Liquid Death Iced Tea

Liquid Death’s still and sparkling flavoured waters are currently sold in Tesco, Nisa and Co-op stores in the UK, with the iced tea range rumoured for launch

Liquid Death has closed a $67m (£52.4m) fundraising round to value the cult canned water brand at $1.4bn (£1.1bn) as it seeks to ramp up distribution in its domestic US market and accelerate NPD.

The Los Angeles-headquartered business said the unicorn valuation was “a strong increase” over previous funding rounds, with cash raised from strategic partners, new investors, including “top national distributors” in the US, and “notable names” in entertainment and sports.

Liquid Death – which made its UK debut last year with a range of still and sparkling waters in cans – hit $263m (£205.7m) in retail sales in 2023, expanding to more than 100,000 shops across the US and UK. It represented the third consecutive year of more than triple-digit growth.

The company said its newest product lines of iced tea and flavoured sparkling water registered “hypergrowth” in 2023, and the brand became the second largest ready-to-drink tea on Amazon by total sales in just a few months following its launch.

New funding will go toward further production innovation and on scaling operations following greater than expected demand from retailers.

“Liquid Death has become the fastest-growing and leading brand across the water, flavoured sparkling water and iced tea categories,” said CEO and founder Mike Cessario.

“We continue to see extremely strong consumer and retailer demand and are proud to have raised a strategic, oversubscribed, ‘up’ round to fuel our growth.

“What began as appealing to inbound interest has culminated in a leading group of strategic investors from finance, entertainment and distribution backgrounds. This round, coupled with the appointment of Stephen Ballard, a seasoned sales executive and White Claw alum, will enable us to continue scaling a world-class distribution network to murder thirst and plastic bottles around the globe.”

New institutional backers in the funding round included SuRo Capital alongside follow-on investors Live Nation, Science Inc and Gray’s Creek Capital Partners. Other prominent investors included actor Josh Brolin, NFL All-Pro and entrepreneur DeAndre Hopkins, and The Chappelle Show co-creator Neal Brennan.

Liquid Death’s TikTok and Instagram social media channels boast a following of 7.9 million, which the business said made it the third most followed beverage globally behind Red Bull and Monster.

The brand’s still and sparkling flavoured waters are currently sold in Tesco, Nisa and Co-op stores in the UK.