Express Checkout #88 - the latest in CPG, Retail, and eComm

Hello hello!

It’s finally the start of my favorite season, PSL season—a.k.a. Fall 🍂 Starbucks’s PSL, the most influential pumpkin spice product (next to the OG McCormick's pumpkin pie spice introduced in 1934), launched on August 22nd…the earliest release date yet. Here’s what you need to know about this cultural phenomenon:

• It was first introduced as a test in just 100 stores

• Since 2015, the pumpkin sauce has included real pumpkin puree

• 400 Million+ PSLs have been sold since 2003

🗣️ Do you run a brand? I want to help you pick your next vendor —subscription tool, loyalty platform, SMS, attribution tool, Amazon agency, UGC platform, A/B testing, returns, post-purchase….you get it.

If you’re interested in chatting, book some time with me here!

I love me some quarterly reports, so I’m excited to share Spate.nyc’s consumer trend Q2.2024 report 

Now onto the news of the week!

(If you’re reading this email in Gmail, it might get clipped! You can always view full issues here.)

🗞️ News from the week (8/19/24 - 8/25/24)

🔥Big News 🔥

• * Insert Spider-Man Pointing meme * Shein is suing its rival Temu for allegedly stealing designs and engaging in counterfeiting and IP infringement. The lawsuit claims that Temu encourages sellers to infringe on Shein's designs.

• Affiliate FTW. YouTube is expanding its partnership with Shopify, allowing creators access to thousands of new brands for their videos.

  • This is BIG business. TikTok expects its TikTok Shop revenue in the U.S. to reach $17.5 billion–yes, with a ‘B’–in 2024. YouTube is well positioned to become another major shopping destination especially as more and more creators develop and join brands.

• Booze to the people. NY Governor signed legislation that allows New York's craft manufacturers of spirits, cider, and mead to ship directly to consumers, supporting economic growth in the craft beverage industry.

🛒 CPG & Consumer Goods

• The product I always thought it should be. Bachan's launched thicker dipping sauces in Original and Sweet & Spicy flavors, expanding beyond its thinner cooking sauces that were better used for stir-frying or BBQing.

• Blurring the lines between skincare and hardware. Canopy launched its humidifiers and filtered shower heads in Sephora stores nationwide, cementing its stance as a beauty and wellness brand.

• Olipop is on a roll. StayCoolNYC, a trendy NYC clothing brand, has partnered with Olipop to create a loungewear collection inspired by the brand's signature soda flavors.

• We asked for a heel that feels like a sneaker…not a sneaker that feels like a heel! Sara Blakely, founder of SPANX, launched a new luxury shoe brand called Sneex, which features a hybrid design that combines the style of high heels with that of a sneaker.

  • I’m sorry but for that look, the apparent lack of comfort and with prices ranging from $400 to $600…this feels like a miss overall. What are your thoughts?

• This one feels 10 years too late. General Mills has launched Jamba Juice (yes the smoothie shop) Fruit Flavored Snacks.

  • Didn’t Jamba Juice (and Robeks for the cool kids) really peak in like 2010?

• Pets deserve the best. Big Idea Ventures, in collaboration with Mars Petcare, AAK, and Bühler, launched the Next Generation Pet Food Program aimed at fostering sustainable innovation in the pet food industry.

• SKU selected its Fall ‘24 track brands! SKU has selected 8 companies to participate in a program designed to help brands scale their businesses. The participating companies include: Amia, Bala Enzyme, Foraged & Found, Kif & Co, Long Table, Modica, Peace Love Hormones, and The Bloody Buddy.

• I might have contributed a lot to this stat 🥃 American whiskey, particularly straight Bourbon, is leading the market share in the US on-trade. It’s interesting to see a shift in consumer preferences towards whiskey, despite previous predictions favoring vodka and tequila as the top sellers.

• and speaking of whiskey…Beyoncé launched a luxury whiskey named SirDavis, inspired by her great-grandfather, a Prohibition-era moonshiner. This will be in collaboration with Moët Hennessy and is set to retail for $89. I’m so glad this is not a new company and in partnership with a bigger entity.

• New THC RTD. Nowadays, a cannabis beverage brand, launched its new line of ready-to-drink THC canned cocktails, featuring four flavors with 5mg THC per can.

  • THC is quickly become a new non-alcohol alternative for many consumers. This expansion clearly aims to push Nowadays further into that category.

• Coffee and tequila are old news. Dua Lipa is reportedly launching an ice cream brand.

