How to Invest in Liquid Death in 2024
Liquid Death, a Los Angeles-based beverage company, has made a splash in the market with its unique branding and marketing strategies that emphasize edginess and sustainability. Founded by Mike Cessario, a former advertising creative director, the company has rapidly grown in popularity, achieving a valuation of $1.4 billion as of March 2024. Despite selling a seemingly simple product—canned water—Liquid Death has carved out a significant niche in the beverage industry through its distinctive approach to branding.
How to Buy Liquid Death Stock
Liquid Death remains a private company, which means it does not trade on public stock exchanges and lacks a stock symbol. However, accredited investors have the opportunity to purchase shares through Hiive, a pre-IPO marketplace for private company stocks.
Accreditation Requirements
To qualify as an accredited investor, you must meet one of the following criteria:
- An individual annual income of $200,000 or a joint income of $300,000.
- A net worth exceeding $1,000,000, excluding the primary residence.
- Status as a qualifying financial professional.
Hiive allows accredited investors to view listings of Liquid Death stock, created by sellers such as current or former employees, venture capitalists, or angel investors. Buyers can accept asking prices, place bids, or add the company to their watchlist for updates.
Can Retail Investors Buy Liquid Death Stock?
Retail investors cannot currently purchase Liquid Death stock while the company remains private. The stock will only be available to the public following an initial public offering (IPO) or acquisition. Liquid Death has hired Goldman Sachs to lead a potential IPO, initially planned for the end of 2024, but recent funding rounds may delay this until at least 2025.
Alternatives to Investing in Liquid Death
For those interested in the beverage industry, investing in established companies like Coca-Cola (KO) and PepsiCo (PEP) could be an alternative. These companies own several water and health-conscious brands, such as Dasani, Smart Water, Aquafina, and Lifewater. While these investments won’t replicate the unique appeal of Liquid Death, they offer exposure to the broader trend of consumers opting for healthier beverage options.
Liquid Death’s Growth and Revenue
Liquid Death has experienced rapid growth, with sales more than doubling each year over the past three years:
- 2021: $45 million
- 2022: $130 million
- 2023: $263 million
The company’s success is largely attributed to its innovative branding and marketing strategies, which have resonated with a wide audience. Liquid Death has expanded its product line to include carbonated and flavored waters, as well as iced tea, further driving its growth.
Funding and Valuation
Liquid Death has raised significant capital across multiple funding rounds, with the most recent round in March 2024 raising $67 million and valuing the company at $1.4 billion. Key investors include Live Nation Entertainment, SuRo Capital, and TO Ventures.
FAQs About Investing in Liquid Death
What is Liquid Death?
Liquid Death is a beverage company known for its edgy branding and marketing of canned water. It emphasizes sustainability and health, using recyclable aluminum cans.
How can I invest in Liquid Death before it goes public?
Accredited investors can purchase shares through Hiive, a platform for investing in private companies. Retail investors will need to wait for an IPO.
When is Liquid Death expected to go public?
Liquid Death has hired Goldman Sachs for a potential IPO, initially aimed for late 2024. However, recent funding rounds suggest this may be delayed to 2025.
What are the risks of investing in private companies like Liquid Death?
Investing in private companies involves risks such as limited liquidity, market volatility, and the uncertainty of an IPO timeline.
Who are the major investors in Liquid Death?
Major investors include Live Nation Entertainment, SuRo Capital, and TO Ventures, among others.