A Startup That’s Valued at $700 Million Selling Sparkling Water?
Valued at $700 Million Just By Selling Water Requires A Big Investment in Marketing Differentiation
This letter was written two years ago and republished here as the learnings are somewhat still relevant and applicable today. At the time of publishing this, Liquid Death is valued at $1.4 billion.
(Designlabb) -- You know, I find it hard to comprehend. I think I can speak for everyone reading here.
Water is boring. It’s tasteless, odorless, and colorless.
But for sure it is essential for our health. We need it to survive.
We already know that there are many water brands out there, such as Evian, Fiji Water, Poland Spring, etc. But as an entrepreneur, anything is possible — so is coming up with a new water brand.
That’s what Mike Cessario did. He made water cool, again.
Have you heard of Liquid Death? Yeah, Liquid Death.
It’s this brand of canned water that’s been getting a lot of attention lately.
All I got to say is — it’s pretty unique.
Why? Because it’s sourced from the Alps and is carbonated. But what really sets it apart is the branding and marketing — they use heavy metal and extreme sports imagery to sell it, and it’s honestly pretty hilarious.
I know some people think it’s a bit too extreme, but personally, I think it’s refreshing to see a brand have some fun with its marketing. Plus, they’re really committed to sustainability — their cans are infinitely recyclable, and they donate a portion of their sales to help clean up plastic pollution in the ocean.
Mike Cessario is the founder.
And he’s a genius.
He’s a former creative at Netflix, Vaynermedia, and Porter & Bogusky. But as a ‘meant-to-be’ entrepreneur, living paycheck to paycheck just isn’t for him. So Liquid Death came to life.
And it came from Cessario mindlessly chopping a piece of wood “for a year or two until I finally figured out what it should be and had all the details figured out and thought through. It was meticulous.”
A big question is — how can a startup that sells water be valued at $700 million in such a short span of time — 3 years?
While water is nothing to be all excited about, Cessario believed that their brand of canned water would appeal to punk-rock musicians who need to stay hydrated during long performances, as well as straight-edge individuals who want a healthier alternative to alcohol and sugary energy drinks.
And by marketing to these groups, the brand can tap into a passionate and loyal customer base that aligns with their values and lifestyle.
Here’s a throwback to how it all started gaining some attention:
“We launched Liquid Death on Facebook first, even though we didn’t actually have a product. We shot this little $1500 commercial, using a fake cam. And we made it seem real, just to test the idea first. We wanted to see how people would react to it first. We wanted to find a low-cost way to see if it would work. And 4 months in, the video had about 3 million views. And the page had 80,000 followers.”
“Build trust and earn attention. The entity that gets the most trust will get the most customers.” — Seth Goldin
Liquid Death has to be incredibly interesting to survive in the bottled water market
Think about what sets Apple apart from the smartphone market.
They nailed down their design — yes, I’m talking about their sleek and elegant designs. They’re all about simplicity, minimalism, and user-friendliness — all combined together to give their customers a great user experience. And mind you, user experience is not so popular until the late 1900s due to the proliferation of workplace computers.
Not only that though. Their ecosystem, operating system, and marketing work in concert to help them maintain such a strong position in the industry.
Similarly, that’s exactly what Liquid Death did. Except they have to work harder to differentiate themselves from other brands in the $300+ billion bottled water market.
“The only way to be indispensable is to be different.” — Seth Goldin
Liquid Death, being a relatively new brand in the bottled water market, has gained a lot of attention for its unique and unconventional approach to selling water.
Unlike most other bottled water brands that focus on health and wellness, Liquid Death markets its product with a rebellious, punk rock-inspired brand image that appeals to a younger, alternative demographic.
Moreover, drinking a can of Liquid Death will ‘murder your thirst”.
“We’re an entertainment company first. We don’t want to make marketing. We want to make people laugh. And we want to be the funniest thing in someone’s feed for the day. That’s our goal,” Cessario said.
Humor, innovation, value, trust, and simplicity.
I could go on and on, but as a marketer, you can’t keep doing the same campaigns and marketing you always do.
The world is always changing. So are your customers and their needs.
Mike Cessario certainly knows more about his customers than they know themselves.
Don’t be scared. It’s just water.
“People don’t believe what you tell them. They rarely believe what you show them. They often believe what their friends tell them. They always believe what they tell themselves.” — Seth Goldin
It’s a funny and clever way to address people’s fears about trying something new.
The tagline plays off the idea that some people are scared of drinking water from unknown sources, even though it’s a basic necessity of life.
But with Liquid Death, there’s really nothing to be scared of.
Also, it is a reflection of Liquid Death’s overall brand identity, which is edgy, irreverent, and playful. They’re not your typical bottled water brand, and they’re not afraid to have some fun with their marketing.
No plastics, just cans
Liquid Death is more than just a clever marketing gimmick.
The company is actually committed to sustainability and has made a number of eco-friendly choices that set it apart from other bottled water brands.
The materials they use, well, aluminum cans, are infinitely recyclable and have a lower carbon footprint, making them a better option for the environment.
But it doesn’t stop there — Liquid Death also encourages their customers to recycle their cans after use. They’ve partnered with TerraCycle to create a recycling program that lets you mail your empty cans to be recycled for free. This is a great way to ensure that the cans are recycled properly and don’t end up in landfills or the ocean. Not only that — they also donate a portion of their profits to environmental causes.
What’s more trustworthy and authoritative than that?
As a customer, buying canned drinks means we’re also supporting their initiatives and protecting the environment. So we carry that identity as a ‘punk’ and a socially responsible person.
Conclusion
While many people would say that it’s impossible to stand out from a saturated market, Liquid Death has proven otherwise.
Its unique and unconventional brand has shaken up the bottled water market with its punk rock-inspired branding, eco-friendly packaging, and social responsibility initiatives.
While it may not be for everyone, it has definitely carved out a niche for itself and attracted a dedicated following of fans who love its edgy and irreverent approach to bottled water.
And that is what brands have to do to create a name for themselves.
Give Liquid Death a try. Don’t be scared, it’s just water!
Did I miss anything out? Leave us a comment below or shoot me an email at alvis@designlabb.cc.