Mike Cessario, founder of Liquid Death, shares the story of how his dumbest idea turned out to be brilliant. He discusses creating a viral water brand with an edgy image, overcoming challenges in production and funding, and attracting a diverse audience. The episode also explores the importance of branding, finding a bottler, and navigating unexpected success.
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Quick takeaways
Liquid Death's unconventional branding strategy breaks through the crowded bottled water market and captures attention by packaging water in tall boy aluminum cans and positioning it as extreme and rebellious.
Finding a partner for canning water in aluminum cans was a major challenge for Liquid Death, but the founder, Mike, found a solution by partnering with a water bottler in Austria and raising capital through social media and angel investors.
Liquid Death's success lies in its ability to differentiate itself through branding and marketing, challenging traditional perceptions of water and tapping into youth culture and social media trends.
Deep dives
Liquid Death: The Unconventional Water Brand
Liquid Death is a unique water brand that is changing the game with its unconventional approach. The brand packages its water in tall boy aluminum cans, reminiscent of beer or energy drinks. This branding strategy breaks through the crowded bottled water market and captures attention. The name "Liquid Death" adds to the brand's edginess and makes it unforgettable. The goal of the brand is to bring excitement and humor to the water market, which is traditionally seen as more mundane. By positioning water as extreme and associating it with rebellion and punk culture, Liquid Death stands out from other water brands. Despite initial skepticism, the brand gained momentum through a viral video campaign that garnered millions of views and attracted a dedicated following on social media. With its unique branding and edgy marketing approach, Liquid Death has achieved success in a market valued at over $300 billion globally.
The Challenges in Producing Canned Water
One of the main challenges faced by Liquid Death was the lack of infrastructure for producing canned water. Most water bottlers were only equipped to produce water in plastic bottles, making it difficult to find a partner for canning. This forced the founder, Mike, to consider production options outside of the United States. After extensive research, he discovered a water bottler in Austria that could fulfill his vision. This discovery opened up new possibilities for the brand. However, the high production costs and minimum order quantities posed additional obstacles. To secure the necessary funding, Mike launched an Indiegogo campaign, but it did not meet its initial goal. Undeterred, he leveraged the brand's growing social media presence to raise capital through friends, family, and angel investors. With the necessary funds secured, Liquid Death was able to move forward with production.
The Power of Branding in the Water Market
Liquid Death acknowledges that the water itself is not what sets the brand apart. Instead, it recognizes the importance of branding and marketing in capturing consumer attention. The brand challenges traditional perceptions of water and positions itself as unconventional, edgy, and extreme. By creating packaging that resembles beer or energy drinks, Liquid Death disrupts the traditional bottled water market. The brand's distinct name and logo, inspired by craft beer branding, further reinforces its unique identity. Liquid Death's success lies in its ability to tap into youth culture, social media trends, and the desire for products that evoke strong emotions. By differentiating itself through branding rather than functional differences in the water itself, Liquid Death has successfully carved out a niche in the competitive water market.
From Concept to Success: The Journey of Liquid Death
Liquid Death's journey from a mere idea to a successful brand highlights the importance of perseverance and creativity. Founder Mike Cesario faced numerous challenges, including initial skepticism from potential investors and the lack of existing infrastructure for producing canned water. However, his determination and entrepreneurial mindset drove him to find solutions. By leveraging the power of social media, he generated buzz and interest in the brand, even without a product available for purchase. Through strategic fundraising efforts, Mike secured the necessary capital to begin production. Liquid Death's unique branding and marketing strategies, along with its commitment to sustainability by using recyclable aluminum cans, have differentiated it from other water brands and captivated consumers. Today, Liquid Death stands out as an innovative and successful player in the highly competitive water market.
Building a Premium Brand with a Mountainous Story
Liquid Death's success as a premium water brand stems from the power of storytelling. By emphasizing the mountainous source of their water, they created the perception of a high-quality product. Despite the lack of market research, the brand intuitively understood that consumers would value water from a mountain over water from a city. Leveraging their 80,000 Facebook followers, they initially sold their product through Amazon, but the high cost of shipping forced them to charge a premium price of $20 for a 12-pack. However, their built-in audience and the buzz generated by their authenticity helped them sell out all their inventory, making $100,000 in sales in the first month.
Building a Sustainable Brand and Expanding into Retail
Liquid Death stands out in the crowded beverage market by prioritizing brand over functional ingredients or packaging. They believe that brand is the true moat that sets them apart from competitors. While other companies may try to replicate their product, Liquid Death's irreverent and edgy brand resonates with consumers in a unique way. Their approach of blurring the lines between an entertainment company and a beverage company has led to significant success. By targeting consumers who typically consume soda, energy drinks, and beer, Liquid Death has been able to attract both new and existing premium water buyers. With strategic partnerships with retailers like Whole Foods and 7-Eleven, they continue to grow and capture market share.
Mike Cessario came up with the idea for a viral water brand by asking himself “What is the dumbest possible idea we could have?” His answer was Liquid Death: an aluminum can of water that looks like a cross between beer and poison. While it seemed self-destructive, the idea turned out to be brilliant: Liquid Death connected with customers who don’t typically buy bottled water, and built a moat around itself by being entertaining and edgy—something most brands struggle with. As a former ad-man with one failed business behind him, Mike initially sidelined his idea when he couldn't find a co-packer to put spring water in aluminum cans. But seven years after launch, Liquid Death is both a water and an entertainment company, with annual revenue well above $100M.
This episode was produced by Kerry Thompson with music by Ramtin Arablouei.
Edited by Neva Grant, with research from Casey Herman.
Our engineers were Robert Rodriguez and Josh Newell.
