Express Checkout #119

Hello hello!

We have some big changes coming to Express Checkout this week….we’re moving to Substack!

Okay but…what does that mean? We’ll send out a standalone email later this week, but the short of it is we want to better engage with our community of CPG and retail nerds 🤓 . While we’ve loved seeing your replies to our emails, we're ready to take the conversation to one platform—and Substack’s new feed and chat features will allow for just that.

There’s nothing needed from your end…other than to share the newsie with folks who will add great insights to the convo :) You’ll receive the next edition on Monday just as you always have!

Dutch Bros enters CPG.

Yep, the beloved drive-thru coffee chain is teaming up with Trilliant Food & Nutrition to launch a line of RTD coffee products. And it’s genius.

Why? Because Dutch Bros is an iconic brand, and iconic brands have the benefit of a wildly loyal fan base. They’ve built a cult-like following over its 30+ years in business, now with 1,000 locations primarily in the Western US (with plans for serious expansion), and their customer base is dedicated and highly engaged.

And Dutch Bros isn’t the only one playing this game. The restaurant-to-retail pipeline has been on a tear. Just last week, Popeyes launched sauces into grocery stores nationwide. Many many similar brands, including Panera, Nando’s, and of course Chik-Fil-A, have successfully launched retail-ready versions of their condiments into stores. But it’s not just fast food joints getting in on the game.

But it’s not just fast food. High-end spots are getting in on the action too:

• Rao’s basically turned its legendary NYC red sauce into a billion-dollar business selling to Campbell Soup Company in a deal valued at $2.7 billion.

• Carbone has followed suit, introducing its own line of pasta sauces that has been a hit on shelves (and just came out with new flavors last month!)

• Via Carota brought its signature cocktails to the masses.

• Magnolia Bakery and Milk Bar have extended their brands into ready-to-eat desserts and mixes (Magnolia’s frozen bread pudding is to die for).

  • And Magnolia just launched an adorable dessert-themed accessory collab with Jenny Lemons last week!

• Momofuku jumped from cult-favorite restaurant to grocery staple with chili crunch and other pantry goods…and is worth tens of millions.

CPG & Consumer Goods

• One of our fave new collabs. Firehook Crackers launched two new limited edition flavors, 'Olive Oil, Lemon & Chive' and 'Sichuan Chili Crisp', in collaboration with Graza and Fly By Jing.

  • Firehook has largely flown under the radar as a growing pantry staple among an older consumer (hi, @Jenna’s parents)—and now? Firehook is strategically reaching younger consumers by teaming up with the “it girl” brands they’re already consuming. Nothing like a great collab to help us break bread (read: crackers) across generations.

• Watch out, PRIME. PLEZi Nutrition, co-founded by Michelle Obama and originally targeted at kids, launched PLEZi Hydration, a low-sugar sports drink developed with NBA star Stephen Curry.

• Return of the caffeine. Tilray is relaunching HiBall Energy drinks, first with distribution at Whole Foods Market, aiming to restore the brand's presence in US retail after acquiring the brand.

• Finally, a new pita chip! Bye bye Stacey’s. Zesty Z launched their Perfect Pita Chips (and they are perfect, IMO) at all 280 Meijer stores in the Midwest for $4.99 per bag.

  • Shoutout to my good friend Alexander on the new distribution!!

• Bring on the protein! Daily Harvest launched an Organic Pea Protein Powder with 24 grams of protein per serving and made from a single ingredient, USDA-certified organic pea protein, without additives or fillers.

eCommerce

• Sign of the times? DoorDash introduced a layaway option for its US customers, allowing them to pay for groceries and other orders in four interest-free installments or defer payments (AKA Buy Now Pay Later, AKA BNPL) in partnership with Klarna.

  • BNPL services is rising, with more consumers using these options for smaller purchases like groceries. And honestly? This is a concerning trend—contributing to a lack of impulse control and ultimately, credit issues down the line. Kyla Scanlon’s video sums it up perfectly.

• Making things less…sketchy. Wayfair launched a new "Verified" program to highlight its most-trusted products, which have been evaluated for quality and value by product specialists.

• Fewer replacements. Instacart introduced two new features to aid in real-time understanding of what’s on shelves, Store View and Second Store Check:

  • Store View utilizes AI and computer vision for real-time inventory tracking.

