Liquid Death, the canned water enterprise known for its distinctive ‘murder your thirst’ tagline, tapped into the expertise of Goldman Sachs last month as it explores the potential for an upcoming initial public offering (IPO), with a potential target of spring 2024. But in its public market debut, as it looks to raise funds through retail investors, another group might be lurking to pounce on the company’s IPO plans: short sellers.
In the previous year, Liquid Death, a brand captivating the Millennial and Gen Z demographic, secured a notable valuation of $700 million through a robust $70 million financing round, spearheaded by Science Ventures.
Liquid Death board member Peter Pham highlighted last month the growth trajectory of Liquid Death, revealing a staggering revenue surge from $45 million in 2021 to an impressive $130 million in 2022. Building on this momentum, the company is poised to achieve an even more remarkable feat by potentially doubling its revenue in the year 2023.
The impact of Liquid Death’s unique appeal is evident across popular social media platforms. The brand has cemented its status as a Gen Z and Millennial favorite, amassing a substantial following of 2.9 million enthusiasts on TikTok—the highest among beverage brands in the US. Further showcasing its online presence, Liquid Death commands a dedicated Instagram audience of 1.3 million followers, as noted by Bon Appétit magazine in its digital edition.
However, the astronomical rise of the canned water company seems to be too good to be true for retail investment observers. For some, the novel concept seems to be misaligned with the financial performance the company is revealing; others are raising doubts on the firm’s prospects sans the strong marketing and branding efforts.
Information for this story was found via Proactive Investors and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
