Margot Robbie joins stars hawking alcohol as Hollywood investments are 'going down the drain': expert
'Barbie’ star Margot Robbie just launched her own gin brand
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"Barbie" star Margot Robbie is the latest celebrity to get in on the alcohol branding business.
In an interview with The Times, the actress admitted the booze business can be much easier than 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 said.
Robbie, who recently launched her gin brand, Papa Salt, continued, "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."
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Margot Robbie told The Times that selling an alcohol brand "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." (Michael Buckner/Golden Globes 2024 via Getty Images/File)
Representatives for Robbie did not immediately return Fox News Digital's request for comment.
"Barbie," which Robbie starred in and produced with her production company, LuckyChap Entertainment, earned 1.4 billion dollars worldwide at the box office and racked up eight Oscar nominations and one win for best original song.
But even with the film’s success, there are no guarantees in Hollywood.
"Celebs are moving towards brand/product because they own ongoing equity and the ROI (return on investment) of filmmaking is going down the drain," Steven Pesavento, CEO of VonFinch Capital in Denver, told Fox News Digital.
He continued, "In the world of free or streaming content, there isn’t the margin, so truly they have a better shot at making ongoing big bucks in business versus entertainment. When paired together, they can be great [eyeballs into profit dollars]."
"Barbie" earned over $1 billion worldwide and eight Oscar nominations, with one win for best original song. (Warner Bros. Pictures/Fox News/File)
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Hollywood’s box office has been sluggish in the first half of the year. The Los Angeles Times reported that May domestic grosses were down 43% from the average of the three years pre-pandemic, and ticket sales have fallen 25% from the same period in 2023.
Ted Jenkin, president of Exit Stage Left Advisors in Atlanda, told Fox News Digital, "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."
"Remember, when Tiger Woods was at the top of his game, he earned 10 times as much income in business and endorsements than he did playing golf. Modern-day celebrities realize you need to be a business person to become a billionaire."
Robbie is far from the first star to make the investment in alcohol.
Robbie has her own production company called LuckyChap Entertainment. (Michael Blackshire/Los Angeles Times via Getty Images/File)
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George Clooney, Dwayne Johnson, Mark Wahlberg, Matthew McConaughey, Ryan Reynolds and Cameron Diaz are just some of the big names who have put their money, and often their faces, behind liquor, beer or wine brands in recent years.
"Branding, product launches and marketing campaigns linked to celebrities have been a staple in the promotional community for ages, because A-list celebrities never fail to drive sales, creating a symbiotic relationship for products/brands and celebrities alike; and that likely will not change," said Kara Schmiemann, senior director for Red Banyan PR in Fort Lauderdale, Florida.
She added, "However, celebrities are wising up and becoming savvy business moguls in their own right, developing and launching their own products instead of simply offering their names for a piece of the pie. This allows them a big chunk of the whole pie."
And expertise in the field is not required.
George Clooney's brand, Casamigos, kicked off the recent trend of celebrities investing in alcohol brands. (Neil P. Mockford/Getty Images/File)
"The fact is that most consumers really don’t know the difference between one spirit or another. So, given the choice, they would rather drink a spirit line that is attached to one of their favorite celebrities," Jenkin said.
"Obviously, the product has to taste good, but celebrities realize that their star power can be very effective in the alcohol market because it gives their fans an emotional attachment to living the celebrity life."
Pesavento added, "The same bottle with a celeb attached versus not will move quicker off the shelves if positioned correctly, which turns into huge brand value. This trend could hold true in just about any business because celebrities sell product, and sales equals increased multiples."
Robbie told The Times she was "hesitant" to jump into an admittedly crowded field.
Robbie and her husband and producing partner, Thomas Ackerly, invested in the gin brand Papa Salt. (Matt Winkelmeyer/Getty Images/File)
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"I definitely didn’t want to jump on that 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 told the outlet.
She also said she doesn’t want people to see it as "Margot Robbie’s gin" but "five best friends’ gin," referring to herself, her husband and producing partner, Thomas Ackerly, and friends Josey McNamara, Charlie Maas and Regan Riskas (a married couple).
Schmiemann also noted that Robbie’s success in business is appealing as its own brand.
"Celebrities like Margot Robbie are carving out a name for themselves as more than just an actor but as smart, well-rounded, multifaceted and broadscale entrepreneurs, and there is always room at the table for these driven individuals to create products and brands, especially as more women are holding doors open for each other and celebrating their achievements as business professionals. This path will be made easier for newcomers who want it as they make their marks in both the movie business and in branding and product development."
Robbie said she was "fully involved" in the brand while filming "Barbie." (MEGA/GC Images/Getty Images/File)
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And Robbie is authentic in her involvement, telling The Times, "I was fully involved [with it] throughout the ‘Barbie’ filming and the tour."
"The Wolf of Wall Street" star is focusing on her next acting and producing projects, but experts see other food and beverage branding opportunities on the horizon.
"Alcohol is just one of many products that celebrities are launching, and it's a smart choice as it appeals to anyone of legal drinking age, as opposed to a smaller and more niche demographic-specific product. You see the same thinking with restaurant brands being launched by a deep bench of A-list athletes because it appeals to the masses," Schmiemann said.
Michael Jordan, Wayne Gretzky and Arnold Palmer all have their names on restaurants, and musicians like Jason Aldean, Luke Bryan and Eric Church have opened bars in Nashville, Tennessee.
"The alcohol market is extremely crowded right now," Jenkin said. "The product that celebrities bring to market must be a high-quality one to compete for customers, no matter what a celebrity's star power is right now. The next big market is celebrity-themed bars and restaurants, à la the Jimmy Buffett model."