From Michelle Obama to Bella Hadid, celebrities are piling into the soda business

• Celebrities are getting into the soda industry and launching their own beverages.
• Healthy soda options are in demand, with brands like La Croix seeing record sales.
• Experts explain why the celebrity beverage business is booming.

From former first lady Michelle Obama to supermodel Bella Hadid, celebrities are piling into the soda business.

The stage has been set for beverages to become the next big thing for famous people to sell for a while now, experts told Business Insider.

While Coca-Cola and Pepsi still dominate the soft drinks market, smaller brands have seen a big rise in popularity over the last four years in the US, according to data collected by Citi from marketing research firm NielsenIQ.

One major driving force behind the growth in the sector: a push into healthier beverages. Sodas have become associated with unhealthy choices, Emily Contois, a researcher of food and media at Tulsa University, told BI. As the wellness industry boomed, Contois said alternatives have emerged to fill the void for health-conscious consumers.

"This idea about sodas as indulgent and fun is also colliding with these newer ideas where sodas are configured as healthy," she said.

Poppi and Olipop, two of the most popular prebiotic soda brands, have exploded in popularity since 2020. Olipop's annual sales were around $3.7 million in 2020; 2024 sales have already topped $325 million as of October 5. Poppi has had a similar trajectory. It's grown from less than $1 million in sales for 2020 to nearly $260 million in 2024. Both have grown their market share in the US.

While some brands have partnered with influencers to push their "healthy" sodas, celebrities are using their star power to launch new beverages.

Filippo Falorni, an equity research director at Citi, compares the celebrity-owned beverage industry's trajectory to that of the beauty industry — which took off in the 2010s when beauty gurus dominated YouTube. Just as social media helped celebrity makeup lines sell, Falorni said their drink brands have the same potential.

"The influence of social media on consumption behavior obviously has been up dramatically over the last five, 10 years," Falorni said.

Celebrities with millions of fans already have a head start when it comes to selling. Actor Blake Lively, who has 45.6 million followers on Instagram, promotes her Betty Buzz brand on the platform. Singer Katy Perry (205 million Instagram followers) launched De Soi, a line of sparkling drinks made with adaptogens from mushrooms, in 2022.

PLEZi Nutrition, a company cofounded by Obama in 2023, launched its soda alternative, PLEZi Fizz, in March. The drink is aimed at kids; Obama had previously said, "We know how much concern parents and pediatricians have about sugary drinks." PLEZi Fizz has 70% less sugar than the leading carbonated soft drinks, according to its website.

Contois also said that beverage brands are a convincing way to sell consumers a lifestyle. When it comes to celebrity beauty and wellness brands, Contois said people usually hope there's a "magical elixir" that will elevate their own life.

It could be a Kin Euphorics drink to look more like Hadid or a PLEZi Fizz to feel more like an Obama — sharing a favorite drink with a public figure brings a brief sense of closeness, Contois said.

Still, Citi's Falorni said distribution giants like Coca-Cola and PepsiCo don't have to worry about healthy seltzers stealing away business because soda sellers who make it big will eventually need them to help with distribution.

Famous booze-free beverage founders could also follow the well-trodden path of celebs creating alcoholic drink brands and then selling them for a lot of cash. Diageo acquired actor George Clooney's Casamigos tequila for about $1 billion in 2017, and the same alcohol company bought Ryan Reynolds' gin brand in 2020 for $610 million.

A-listers may feel more comfortable promoting sodas as guilt-free indulgences on their massive platforms compared to alcohol. The relatively low price points — a four-pack of Betty Buzz is less than $10 — also mean consumers can share a celebrity's taste for a few dollars.

"It's an aspirational investment that people are willing to make," Contois said.