Buffett’s booming empire
It’s like the world’s biggest beach party, hosted by the world’s richest beach bum.
The 15,000 fans packing the sold-out MGM Grand arena were enjoying the final concert of the season by Jimmy Buffett, the singer whose popularity and fortune grow greater even as his hair grows grayer.
Buffett, who turned 62 on Christmas Day, long ago became an icon of certain baby boomers by offering the dream of dropping their responsibilities for his tropical party vibe. But in the last decade, this chronicler of Margaritaville has really cashed in on his image.
How big is Buffett?
With an estimated annual income of more than $40 million, you might mistake his portfolio for that of Warren Buffett (not a relative). And he’s done it by sailing beyond most musicians’ ticket, T-shirt and poster revenue stream.
The title of his most popular song is showing up on restaurants, clothing, booze and casinos. Among the products he’s involved with are Landshark Lager, the Margaritaville and Cheeseburger in Paradise restaurant chains, clothing and footwear, household items and drink blenders. The Margaritaville cafe on the Las Vegas strip is said to be the top-grossing restaurant in the nation.
Buffett writes bestselling novels. There’s Radio Margaritaville on Sirius. Even his recording career is booming as the music industry tanks: His recent album, “License to Chill,” was the first No. 1 album of his career.
In October, Buffett was chosen by Vanity Fair as No. 97 on a list of the 100 most influential people in the world. He’s nestled between Universal Music Group Chief Executive Doug Morris and anti-poverty crusader Jeffrey Sachs.
But the exact scope of the Parrot Head empire is secret. Buffett’s privately held Margaritaville Holdings does not publicly disclose its finances, and his publicists declined numerous requests for interviews with the singer or anyone connected with Miami-based Margaritaville Holdings.
“He wants to be known as an artist and musician, but he’s an extremely savvy businessman,” said Brian Hiatt, an associate editor for Rolling Stone who covers the concert industry.
Buffett is unusual among aging crooners in that his fan base is broad and is not tied solely to a string of past hit songs. For most of his career, Buffett had only one Billboard magazine top 10 hit, “Margaritaville,” in 1977.
What he offers his fans is an accessible fantasy.
“Anyone of any age could imagine retiring to a tropical paradise and drinking margaritas,” Hiatt said. “There is something extra-musical about the whole thing.”
You don’t have to go to a concert to buy his stuff. Margaritaville boat shoes and flip-flops are found in shopping malls. Margaritaville Foods sells salsa, hummus, tortillas and dips in Wal-Mart and other stores. Landshark is sold in grocery stores, and Margaritaville tequila is in liquor stores.
Last May, the Trump Marina Hotel Casino in Atlantic City was purchased by Coastal Development, which will convert it into a destination resort under the Margaritaville label.
Harrah’s Entertainment Inc. has teamed with Buffett to develop the $700-million Margaritaville Casino & Resort in Biloxi, Miss., near where Buffett was raised.
The Margaritaville at Flamingo Las Vegas takes in more than $43 million a year, casino President Don Marrandino said.
“It’s been pretty consistent for five years,” Marrandino said. “It speaks to the Buffett lifestyle.”
