1 00:00:00,400 --> 00:00:03,320 Speaker 1: All right, it's the hottest thing in canned water, LA 2 00:00:03,360 --> 00:00:06,400 Speaker 1: based Liquid Death. It's now valued at nearly one and 3 00:00:06,440 --> 00:00:09,559 Speaker 1: a half billion dollars. The brand we raising new capital 4 00:00:09,600 --> 00:00:12,920 Speaker 1: from investors like actor Josh Brolin and NFL wide receiver 5 00:00:13,119 --> 00:00:15,520 Speaker 1: DeAndre Hopkins. I'm pleased to say we're joined now by 6 00:00:15,560 --> 00:00:19,320 Speaker 1: Mike Cesario, he is Liquid Death CEO. So one point 7 00:00:19,360 --> 00:00:22,480 Speaker 1: four billion dollars that is double the seven hundred million 8 00:00:22,520 --> 00:00:25,720 Speaker 1: dollar valuation that you had in twenty twenty two, So 9 00:00:25,800 --> 00:00:27,960 Speaker 1: a big up round. What are you planning to do 10 00:00:28,000 --> 00:00:29,560 Speaker 1: with the money. 11 00:00:30,480 --> 00:00:34,159 Speaker 2: Well, you know, we started with spring water in a 12 00:00:34,200 --> 00:00:38,440 Speaker 2: can back in twenty nineteen, and then we started expanding 13 00:00:38,560 --> 00:00:42,200 Speaker 2: into sparkling, and then in twenty twenty two, we launched 14 00:00:42,200 --> 00:00:45,720 Speaker 2: a first flavored sparkling, which we actually use four grams 15 00:00:45,720 --> 00:00:48,239 Speaker 2: of sugar from agave, so it's kind of more like 16 00:00:48,280 --> 00:00:51,959 Speaker 2: a healthy soda. That did really well for us when 17 00:00:51,960 --> 00:00:56,840 Speaker 2: we launched it. We quickly became the number two flavored 18 00:00:56,840 --> 00:00:59,720 Speaker 2: sparkling on Amazon within months, and then we launched Iced 19 00:00:59,760 --> 00:01:03,240 Speaker 2: Team last year that's become really successful with the number 20 00:01:03,240 --> 00:01:06,160 Speaker 2: one iced tea. So really now that we've proven out 21 00:01:06,160 --> 00:01:09,679 Speaker 2: that we're a multi category brand, you know, we're really 22 00:01:09,720 --> 00:01:12,520 Speaker 2: looking to now expand within those categories. We started with 23 00:01:12,560 --> 00:01:16,640 Speaker 2: three flavors with iced tea in both, flavored, sparkling. Now 24 00:01:16,640 --> 00:01:19,000 Speaker 2: we're continuing to expand those categories. 25 00:01:19,280 --> 00:01:21,280 Speaker 1: Well, tell us what's next, because of course you've got 26 00:01:21,280 --> 00:01:24,600 Speaker 1: regular water, sparkling water, flavored water as you ran through, 27 00:01:24,640 --> 00:01:26,600 Speaker 1: what else are you looking into when it comes to 28 00:01:26,640 --> 00:01:27,479 Speaker 1: the product line of. 29 00:01:29,240 --> 00:01:32,360 Speaker 2: I mean, really, what our mission is is to be 30 00:01:32,400 --> 00:01:36,000 Speaker 2: a healthy beverage platform. I think you look at the marketing. 31 00:01:36,520 --> 00:01:40,720 Speaker 2: Most of the funny, irreverent, cool marketing you've seen for companies, 32 00:01:40,760 --> 00:01:46,240 Speaker 2: it's almost always for unhealthy things. It's beer, junk food, candy, energy, drinks. 33 00:01:47,200 --> 00:01:49,120 Speaker 2: I think what we're doing is how do you make 34 00:01:49,160 --> 00:01:51,440 Speaker 2: better for you things that are marketed in the same 35 00:01:51,520 --> 00:01:55,200 Speaker 2: funny way, essentially as things like beer. So anything that's healthy. 36 00:01:55,560 --> 00:01:57,560 Speaker 2: I mean, that's kind of where we look from an 37 00:01:57,560 --> 00:01:58,560 Speaker 2: innovation standpoint. 