- Liquid Death raises $67 million, reaching a $1.4 billion valuation and $263 million in sales.
- The canned water startup disrupts the beverage industry with its unique marketing strategy.
- Venture capitalists back Liquid Death’s potential to redefine the tired and old beverage category.
A billion-dollar thirst quencher
Liquid Death, a canned water company, has raised $67 million at a $1.4 billion valuation, reaching $263 million in sales in 2023.
The startup has now secured more than $267 million in venture funding despite the beverage industry being a challenging sector for VCs due to its capital-intensive nature and the need for repeat customers.
Disrupting the beverage Industry, one can at a time
Science Ventures’ managing director, Michael Jones, backed Liquid Death because of its potential to disrupt legacy players like Pepsi and Coke.
Jones’ investing team considered Liquid Death to be “a super disruptive brand” that could redefine a tired and old category.
Some venture-backed beverage startups are attempting to upend the industry by creating new drink categories, similar to how technology companies often approach innovation.
Dan Buckstaff, chief marketing officer for retailer data company Spins, explains that companies can create hundreds of millions in ARR by approaching the market differently, drawing inspiration from others, or leveraging new technologies or data.
Liquid Death’s success can be attributed to its marketing strategy and shelf placement, which drew from the beer industry to find success not only on grocery store shelves but also at events, bars, restaurants, and even conferences.
