Hollywood Stars Turn to Brand Incubators to Build Long-Term Legacies, Not One-Hit Wonders

Shay Mitchell, John Legend, and other A-list celebrities are increasingly turning to brand incubators to transform their ideas into multimillion-dollar ventures, leveraging celebrity influence combined with business expertise to build sustainable enterprises. These incubators, such as Beach House Group, specialize in connecting celebrities with the infrastructure and know-how required to launch and scale consumer brands. The partnership model typically involves shared equity and expertise, allowing stars to focus on creative and promotional aspects while leaving operational and logistical challenges to seasoned professionals. Beach House Group, co-founded by Shaun Neff and PJ Brice, has successfully incubated brands like Béis, Moon Beauty, and Pattern, which have collectively generated over $300 million in revenue in recent years [1].

The success of celebrity-branded ventures is often attributed to the unique access and credibility that celebrities bring to the market. For example, Shay Mitchell, known for her role in Pretty Little Liars, identified a gap in the luggage market and, with Beach House’s support, launched Béis. The brand’s focus on travel essentials quickly resonated with consumers, achieving $200 million in revenue by 2023 and surpassing $300 million in recent years [1]. Similarly, John Legend and other celebrities collaborate with incubators like A-Frame, which offers 50-50 equity splits to align the motivations of celebrities and entrepreneurs. These incubators often provide resources such as legal, logistics, and distribution expertise while ensuring that celebrities remain active participants in the branding and product development process.

Celebrities are not only launching their own brands but also expanding into diverse industries, from beauty to wellness and fashion. Jennifer Aniston’s equity stake in Smartwater in 2007 served as a blueprint for modern celebrity brand deals, leading to substantial financial rewards when the company was acquired by Coca-Cola for $4.1 billion [1]. The rise of social media has further amplified the power of celebrity endorsements, as it allows direct engagement with consumers. This shift has made it feasible for celebrities to own and market their own brands with greater authenticity and influence. For instance, Selena Gomez’s Rare Beauty and Dwayne Johnson’s Teremana Tequila have both generated significant revenue, reflecting the increasing commercial viability of celebrity-founded brands [1].

Despite the success stories, the market is not without risks. The celebrity brand space has become increasingly crowded, with over 300 celebrity-affiliated alcohol brands currently available and celebrity beauty brands generating $1 billion in sales in 2023 [1]. However, many of these ventures have struggled to maintain profitability or relevance, as evidenced by the failure of Hello Bello, a diaper startup co-founded by Kristen Bell and Dax Shepard, which filed for bankruptcy in 2023 [1]. The market is expected to undergo a period of consolidation, with greater emphasis on identifying genuine opportunities rather than capitalizing on fleeting trends. Experts suggest that the most successful celebrity brands are those that align with the celebrity’s personal brand and lifestyle, ensuring authenticity and consumer trust.

The growth of brand incubators reflects a broader trend in Hollywood where celebrity entrepreneurship is becoming a strategic alternative to traditional acting careers. With the increasing unpredictability of film and television jobs, building a brand is often seen as a financial safeguard, akin to a 401(k), albeit with higher risks [1]. Incubators like Centric Brands, Give Back Beauty, and Collab are catering to this trend by providing specialized expertise in various industries, including fashion, beauty, and coffee. These partnerships not only reduce the burden on celebrities but also increase the likelihood of long-term success by combining celebrity influence with industry-specific knowledge and experience.

Source: [1] Meet the 'incubators' behind Hollywood's celebrity-owned ... (https://fortune.com/2025/09/01/shay-mitchell-john-legend-celebrity-brands-incubators/)