Liquid Death Secures $75M Funding for Expansion

Liquid Death's Rapid Ascent and Future Plans

Liquid Death, the water brand that initially gained attention in 2018 through a viral video campaign, is now experiencing substantial growth and taking its business very seriously. The Los Angeles-based company, known for its canned mountain water marketed with the tagline “murder your thirst,” has secured $75 million in Series C funding.

Funding and Growth Metrics

This funding round was spearheaded by Science, a startup studio instrumental in the company’s launch and currently holding a “strong minority” stake. Science co-founder Mike Jones expressed a desire for an even larger ownership position.

Liquid Death’s co-founder and CEO, Mike Cessario, a former West Coast advertising creative, shared insights into the company’s expansion. The brand is currently available in over 29,000 locations across the U.S., including major retailers like Whole Foods, Target, Safeway, and 7-Eleven.

Revenue reached approximately $45 million last year, a significant increase from $3 million in 2019, the year the first cans were sold. Cessario believes considerable growth potential remains.

Expanding Product Line with a Distinctive Brand Identity

The company is introducing flavored waters that align with its unique, punk-metal aesthetic. The initial flavors are named Berry It Alive, Severed Lime, and Mango Chainsaw.

Cessario attributes the company’s success to its distinctive, darkly humorous messaging and its commitment to aluminum packaging, which is considered more recyclable than plastic, despite the environmental concerns surrounding single-use containers.

Organic Growth and Marketing Strategy

Liquid Death has prioritized an organic growth strategy, enabling it to compete effectively within the crowded beverage market. The company’s marketing expenditure is considerably less than that of larger competitors.

“We don’t have $300 million to throw at something,” Cessario stated, emphasizing the need for compelling and shareable marketing content.

Marketing campaigns vary in development time, from as little as two weeks for spontaneous ideas to six months for more elaborate projects. A recent example involved a collaboration with celebrity investor Tony Hawk, selling 150 skateboard decks incorporating Hawk’s blood.

Cessario himself demonstrated brand commitment by getting a tattoo of a loyal Liquid Death customer’s face on his arm.

Focus on Brand Building and Demographic Targeting

With the introduction of new products, the company’s primary focus remains on establishing a brand that positions healthy beverages as equally enjoyable as less healthy options like junk food and alcohol.

The new drinks are sweetened with agave nectar, containing only three grams of sugar and 20 calories per serving, catering to a younger, predominantly male demographic with a preference for sweeter flavors.

Market Penetration and Amazon Partnership

Despite its growth, Liquid Death still has significant market penetration opportunities. While Fiji water boasts a 90% ACV (all-commodity volume), Liquid Death was approaching 9% at the end of 2021.

A recent agreement with Amazon, allowing Liquid Death to sell wholesale to the e-commerce giant, is expected to significantly increase its market share and has already resulted in soaring sales.