Beverage startup, Liquid Death, just closed a $67 million fundraising round, valuing the business at $1.4 billion. The company distinguishes itself in the competitive beverage industry with sustainable canned water with a provocative punk style.
Despite the industry’s notorious reputation for high capital demands and low interest from venture capitalists, Liquid Death managed to raise over $267 million. The funds raised will help the company expand operations and sustain its brand momentum, hinting at a possible shift in venture capitalist prospects for the beverage industry.
Science Ventures’ director general, Michael Jones, expressed initial skepticism towards investing in the beverage sector. However, his faith in Liquid Death’s disruptive potential prompted his investment.
Dan Buckstaff, CMO at retail data company Spins, noted the innovative approaches of beverage startups.
Sustainable trend impacts beverage industry valuation
Liquid Death’s promotions and shelf positioning were inspired by the beer sector. In a similar vein, startup Dirty Lemon garnered attention with their unique text-to-order business model, essentially practising “conversational commerce”
Further expanding the boundary of the beverage industry is high-end startup Recess with their CBD-infused sparkling water. Others like MatchaBar are offering mindful drinking options with matcha infused drinks. These innovations are shaping what could be a new era in the beverage industry.
An informal survey by Buckstaff revealed that nearly half of the respondents order alcoholic beverages in social settings to fit in, indicating a significant market for non-alcoholic brands like Liquid Death that mimic alcoholic beverage branding.
Not Beer, another promising startup, is set to launch its premium non-alcoholic sparkling water on April 9, emphasizing sustainability and locally sourced ingredients. Founder Dillon Dandurand sees Not Beer as a movement towards a healthier, more environmentally-conscious world.
Elsewhere, companies like Odyssey are including cognitively-boosting ingredients such as lion’s mane and cordyceps mushrooms in their beverages, demonstrating continued innovation in the industry.
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