How a Dumb Idea Turned Into a $700M Company

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Who would have thought that water in a can would become the second-best-selling drink on Amazon? And not only there. Liquid Death is believed to be the fastest-growing non-alcoholic beverage of all time. It sold its first can in 2019 and raked in $3 million in revenue that year. In 2022, the company’s revenue soared to $130 million. And is currently valued at $700 million. CEO Mike Cessario recognized that many people were looking for a more environmentally-friendly alternative to plastic water bottles. What is Liquid Death, are these kids drinkin’? By packaging water in a can of what looks like craft beer, Liquid Death created a unique identity. But it wasn't just the packaging that made Liquid Death cool. It’s the wicked marketing. For years a bunch of marketing f*?^ boys have tricked you into thinking water is some girly drinks for Yoga moms. Well, hold onto your high heels. Because I’ve got news. Water isn’t cute. Water is deadly. Their ads are funny and satirical, drawing people to the brand’s edgy personality. Water is liquid death. One of the top comments on this video is: “I don't mind commercials when they are as entertaining as this” Mike told the non-profit news organization Marketplace: “If you can make people laugh, they will have a deeper connection with your brand, regardless of the functional differences of your liquid.” Big companies think they set themselves apart because of unique ingredients. But those can be replicated easily. Strong brands mean more to people than the product itself. So the CEO of Liquid Death is admitting it’s not even about the taste of the drink! Not the worst water I’ve ever tasted. Mike thinks of his beverage startup as being like Saturday Night Live, with comedians writing the skits. For years, he worked on marketing campaigns, including for the dairy brand Organic Valley, which produced this hilarious commercial about their protein shake. Just tell a bro it has a tonne of protein, and he’ll pound the s*&^ out of it. That sense of humor is written all over the cans. The blurb on the side reads: “When a group of teenagers set off into the mountains for a weekend of drinking regular water in plastic bottles, they became hunted by an aluminum can of mountain water that was dead set on murdering their thirsts and recycling their souls,” The can draws inspiration from the kind of artwork on popular energy drinks. Mike got the idea for Liquid Death while attending the Vans Warped Tour which was sponsored by the energy drink Monster. He noticed that band members didn’t want to consume energy drinks for health reasons. So, Monster gave them cans filled with water so they could still promote the brand. These cans of Monster tour water were not for sale to the public. Mike thought to himself: Why not sell water in a can and market it in the same fun and rebellious way as energy drinks or beer? And, it just so happens that alcohol consumption appears to be on the decline for young people. Among American adults, Gallup showed that those aged 18 to 34 are less likely to drink alcohol than those aged 35 to 54. A large UK study in 2019 showed 26% of young people in England are not drinking at all. Liquid Death says a quarter of its consumers are Gen Zers, between 18 to 25 years old. Its TikTok account is the second most followed of any beverage brand that I could find, after Red Bull. Even though some investors thought it was a dumb idea, Mike knew he was onto something. The company created buzz on social media even before launching the product just to see its potential. Without even having a real product, we had more social followers than Aquafina. Look how many people are messaging us asking how they can get this. Look how many people are sharing an image of a beverage product. Like, who shares an image of a beverage and how often on social media? Not too often. Their fans are so loyal that they’re getting the brand permanently etched on their skin. The company says they know of at least 300 people with Liquid Death tattoos. Liquid Death has also built brand loyalty through unusual celebrity endorsements. Like releasing a limited edition line of Tony Hawk skateboards infused with his blood. And they’re gonna use it for skateboard graphics? The idea was so provocative that several news outlets covered it. Resulting in free publicity. Liquid Death has expanded its lineup from selling mountain water and sparkling to include flavored water and ice teas with witty names that are a play on phrases: Convicted Melon - Convicted Felon Grim Leafer - Grim Reaper Rest in Peach - Rest in Peace Liquid Death is a masterclass in the art of marketing. It has struck the right balance by being provocative enough to stand out while not crossing the line into offensiveness. Liquid Death’s goal is to become a multi-billion-dollar beverage company like Red Bull. I recently used the Blinkist app to absorb the key concepts on how to build a great company from the bestselling book Good to Great. It took only 17 minutes to soak up all the lessons. Blinkist taught me that great companies are focused on what they’re uniquely good at. The Hedgehog Concept is based on the idea that hedgehogs do one thing well - curl up into a protective ball. Blinkist allows you to understand the key ideas and concepts for 5,500 non-fiction books in text and audio form. Blinkist has a new feature, Blinkist Connect, which lets you share your Premium plan for free with someone else. Even though it’s shared, both accounts are separate. You can get 25% off Blinkist premium and enjoy two memberships for the price of one. To try out Blinkist for FREE for seven days, click the custom link in my description: blinkist.com/newsthink.
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Channel: Newsthink
Views: 19,556
Rating: undefined out of 5
Keywords: liquid death, Mike Cessario, red bull, vans warped tour, monster energy
Id: r9k5W-ZpacY
Channel Id: undefined
Length: 6min 16sec (376 seconds)
Published: Wed Mar 15 2023
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