Educational sessions and discussions covered topics ranging from NFTs to THC during the second day of BevNET Live Summer 2022. Highlighted by a wild conversation with Bang Energy founder Jack Owoc, Thursday’s agenda also featured a beverage data dive from SPINS, Liquid Death’s work in web3 and insights into TikTok’s role in creating the next generation of CPG stars.
Liquid Death on Exploring Brand Building Through Around Web3
Liquid Death VP of marketing Dan Murphy took the stage Thursday morning to break down how the complicated world of web3, blockchain and NFTs has been used to market the company’s product.
The canned mountain water brand has gone all-in on what Murphy called “the most revolutionary tech out there” by selling NFTs through its Murder Head Death Club platform, leveraging its direct link to the brand’s community through Discord channels and turning Gen Z consumers into “superfans” by creating a lifestyle brand for the web3 community.
Leaning into the emerging digital ecosystem has allowed Liquid Death to create a community around the brand, Murphy said.
“We don’t talk about users or customers. It’s people, fans…we don’t make ads, we make content because people don’t like ads.”
In the wake of the crypto market’s recent collapse, Murphy cautioned that the industry is still in its nascent stages. He compared blockchain technology used in retail to the early days of the internet. Other brands looking to utilize web3 need to plan their strategy properly – ensuring legal and financial safeguards are in place – because it is such a fast moving space and early adopters of web3 expect immediate results.
That’s not to say that Liquid Death has been slow to jump in: upon launching in March, Murder Head Death Club minted and sold 6,666 severed head NFTs in about 2 hours, but Murphy was hesitant to encourage other brands to employ such a brash marketing strategy.
“We’re somewhat the culture that likes to jump out of the plane and stitch our parachute on the way down.”
Creating An Investment Narrative
Romitha Mally, founder of CPG consultancy firm Mally Collective, advised early-stage entrepreneurs to think critically about their brand’s story in order to gain leverage within a crowded beverage field.
Mally sat down with BevNET editor-in-chief Jeff Klineman to discuss how to prepare for new investment opportunities. For Mally, the most important thing is a bold vision that can be easily transmissible to potential investors.
Mally remembered Bai Brands founder Ben Weiss touring her through his “Willy Wonka’s Chocolate Factory” in the company’s early days and being impressed with “the ethos that he wanted to inject into the brand.”
Successful entrepreneurs are able to anticipate the challenges before they happen, Mally said, a salient point considering the current uncertainty in the market.
Founders who can show that they are able to meet consumers where they are – whether it’s providing good-tasting plant-based protein or leaning into wellness focused products – will serve new brands well when there is competition during a down market, Mally noted.
Founders should prepare for a more challenging investment environment because valuations will likely be going down, she said.
“The stock market is a reflection of discounted cash flows. And when rates go up on discounted cash flow, value goes down.”
Other Highlights From Day 2 of BevNET Live:
- Kathryn Peters, executive vice president of retailer at SPINS, and Jessie Wright, senior vice president at Pinto, gave a data-centric presentation on Thursday morning. They focused on the growth of functional beverages and the specialty, natural food categories. Brands were encouraged to leverage their respective products’ wellness benefits and to “turn insights into action” on store shelves to bring in new consumers.
- Powdered drink industry leaders talked about the growth of the segment. Although LifeAid CEO Orion Melehan said that RTD is still one of the best ways to build a brand, their sticks save on supply chain costs while providing a lower price point of entry for consumers. Both Eliza Ganesh, CEO of Sunwink, and Kyle Watson, Vice President of Marketing at CELSIUS, agreed that powdered drinks and on-the-go sticks have helped build a broader consumer base and introduced new customers to the functional beverage brands.
- At the panel titled “TikTok’s Time,” Garland Hill, Head of Growth at TikTok, explained that the platform’s brevity and immersive nature makes it perfectly situated to turn “businesses into brands.” The Plug Drink’s CEO Ray Kim advised entrepreneurs to hire interns because it is a way to find and target new customers. Allison Ellsworth, Co-Founder and Chief Brand Officer at Poppi, said that TikTok is a great platform to leverage influencers but can be equally “win-win” if brands use everyday consumers to encourage new customers.