Latest / Building Brands with Fexingo: Identity, Reputation, and Long-Term Business Equity / How Liquid Death Made Water a Rebel Brand
Transcript
- Lucas: So there's this water company that sells canned water with a skull on it, and people are literally getting tattoos of the logo. I'm not exaggerating. Luna: You mean Liquid Death? The one that says 'Murder Your Thirst'? I've seen those cans at concerts, but I always thought it was a joke. Lucas: That's the genius of it. It started as a joke, and then it became a $1.4 billion brand. I mean, we're talking about water. The most commoditized product on the planet. And they've managed to build a brand that people actually form emotional attachments to. Luna: It's wild. And you know, listening to you talk about this, it reminds me of how we sometimes stumble onto things that resonate with people in ways we didn't expect. That's kind of how I feel about this podcast. We started it as a passion project, and it's grown because listeners like you keep finding value in it. If these conversations have moved your work forward in some small way, and you want to help keep the show running ad-free, you can support us at buy me a coffee dot com slash fexingo. No pressure, just knowing you're out there listening is what keeps us going. Lucas: Exactly. And speaking of unexpected connections, let's get into how Liquid Death actually pulled this off. The founder, Mike Cessario, came from the world of action sports and marketing. He saw that energy drinks and craft beer had all this personality, but water was just... water. Luna: So he decided to make water feel like a rock band. Lucas: Pretty much. He launched in 2019 with a satirical heavy-metal aesthetic. The cans look like beer cans, the tagline is 'Murder Your Thirst,' and the whole vibe is 'death to plastic.' But here's the thing: it's not just a gimmick. The brand actually has a mission. They're trying to reduce single-use plastic, and they donate a portion of profits to environmental causes. Luna: So the edginess is a hook, but the substance is what keeps people. That's a smart balance. Lucas: Right. And the marketing is where they really shine. They've mastered the art of not taking themselves too seriously. Their social media is full of absurdist humor, like fake product launches and parody ads. They even had a 'Death to Plastic' campaign where they made a coffin out of plastic bottles. Luna: I saw that. It was hilarious and also made a point. That's the kind of thing that gets people talking. Lucas: And talking they do. Their YouTube videos have millions of views, and they've built a community of fans who call themselves 'Liquid Death Army.' They've got merchandise, they've got a podcast, they've even gotten into live events. It's not just a beverage; it's a lifestyle. Luna: So what's the actual business model? I mean, water is cheap. How do they justify the premium price? Lucas: They sell a case of 12 for around $15, which is roughly double the price of a standard bottled water. But people are willing to pay it because they're buying into the brand. It's a status symbol, a way to signal that you're anti-plastic and you have a sense of humor about it. And it's not just water anymore – they've expanded into iced tea and sparkling water. Luna: So they're leveraging that brand equity to enter new categories. That's classic brand extension, but done with the same irreverent voice. Lucas: Exactly. And it's working. Their revenue has grown from about $45 million in 2021 to over $300 million in 2024. They're not profitable yet, but they're investing heavily in growth, and they've got investors like Live Nation and Mark Cuban backing them. Luna: Mark Cuban? He's usually pretty pragmatic. What does he see in a water company that's essentially a meme? Lucas: He sees the same thing we're seeing – a brand that connects with a young, engaged audience. And in the beverage world, distribution is king. They've managed to get into major retailers like Whole Foods, Target, and even 7-Eleven. The brand is the hook, but the distribution is the moat. Luna: That makes sense. But what about the risk? Could the joke wear thin? I mean, at some point, the irony has to fade. Lucas: That's the million-dollar question. But so far, they've managed to evolve. They've had to be careful not to become a parody of themselves. They're leaning into the environmental mission, which gives the brand a sense of purpose beyond the joke. And they're expanding their product line to offer more options, like the new iced teas, which are aimed at a slightly broader audience. Luna: So the edge becomes a gateway, and the mission becomes the glue. It's a delicate balance, though. Lucas: It is. And they've slipped up a few times. There was a controversy about their marketing being too aggressive, and they've had to apologize. But they've also shown a willingness to listen and adapt. Luna: That's refreshing. So what can other brands learn from Liquid Death? Is it just about being edgy, or is there something deeper? Lucas: I think the deeper lesson is about finding a differentiated personality. Too many brands try to appeal to everyone, and they end up being nothing to anyone. Liquid Death picked a niche – young, irreverent, environmentally conscious – and they went all in. They didn't try to be all things to all people. They embraced their weirdness, and that's what made them memorable. Luna: It's like they read the rulebook and threw it out the window. And that's what gets people's attention. Lucas: Exactly. And they've proven that even in the most boring category, you can build a brand with genuine loyalty. I mean, people are literally getting tattoos of a water brand. That's the ultimate proof of brand love. Luna: So, as we wrap up, what's the one thing you think listeners should take away from this episode? Lucas: I'd say this: don't be afraid to be polarizing. The brands that stand out are the ones that have a point of view. You can't build a memorable brand if you're trying to please everyone. Find your niche, commit to it, and let your personality shine – even if it's a little weird. Luna: And maybe, just maybe, you'll end up with a tattoo of your own logo one day.