Bruce Willis extends his celebrity endorser deal with Sobieski vodka in exchange for a 3.3% stake in its owner, struggling spirits outfit Belvedere SA of France, and that stake is worth about $4 mil., according to a “Wall Street Journal” article.
A non-cash compensation deal is unusual way to bag a famous presenter, though not completely unprecedented as stars get cars, wrist watches and traveling perks for being the face for other products and services.
In the vodka category, Sobieski becomes at least the third brand using entertainment presenters. Dan Aykroyd owns Crystal Head vodka, and musician and singer/actor Justin Timberlake created a tequila called 901, notes the “WSJ” article. Music artists have other spirits.
“A number of actors, musicians and other celebrities endorse or own financial stakes in alcoholic beverages,” notes the article by Amelie Baubeau and David Kesmodel. “But the financial track record of such drinks is mixed. In 2007, London’s Diageo PLC and music mogul Sean ‘Diddy’ Combs teamed up to form high-end vodka brand Ciroc. Mr. Combs promotes the brand in television commercials and other ads, including an enormous video running in New York’s Times Square, and receives half the profit from its sales. Ciroc has enjoyed rapid sales growth, although it remains a relatively small brand in the portfolio of Diageo, the world’s largest spirits maker by sales.”
Elsewhere, Drinks Americas Holdings Ltd., Wilton, Conn., has deals with musicians Dr. Dre and Kid Rock, and real-estate magnate and TV personality Donald Trump, though the company remains small. The Tiger Woods scandal demonstrates the downside of tying a product or service to a person, whose off-stage miscues can prove to be an embarrassment.
“Marketing to Moviegoers: Second Edition” suggests that famous talent could do more to squeeze money out of their personal “brand equity” through endorsement deals and fan clubs, but haven’t. Most aren’t willing to make the upfront investment to mount their own efforts and unwilling to pay third parties for necessary services. There are several intellectual property companies managing merchandising/promotion rights of celebrities such as CMG Worldwide in Indianapolis IN, but they mostly work with estates of deceased persons.
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