-backed drinks focus on healthier options. From plain water to nonalcoholic craft beers, these beverages are not high in sugar or calories. Even the one outlier, Cann, which contains THC and CBD distillate, touts organic ingredients and stress-relief benefits.
Despite the availability of safe tap water, Americans continue to spend a significant amount on beverages annually. Retail sales of nonalcoholic packaged beverages reached over $246 billion in the U.S. last year. Water, in particular, remains the most popular packaged drink option, outselling carbonated drinks for at least the past eight years.
With such a lucrative market, it’s no wonder that celebrities are diving into the beverage industry. While plain water may be the practical choice, the allure of celebrity-endorsed, trendy beverages is hard to resist. As more famous names join the ranks of beverage startups, it’s clear that branding and star power are driving the success of these companies in the competitive beverage market.
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Photo credit news.crunchbase.com