38 00:01:58,840 --> 00:02:01,120 Speaker 1: Mike, I agree. I think it's really metal to care 39 00:02:01,120 --> 00:02:03,640 Speaker 1: about your body. But talk to us a little bit 40 00:02:03,680 --> 00:02:05,840 Speaker 1: more about beer. You've said in the past that you 41 00:02:05,920 --> 00:02:08,520 Speaker 1: have been inspired by beer brands. Like you said, the 42 00:02:08,560 --> 00:02:11,520 Speaker 1: marketing around some of those products, is that a category 43 00:02:11,560 --> 00:02:15,440 Speaker 1: that you would ever explore the alcohol alcoholic beverage lineup 44 00:02:15,480 --> 00:02:17,280 Speaker 1: or are you going to stick to that sort of 45 00:02:17,320 --> 00:02:19,000 Speaker 1: better for you vibe? 46 00:02:19,400 --> 00:02:21,200 Speaker 2: No, we really want to stick to better for you. 47 00:02:21,880 --> 00:02:25,360 Speaker 2: I think that's what makes that's the interesting DNA of 48 00:02:25,360 --> 00:02:27,160 Speaker 2: Liquid Death. I mean not only better for you, but 49 00:02:27,240 --> 00:02:30,240 Speaker 2: our whole death, the plastic mission of you know, helping 50 00:02:30,280 --> 00:02:33,640 Speaker 2: to get rid of plastic bottles with recycled, infinitely recyclable 51 00:02:33,639 --> 00:02:37,360 Speaker 2: aluminum cans. There's companies that do good, there's companies that 52 00:02:37,400 --> 00:02:40,239 Speaker 2: are funny. There's rarely the two together. And I think 53 00:02:40,280 --> 00:02:43,720 Speaker 2: that's what makes the interesting Liquid Deaf brand in DNA. 54 00:02:44,040 --> 00:02:46,080 Speaker 1: Well, we need to talk about marketing a little bit more. 55 00:02:46,080 --> 00:02:47,960 Speaker 1: As see you have a pretty scary little guy on 56 00:02:48,000 --> 00:02:51,160 Speaker 1: your shirt there of course advertising Liquid Death, and I 57 00:02:51,200 --> 00:02:53,840 Speaker 1: see you on TikTok, I see you on Instagram, for example. 58 00:02:53,880 --> 00:02:57,640 Speaker 1: It seems like this very ground up, grassroots approach. What 59 00:02:57,800 --> 00:03:00,360 Speaker 1: is your approach though, when it comes to market, Is 60 00:03:00,400 --> 00:03:02,560 Speaker 1: that really where you're going to be sticking or do 61 00:03:02,600 --> 00:03:05,520 Speaker 1: you have any big plans to really push out. 62 00:03:06,639 --> 00:03:08,120 Speaker 2: Well, I don't know if there's too many people who 63 00:03:08,160 --> 00:03:12,520 Speaker 2: would consider social media grassroots. I mean social media has 64 00:03:12,600 --> 00:03:15,800 Speaker 2: overtaken traditional television and media. Years ago. I mean, you 65 00:03:15,840 --> 00:03:18,600 Speaker 2: look at the average person, they are spending their time 66 00:03:18,720 --> 00:03:20,960 Speaker 2: on their phone, not on television sets. Even if you 67 00:03:20,960 --> 00:03:24,480 Speaker 2: look on the freeway, people aren't even looking at billboards. 68 00:03:24,520 --> 00:03:26,080 Speaker 2: You look around in their cars, people are on their 69 00:03:26,120 --> 00:03:28,680 Speaker 2: phones in their cars. So I think we're just building 70 00:03:28,680 --> 00:03:31,640 Speaker 2: a brand for the modern age of where people's attention is, 71 00:03:31,680 --> 00:03:34,960 Speaker 2: and it's the data is there. Most of people's attention 72 00:03:35,080 --> 00:03:37,080 Speaker 2: is spent on social media, and what you have to 73 00:03:37,120 --> 00:03:40,120 Speaker 2: do to win on those platforms is very different than 74 00:03:40,120 --> 00:03:42,200 Speaker 2: what brands had to do to win on television in 75 00:03:42,240 --> 00:03:43,600 Speaker 2: the nineties or the eighties. 