Express Checkout #92 - the latest in CPG, Retail, and eComm

Hello hello!

What a week! I had the pleasure of recording a session on the power of packaging with packaging pros Tracy Luckow, president and co-founder of Whipnotic, and Russell Gong, president and co-founder of Cabinet Health, for Highlight’s virtual summit.

The Summit starts on Wednesday, Oct 2 @ 1pm ET—watch our session @ 2:25pm! RSVP here

This week brought to you by….

🗞️ News from the week (9/16/24 - 9/22/24)

🔥 Big News 🔥

• The Great PB&J War of 2024. Looks like Smucker's is feeling a little... jelly. 😏 The jam giant just slapped Chubby Snacks with a lawsuit, accusing them of trademark dilution and false advertising. Apparently, Chubby's been playing fast and loose with Smucker's trademarks and throwing shade at their beloved Uncrustables.

  • What's the deal?

    • Smucker's is mad about a TikTok where Chubby's CEO referenced the Smucker "playbook" in "the crustless sandwich war."

    • They're also accusing Chubby of some shady social media tactics, including "review hijacking" to pump up their ratings. Which doesn’t seem to be true.

    • Oh, and those "Healthier" and "Better for You" claims Chubby's been making? Smucker's isn't buying it.

  • My take? This feels a bit like David vs. Goliath. Uncrustables are crushing it, nearing $1 billion in sales. But weirdly, Smucker's hasn't gone after other similar products like SunButter Jammies. 🤔 Is this just big business bullying, or does Smucker's have a point?

• Lunchables, but make it influencer. YouTube's holy trinity of Logan Paul, MrBeast, and KSI are coming for your kid's lunch money. 💰 They just dropped Lunchly, a supposedly healthier take on Lunchables that's packed with their own branded goodies, including Prime Hydration, a Feastables chocolate bar, and options like pizza or nachos.

  • And BFY kids CPG brands are…not pleased. Founders of companies like Sunnie, another BFY Lunchables product, are sharing their disappointment with the claims vs. reality of Lunchly’s nutrition labels.

  • The real question: Will parents see through the influencer hype, or will they cave for the cafeteria clout?

  • Also my friend Michael here brings up a solid point 👇️ 

🛒 CPG & Consumer Goods

• From TikTok trend to Target shelves. Freeze-dried candy is having a moment—and Kanpai Foodz is riding that wave straight into 1,700 Target stores nationwide. If you've missed it, freeze-dried candy is the crunchy, melt-in-your-mouth trend taking over TikTok. And it's not just Kanpai:

  • Sow Good, a company that initially focused on freeze-dried fruit, has fully pivoted to selling freeze-dried candy, with offerings like “Spheres” (think: Skittles), Sour Worms, and Lemon Puffs. Even major brands like Skittles have launched freeze-dried versions, such as their new Pop’d product.

    

    Ooooooo

  • The numbers back up this growing craze (provided by Spate.nyc):

    • Google searches for freeze-dried candy average 93.8K monthly, with a +19.6% year-over-year growth.

    • On TikTok, the trend sees 14.4M weekly views, although YoY growth has dipped by -9.6%.

    • A notable top search is "freeze dried candy near me," signaling that consumers are on the hunt for local options. And when they can’t find it, they’re turning to DIY, with spikes in queries like "how to make freeze-dried candy" and "how to freeze-dry candy."

    • The 12-month growth forecast for Google searches sits at +60.3%, showing massive potential ahead.

    With few major brand names tied to freeze-dried candy, there’s a big opportunity for businesses to tap into this trend as it transitions from viral videos to mainstream store shelves. Consumers are clearly craving more—and brands that move fast stand to benefit!

• Better late then never? Gatorade is launching Hydration Booster, a new electrolyte drink powder. Excited to see how it stacks up against legacies like Liquid I.V., LMNT, and Nuun.

  • My friend Katie Stone recently broke down the powdered electrolytes category + craze…curious what she’d think of this one 👀 

• Someone’s going to get in trouble for this one. Kourtney Kardashian’s Lemme is launching GLP-1 Daily, a weight management supplement that offers an alternative to synthetic drugs in response to the Ozempic boom.

