"No retailer will ever put Liquid Death on the shelf in the US," said Mike Cesario, founder and CEO of the canned water company Liquid Death, now valued at $1.4 billion. Surprisingly, it all started with a big joke.
For years, marketers have portrayed water as a "girly drink" for yoga moms with cute brand names and dainty bottles. Cesario flipped this narrative, creating a brand that turns heads and challenges norms.
When people first hear about Liquid Death, they often think it's an alcoholic beverage. However, it's just canned water with edgy marketing. Mike Cesario asked, "What if you could make water cool?" He believed, "A brand transcends functional benefits. If your brand is just functional benefits, then you don't have a brand."
The Genesis of Liquid Death
Before launching Liquid Death, Cesario worked at a marketing agency in Nashville, creating ads for Netflix, Apple, and others. One campaign for a milk company branching into protein shakes taught him the power of targeting new markets with bold strategies.
In 2009, during The Warped Tour, Cesario noticed artists backstage drinking Monster Tour Water (water in Monster cans) instead of energy drinks. This sparked the idea: why weren't there any cool, healthy water brands? In 2014, while working on an ad campaign about sugary energy drinks, he proposed a canned water stunt. The client rejected it, but the idea stuck with him.
From Concept to Reality
Cesario wanted a name that poked fun at soda and energy drink brands. He chose "Liquid Death" – arguably the dumbest name for a healthy beverage. He filed for the trademark on July 6, 2017, but faced two big hurdles: lack of money and knowledge about the beverage industry.
He created a 3D render of the can and sought investors, who initially dismissed it. Retailers were wary of the name "Liquid Death." Undeterred, Cesario contacted bottled water consultants, eventually finding a producer in Austria. He also created a Facebook page and an ad, which went viral with 3 million views in four months, boosting Liquid Death's profile.
Initial Success and Expansion
With $150,000 from friends and family, Cesario launched Liquid Death online. In the first month, they sold $100,000 worth of product with minimal marketing spend. The high initial price of $20 for a 12-pack was due to shipping costs from Austria.
Understanding the limitations of online sales, Cesario targeted bars instead of big retailers. Liquid Death became a hit as a conversation starter, appealing to bars looking to sell more than tap water.
In Spring 2020, Whole Foods launched Liquid Death nationally, attracted by its "Death to Plastic" slogan and sustainable aluminum cans. This national launch was a significant breakthrough, leading to a presence in 7-Eleven stores and a surge in revenue.
Innovative Marketing and Future Prospects
Liquid Death's marketing is all about entertainment. From using Tony Hawk's blood for skateboard graphics to humorous product names like "Mango Chainsaw," their unorthodox approach works. They even mocked Pepsi's failed '90s jet giveaway with their own jet giveaway.
In 2022, they expanded into flavored sparkling water and iced teas. Despite facing competition from giants like Coke and Pepsi, Liquid Death continues to innovate. With backing from celebrities and significant investment, rumors of an IPO are swirling, potentially taking the company public in 2024.
The Future of Liquid Death
As of March 2024, Liquid Death isn't profitable but is focused on growth. The real test will be maintaining its edgy brand while navigating potential changes if they go public. For now, Liquid Death is disrupting the industry, and only time will tell how long the joke will last.
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