It’s unicorn-ish.

Not bad for water in a beer can.

Valued at $700 million, Liquid Death has become the fastest-growing beverage company… perhaps in history.

It just hired Goldman Sachs for a potential IPO as soon as next spring.

And here’s the most impressive part: 

The founder Mike Cessario launched it with less than $5,000 and not a single can made. 

That was in 2019.

Four years later, it’s the most popular water brand on social media (beating out billion-dollar brands) and its cans are now carried in over 16,000 locations in the US.

Today, we’re going to explore how they did it.

Whether you want to build a business… market a product… or just piss off a bunch of people for fun and profit…

Here are Liquid Death’s 10 secrets to success.

1.] Not a Water Company

Most people think Liquid Death is a water company.

But it’s not.

It’s an entertainment company that sells water.

Cessario, a former advertising creative director at Netflix, understood this from the start. 

“If you make people laugh and build an emotional connection,” he said, “they'll give you $1.89 instead of the other soulless brand selling the same product."

So he built his business from that angle.

2.] Test the Market

Again, Cessario started the company without a single can in production.

To prove to investors Liquid Death would work, he shot a commercial for $2,000 and spent $3,000 on Facebook ads.

The commercial received 3 million views and the water got thousands of orders.

Boom. He was in business.

3.] Guerilla Marketing on Steroids.

For a while, every podcaster had Liquid Death on their tables. (Many still do.)

Liquid Death quickly moved to sponsor any large podcaster they could find. Probably cheaper than buying commercials and WAY more effective.

4.] The Von Restorff Effect.

The Von Restorff Effect, also known as the isolation effect, describes our tendency to remember and pay more attention to things that stand out or are different from their surroundings.

"Build a product weird and interesting enough that anyone who saw it would pick it up & share it on social media."

Liquid Death leverages this with unique packaging for water. (Cashiers always think you’re buying beer.) It has irreverent messaging, heavy metal branding, entertaining content, and limited edition merchandise.

Speaking of which…

5.] Merchandising Triumph: Liquid Death didn't just stop at water; they ventured into the world of merchandise. From limited-edition skateboards to apparel, they created a cult following by offering unique products that fans couldn't resist.

Nearly half of their revenue comes from merchandise, not water.

6.] Embrace the Haters: Liquid Death turned criticism into an opportunity. They released two albums on Spotify featuring songs derived from negative online comments. This bold move showcased their ability to embrace negativity and turn it into a positive marketing campaign.

They also found two people calling Liquid Death the “worst water” on Twitter. They flew them out to LA for a “Taze Test.” If they could identify Liquid Death as the worst water, they won $1,000. If they picked another brand?

They got tased.

7.] Environmental Consciousness: In a world increasingly focused on sustainability, Liquid Death took a stand against plastic pollution. By using aluminum cans, they not only reduced their carbon footprint but also donated 10% of their profits to combat plastic pollution, earning praise for their commitment to a worthwhile cause.

When people grouse, “Oh, you’re drinking that!” people can say, “They donate a part of its profits to kill plastic pollution.”

Even if it’s just a gimmick, it FEELS justifiable.

8.] Peak emotion.

Anchoring a product to an emotion is a marketing strategy that associates a product or brand with a particular emotion or set of emotions -- a powerful tool because our emotions heavily influence our behaviors and decisions, including purchasing decisions.

Liquid Death was the ONLY water available for sale at most Live Nation events across the US. Over 100 million people attend Live Nation events.

They associate Liquid Death with their favorite artists during a peak emotional event.

9.] Distribution.

While brand is a key component to its success, fast distribution was the key to making it nearly a billion-dollar business.

When people went to Target, Walmart, Publix, Whole Foods, and Meijer, they would see Liquid Death on the shelves. That got more people talking.

10.] Culty Vibes.

Liquid Death has an exclusive membership: Liquid Death Country Club.

Although not a huge part of the brand, it allows their rabid fans to double down and feel like they’re part of the club.

The Biggest Mistake of Copycats

This obviously isn’t a color-by-number strategy.

You can follow it word-for-word and still end up falling flat.

Take Weird Water, a blatant copycat.

On the face of it, it ticks a lot of the boxes.

→ Donates 100% of profits to charity.

→ Weird art.

→ Environmentally conscious.

But it’s a huge miss on ONE point.

It’s not (necessarily) the lack of distribution. It’s not marketing. It’s not the bad name. (Show me that you’re weird. Don’t tell me.)

They didn’t test the market and prove they had a winner.

They had a “build it and they will come” attitude.

With the Internet, that’s unnecessary.

Be bold. Be weird.

But test before you build.