76 00:03:44,040 --> 00:03:45,600 Speaker 1: Well, Mike, to be clear, if they're in the car, 77 00:03:45,640 --> 00:03:47,480 Speaker 1: they shouldn't be on their phones if they're in the 78 00:03:47,560 --> 00:03:49,720 Speaker 1: driver's seat. But I take your point that that is 79 00:03:50,080 --> 00:03:52,480 Speaker 1: absolutely where the eyeballs are. But I do want to 80 00:03:52,480 --> 00:03:56,080 Speaker 1: talk about distribution and how you push out into convenience 81 00:03:56,120 --> 00:03:59,600 Speaker 1: stores and the like. It's interesting you think about Energy drinks, 82 00:04:00,320 --> 00:04:03,560 Speaker 1: for example, they partnered with Pepsi last year to handle 83 00:04:03,760 --> 00:04:06,480 Speaker 1: distribution for them. How do you handle distribution over at 84 00:04:06,520 --> 00:04:08,640 Speaker 1: Liquid Death Well. 85 00:04:08,600 --> 00:04:12,240 Speaker 2: Very similar to Celsius and Monster Energy. These brands were 86 00:04:12,280 --> 00:04:18,120 Speaker 2: both built in the beer distribution network, and you know, 87 00:04:18,160 --> 00:04:21,840 Speaker 2: the beer distribution networks, they've gotten a lot better at 88 00:04:21,880 --> 00:04:26,279 Speaker 2: distributing non out products. So we have a really great partnership, 89 00:04:26,360 --> 00:04:30,360 Speaker 2: you know, heavy in the Anheuser Busch independent distribution network 90 00:04:30,440 --> 00:04:33,359 Speaker 2: and many of those distributors participated as part of this 91 00:04:33,440 --> 00:04:35,920 Speaker 2: recent funding round, So you know, we have a really 92 00:04:35,960 --> 00:04:40,320 Speaker 2: great partnership with our network that's getting us into all 93 00:04:40,400 --> 00:04:43,840 Speaker 2: the convenience stores and grocery stores and the different places 94 00:04:43,880 --> 00:04:47,720 Speaker 2: where where Liquid Death sells, including the on premise bars nightclubs. 95 00:04:47,760 --> 00:04:49,599 Speaker 2: Liquid Death is one of the few non out brands 96 00:04:49,640 --> 00:04:52,680 Speaker 2: besides Red Bull that's actually selling in bars and the 97 00:04:52,760 --> 00:04:53,760 Speaker 2: on premise channel. 98 00:04:54,200 --> 00:04:56,679 Speaker 1: Talk to me a little bit more about how that works. 99 00:04:56,680 --> 00:04:58,760 Speaker 1: It's always something I find interesting when it comes to 100 00:04:58,920 --> 00:05:02,240 Speaker 1: distribution of some of these beverages. Is that really the 101 00:05:02,240 --> 00:05:04,520 Speaker 1: only way to cut it in this environment that you 102 00:05:04,600 --> 00:05:07,039 Speaker 1: have to partner with one of the heavyweights to handle 103 00:05:07,080 --> 00:05:07,600 Speaker 1: that for you. 104 00:05:10,080 --> 00:05:13,560 Speaker 2: For the most part, Yeah, I think you have to. 105 00:05:13,880 --> 00:05:16,960 Speaker 2: You know, they call it DSD distribution. That is our 106 00:05:17,040 --> 00:05:21,200 Speaker 2: route to market. And yeah, you can't really be in 107 00:05:21,240 --> 00:05:24,240 Speaker 2: the Coker Pepsi network unless Coke Er Pepsi owns you. 108 00:05:24,720 --> 00:05:28,239 Speaker 2: The beer network is interesting because the big beer companies. 