Express Checkout #104

Hello hello!

This week we sat down with the founders of Wildgrain, my new favorite subscription. Johanna and Ismail have quietly built a $30M profitable business (yes, you read that right—profitable!) by bringing European-quality bread to American homes through, of all things, frozen subscription boxes.

Their story has everything I love: a product born from personal frustration, founders who ignored the traditional VC playbook, and proof that you can scale artisanal quality while maintaining positive unit economics. Plus, they launched in January 2020 with a newborn baby right as COVID hit—and not only survived, but thrived. Get ready for a master class in building a sustainable DTC brand that actually makes money.

In 2025, we’ll be writing weekly Checkout Chats! Want to snag a spot on the lineup? Shoot me and Jenna ([email protected]) and me ([email protected]) an email with your pitch!

News From the Week

Last week, Hims & Hers (the publicly-traded telehealth company that provides OTC + prescription medications and personal care products) launched 'The Shape of America' report, providing insights into Americans' relationship with weight in 2024. Based on a survey of 5,000 adults, key findings reveal:

• 83% of Americans are not at their desired weight, with respondents wanting to lose an average of 42 pounds.

• 75% of Americans think about their weight daily, with 14% considering it constantly.

• And the dystopian cherry on top? 70% would rather lose 10 pounds than gain 100 friends.

If you’re reading this study with your Big Business Brain, this may look like a shiny opportunity backed by staggering data. I’m sure Hims & Hers researchers were pleased to report these findings to their higher-ups—and I’m sure said higher-ups are already developing their next “weight loss solution” as we speak. But if you’re looking at this data as a human? It’s nothing short of devastating.

And while many want to point fingers at diet culture, I’m far more interested in a different culprit: wellness culture.

Americans are dying to lose weight at any cost (companionship, the overwhelming majority of our thoughts, etc.), yet we now cringe at the low-fat, zero-sugar, 100-calorie-pack “artificial junk” and restrictive diets of our Y2K skinny trend past. This study shows something I’ve been trying to pinpoint, but hadn’t yet had the data to do so: under the reign of wellness culture, we may be “over” diets…but weight loss has never been more aspirational.

As three-quarters of Americans lose their minds to lose some pounds, “diet products” are no longer capitalism’s solution—but ”healthcare solutions”¹ blanketed under the guise of “wellness” are.

In the new year, I’ll be working on a more comprehensive deep dive on how wellness culture has bled into weight loss culture…and what that means for CPG, retail landscapes, and more. If you have any thoughts on this topic (or know a dietician who’d be willing to chat) please send them my way at [email protected]! - Jenna

1: This is in reference exclusively to the non-medically necessary use cases of weight loss drugs.

CPG & Consumer Goods

• But will they still buy Poppi and Olipop? Both Coca-Cola and PepsiCo are set to enter the prebiotic soda market in 2025: Coca-Cola is launching a prebiotic soda under its Simply brand, while Pepsi is relaunching Soulboost, originally launched in 2021 as a mood-boosting beverage, as a prebiotic soda sweetened with stevia.

• The protein launch of the week 🙃 General Mills launched Cheerios Protein, a new cereal with 8g of protein…or a cheaper alternative to Magic Spoon, with macros just shy of the unicorn’s. Available in Cinnamon and Strawberry, Cheerios Protein will hit U.S. retailers at the end of December, priced at $5.39.

  • Clearly, General Mills is capitalizing on its new favorite stat: 71% of consumers are trying to eat more protein in their diets. This protein boom has fueled the company’s most recent innovations, including Wheaties Protein, Annie’s Super Mac and Yoplait Protein.

  • Call it what you want, but it’s certainly impressive to see an 83-year-old legacy brand (!!) keep up with the trends.

• Congrats to all! Sephora announced the eight BIPOC brands selected for its 2025 Accelerate program: 4AM, OliviaUmma, Bounce Curl, THE POTION STUDIO, TONAL Cosmetics, INFLUXIOUS, RUHVEDA, and The Steam Bar.

• It’s supposed to be hot on the inside. Stanley, the first brand to make to-go cups go viral, is recalling 2.6 million travel mugs due to a burn hazard.

• Can they take back the athleisure crown? Under Armour came back from the dead and hosted its first investor meeting in 6 years, outlining its product, brand, and commercial strategies.

• Now this is a product expansion I can get behind. Seth Rogen's Houseplant brand launched a hemp-derived Delta-9 THC-infused sparkling water in four flavors: Black Cherry, Blackberry, Citrus, and Pineapple. This marks Houseplant's entry into the consumable cannabis market.

• Sounds like semantics. Meati Foods settled a false advertising lawsuit regarding claims that its products were made from "mushroom root," instead revealing they are made from a filamentous fungus called Neurospora Crassa. I

eCommerce

• Amazon on the offensive. Amazon is increasingly targeting paid reviews by asking online shoppers to provide information about their testimonials on platforms like TikTok and YouTube. This initiative comes in light of new FTC rules against paid product reviews, prompting concerns among sellers about potential suspensions.

