Entertainment
Acclaimed Actress Breaks Into Booze Biz with Gin Launch
Clear Facts
- Acclaimed actress Margot Robbie, known for her role in “Barbie”, has started her own gin brand, Papa Salt, venturing into the alcohol branding business.
- A declining return on investment in Hollywood is prompting celebrities to establish their own brands, allowing them to secure ongoing equity.
- Despite a thriving film career, Robbie has found the predictability and potential profitability of the alcohol business to be appealing in contrast to the unpredictable nature of Hollywood.
Australian actress Margot Robbie, celebrated for her starring role in “Barbie”, is the latest celebrity to venture into the alcohol branding industry. During a conversation, Robbie confessed that the liquor sector can offer a less complex landscape compared to the unpredictable world of Hollywood.
“Movies are a crazy business where you are selling something that isn’t tangible, it’s an idea. You have no idea how much it’s going to make, who’s going to see it, if they’ll see it or how it will be received,” she disclosed.
With the launch of her gin brand Papa Salt, Robbie remarked, “This feels a lot more straightforward, it’s easier to predict things. You can lay this out on a spreadsheet in a way that you can’t lay out a movie idea.”
The success of Robbie’s film “Barbie”, which grossed 1.4 billion dollars worldwide and received eight Oscar nominations, showcases her talents both on and off the screen. However, the uncertainty within the film industry persists.
“Celebs are moving towards brand/product because they own ongoing equity and the ROI (return on investment) of filmmaking is decreasing,” stated Steven Pesavento, CEO of VonFinch Capital in Denver.
He further elaborated, “In the world of free or streaming content, there isn’t the margin, so truly they have a better shot at making ongoing big earnings in business versus entertainment. When paired together, they can be great [eyeballs into profit dollars].”
The lackluster performance of Hollywood’s box office in the first half of the year is encouraging stars to diversify their income sources.
Ted Jenkin, president of Exit Stage Left Advisors in Atlanta, expressed, “In the end, the highest-paying job in America is marketing and client acquisition. Although stars can earn millions of dollars making movies, the ultimate multimillion-dollar gig is owning your own business and using your star power to turn fans into clients.”
Robbie is not alone in this strategic move. Other big-name celebrities, including George Clooney, Dwayne Johnson, Mark Wahlberg, and Matthew McConaughey, have also invested in the alcohol industry in recent years.
Kara Schmiemann, senior director for Red Banyan PR in Fort Lauderdale, Florida, noted, “Branding, product launches and marketing campaigns linked to celebrities have been a staple in the promotional community for ages… However, celebrities are… becoming savvy business moguls in their own right… This allows them a big chunk of the whole pie.”
Despite initial hesitation about entering an already saturated market, Robbie stated, “I definitely didn’t want to jump on the bandwagon. But I’m not really concerned. No one came to us with this idea or with money. We were never beholden to anyone.”
She emphasized her vision for the brand; she doesn’t want it to be associated as “Margot Robbie’s gin” but as “five best friends’ gin,” referring to herself, her husband, and their close friends.
The trend towards food and beverage branding by celebrities isn’t exclusive to the alcohol sector. Schmiemann mentioned, “Alcohol is just one of many products that celebrities are launching… The same thinking can be seen with restaurant brands being launched by a deep bench of A-list athletes, as it appeals to the masses.”
To conclude, Jenkin highlighted, “The alcohol market is extremely crowded right now… The next big market is celebrity-themed bars and restaurants, à la the Jimmy Buffett model.”
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