109 00:05:28,279 --> 00:05:31,000 Speaker 2: Because of alcohol laws, they're only allowed to own twenty 110 00:05:31,040 --> 00:05:34,200 Speaker 2: percent of their distribution network, so eighty percent of that 111 00:05:34,279 --> 00:05:36,680 Speaker 2: network is all independently owned, So you can go in 112 00:05:36,760 --> 00:05:41,640 Speaker 2: and get distribution without you know, doing a corporate partnership, 113 00:05:41,760 --> 00:05:45,760 Speaker 2: which is unique in that space. So yeah, I think 114 00:05:45,760 --> 00:05:49,760 Speaker 2: when you can build a DSD route to market with 115 00:05:49,880 --> 00:05:52,599 Speaker 2: a partner that cares about the brand, that understands it, 116 00:05:52,640 --> 00:05:54,560 Speaker 2: and wants to push it along their other brands, it 117 00:05:54,560 --> 00:05:56,240 Speaker 2: can be you know, massively successful. 118 00:05:56,839 --> 00:05:59,200 Speaker 1: And I do want to talk about what's next because 119 00:05:59,200 --> 00:06:01,560 Speaker 1: if you take a look, I mean the information reported 120 00:06:01,640 --> 00:06:04,840 Speaker 1: last year that you hired Goldman to lead a potential IPO. 121 00:06:04,920 --> 00:06:07,120 Speaker 1: I won't you ask you about that specifically, but when 122 00:06:07,120 --> 00:06:10,880 Speaker 1: it comes to IPOs and other sorts of branching out 123 00:06:10,880 --> 00:06:13,240 Speaker 1: there maybe a sale. How are you thinking about that? 124 00:06:13,320 --> 00:06:16,680 Speaker 1: Of course, as Liquid Death really continues to grow quite rapidly. 125 00:06:18,760 --> 00:06:21,320 Speaker 2: Well, I think the unique thing about Liquid Death that 126 00:06:21,360 --> 00:06:24,320 Speaker 2: I'm not sure there's really any other members brand that's done, 127 00:06:24,640 --> 00:06:28,560 Speaker 2: is you know, we are winning in completely different categories 128 00:06:28,880 --> 00:06:31,800 Speaker 2: under the same brand name. There are companies that have 129 00:06:31,839 --> 00:06:35,840 Speaker 2: created individual brands per category, but I think because we've 130 00:06:35,880 --> 00:06:39,240 Speaker 2: truly shown we can win in plane water and flavored 131 00:06:39,240 --> 00:06:42,680 Speaker 2: sparkling and now iced tea. You know, we're really excited 132 00:06:42,680 --> 00:06:45,400 Speaker 2: about preserving optionality. You know, I think we can build 133 00:06:45,400 --> 00:06:50,360 Speaker 2: a massive, profitable business with a huge tam given that 134 00:06:50,360 --> 00:06:54,200 Speaker 2: we've proven this thing can transcend categories. So we're really 135 00:06:54,240 --> 00:06:59,720 Speaker 2: just focused on building a huge business, continuing to increase 136 00:06:59,760 --> 00:07:03,679 Speaker 2: our margins, get smarter about every aspect of supply chain, 137 00:07:04,320 --> 00:07:05,840 Speaker 2: and then if we're able to do that, we're going 138 00:07:05,880 --> 00:07:07,600 Speaker 2: to have a lot of options in terms of whether 139 00:07:07,640 --> 00:07:09,320 Speaker 2: that is I p O or whether that is a 140 00:07:09,320 --> 00:07:10,520 Speaker 2: strategic partnership. 141 00:07:10,840 --> 00:07:12,400 Speaker 1: Right, So, I mean I was going to say it 142 00:07:12,440 --> 00:07:15,360 Speaker 1: sounds like in preserving optionality that means that an IPO 143 00:07:15,560 --> 00:07:18,400 Speaker 1: is something that you're thinking about. Could you just talk 144 00:07:18,480 --> 00:07:22,080 Speaker 1: us through sort of the decision process what goes into that. 145 00:07:24,080 --> 00:07:25,840 Speaker 2: I think there's a lot of things. I mean, really, 146 00:07:25,880 --> 00:07:28,200 Speaker 2: you know, we look at, hey, what stage is the 147 00:07:28,200 --> 00:07:31,800 Speaker 2: business at, where's the market at, you know, what other 148 