Express Checkout #105

Hello hello!

Merry Christmas and Happy Hanukkah to those who celebrate either/any/all! 🎄🎁 🕎 

Although I don’t celebrate Christmas, I absolutely LOVE this time of year. The lights, the treats, the movies (Elf and The Holiday are probably my top picks)…what’s there not to love?

News From the Week

The FDA updated its definition of “healthy” for food labeling for the first time since 1994! The new rule emphasizes food groups and dietary patterns over isolated nutrients, aligning with the latest nutrition science and the Dietary Guidelines for Americans. Here’s what you need to know:

💀 Old Law (1994)

1. Focus on Individual Nutrients: Foods were evaluated based on having specific minimum amounts of isolated beneficial nutrients like vitamin A, vitamin C, calcium, iron, protein, or fiber.

2. Caps on Fats & Cholesterol: Strict limits on total fat, saturated fat, sodium, and dietary cholesterol, often excluding nutrient-dense foods like nuts and salmon.

3. No Added Sugars Considered: The impact of added sugars was not a factor in determining if a food qualified as "healthy."

4. Processed Foods Favored: Fortified foods, even those high in added sugars (e.g., sugary cereals or fruit snacks), could qualify by meeting the minimum nutrient requirements.

😊 What’s New (2024)

1. Focus on Food Groups: Foods must contain minimum amounts of vegetables, fruits, grains, proteins, or dairy to qualify as "healthy"

2. Limits on Nutrients: Much stricter caps on added sugars, sodium, and saturated fat, but allowances for naturally occurring fats (e.g., in nuts or seafood).

3. Automatic Qualification: Whole, unprocessed foods like fruits, veggies, and water automatically qualify.

4. More Flexibility for Snacks & Small Portions: Adjusted criteria for smaller serving sizes (e.g., ≤50g snacks) so they can qualify.

5. Inclusive of more foodstuff: Frozen, canned, dried, and “culturally preferred foods” are eligible under the new criteria.

How This Impacts CPG Founders

1. Reformulation Opportunities: Brands may need to adjust recipes to meet the new "healthy" criteria, especially for products with added sugars or sodium.

2. Labeling Adjustments: Companies using "healthy" claims will need to update packaging and maintain documentation to comply by the February 25, 2028 deadline.

3. Marketing Advantage: Meeting the new criteria could make your product stand out as consumers increasingly prioritize health-conscious choices.

4. Innovation in Snack & Convenience Categories: With adjusted serving size criteria and inclusion of culturally preferred foods, brands can innovate around smaller, healthier snacks or globally inspired offerings.

• A natural progression. Eight Sleep, the smart mattress company, has launched Sleep Elixir, a sleep supplement developed with insights from over 600 million hours of sleep data. This move marks a strategic expansion into wellness products.

• Everyone will have a GLP-1 product in 2025. Conagra Brands is introducing an "On Track" badge for 26 Healthy Choice frozen food items, indicating they are high in protein, low in calories, and suitable for GLP-1 receptor agonist users.

  • And this is in no way surprising. GLP-1 friendly products are going to blossom in 2025. There are even products that a specifically formulated for customers taking GLP-1!

• From DTC to main street USA. True Classic, a fast growing basics brand, is expanding its availability by launching core T-shirts in 460 Target stores, in addition to its existing presence in Kohl's and Sam's Club. Founded in 2019, the brand has grown to $500 million in sales and plans to continue adding retail locations while strengthening its wholesale business.

  • This moves makes a ton of sense, even though Target has their own basics apparel line. Why? Because consumers clearly love True Classics. According to Particl data, True Classic sold a staggering nearly 112,000 Black Crew Neck T-Shirt on their DTC in the past 30 days. Target saw the writing on the wall and wanted in on that.

• A very sparkly collab. T3, a LA-based female-founded hair tools brand, has collaborated with fellow female-founded accessory brand LELET NY to launch a limited-edition holiday sparkling pave crystal barrette.

  • I feel like sparkly and crystal focused collabs have been popping off lately. Bose has done some this year alone one with jeweler Maggi Simpkins and with Susan Alexandra. Crocs too, with Simone Rocha!

• High School Musical → high-growth beauty. Ashley Tisdale is launching a new collection of "hair wellness" products under her brand Being Frenshe, inspired by her personal hair journey and struggles with alopecia. The line includes various hair care products aimed at promoting scalp health and will be available exclusively at Target starting December 29.

  • Being Frenshe is clearly doing something right, seeing nearly $30M in annual revenue. The brand is also available in nearly 2,000 Target stores nationwide and have done creative partnerships with brands like Canopy and even Rugs USA. The brand has evolved to a fully fledge lifestyle brand, almost like Goop.

eCommerce

• Second time’s the charm? Best Buy is set to relaunch its third-party marketplace in summer 2025, eight years after abandoning its first attempt due to low revenue and customer confusion. The new marketplace will be built on the Mirakl platform.

Retail

• Big Lots is a big bust. Big Lots announced that it will be shutting down all of its remaining 963 stores across the US as they will not go through the sale to Nexus Capital Management. The retailer, which had already closed 400 stores this year, filed for Chapter 11 bankruptcy in September.

  • Here are the deets: The company attributed its bankruptcy to a decline in consumer spending (especially on high-ticket items), overall furniture/home furnishings retail segment down 3.3% through November, and failed inventory valuation made Nexus acquisition economically unviable.

  • And their financial situation really paints the bigger picture: fiscal year 2024 ended with revenues of $4.7 billion (14% decline from previous year) and a net loss of $482 million (up from $211 million in 2023). They also have tens of millions in unpaid rent and little inventory movement.

• Smart Home? No, smart store. VusionGroup has partnered with The Fresh Market to implement its digital signage and inventory management systems across all 166 stores in the US.

Supply Chain

• The strike of the year, just in time for the holidays. Amazon workers launched a strike on December 19, 2024, affecting multiple facilities across the US—the largest against Amazon in U.S. history. Strikers are demanding higher wages, better benefits, and safer working conditions, and pressuring Amazon to recognize and negotiate with unionized workers. Amazon, however, disputes the union's claims and asserts that the strike has not impacted its operations or holiday deliveries.

• Everything is getting more expensive 😢 FedEx plans to implement new surcharges and adjust existing fees starting January 13, 2025, including an inbound processing fee for U.S. imports and a 40-pound minimum billable weight for certain packages. These changes aim to enhance profitability amid fluctuating demand, reflecting similar adjustments by competitor UPS.

Funding news

• All for a ring. ŌURA raised $200 million in a Series D funding round, increasing its valuation to $5.2 billion. The investment will support the company's growth as a leader in the smart ring market, expand product offerings, and enhance innovation in health technology, particularly with AI. The company recently surpassed 2.5 million rings sold and is focused on redefining health wearables.

• Rumors rumors 👀 McCormick is reportedly in talks to acquire Sauer Brands, the parent company of Duke's Mayonnaise, for over $1 billion. The potential deal comes after Sauer was acquired by private equity firm Falfurrias Capital Partners back in 2019.

Weekly Pickups

Ginger and I both got some Zab’s Hot Sauce. (Love the custom dog toy from Goodboi!)

See ya next week and HAPPY HOLIDAYS!

Nate + Jenna :)

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