Express Checkout #91 - the latest in CPG, Retail, and eComm

Hello hello!

This week, I got to go to the NY launch of SummerFall Sake, a new canned sake brand. You might recognize the name from their extremely viral TikTok account where they make “water of the day”, AKA watertok content. Watertok videos usually feature creators adding sugar-free syrups and flavor packets to water in a Stanley tumbler (obviously). But SummerFall has a slightly ✨ different✨ take.

In SummerFall’s watertoks, they’re concocting straight up alcoholic cocktails as their “water” of the day—and it’s this kind of totally unhinged content that takes. off.

IMO? It’s brilliant. The brand is reaching an audience that’s harder to tap on more mature channels. And honestly, there’s something so easy to love about a brand that just…has fun.

Side note: I’m loving this canned sake trend—I also have Sake High in my fridge right now. Consumers are starting to seek more nontraditional spirits, and I’m here for it.

Love it or hate it, there’s no denying: Pumpkin spice owns fall. But how did a simple blend of spices become the undisputed flavor king of autumn?

I’ve got your answer in my latest deep dive: Pumpkin Spice: The Flavor That Took Over Fall. 🍁👀

This week brought to you by….

🗞️ News from the week (9/9/24 - 9/15/24)

🔥 Big News 🔥

• Just in time for soup szn. Campbell Soup Company is changing its corporate name to The Campbell’s Company, dropping "Soup" from its title. It’s fitting for a 155-year-old company whose $9.6 billion yearly sales have little to do with soup—and can be largely attributed to owning brands like Goldfish, Snyder’s of Hanover, Cape Cod, and Pepperidge Farm.

• I guess General Mills was lactose intolerant? General Mills is selling its North American Yogurt business—including Yoplait, among others—to Lactalis and Sodiaal for $2.1 billion.

  • Many large CPG companies are simplifying their portfolio: Nestlé, for example, has been particularly active in reshaping its portfolio—divesting from much of its water business, candy division, and ice cream operation.

• Private label or bust. Amazon just launched a new private label brand called Amazon Saver, providing grocery staples priced mostly under $5.

  • It’s part of Amazon's strategy to 1) enhance its grocery services and 2) compete with the Walmarts and Targets of the world.

  • For the longest time, Amazon was the pseudo-leader in private label (besides Costco), constantly leveraging their data to create private label dupes. Now? They have some competition.

  • In the coming years, the private label market is expected to grow to a 24% market share from the current 20%.

🛒 CPG & Consumer Goods

• Greenwashing at its worst. The SEC charged Keurig Dr Pepper for claiming its K-Cup pods are recyclable…and conveniently failing to disclose concerns from major recyclers about the pods' acceptance. Now, they’re facing a $1.5 million civil penalty.

  • This is no small mess-up. 30 billion K-Cups are consumed annually—that’s enough K-Cups to go to the Moon and back 1.5 times!

• Omnichannel FTW. Seed is launching in Target stores nationwide ft. an exclusive product: 14 Day Gut Reset (whatever that means). This marks Seed's first venture into mass retail, building mostly DTC and on Amazon.

• The RTD takeover:

  • Cointreau released Cocktail Twists, a new range of RTD cocktails featuring flavors like Lime Daiquiri and Berry Cosmo.

  • Molson Coors is set to launch Naked Life, Australia's leading non-alcoholic RTD brand, in the US in March 2025. The brand offers five flavors, all with 10 calories per can and made with natural sweeteners.

💻 eCommerce

• Roblox x Shopify. Roblox, the gaming platform with a casual 80 million daily active users, is bringing on Shopify as its first commerce integration partner—allowing creators to sell physical items directly within their Roblox games.

• Meet your AI nutritionist. Hungryroot’s new SmartCart™ is an AI tool designed to help people make healthier food choices by recommending groceries, recipes, and supplements tailored to individual preferences.

🛍 Retail

• Walgreens wants in on the dupe game. The company launched a new premium private-label skincare line. The line includes various products such as cleansers, exfoliants, and serums.

• Time for my next Instacart order…In August 2024, grocery prices online fell by 3.7% month-over-month, marking the largest decline since 2014, while year-over-year prices rose by only 0.5% (a big drop after July’s YoY rise of 4.2%).

  • Overall, online prices have decreased for 24 consecutive months, driven by significant drops in discretionary categories such as electronics and apparel.

• “Zara thrifting” sounds oxymoronic, but…Zara is launching its Pre-Owned resale and repair program in the US, offering options to repair, resell, or donate used Zara garments.

  • Color me skeptical. 👀 It’s a great step, but at the end of the day? Zara is still fast fashion. It’d be cool if they stopped producing an ungodly amount of product each season.

💸 Funding news

• From pots and pans to backpacks. Sur La Table owner CSC Generation Enterprise acquired Backcountry, a leading online retailer for outdoor recreation gear and apparel.

• BevAlc ecomm just got easier. Flaviar, a beverage-alcohol ecommerce platform, acquired Speakeasy Company, another ecomm agency and competitor. Flaviar plans to leverage Speakeasy's warehouses and provide a full-service agency model.

• Enter: The buckwheat revolution. Snack startup Lil Bucks raised $3 million Series A funding round led by Proterra Investment Partners. The buckwheat brand plans to expand from 2,600 to 6,000 retail locations by the end of next year.

🧐 Interesting reads + data

• Can you smell what The Rock is mixing? Celebrity-backed Tequila brands saw 16% growth in 2023, outperforming the overall Tequila category, which grew by just 3%.

  • But celebrity =/= success, as evidenced by a decline in celebrity-backed gins despite the overall gin category's growth.

• A dose of ecomm optimism. Klaviyo’s 2024 State of E-Commerce Report shared some interesting findings + recommendations:

  • 89% of retailers predict revenue increases.

  • Consumers prioritize price and quality, signaling the importance of value-driven marketing.

  • Successful brands tend to focus on omnichannel experiences and loyalty programs.

See ya next week,

Nate :)

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