This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

So Over It: Celebrity Booze

With Hagar doing the shilling and others doing the distilling, Cabo Wabo's distribution grew from 37,000 cases in 1999 to almost 150,000 in 2006. Two years ago, as rapper 50 Cent was making $100 million off the sale of his 10% stake in Vitamin Water to Coca Cola (KO - Get Report), Hagar sold an 80% share of Cabo Wabo to Campari (CPR) for $80 million.

Though film director Francis Ford Coppola and others have succeeded similarly with wine, Hagar made it OK to not only endorse but produce hard alcohol. Others followed, most notably Jay-Z after buying Armadale vodka in 2002 and becoming a co-brand director of Anheuser-Busch-InBev's (ABI) Budweiser Select brand in 2006.

The same year, designer Roberto Cavalli debuted a vodka that was double the price of the so-called super-premium Grey Goose to rave reviews. Italian-American actor Danny DeVito got into the Limoncello business a year later, and saw his sales double by 2008. Timberlake's 901 Tequila, meanwhile, was launched in four cities last month.

Perhaps no one has had more success cashing in on celebrity alcohol than Drinks Americas (DKAM). The company partnered with Donald Trump on vodka and with Willie Nelson on Old Whiskey River Bourbon. Their celebrity cache lessened brand-building promotion costs and increased the chance of someone trying a shot.

If there wasn't demand for such products, Drinks Americas certainly created it. Trump's line sold 100,000 cases in its first year, while Willie has been good for 7,000 cases a year since launching in 2001.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ABI $22.98 1.01%
DKAM $0.00 0.00%
BIT $16.17 0.06%
DEO $109.05 -0.14%
KO $44.66 -0.04%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs