This Week in CPG - Wednesday Edition

Author

CPG WIRE
October 05, 2022

Good Morning and Happy Wednesday. I hope the rest of your week is as productive as the past one has been for Liquid Death. Speaking of which...

The Big Story

You know those companies that are endlessly plagued by bad headlines? WeWork circa 2018 comes to mind. Quibi and The Washington Commanders also come to mind albeit for different reasons. Liquid Death is the antithesis of that.

One week Liquid Death receives national press because rabid fans are getting the logo tattooed on their flesh. The next they're celebrated in the trades for their retail sales velocity or an advertisement that went viral.

In short, Liquid Death is a glutton for good press, and this week delivered two big headlines:  

  • First, they raised $70m at a $700m valuation from Science Ventures and Live Nation.

  • Second, Liquid Death announced that they're expanding beyond water with a line of Iced Teas.

No one really blinked at the second bit of news, but many took umbrage with the fundraise and $700,000,000 valuation. A common refrain was "how the hell is a canned water brand worth $700 mil?" Others laughed and fired off a limp zing on Twitter.

The rhetorical questions and derisive comments ignore two pretty straightforward things, though:

1) Liquid Death is likely the fastest growing non-alcoholic beverage brand of all time. The company is on pace to generate $130m in revenue this year, up from $45m in 2021 and $10m in 2020. As investor and unofficial chief evangelist Peter Pham pointed out on Twitter, it took energy drink brand Celsius 12 years to hit that revenue milestone. 

2) Liquid Death managed to turn canned water into a bizarre movement with insanely loyal fans. For a brand that didn't exist five years ago, it has permeated the popular consciousness faster and more effectively than brands that have been around for fifty years. People are getting Liquid Death tattoos, for Christ's sake.  

Anyways, that's my quick spiel on Liquid Death. Moving on to other news...  

Deals

  • Aussie premium mixers brand StrangeLove was acquired by Japanese beverage giant Asahi. This is an exciting opportunity for Asahi and one to watch. StrangeLove is head and shoulders above its competition from a brand perspective. Their products are stunning. Considering Asahi's resources and distribution capabilities, StrangeLove could soon be a global player like Fever-Tree. Link 

  • Partake Foods, a producer of vegan, non-GMO and allergy-friendly snacks, raised $11.5m in funding. Investors include Cleveland Ave, Fearless Fund, Kaya Ventures, Marcy Venture Partners, Supply Change Capital, Black Star Fund, and others. Link 

  • Raw dog food brand Maev raised $10m led by VMG Partners. Additional investors include BFG Partners, Willow Growth Partners, Springdale Ventures, DX Ventures, and a handful of others. Link

  • As mentioned above, Liquid Death raised $70m from Science Ventures. Link

  • Aussie sustainable apparel brand THRILLS was acquired by Universal Store (ASX: UNI) for $50m in cash and stock. Link 

  • Natural beverage brand Neuro purchased Bored Ape #8585 (an NFT) for over $1m. Not the news I expected at a time like this but it's not my money. Link

  • Stellar Pizza, a startup producing mobile, robot-powered pizza kitchens, raised $16.5m led by Jay Z's Marcy Venture Partners. Link

Distribution Quickfire

  • Minimalist non-alcoholic beer brand Visitor launched at Target.

  • TacoDeli, an Austin-based taco chain, launched two tortilla SKUs at Whole Foods.

  • Cereal brand OffLimits partnered with Graduate Hotels.

  • Beef jerky stick brand Chomps launched at Target.

  • amika, a haircare brand recently acquired by Bansk Group, launched on Tmall and Xiaohongshu in China.

What's New...

It's early in the week yet there's so much new stuff to cover. This is a good problem to have, of course. Let's start with the new brands: 

  • Matthew "Nadeshot" Haag, a hugely popular gamer and the CEO of 100 Thieves, launched a new energy drink brand, Juvee. Stunning work from Sharma Brands. Link

  • The chemist who developed Olaplex (now a $6.6B company), Dr. Eric Pressly, launched a new haircare brand yesterday, epres. Watch out for this company. Link

  • Rapper Snoop Dogg collaborated with TSUMo Snacks on a cannabis-infused snack brand, Snazzle Os. Basically FUNYUNS but they'll get you high, apparently. Link

  • Actress Eva Longoria with a beautiful new cookware brand, Risa. Link

  • GoPuff introduced a good-looking private label health & wellness brand, Goodnow. Link

  • The new salad dressing brand from Alex Snodgrass, SideDish, is live! Link

Two stellar brand refreshes: 

  • Houston-based Adun, a purveyor of food products celebrating African flavors, unveiled a stunning brand refresh. The agency, Outline, did an incredible job. Link

  • URJA Coconut Water also underwent a serious brand refresh. It looks very good. Link

Miscellaneous new products: 

  • More info on Liquid Death's new Iced Tea line. Link

  • Mid-Day Squares co-founder Nick Saltarelli previewed an upcoming product. Link

  • Gatorade (PepsiCo) is getting into the increasingly popular gummies biz. Link

  • Tepache brand De La Calle announced that they're launching RTD cocktails. Very exciting. Link

  • A great collaboration between Brooklyn Brewery and Yolele Foods. Link

Thanks for reading along, see you again Saturday morning. If you have any feedback on the newsletter, feel free to respond! 

All the best, 

Robbie @ CPG Wire