A real-company case study for Unit 2, Task 8 of AP Business with Personal Finance, written in the same format as the course's business cases. Read the case, answer each question on your own, then open the sample answers to check your thinking. Facts are current as of October 2026, and every source is listed at the bottom.
The Case
- Business: Liquid Death, which sells canned water and other drinks with heavy-metal-style branding
- Industry: Beverages
- Founded: Name trademarked in 2017; first cans sold in January 2019
- Headquarters: Los Angeles area, California
- Key people: Mike Cessario, co-founder and CEO (as of 2024 reports)
- Ownership/Status: Privately held as of its March 2024 funding round, which valued it at $1.4 billion
An Idea Backstage
In 2009, while living in Denver, Mike Cessario, a marketer whose experience spanned design and underground music, went to watch friends’ band play the Vans Warped Tour. Monster Energy was a sponsor, and Cessario noticed the musicians drinking water out of Monster cans during their sets. He started asking why healthy products couldn’t have the same funny, rebellious branding that was usually saved for unhealthy products such as junk food. In 2014, while working on a public service ad campaign about sugary energy drinks, he pitched canned water as a stunt that poked fun at energy drinks. The client turned it down, but Cessario kept refining the idea, trademarked the name Liquid Death in 2017, and launched the brand two years later.
Before selling a single can, Cessario put the idea in front of the public. In 2018, he created a Facebook page with a 3D image of the can and a two-minute commercial that cost $1,500. Four months later, the video had 3 million views, and the page had nearly 80,000 followers. Science, a Los Angeles startup studio that helped launch the company, provided a $1.6 million seed investment in January 2019.
A Premium Brand in a Can
Liquid Death went on sale in January 2019, offering still water from the Austrian Alps in 16.9-ounce aluminum cans. Its tallboy can deliberately resembles beer packaging, its logo is a melting skull, and its tagline is “Murder your thirst.” The company has argued that aluminum cans are better than plastic bottles because aluminum is more recyclable. Today its website calls the cans infinitely recyclable and says the company donates a portion of its proceeds to fight plastic pollution.
Cessario originally expected his customers to be punk-rock musicians and sober “straight-edge” fans. The real audience turned out to be broader: young people drawn to the name and the design, and parents who wanted healthier drinks for their kids. In 2022, TechCrunch reported that the brand’s customers skewed younger and male, and that the company aimed to make healthy drinks as fun as junk food and alcohol brands.
Liquid Death did not try to win by being the cheapest water on the shelf. At launch in 2019, a 16.9-ounce can cost $1.85, about the same as other premium water brands, and customers who ordered 12-packs for home delivery saved 10 percent on bulk orders. By late 2022, cans sold for $1.89 each at stores such as Kroger and Target.
From an Online Store to 60,000 Locations
At first, Liquid Death sold only online, through its own website and Amazon. Its next plan was to place cans in bars, barbershops, and tattoo parlors in cities such as Los Angeles and Philadelphia, which the company called a lifestyle play. Until it reached a deal with Whole Foods Market, its online store was its largest sales channel. Whole Foods began carrying the water nationwide in February 2020, the same year the company added sparkling water, and by that September Liquid Death was in more than 1,000 7-Eleven stores in Southern California. In 2021, Live Nation began stocking the drinks at its concerts and events; it later invested in the company as well.
By early 2022, Liquid Death was sold in more than 29,000 U.S. locations, including Whole Foods, Target, Safeway, and 7-Eleven. Amazon had also started buying its drinks wholesale, so Liquid Death now sold directly to Amazon instead of paying fees on each case sold through Amazon’s site. By late 2022, the brand was in more than 60,000 retail locations, and CNBC reported that it was Amazon’s top-selling still water brand. Today, the company lists retailers including Walmart, Target, Kroger, Albertsons, Whole Foods, Publix, and 7-Eleven.
Promotion as Entertainment
Cessario has described Liquid Death as both an entertainment company and a water company. He told TechCrunch that the company did not have hundreds of millions of dollars to spend on a campaign, so each piece of marketing had to be entertaining enough that people would pass it along on their own. In May 2020, the company released Greatest Hates, a 10-track death metal album whose lyrics were real complaints people had posted online about the brand. It sold skateboard decks made with investor Tony Hawk, using ink mixed with his blood; all 150 decks sold out. In February 2022, it ran a regional Super Bowl ad in 23 major markets that showed a party of 8-year-olds wildly guzzling the brand’s water to a cover of Judas Priest’s “Breaking the Law.” Adweek called the spot controversial, noting online chatter about “drunk” children, although the kids were only drinking water. The brand also created a loyalty program, the Liquid Death Country Club, which offered early access to merchandise and entry to a physical Country Club at Live Nation festivals. Today the company says it has about 7.5 million Instagram followers and 7.2 million TikTok followers.
