Express Checkout #103

Hello hello!

I’m back from NOSH Live! It’s always a good time with the BevNet/NOSH crew, and this year it was extra special with a guest appearance from the Jennifer Garner and John Foraker of Once Upon a Farm! Thanks to everyone who stopped to say hi—was so great seeing a bunch of CPG folks in the same room (and it’s getting me even more excited for Expo…)

Don’t forget to check out our recent gift guides! Two are live and more are coming! 🎁 

News From the Week

BFCM 2024 is finally over. Let’s see how it played out, shall we?

🚀 Record-Breaking Numbers:

• Shopify stores saw $11.5B in sales (+24% from 2023)

  • $15.8 million per minute during Cyber Monday's busiest hours!

• Cyber Monday alone: $13.3B in US online sales

• Total Cyber Week globally: $314.9B

The most fascinating part was how people shopped. Mobile dominated—around 60% of all online sales, representing $7.6 billion in spending. This is a huge shift from just a few years ago: In 2019, only 33% of Cyber Monday sales were on mobile devices!

Social commerce also made its mark this year, with platforms like TikTok Shop and Instagram driving about 19% of Cyber Week sales for the retailers who used them. It's becoming a serious sales channel.

Plus:

• BNPL (Buy Now Pay Later) usage hit an all-time high on Cyber Monday, driving $991.2 million in spend.

• The share of units sold for higher-priced items increased by 28% across categories.

• Generative AI-powered chatbots saw a 1,950% YoY increase in traffic to retail sites on Cyber Monday and AI influenced $60 billion in sales during Cyber Week.

While promos drove most sales this BFCM season, one DTC brand took an alternative approach: offering—and heavily publicizing—their no sales ever policy. We spoke with Earthfoam about their promo-free BFCM, their reasoning and strategy behind it, and how it played out. Check out our newest Express Checkout article here!

CPG & Consumer Goods

• Banana pudding at 35,000 feet. United Airlines partnered with Magnolia Bakery to offer its frozen banana pudding on select flights. The dessert will be served in individual cups in United First, marking the first time Magnolia's treats are available on an airline. This initiative is part of Magnolia's broader CPG strategy to expand beyond NYC, which has included launching their frozen banana pudding DoorDash, Wonder, Amazon Fresh, GoPuff, United Airlines, and in airports in partnership with OTG and WHSmith.

• Trouble in paradise. Shaka Tea announced it’s shutting down due to economic and technical challenges. The tea will remain available in stores and online for the next few months while they wind everything else down.

  • This was definitely surprising considering they were acquired by King's Hawaiian in early 2022.

• A “mazel tov” is in order. Manischewitz announced a NIL partnership with Jake Retzlaff, BYU's first Jewish quarterback. They plan to produce a limited edition matzo box featuring Retzlaff.

  • I’ve never seen a better, and more timely, partnership between a brand and an athlete in my life.

• Claire's is back. Claire’s—AKA the place where you begged to get your ears pierced by an underage associate—is back and targeting Gen Alpha with its new beauty line called C by Claire’s. The products include fragrances and body care.

• Taking advantage of the K-Wave. Asno, a 100% vegan Korean skincare brand, launched in the U.S. on Amazon.

• The brand that taught us that shower water is a skincare product, Jolie, partnered with Ulta Beauty—marking its largest retail collaboration to date within Ulta's wellness merchandising concept. The company is set to surpass $100 million in sales by 2027. Insane!

• …aaaand another Ulta partnership. Skincare brand Tatcha is expanding its U.S. presence by partnering with Ulta Beauty to offer its core assortment of skincare products online and an expanded selection starting January 1.

• Movement in the world of vodka.

  • Constellation Brands is divesting its SVEDKA brand to Sazerac as part of its strategy to focus on higher-end wine and spirits.

  • Stoli Group's US unit filed for Chapter 11 bankruptcy, citing over $100 million in assets and $50 million to $100 million in liabilities.

• Daddy gang is about to be SO hydrated 💦. Alex Cooper, host of Call Her Daddy, is launching her first product, Unwell Hydration, a hydration beverage targeted at women, which she believes fills a gap in a market dominated by more male-oriented drinks. The product will be available exclusively at Target starting January 1, 2025.