  • Second Store Check allows shoppers to source out-of-stock items from nearby locations.

• More DTC = More Returns. FedEx launched a new returns service called FedEx Easy Returns, which will operate at approximately 3,000 dropoff locations, including FedEx Office and Kohl's stores.

  • Why? Because returns are seriously skyrocketing (we blame TikTok shop)—reaching $890 billion this year alone.

Retail

• Remember the power of a consumer. Target experienced eight consecutive weeks of declining foot traffic since ending its DEI program, with a 5.7% drop in foot traffic for the week starting March 17.

  • In contrast, Costco, which maintained its DEI initiatives, reported a 5.2% increase in foot traffic during the same period.

• The lifestyle brand → retail store pipeline. SoulCycle is planning to open standalone retail stores for its existing apparel business, building up its apparel retail arm to 15-20% of the business. The timing has yet to be disclosed.

• Not everything is bigger in America. Meijer is set to open a new small-format neighborhood market, the Independence Market, in Clarkston, Michigan, on April 30. The 50,000-square-foot store will offer a variety of grocery items, including local products, fresh meat, a café, and more.

  • And they’re not the only retailer launching smaller-format stores. Whole Foods, CVS, Bloomingdales, IKEA, and Sprouts are all playing with new small format locations. It seems to be working too, with increased visits and better revenue per sq ft.

Funding news

• Dads everywhere, rejoice! Sunday raised $25 million in funding from S2G Investments to enhance its eco-friendly lawn care products and expand its operations across the U.S.

• Data is king. Chord Commerce, a NYC-based customer data platform for commerce, raised $5.5 million in funding led by M13, with participation from Act One Ventures and GR0 Capital.

• What a bold brand name. Lucky Energy, an Austin-based energy drink company, raised $14.2 million in Series A1 funding, bringing total funding to over $40M.

• Men’s skincare is starting to shine. Megalabs USA acquired Geologie, a skin, hair, and body care brand known for its innovative products primarily targeting a male audience.

  • Co-founders Dave Skaff and Nick Allen will step down as the company aims to expand its growth under Megalabs, which operates in over 20 countries and offers a broad portfolio of products.

• That’s a lot more than a dollar…Dollar Tree sold its struggling Family Dollar division to Brigade Capital Management and Macellum Capital Management for tad over $1 billion ($1.007 billion to be exact).

  • This decision follows a strategic review and the closure of approximately 1,000 Family Dollar locations.

• Oak barrels as collateral. Lofted Spirits secured a $50 million financing deal with InvestBev, allowing clients to use their aging barrel inventory as collateral to access capital.

  • This partnership aims to support independent brands in the American spirits industry by providing financial flexibility amid market fluctuations.

• Not fake steak, just lab steak. Aleph Farms raised $29 million in a round led by existing investors to enhance its technology for producing lower-cost whole-cut cultivated steak, with plans to raise an additional $10–15 million.

• PE firm raises more money. Falfurrias Management Partners raised $1.35 billion for its latest private equity fund, Falfurrias Capital Partners V.

  • The firm, which focuses on middle-market growth companies, has a strong track record and has raised approximately $3.6 billion since its inception.

  • Sound familiar? That’s because Falfurrias recently sold Duke's Mayo owner Sauer Brands this year.

Weekly Pickups

Nate:

Protein and, more specifically, convenient protein has been on everyone’s mind lately and these week I got to try two really good products:

• Natty Ice Cream - one of the many pretty darn good high protein ice creams on the market. Add it to the list of other tasty protein treats in my pantry!

• Miils - Sometimes I’m hungry and I really don’t want a meal so I love finding meal replacement shakes. And this one was really really good. I loved the texture of the cocoa nibs and the puffs. Nothing like a good crunch.

Jenna:

• Oca: This past week, I had the absolute pleasure of attending one of Marc Nathan’s CPG Meetups in Austin. I got to sample these delicious peanut bites inspired by a Brazilian treat called paçoca, which founder Renato deeply missed from his home country.

  • I loved the sugar-free version so much, I picked them up in my new favorite store (filled with local Austin brands and emerging CPG faves), Parker + Scott 🙂 

See ya next week!

Nate + Jenna :)

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