Growth, and Where Things Stand
According to figures reported by CNBC, sales grew from about $2.8 million in 2019 to about $10 million in 2020 and $45 million in 2021, and in late 2022 the company was on track for about $130 million that year. Investors bet on that growth: funding rounds valued Liquid Death at $525 million in January 2022, $700 million in October 2022, and $1.4 billion in March 2024, when it raised $67 million. In 2023, shoppers spent $263 million on its drinks in stores, as measured by retail scanners (see Exhibit 1). The product line kept expanding, from sparkling water to flavored sparkling waters with names like Mango Chainsaw and Severed Lime, iced teas, and an electrolyte powder called Death Dust in 2024. As of October 2026, the company’s lineup also includes zero-sugar energy drinks and soda-flavored sparkling water, and its Country Club is offline while the company overhauls it for 2026. As Liquid Death moves beyond water, the question is whether the same marketing mix that made canned water exciting can work in other drink categories.
| Year | Sales | Distribution and funding milestones |
|---|---|---|
| 2019 | About $2.8 million | First cans sold online (January); $1.6 million seed investment |
| 2020 | About $10 million | Whole Foods nationwide (February); $23 million Series B round (September) |
| 2021 | About $45 million | Live Nation begins stocking the drinks at its concerts and events |
| 2022 | On track for about $130 million (reported in late 2022) | More than 29,000 U.S. locations (January); $75 million round at a $525 million valuation (January); $70 million round at a $700 million valuation (October); more than 60,000 locations (late 2022) |
| 2023 | $263 million in scanned retail sales | — |
| 2024 | Not reported in these sources | $67 million round at a $1.4 billion valuation (March) |
Sources: CNBC (2022) for 2019–2022 sales, with CNN reporting the same 2022 estimate; Inc. (2024) for 2023 retail sales; TechCrunch, Los Angeles Business Journal, CNN, and Inc. for funding and distribution. The 2023 figure measures what shoppers paid at store checkouts, not the company’s own revenue, so it is not directly comparable with earlier years.
Reading Questions
These are the same for every case. They check that you caught the basics before you analyze.
1. Which business does this case feature, and what product or service does it provide?
2. Who are the key people named in the case, and what roles do they play? Which other stakeholders — individuals or groups — have an interest in the business?
3. Identify an opportunity and/or a challenge the business faces in this case.
Practice Questions
These apply the Unit 2 concepts from Task 8 to the case, in the style of AP free-response prompts.
1. Using evidence from the case, describe Liquid Death’s target customer with one demographic and one psychographic characteristic. Then explain how its brand identity was designed to appeal to that customer.Topics 2.1, 2.4 · LO 2.1.B, 2.4.B
2. Explain how Liquid Death’s pricing strategy and its choice of marketing channels worked together as the brand grew.Topics 2.5, 2.6 · LO 2.5.A, 2.6.B
3. Liquid Death’s 2018 Facebook commercial cost $1,500 and reached 3 million views in four months. Calculate the cost per 1,000 views, and evaluate the video both as a promotion and as a way to test the business idea before launch.Topics 2.3, 2.7 · LO 2.3.C, 2.7.A
Discussion Questions
Talk these through with a partner or your class. There's more than one good answer, so back yours up with evidence from the case.
- Liquid Death charged about the same as premium water brands for water in a can. What exactly are customers paying for, and how does that connect to perceived value?
- The 2022 Super Bowl ad showing kids guzzling water was called controversial. When does edgy marketing go too far, and how should a business decide?
- Liquid Death says its aluminum cans are infinitely recyclable and that it donates part of its proceeds to fight plastic pollution. How much should environmental claims matter in a marketing plan, and how could a customer check whether they are true?
- Which part of Liquid Death’s marketing contributed most to its growth? (a) product and branding, (b) price, (c) place, (d) promotion. Support your choice with evidence from the case.
- As Liquid Death adds energy drinks and soda-flavored sparkling water, what could the brand gain, and what could it risk losing with its original customers?
Application Activity
Key Takeaways
- A strong marketing plan starts with a clear target customer. Cessario first pictured punk musicians and sober “straight-edge” fans who wanted a healthy drink that still looked rebellious; the name, skull logo, and tallboy can were built for that customer, and the brand went on to win over young people more broadly and parents too.
- Price and place should reinforce the brand. Liquid Death priced its cans like premium water and began with online sales to test demand, then used indirect retail channels to grow from online-only sales in 2019 to more than 60,000 locations by late 2022.
- Promotion can be part of the product. Low-cost, shareable ideas, such as a $1,500 video with 3 million views and an album built from hate comments, built awareness cheaply, but edgy promotion carries risk, as the controversy over the 2022 Super Bowl ad showed.
Use it in your Business Canvas Project
Use Liquid Death as a checklist for your marketing fair booth: make sure your product, brand, price, channel, and promotion all point at the same target customer, and show at least one piece of evidence, like a low-cost test, that customers actually want what you are selling.
For Teachers
Tip: “Print case” prints the case and all questions with the sample answers hidden, so it works as a student handout.
Sources
- A brand called Liquid Death wants to sell mountain water to the cool kids, TechCrunch, 2019-01-24
- How Liquid Death’s 40-year-old founder turned ‘the dumbest name’ and a Facebook post into a $700 million water brand, CNBC Make It, 2022-11-26
- Liquid Death Raises Additional $23 Million, Los Angeles Business Journal, 2020-09-29
- Liquid Death lands $75M more to expand the brand, TechCrunch, 2022-01-03
- Liquid Death canned water brand valued at $700 million, CNN Business, 2022-10-04
- Liquid Death, the Canned Water Company for Hipsters and Head Bangers, Doubled Its Valuation Overnight, Inc., 2024-03-12
- Company Turns Hateful Social Media Comments Into Death Metal Album, Loudwire, 2020-05-04
- Liquid Death Scored With Its Regional Super Bowl Ad Starring Hard-Partying Kids, Adweek, 2022-02-14
- Manifesto (About Liquid Death), Liquid Death (company website), 2026-10
- FAQ, Liquid Death (company website), 2026-10
This case was written for educational use from the public sources listed above. Liquid Death did not review it and is not affiliated with this site; company names are trademarks of their owners. This resource is independent and not affiliated with or endorsed by College Board.