Dive Brief:

• Canned water brand Liquid Death appointed beverage veteran Karim Sadik-Khan to serve as its CFO, according to a Tuesday press release.
• A two-decade veteran of the beverage industry, Sadik-Khan is joining the Santa Monica, California-based company at a time of rapid growth — the water and iced tea maker reported $263 million in retail scanned sales for 2023, and expanded to 113,000 “retail doors” in the U.K. and the U.S., according to the Tuesday release. As incoming finance chief, “my job now is help build that infrastructure underneath that,” Sadik-Khan said.
• “So now as we look to become a large, profitable beverage company, how do we bring all that infrastructure into play?” he told CFO Dive in an interview. “How do we…take that revenue stream and make it even more profitable and deliver a steady cash flow back to our shareholders?”

Dive Insight:

Sadik-Khan is joining Liquid Death after 14 years with global spirits provider Beam Suntory, the parent company of brands including Jim Beam whiskey and Maker’s Mark bourbon. He most recently served as Suntory’s CFO for North America, and his previous experience in the beverage industry also includes roles at PepsiCo and Dr. Pepper Snapple Group, according to his LinkedIn profile.

He will take on the top finance seat as Liquid Death puts the pieces together for rapid growth, closing a $67 million funding round in March that valued the water and tea maker at $1.4 billion, Industry Dive sister publication Retail Dive reported. The money was earmarked for expanding distribution to meet demand as well as for product innovation.

Created in 2017, the water brand has relied on its irreverent, unique marketing style to attract consumers, such as its “murder your thirst” tagline and quirky social media campaigns — such as its current plan to give away a retired fighter jet to one of its customers, pilot not included. The strategy has led the canned water brand to report triple-digit growth in retail sales for three consecutive years, Retail Dive reported.

The company’s brand strategy is part of what originally attracted Sadik-Khan to the CFO role for Liquid Death — brands are “really struggling to connect with consumers, and especially Gen Zs and millennials,” he said. Attracting that age demographic can be tricky for companies, which need to adjust their marketing strategies to appeal to a socially- and health-conscious generation that increasingly gets their information from social media.

For many consumers, Liquid Death also represents a way to engage with the sober lifestyle, a growing trend especially among younger generations like Gen Z, according to a January report by Bloomberg. Non-alcoholic drinks represent the fastest-growing subsection of the beverage industry, expected to make up 4% of the overall alcohol market by 2027, according to a 2023 analysis by IWSR Drinks Market Analysis.

While still in the “early assessment” phases of the role, in joining the company, Sadik-Khan will “continue to build out the team and the processes to make sure that we can monetize the brand in the right way,” he said.

Sadik-Khan declined to comment on whether Liquid Death is profitable — as of March reports, the company was still shy of profitability — but “we're continually focused on driving that,” he said. For himself, it’s about “continuous improvement,” he said.

It’s “not really just even a profitability issue, it's about, how can I continue to invest more behind the brand…so you can generate more media, and more ability to reach more consumers, so it's fuel for growth?” he said. For example, there are still “massive distribution opportunities” for Liquid Death, he said, something that will be a top focus moving forward.

Sadik-Khan is not the only beverage veteran Liquid Death has tapped recently to help with its plans for expansion. Last October, the company hired White Claw alum Stephen Ballard as its first chief commercial officer, Retail Dive previously reported. As the company continues to experience rapid growth, reports have also swirled about a future initial public offering. Liquid Death reportedly hired Goldman Sachs last year to target a potential IPO, according to a report by the Information.

Sadik-Khan declined to comment on a potential public offering, but said “all options will obviously be on the table” concerning how the company can drive the best business results.

“The reality is, the 100% focus of the leadership right now is just driving and building the brand,” he said.