1st BATCH OF FILES AVAILABLE NOW!

Liquid Death is voting with its feet on ability of Anheuser-Busch-owned distribution operations to carry brand to next phase of development, including entry into energy sector, by decamping from several branches in western US. About a month after it exited AB One unit in NY as that operation moved to acquisition by wine & spirits giant Southern Glazer's, Liquid Death is exiting AB One branches in Seattle, Eugene (Ore) and SoCal for array of indie houses. These include Hand Family Cos' Sunset operation in SoCal (the acquired Classic and Stone houses), Odom in Seattle, Bigfoot in Eugene and Summit in rural Phoenix, Ore. Liquid Death reportedly had been unhappy with AB One, which has weak record on incubating partner brands, and Death's new energy extension will be direct rival of A-B's own Phorm Energy that is key priority at the branches. Among raps we hear on AB One from partner brands is those houses' preference to work chains rather than indies, particularly accts not licensed for alcohol, and overwhelming focus on A-B-owned brands. In announcement this morning, LA-based Liquid Death called these moves "upgrades" that "strengthen Liquid Death's presence along the West Coast as it scales to meet rapidly growing consumer demand." Liquid Death is one of more prominent non-A-B brands within AB One portfolio, along with BeatBox, Novamex' Jarritos and, in SoCal, Yerba Madre. Is there a risk that BeatBox may also move? That seems less likely given report in Wall St Jnl yesterday that it's in talks to sell to A-B for ~$700 mil. Liquid Death's own move away from A-B-operated would seem to be clear enough sign that its own exit won't be with ABI. We'd inquired about potential AB One exit yesterday, and release doesn't make it clear whether brand is exiting other such operations around US. From what we understand, tho, it will no longer have an AB One presence by year-end.Announcement itself didn't mention AB One at all but quoted founder/CEO Mike Cessario as saying: "At Liquid Death, we've built a multi-category healthy-beverage platform under a single brand name, an incredibly rare feat for a beverage brand only 5 years old in physical retail. As we look to scale our retail footprint on the West Coast, these best-in-class distribution partners will bring us the highest level of execution and deep local expertise in these key markets."In NYC, recall, leading non-alc indie house Big Geyser landed Liquid Death. Like Geyser, Sunset seeks to develop broader role as brand incubator. "At Sunset, we've created a powerful route to market in Southern California that's unmatched," said Hand Family Cos CEO JR Hand. "We are thrilled to bring that to Liquid Death and its disruptive brand." Hand also operates key house in Chicago, Lakeshore, that carries Liquid Death. Riding wave of inventive, in-your-face marketing that's spawned base of 15 mil social media followers, Liquid Death has built to likely half-bil-dollar brand at retail in just a few yrs, riding sparkling waters and iced teas that are growing at double-digits even as original still water has subsided. It recently shelved a plan to enter coffee space but its pending energy launch seemed to spark plenty of interest at recent NACS c-store show in Chicago (BBI, Oct 17). Brand will again be airing ad on Super Bowl this yr.As for the energy play, LD reminded that it was formulated in partnership with longevity expert Dr Darshan Shah and balances moderate 100 mg dosage of caffeine sourced from coffee beans with B12 and C vitamins, L-theanine and magnesium, with sucralose eschewed as sweetener in favor of combo of stevia and low-glycemic allulose. It hits market in a few weeks.

DISTRIBUTION: Liquid Death Bolts 3 More AB One Branches Ahead of Energy Launch

Publishing Info