Liquid Death water startup worth $700 million

At least that’s the argument behind Liquid Death, a three-year-old startup that has been valued at $700 million after its latest funding round. The $70 million investment was led by Science Ventures, with other investors including Live Nation Entertainment Inc., music group Swedish Mafia and comedian Whitney Cummings.

The Santa Monica, California-based beverage business, which launched in 2019, is already on track to hit $130 million in revenue this year, up from $45 million in 2021, according to the company. The company sells beer canned water and distributes it in stores, online and at concerts.

Liquid Death, which now also sells flavored beverages, saw an opportunity to sell non-alcoholic beverages that looked more appealing and environmentally friendly than traditional plastic water bottles.

“It’s more fun if you don’t want to drink,” said co-founder and CEO Mike Cessario, adding that he believes the brand loyalty will make it competitive with National Beverage Corp.’s LaCroix or PepsiCo Inc. Bully.

The funding will be used to expand into new beverage categories and European markets.

Cesario said Liquid Death’s success is partly due to its canned products, which make the product look “as fun and unhealthy as beer or an energy drink.”

This is the second round of funding that Liquid Death announced this year. The company said it was valued at $525 million in January. The startup said it has raised $195 million to date.it ultimately wants to pursue a initial public offering“It’s a path we’re exploring sometime in the next two years,” Cesario said.

Liquid Death could be another consumer hit for Santa Monica, Calif.-based investor Science Ventures, which also helped launch Dollar Shave Club. The company was eventually sold to Unilever in 2016 for $1 billion.

Consumer success sometimes comes down to marketing talent, says Peter Pham, co-founder of Science Ventures, which he says Cessario has.

“Consumers are smart — they know what their marketing goals are,” Pham said. “So there was a wink, a nod, and a nod to them and said, let’s have fun.”