This article was initially published in the February issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
In my capacity as chief strategy officer at creative agency Impero, I’ve long been interested in identifying early indicators of the trends that will disrupt the mainstream. One of the most reliable indicators in recent years has been tracking where celebrities are investing their money. With their vast wealth and access to advisers, celebrities seem to have a knack for spotting emerging niches right before they explode.
Recent examples include Ryan Reynolds’ sale of Aviation Gin to Diageo in 2020 for US$610m; Madonna, Matthew McConaughey and Demi Moore’s $1m investment in Vita Coco in 2010 (now worth $750m); and George Clooney, Rande Gerber and Mike Meldman’s creation and then divestment of Casamigos Tequila [again to Diageo] for $1bn six years ago.
If past trends are any indication, then tracking celebrity investments and drink brands could be a good way to predict future growth in untapped beverage categories.
Take the health & wellness trend that has been shaking up NPD in drinks over the past few years. Meghan Markle embraced the concept of health-boosting drinks in 2020 when she invested in female-led US startup Clevr Blends, which loads its oat-milk instant ‘super-lattes’ with adaptogens, probiotics and organic non-GMO superfoods.
Meanwhile, in 2021, Germany’s most successful rapper, Shirin David entered the health & wellness fray with no/low DirTea RTDs, a range of 0%-to-5% ABV iced tea energy drinks. Then, of course, last year saw YouTube stars Logan Paul and KSI launch Prime, a hydration drink that flew off the shelves in the UK, selling out in minutes before being resold online for tens of thousands of pounds.
More recently, startup Olipop – a line of diet sodas packed with prebiotics and plant-based ingredients – closed its series B funding round with the help of a host of celebrities, including Gwyneth Paltrow and Camila Cabello.
The celeb rush is not over yet: Singer Robbie Williams is reportedly preparing to release his own brand of energy drinks and has trademarked terms including “powdered nutritional supplement energy drink mix”, “electrolyte drinks for medicinal purposes” and “medicated mineral drinks”.
While it’s true that celebrities are often just spending their spare change and promoting their own brands, it’s clear that some are also shrewd investors who are able to spot trends. Right now, they’re flocking to functional drinks, a category that Precedence Research forecasts will grow from $140.87bn in 2022 to $279.4bn in 2030 – an impressive CAGR of 8.9%.
Within functional beverages, immunity-boosting and energy-boosting variants are particularly prevalent, driven by the burnout of our always-on culture combining with Covid-driven fears of illness. With the lines between work and home life still blurred, consumers are focusing more on fitness, while simultaneously worrying about their health.
The ongoing cost of living crisis is also driving consumers to maximise their nutritional intake. Research by Glanbia Nutritionals found that cost of living increases have prompted 12% of US consumers to buy more cheese, vitamins and mineral supplements, while 10% are buying more cereal. Meanwhile, nearly a third of consumers surveyed report buying less ice cream and sweet snacks, while 6% and 8% of consumers, respectively, have stopped buying these products altogether.
Interest in using psychedelic substances for therapeutic purposes, and in taking small, sub-perceptual doses of psychedelics (known as ‘micro dosing’) also reached record levels last year, according to Google data. The use of psilocybin mushrooms, specifically, increased significantly in the US, and online searches for information about ’shroom moms’, or ‘mothers who use mushrooms’, rose by a remarkable 3,200%.
So, it’s no surprise to see ’shrooms enter the beverage space: Dirtea is a range of powders that harness the “healing powers of mushrooms to naturally enhance wellbeing”. Designed to be mixed into everything from coffee to cocktails, the brand has entered the on-premise channel, partnering with luxury hotel W London on the UK’s first ‘brain booster’ menu. The Dirtea range features in a number of food and drinks on offer, including a Dirtea Martini, allowing the hotel’s guests to experience the “wellbeing benefits medicinal mushrooms offer”, such as “improved focus, memory, energy and lessened anxiety”.
It’s not all small players either. Major brands, such as Corona, are also entering the health & wellness area. In January last year, Anheuser-Busch InBev launched vitamin-infused Corona Sunbrew 0% in key markets including Canada, the UK, Europe, Asia and South America. The alcohol-free beer claims to contain 30% of a consumer’s daily vitamin D allowance per 33cl.
So, with 2023 shaping up to be the year of functional drinks, it will be interesting to see how other big brands attempt to enter the fray.
This article was initially published in the February issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
