Source: Yahoo!Finance
Liquid Death might be another consumer hit for Science Ventures, a Santa Monica, California-based investor that earlier helped develop Dollar Shave Club. In 2016, Unilever Plc paid $1 billion for that company.
Liquid Death, which now sells flavoured beverages, recognised an opportunity to market non alcoholic drinks that look more appealing and are better for the environment than a standard plastic water bottle. “If you don’t want to drink, this is a lot more enjoyable,” said co-founder and CEO Mike Cessario, adding that brand loyalty will keep it competitive against National Beverage Corp.’s LaCroix and PepsiCo Inc.’s Bubly.
The engaging theory behind Liquid Death, a three-year-old firm that has already raised $700 million in funding. Science Ventures led the $70 million investment, with involvement from other investors including Live Nation Entertainment Inc.Swedish House Mafia, and comedian Whitney Cummings. A firm that literally sells water in beer cans is approaching a $1 billion value.
According to the company, the Santa Monica, California-based beverage company began in 2019 and is now on course for $130 million in revenue this year, up from $45 million in 2021. It sells and distributes water in beer-style cans in stores, online, and at concerts.
The funds will be used to enter new beverage categories as well as the European market.
Cessario attributes some of Liquid Death’s success to its cans, which make the product appear “fun and unhealthy like beer or an energy drink.”
This is Liquid Death’s second round of funding announced this year. In January, the corporation stated that it was worth $525 million. To date, the startup has raised $195 million. It intends to pursue an initial public offering in the future. “It’s a path we’re examining for the next two years,” Cessario explained.
According to Peter Pham, co-founder of Science Ventures, consumer success sometimes comes down to marketing talent, which Cessario possesses.
“Consumers are sophisticated; they recognise when they are being marketed to,” Pham said. “There’s a wink, nod, nod to them suggesting, ‘Let’s have some fun.'”
Its sudden surge in popularity can also be attributed to online talk and fandom.
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