Drinks Americas Signs With UMG

In a unique blend of adult beverages and music, Drinks Americas(DKAM) Drinks Americas, a $100 million market cap "premium beverage" company, penned a deal with Interscope Geffen A&M Records, which is part of Universal Music Group, the world's largest music company, on June 22 that will, for the first time, give artists an equity stake in new products that are jointly developed.

This deal shouldn't be surprising. Artists have influence over their fans' spending decisions, so why not get a share of the profits?

Celebrities have a big influence on the drinks industry in general. Last month, Rapper 50 Cent, who is also on Interscope's label, received approximately $400 million after Coca Cola(COKE) bought Glaceau, the creator of the highly successful Vitamin Water in which he had a 10% stake.

Other news in the beverage industry included the sale of 80% of Sammy Hagar's Cabo Wabo Tequila to Gruppo Campari for $80 million. Hagar is a Rock and Roll Hall of Fame inductee and was a singer and songwriter for Van Halen.

"There has been a winning tide between hip hop music and adult beverages for quite some time. Whether its rap artists are promoting champagne or cognac, they have lent instant street accreditation to emerging brands," says Pete Snyder, CEO of New Media Strategies.

The UMG label has several heavy hitters on its roster from a number of genres. The talent includes Eminem, Dr. Dre, Snoop Dogg, 50 Cent, Busta Rhymes, G-Unit, Daddy Yankee, Sheryl Crow, Enrique Iglesias, Chris Cornell, Gwen Stefani and Marilyn Manson. The label is headed by Chairman Jimmy Iovine.