Liquid Death water startup valued at $700 million

Sometimes water tastes better when it’s in a cool-looking can.
At least that’s the thesis behind Liquid Death, a 3-year-old startup that is already valued at $700 million following its latest round of financing. The $70 million investment was led Science Ventures, with participation from other investors including Live Nation Entertainment Inc., music group Swedish House Mafia and comedian Whitney Cummings.
The Santa Monica, California-based beverage business launched in 2019 and is already on track for $130 million in revenue this year, according to the company, up from $45 million in 2021. It sells water in beer-style cans and dributes them in stores, online and at concerts.
Liquid Death, which now also sells flavoured beverages, saw an opportunity to sell nonalcoholic drinks that look more appealing and environmentally friendly than a traditional plastic water bottle.
“If you don’t want to drink, this is way more fun,” said co-founder and Chief Executive Officer Mike Cessario, adding that he believes brand loyalty will keep it competitive against National Beverage Corp.’s LaCroix or PepsiCo Inc.’s Bubly.
The funding will be used to expand into new beverage categories and into the European market.
Cessario said that part of Liquid Death’s success can be attributed to its cans making the product look “fun and unhealthy like beer or an energy drink.”
This is the second round of financing that Liquid Death is announcing this year. The company said it was valued at $525 million in January. The startup said it has raised $195 million to date. It eventually wants to pursue an initial public offering. “It’s a path we are exploring sometime in the next two years,” Cessario said.
Liquid Death could be another consumer hit for Santa Monica, California-based investor Science Ventures, which also helped launch Dollar Shave Club. That company ultimately sold for $1 billion to Unilever Plc in 2016.
Peter Pham, co-founder at Science Ventures, said consumer success sometimes comes down to marketing talent, which he said Cessario has.
“Consumers are smart — they know they’re being marketed to,” Pham said. “So there’s a wink, nod, nod to them saying, let’s have fun.”