Liquid Death valued at $1.4B in new financing round

A WATER BRAND with a popular social media following is now a billion-dollar company. Los Angeles-based Liquid Death has raised new capital that values the startup at $1.4 billion, double its $700 million valuation in 2022.

The business has seen its momentum continue with newer categories such as iced tea and flavored waters, Chief Executive Officer Mike Cessario said in an interview.

Liquid Death raised $67 million in capital from strategic investors such as distribution partners, as well as from actor Josh Brolin, National Football League player DeAndre Hopkins and Live Nation Entertainment, Inc., which sells the products at its concert venues. SuRo Capital, Science, Inc. and Gray’s Creek Capital Partners also participated.

The funding will go toward product development, including new flavors for its product lines. Liquid Death, which launched its iced tea last year, has already climbed to the top spot for bottled iced tea sales on Amazon.com, according to the company’s website.

Mr. Cessario said the flavored water products have also gained significant early traction and the group recently introduced flavored drinking powders under the Death Dust name. 

The company attributes much of its sales growth to its marketing, counting 7.9 million followers across TikTok and Instagram.

“If you have a valuable brand, it means that people have a reason to care about you beyond the small functional difference,” Mr. Cessario said.

He said the company initially was inspired by beer brands. “There’s no reason that only beer is allowed to look cool and do funny things,” he said.

When it comes to a liquidity event, such as an initial public offering or a sale of the company, Mr. Cessario said, “We want optionality.” At the moment, the company is “not focused on any specific outcome,” he added.

Liquid Death is “laser focused on profitability and profitable growth.” — Bloomberg News