  • Do I think we need any more celebrity brands? No. Do I think this makes sense? No. Frozen is hard!

💻 eCommerce

• Price always matters. A recent survey revealed that 50% of Amazon Prime and Walmart+ subscribers are more active during sales events.

  • While Prime Day attracts more shoppers, Walmart+ Week is experiencing 71% YoY growth in participation, and shoppers tend to spend more on average

• Faire’s got competition 👀 Bulletin, a wholesale platform, launched a Shopify integration that allows merchants to easily integrate product listings and manage orders for wholesale partnerships

• Doubling down on e-grocery. Amazon launched an annual subscription service for grocery delivery, allowing Prime and Prime Access members to enjoy unlimited delivery on orders over $35 from Whole Foods Market and others.

  • This is no small market—the total U.S. online grocery market ended July 2024 with $7.9 billion in monthly sales, a 9.2% increase over last year. In Q2 2024, Walmart secured a 37% share of the U.S. online grocery market, while traditional supermarkets lost ground amid rising economic pressures

🛍 Retail

• The new king of private-label. Target is set to introduce more than 150 private-label grocery items and over 500 new seasonal products this fall, focusing on popular flavors like pumpkin spice (no duh).

  • Target’s food and beverage business has grown significantly over the past few years, reaching a staggering $24 billion in sales!

  • And this isn’t surprising, especially seeing competitors like Walmart continue to scale their grocery and private label offerings.

• Small and unique storefronts are in. Hy-Vee is expanding its alternative store formats, including the successful Fast & Fresh convenience store chain and the Dollar Fresh Market aimed at rural markets

🏭 Supply Chain

• Drones and AI? Talk about trendsetting. IKEA is enhancing inventory management by implementing AI-powered drones that automate stock checks, significantly improving operational efficiency and employee well-being.

💸 Funding news

• Topspin Consumer Partners invested in Carpe, a high-performance deodorant brand, including antiperspirants and sweat-proof cosmetics. I promise you have seen their ads.

• The Rounds secured $24 million in Series B funding to enhance its grocery and household essentials delivery service, which utilizes reusable packaging.

• Saco Foods acquired Quinoa Corporation (epic name), which includes the brands Ancient Harvest and Pamela's.

• Terrantic, a data platform focused on the food supply chain, closed a $3.5 million seed round led by Supply Change Capital, with participation from York Ie, Vitalize VC, and Array Ventures.

• TJX Companies invested ~$360 million to acquire a 35% stake in Brands for Less, a Dubai-based off-price retailer.

• Little Sesame secured investment from Santatera Capital. I promise you, the preserved lemon hummus will change your life!

• Great Many closed a $3.6 million pre-seed funding round led by Brand Project aimed at expanding its hair growth clinics, telehealth services, and related products.

• David, founded by Rx Bar's Peter Rahal and Zach Ranen, raised $10 million in seed funding to develop high-protein, low-cal products. The round, led by Peter with contributions from Valor Siren Ventures, Peter Attia, M.D., and Andrew Huberman, Ph.D., will support their first product, a protein bar.

  • Loved Emily Sundberg’s interview with Peter.

🧐 Interesting reads + data

• Back from the dead? Nonalcholic retailer Boisson’s co-founder explores the current state of the NA retail landscape.

  • You know who I think is winning at that right now? Sèchey. Their partnership with Target is genius, this 'shop within a shop' concept allows them to tap into Target's vast customer base, making NA beverages more accessible to a mainstream audience. Sèchey also secured a significant investment from InvestBev, a private equity firm specializing in the beverage industry

• I blame TikTok Shop. Mobile devices are set to surpass desktops as the primary platform for online shopping, with mobile sales expected to account for 53% of sales during the upcoming holiday season.

• The Narvar State of Returns 2024 Report emphasizes the increasing significance of return policies on retail margins and customer loyalty.

• Low- and no-alcohol drinks are still all the rage, and dominating the conversation online.

• The alt-protein market is here to stay. The Good Food Institute created a deep dive on the global alt-protein trends to watch.

• U.S. shoppers are becoming more sophisticated grocery shoppers. As consumers return to more routine in-store shopping habits, they increasingly consider factors such as convenience, health and wellness, sustainability, and the overall shopping experience.

• Where does the plant-based milk market go from here? US retail sales declined 5.2% by July 2024, with almond milk seeing significant losses. Oat and soy milk sales remained flat, while coconut milk grew 12.6%. Despite the decline, the market is still larger than pre-pandemic levels.

Best,

Nate :)

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