00:07:32,160 --> 00:07:34,000 Speaker 2: what other options are out there, and at the end 149 00:07:34,000 --> 00:07:36,160 Speaker 2: of the day, we're going to make the smartest decision 150 00:07:36,200 --> 00:07:39,560 Speaker 2: for what brings the most value to our shareholders and 151 00:07:39,600 --> 00:07:42,160 Speaker 2: all of our employees in our company, our shareholders. So 152 00:07:42,760 --> 00:07:46,000 Speaker 2: it's not just investors. So yeah, we're just going to 153 00:07:46,000 --> 00:07:48,040 Speaker 2: look at where where's the most value, and I think 154 00:07:48,880 --> 00:07:53,240 Speaker 2: looking at brands like Celsius and Monster, you know, I 155 00:07:53,400 --> 00:07:55,840 Speaker 2: PO and that path is an exciting path that we 156 00:07:55,880 --> 00:07:57,600 Speaker 2: would want as an option, and we're going to do 157 00:07:57,640 --> 00:08:00,000 Speaker 2: everything that we need to do to make sure that's 158 00:08:00,080 --> 00:08:01,480 Speaker 2: even an option if we want it. 159 00:08:01,920 --> 00:08:04,280 Speaker 1: Yeah, and I mean you look at the share prices 160 00:08:04,320 --> 00:08:06,800 Speaker 1: of Celsius and Monster and they have just been on fire. 161 00:08:07,000 --> 00:08:09,400 Speaker 1: Truly something to watch. But Mike, before I let you go, 162 00:08:09,480 --> 00:08:11,680 Speaker 1: talk to me a little bit more about your investors, 163 00:08:11,680 --> 00:08:14,720 Speaker 1: because a one point four billion dollar valuation that is 164 00:08:14,800 --> 00:08:18,680 Speaker 1: quite hefty at this point. I mentioned some actors, some athletes, 165 00:08:18,720 --> 00:08:22,160 Speaker 1: but who's investing at like in liquid death at this stage. 166 00:08:24,240 --> 00:08:27,119 Speaker 2: Yeah, Like you know what came out in the press. 167 00:08:27,120 --> 00:08:28,840 Speaker 2: I mean, we've got a couple of new investors like 168 00:08:28,920 --> 00:08:33,880 Speaker 2: Curo Capital, Gray's Creek, we had existing investors like Live 169 00:08:34,000 --> 00:08:36,960 Speaker 2: Nation who wanted to reinvest as part of this round. 170 00:08:37,800 --> 00:08:39,560 Speaker 2: And yeah, when you look at the valuation, I mean 171 00:08:39,559 --> 00:08:41,920 Speaker 2: look at Celsius right now, Celsius I think is trading 172 00:08:41,960 --> 00:08:44,240 Speaker 2: at eighteen times revenue. I mean, we are not being 173 00:08:44,320 --> 00:08:48,880 Speaker 2: valued at eighteen times our revenue this round. So yeah, 174 00:08:48,880 --> 00:08:51,600 Speaker 2: I think a lot of people were excited about the 175 00:08:51,640 --> 00:08:53,840 Speaker 2: growth potential of the brand, the growth that we've had 176 00:08:53,960 --> 00:08:58,359 Speaker 2: until now, you know, just starting in twenty nineteen, and 177 00:08:58,440 --> 00:09:01,360 Speaker 2: I think everybody was excited about out, you know, being 178 00:09:01,360 --> 00:09:03,160 Speaker 2: a part of the round and that you know, Liquid 179 00:09:03,160 --> 00:09:04,680 Speaker 2: Death is really just getting started. 180 00:09:05,160 --> 00:09:07,720 Speaker 1: Well, Mike, it has certainly been fun to watch. Really 181 00:09:07,760 --> 00:09:10,760 Speaker 1: appreciate your time today. Of course, that is Mike cceario. 182 00:09:10,880 --> 00:09:13,480 Speaker 1: He is the CEO of Liquid Death. It is the 183 00:09:13,600 --> 00:09:16,680 Speaker 1: hottest thing in canned water, and as we mentioned, of course, 184 00:09:16,720 --> 00:09:20,320 Speaker 1: beverages in general have been on fire in the stock market.