  • There are definitely mixed feelings online—and especially how she went about launching it—but I’m honestly indifferent about this launch. I think it has some legs, though I do wish they went for cans over bottles.

• An icon reportedly up for $$$. Spindrift is apparently in talks to be acquired by Gryphon Investors for over $650 million. The brand has experienced significant growth, achieving ~$270 million in sales over the past year.

eCommerce

• This man does it all 🥦! Snoop Dogg launched SWED.com, a DTC cannabis lifestyle marketplace offering a curated selection of hemp-derived products, accessories, and exclusive merchandise. This new venture follows the opening of S.W.E.D. dispensaries in Los Angeles and Amsterdam.

• AI product development. Alibaba International launched "Pic Copilot," an AI-powered ecomm design tool. The tool offers various features, including virtual try-ons and customizable graphic templates.

  • Seems like they took this right from Pietra’s AI tools, though Pietra offers more right now. You can even visualize a product from a description.

Retail

• Dollar General is making moves! They are opening 575 new stores and remodel 4,250 others in 2025, while at the same time testing same-day delivery in 75 locations. Dollar General is also rolling out fresh produce to its stores, planning to add it to 300 more locations in 2025, bringing the total to around 7,000.

• A new era of skiwear. Women-owned ski brand Halfdays is opening its first permanent store in Denver, Colorado.

• We love seeing the good ones win. Wegmans is set to open three new stores in 2025, located in Lake Grove, New York; Norwalk, Connecticut; and Rockville, Maryland.

• She’s really back. Foxtrot Café & Market is reopening its River North store in Chicago on Thursday after closing all locations in the spring. The urban c-store chain is now focusing on small local vendors.

• The new clout-chasing uniform. Erewhon launched an exclusive (and very overpriced) Winter '24 apparel collection for the holiday season, featuring items like hoodies, sweatpants, and even a washable reusable bag that looks like their paper bags.

• Cue: “Let’s Go to The Mall”. Simon properties reported a 6.4% year-over-year increase in traffic across its portfolio during the Black Friday weekend, with a notable 7.1% gain at its malls nationwide.

• That's a staggering amount of returns. Retail returns are projected to total $890 billion in 2024, with 16.9% of annual sales expected to be returned. Major retailers like REI, Target, and Asos are taking notice and action. They’re implementing targeted crackdowns on return abuse while trying to maintain customer-friendly policies for the majority of shoppers.

Supply Chain

• Full price, no delivery. Amazon was sued for allegedly deceiving approximately 48,000 Prime members in two DC ZIP codes by excluding them from its advertised fastest delivery services, while continuing to charge them the full subscription price.

• What happens when even the big guys are struggling? UNFI, a major wholesaler and grocery distributor, plans to lay off 121 employees at its Lincoln, Rhode Island office as part of a cost-cutting initiative while relocating its headquarters to Providence. The layoffs, effective January 24, 2025, are part of a multi-year effort to improve financial performance and efficiency.

• More beer for all. Anheuser-Busch is investing $10 million in its Jacksonville brewery, which has been operational since 1969. This investment is part of a broader commitment, with AB having invested nearly $2 billion in its U. breweries over the past 5 years.

Funding news

• Keep your best customers close. rediem, a loyalty software company, raised $1.2 million in a pre-seed funding round to onboard a waitlist of 500+ brands to its platform. The company aims to transform traditional rewards programs with its AI-powered SaaS solution.

• Making chocolate more sustainable 🍫

  • Planet A Foods raised $30 million in Series B funding to scale the production of ChoViva, a cocoa-free chocolate alternative that significantly reduces environmental impact.

  • The startup Celleste Bio secured $4.5 million in seed funding from Mondelez's SnackFutures Ventures and other investors to enhance its research and development of cell-cultured cocoa.

• TreeHouse Foods, Inc. acquired Harris Tea, a leading private brand tea manufacturer in the U.S., for approximately $205 million.

• The future of eggs is chicken-free. The Every Company received a $2 million grant from the US Department of Defense to establish a precision fermentation facility in the US. Currently, they produce two main fermentation-derived ingredients: OvoBoost and OvoPro which functions as an egg and egg white replacement.

See ya next week,

Nate + Jenna :)

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