NielsenIQ (NIQ) has released data on the influence of celebrity endorsements on consumer choice when it comes to drinking types and brands.
In recent years, celebrities have engaged with entrepreneurship and endorsements around alcohol. From speciality gins, tequilas and mescal, to major whiskey, champagne and wine brands, many celebrities have either started their own companies or have been happy to put their names behind a number of popular labels.
Sharing the research, Tom Graham, CGA by NIQ’s senior manager for customer success, said the strength of celebrity endorsement was an interesting market trend to watch.
“NIQ sought to observe the impact that celebrity endorsements are having on drink type and brand choice when it comes to on-premise (in-restaurant and bars) spending by consumers,” he said.
“The data suggests that 8 per cent of all on-premise visitors have been influenced by celebrity endorsements in at least one category when choosing brands in 2024”.
Celebrity endorsements have the strongest impact on hard seltzer purchases, influencing 12 per cent of consumers in this category. Energy drinks follow at 10 per cent, likely getting a bump from certain brands and their extreme sports association. Alcoholic ginger beer gets a celebrity bump for 9 per cent of consumers, followed by tequila at 7 per cent and rum at 6 per cent.
Of the 8 per cent of consumers who have been influenced by celebrity endorsements, the majority, 54 per cent, are under the age of 35. This age group typically represents 30 per cent of on-premise visitors.
Under 35s are the most likely to be influenced by celebrity endorsements in the hard seltzer, energy drink and alcoholic ginger beer category, but 35-54s are more likely to be influenced by celebrity endorsements in tequila.
Despite recent high profile celebrity brand launches in gin, the category only ranks 8th for proportion of consumers being influenced by celebrity endorsements, at 4 per cent.
Data from NIQ suggests that on-premise locations like bars and restaurants are more likely to be where consumers will connect with celebrity brands.
When Australian on-premise visitors were asked where they were most likely to purchase a drink brand they had never tried before, 41 per cent said it would be in an on-premise venue (the global average was 35 per cent), compared to 34 per cent in a supermarket and 25 per cent online or through social media shops.
Similarly, when Australian on-premise consumers were asked where they were most likely to purchase an expensive/premium drink brand, 45 per cent said in an on-premise venue (where the global average was 34 per cent), compared to 30 per cent in a super market and 25 per cent online/through social media.
When it comes to the role social media plays in driving on-premise sales, NIQ says their influence is important, but less impactful than other markets. Data suggests that 28 per cent of Australian on-premise consumers agree that they often order new and exciting drinks seen on social media, compared to the 37 per cent global average.
NIQ also say that there remains appetite for consumers to be influenced by celebrity endorsements in Australia, with 26 per cent of on-premise consumers stating that they are likely or very likely to be influenced to purchase a product or type of drink by celebrity endorsement or ownership, though this is below the global average of 42 per cent
Summarising some of the trends explored in NIQ’s market research, Graham said celebrity endorsements had a role to play in decision making but were not a main deciding factor of drink or brand choice.
“There are certain categories that lend themselves to this more than others, they offer greater opportunity to leverage endorsements as a factor in drink choice,” he said.
“Restaurants and bars represent a key channel to push and market celebrity brands, as this is where consumers are most likely to try new and/or premium brands (celebrity brands are often in these categories). These venues allow for bartenders to directly connect with customers and explain the unique origin story of celebrity brands, while also giving venues status.
“Lastly, leveraging social media can also be a useful way to highlight new brands that a venue is stocking and show off the availability of celebrity brands to future customers.”