• She’s back…kinda. Formerly beloved department store Lord & Taylor is set to relaunch in 2025 as an online discount luxury retailer after being acquired by Regal Brands Global. The new platform will focus on offering designer goods and Lord & Taylor-branded products sourced from distributors, while aiming to position its products in high-end retailers like Saks Fifth Avenue and Nordstrom.

• The ultimate omnichannel hack. Lucky partnered with Bloomingdales to integrate luxury brands' DTC sites with Bloomingdales' in-store inventory. This allows online shoppers to check product availability and opt for same-day pickup or delivery from local Bloomingdales stores.

Retail

• Foxtrot is slowly returning… Foxtrot, the retailer whose parent company abruptly filed for bankruptcy and closed its doors in May, plans to re-open two locations in Dallas in January after re-opening five in Chicago this year.

  • …but the old Foxtrot still haunts them. The Illinois Department of Labor is seeking over $3.8 million in back wages for more than 350 former employees of Outfox Hospitality.

• No more coupon clipping at home. Stop & Shop is rolling out "Savings Station" kiosks in half of its stores by mid-December 2024, allowing customers to access digital coupons without needing a smartphone or internet.

• Amazon keeps growing its grocery store count. Whole Foods has opened 3 new stores on the East Coast following the introduction of its new small-format concept, Daily Shop, in NYC. Meanwhile, the Amazon Fresh brand opened its 10th location in the D.C. metro area.

  • I’m very curious to see how both these (seemingly very similar) brands evolve over the next few years. IMO, Whole Foods has lost its charm since it was acquired by Amazon, diminishing its focus on quality, curation, and a distinct shopping experience. While prices have dropped in an attempt to appeal to a broader audience, I think this has led to an identity crisis for the brand—alienating its core customer base without fully capturing new audiences.

• The retail media takeover. Grocery TV partnered with Hy-Vee to create a large in-store retail media network across more than 400 locations, featuring over 10,000 screens (brain rot). Starting February 2025, brands will have new opportunities to reach millions of shoppers with impactful digital ads.

• The best place to play “house.” RH plans to open nine new design galleries next year, seven in North America and two in Europe.

• Primark plans to expand its U.S. presence by opening 5 new stores in 2025, following a $90 million investment in 2024, bringing the retailer's total U.S. store count to 29.

• From friends to enemies. Albertsons filed a lawsuit against Kroger for breach of their merger agreement, claiming that Kroger failed to take necessary actions for regulatory approval, resulting in the merger being blocked. Albertsons seeks billions in damages, including a $600 million termination fee.

Supply Chain

• A W for the small guys. The FTC sued Southern Glazer's, the largest alcohol distributor, for offering exclusive discounts to larger customers, which allegedly harms smaller retailers. This lawsuit is the first of its kind in over 20 years and aims to enforce pricing fairness in the industry.

• Are these the infamous NJ drones?! Amazon developed the MK30 drone, designed to travel twice as far and operate more quietly than previous models. This new drone can deliver eligible items weighing five pounds or less within 60 minutes to consumers near its fulfillment center in Tolleson, Arizona.

Funding news

• Keeping everyone’s glass full. Full Glass Wine Co. acquired Wine Access and Cameron Hughes Wine, its 6th and 7th acquisitions in 17 months! This strategic expansion aims to enhance their portfolio with high-quality brands, ultimately targeting over $200 million in revenue for 2025.

  • I actually interviewed Neha, co-founder, earlier this year. Checkout our interview here!

• Lighters, pens, and… hair bushes? BIC acquired Tangle Teezer, a premium detangling haircare company, for approximately €200 million.

• Going private? Walgreens is in talks to be acquired by private equity firm Sycamore Partners—and Walgreens' shares surged ~18% after the news. This marks another attempt for Walgreens to go private, having previously sought a buyout in 2019 without success.

Weekly Pickups

One Trick Pony’s Maple Crunch Peanut Butter

Jenna’s thoughts: This is, hands down, the best peanut butter I have ever put in my mouth—and I spent 10 years of my life proclaiming that peanut butter is my “favorite food” (my answer only changed upon realizing that “adults” don’t consider “peanut butter” a “food”).

If you’re someone who equally appreciates crunchy and creamy (we’re a rare breed) this is your dream nut butter. It’s a creamy, sweet mapley base with little magical balls of white chocolate crunchies that satisfies my need for complex texture—without putting off the anti-peanut-chunk diehards. I’ve already made multiple friends come try it and every single person has been changed for good. I fear I will finish this jar by EOW and it will have only ever touched a spoon.

Nates thoughts…. what Jenna said! There’s a reason I invested in One Trick Pony! Best peanut butter out there 🙂

@nate.rosen

@Bethenny Frankel i think you’re going to like the new @Eatflings! And trust me, i did not like the first version i tried just like Bethen... See more

The new and improved Flings toaster pastry!

Yes this is the Fling that Bethenny Frenkel famously DESTROYED online…and it destroyed her Smeg toaster over. Don’t worry they sent her another. I was very very impressed with V2, I tried V1 and it wasn’t good at all. This new version got rid of sugar alcohols and is now sweetened mainly with honey! Delicious!

See ya next week,

Nate + Jenna :)

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