Liquid Death is a canned water brand that achieved success in the USA but was forced to withdraw from the UK after only 18 months. While success in the “saturated” water market (pun intended) is not directly relevant to kombucha, there are clear marketing lessons from a beverage market writ large, especially for companies that are looking to boost their social media presence, break into retail, or have an ‘edgy’ brand (looking at you, Counter Culture Drinks, Bitchin’ Boocha, Dark Marauder, and Mortal Kombucha!)

Liquid Death is a brand of non-alcoholic beverages, including canned water, sparkling water, and iced tea. Liquid Death drinks come in tallboy aluminum cans.  The brand is known for its edgy branding, with “murder your thirst” and “death to plastic” slogans.

US Success

Writing in Growthcurve, marketing strategist Mulenga Agley explains how Liquid Death’s marketing succeeded:

Liquid Death’s branding is built on a unique creative vision that combines humor, irreverence, and a commitment to sustainability. The brand’s founder, Mike Cessario, aimed to make water “cool” by poking fun at energy drinks and using a “dumb” name like Liquid Death.

Liquid Death is a prime example of how a company can radically shift perceptions, break into a crowded market, and build a valuation of over one billion dollars.

Traditionally, premium water brands emphasize their purity or exotic sources, focusing marketing messages on mountain springs and carefully curated pH levels. Liquid Death flipped the script by adopting rebellious branding.

Initial marketing strategy

Agley explains they won market share in the States through a direct-to-consumer strategy:

Whilst many new brands focus on Instagram and Facebook content without seeing sustainable returns, Liquid Death harnessed organic engagement. They positioned their cans in bars, music festivals, and places where people naturally pull out their phones and tag what they’re drinking. That immediate social proof, combined with the brand’s “shock factor,” dramatically reduced the cost of acquiring new fans.

This strategy aligns with the growing trend of consumer engagement through social media. In 2024, beverage brands are increasingly leveraging platforms like Instagram and TikTok to showcase innovative drink recipes and build engaged communities. This approach is particularly effective in reaching younger demographics, with Gen Z and Millennials showing a strong preference for brands that offer authentic and engaging content.

They built on this initial success by rapidly expanding into physical retail.

They secured distribution in 113,000 retail locations across the US and UK, and in doing so, they saw retail scan sales of 263 million dollars in 2023, up nearly 140% from the year before. The approach was straightforward: they used the brand’s cult-like following to convince retailers that people weren’t just intrigued online; they were ready to buy in-store.

Broadening the portfolio

After establishing a strong base with plain canned water, Liquid Death introduced flavored sparkling waters, and iced teas. Soon, they moved into sachets of flavored electrolyte powder.

This approach aligns with the growing consumer demand for functional and innovative beverages. In 2024, there’s a notable shift towards drinks that offer more than just hydration, with consumers seeking added health benefits and unique flavor experiences. The rise of functional beverages, including those infused with probiotics, adaptogens, and other wellness-oriented ingredients, presents a significant opportunity for brands to diversify their product lines.

UK Failure

Writing in The Grocer, editor James Besson noted that Liquid Death pulled out of the UK market after less than 18 months. He speculates that one reason might be the price for what is essentially a can of water proved too much for UK shoppers:

With an rsp of £5.50 per 4x500ml pack in Tesco, Liquid Death’s Mountain Still Water is almost seven times as expensive as the retailer’s own-label Ashbeck Still Water, which costs just 80p for a two-litre bottle.

Small brand growth strategist Julia Kinner posting on Linkedin, detailed the lessons from Liquid Death’s UK exit.

She claims that, in contrast to their US success, they failed in the UK because they followed a scale-up playbook instead of a start-up one

In the US they created substantial mental availability and buzz BEFORE launching in retail and built their distribution network bit by bit (=start-up approach)

Step-by-step start-up approach:

• Created a Facebook page before the product existed
• Spent a few thousand dollars on a viral video
• Grew a cult following and demand from distributors
• First batch: 150k cans produced
• 2019: Only D2C and Amazon (12x500ml for $20)
• $100k in first month with $2.5k in marketing spend
• Brick & mortar: Sold in bars (incremental value for bar owners)
• 1:1 distribution: Focused on cool bars in LA & Philly
• Scaled distribution with small distributors (80% of market due to legal restrictions)
• 2020: Expanded to Whole Foods (1-2% retail market share) at $14.99, ensuring rotation and traffic

In contrast, the ‘scale up’ UK approach failed because the strategic playbook was flawed and failed to account for the facts that:

• Bottled water consumption is much higher in the US
• They went with an immediate retail launch (Tesco, Iceland, Ocado, etc.)
• Consumer ‘mental availability’ lagged behind (ie. No “buzz”)
• Low-to-no rotation in stores

Supply chain

Julia’s LinkedIn post has (to date) gathered 330 comments and 23 re-posts. The debate includes a response from the company CEO, Mike Cessario, claiming the criticisms about marketing “fails” were misplaced and it was, in fact, a supply chain issue, referring to a comment by Zoe Scaman that the company moved manufacturing from Austria to the U.S. last year. That decision had serious supply chain consequences for their international expansion, concluding that “the UK wasn’t a failure of branding. It was a failure of logistics.”

For more about Liquid Death and similar non-alcoholic beverages, see my Other Beverages, Other Worlds post from December, 2024.

Disclaimer

The content of this article is accurate to the best of our knowledge and is presented for general informational purposes only. The opinions are those of the editor. Please send corrections or questions to ian@boochnews.com. Comments are welcome.