  • This product and most of Lemme’s other products have been criticized since the brand’s launch. They brand is currently facing a lawsuit claiming deceptive advertising.

• JuneShine invents... regular kombucha. JuneShine, a hard kombucha brand, introduced non-alcoholic kombucha, AKA…kombucha. And that’s on innovation?

• Tupperware's freshness seal has expired. The OG of leftovers just filed for Chapter 11 bankruptcy after years of decline. The company plans to continue operations during the proceedings while seeking a sale process. It also aims to transform into a “digital-first” company, whatever that means for plasticware.

• Posty’s soda hit shelves. Poppi partnered with musician Post Malone to launch a custom Wild Berry can called "Posty's Soda" exclusively at Kroger. He also came on as an investor.

💻 eCommerce

• Shopify's taking over your TV now. 📺 Roku just launched their new Ads Manager, and it's basically turning your remote into a credit card.

  Here's the lowdown:

  • Shopify merchants can now create shoppable TV ads

  • Customers can checkout right from their couch (dangerous, but convenient)

  • It's all part of Roku's plan to make your TV time more... shoppy

  And Roku isn’t alone on the Shopify bandwagon:

  • YouTube expanded its Shopping affiliate program with Shopify.

  • Target and Shopify partnered to expand Target's online marketplace.

  • Roblox partnered with Shopify as its first commerce integration partner.

• Amazon has a few new things up their sleeves:

  • PayPal is now available at checkout for participating brands using the Buy with Prime API.

  • New Advertising Solutions

    • Merchants can now use Amazon Demand-Side Platform to create campaigns that leverage Amazon's product-level shopping signals.

    • Buy with Prime merchants can showcase Prime branding and real-time delivery estimates in TikTok Ads.

  • Project Amelia, a generative AI-powered selling assistant designed to help sellers manage and grow their businesses more effectively.

  • Amazon Ads introduced a new AI Video generator in beta

• A better way to manage TikTok Shop affiliates. Social Snowball has integrated with TikTok Shop to streamline affiliate management for DTC brands, allowing them to manage all affiliates from a single platform.

🛍 Retail

• A store within a store. IKEA is testing mini showrooms and order pickup at college bookstores in the Chicago area to better reach students.

  • Diving deeper: It's clear that Ikea is trying to capitalize on the opportunity left by Bed Bath & Beyond's closure, particularly in the college market. By setting up mini showrooms in campus bookstores, Ikea is directly targeting college students who need affordable, functional furniture and home goods for their dorm rooms or apartments. Ikea has also been experimenting with various smaller store formats to increase accessibility and convenience. This includes small-format Planning Studios in urban areas, focusing on kitchens, baths, and bedrooms, as well as a planned Midtown Manhattan store. These initiatives bring Ikea closer to city-dwelling customers who might not have easy access to traditional suburban locations, while also serving as pickup points for online orders.

• Speaking of Bed Bath & Beyond. The brand is set to reappear in various markets under new management, licensing its logo for third-party retail and co-branded partnerships.

🏭 Supply Chain

• Amazon launched Supply Chain by Amazon, a fully-managed service designed to simplify seller operations and optimize inventory placement. This allows sellers to leverage Amazon's logistics and warehousing capabilities to reduce costs and delivery times.

💸 Funding news

• Another recommerce win. Rebelstork, a NYC-based baby gear returns recommerce marketplace, has raised $18M in Series A funding led by Maveron Ventures.

• A tasty raise. Daily Crunch has closed a $4 million Series A funding round led by Launch Tennessee. Daily Crunch aims to expand its retail presence and innovate further in the snack industry.

• Two Boxes has raised $5.3 million, led by Peterson Ventures. The company specializes in optimizing the returns process for brands and 3PL providers.

🧐 Interesting reads + data

• How do you feel about a drone delivering your groceries? Well apparently 58% of consumers are eager to embrace this new fast mile delivery. And the rest of the data points to it as well, so called “boomerang” trips are common and most consumers want to receive orders within 30 minutes or less.

😋 Brands and things I’ve tried this week

I don’t know about you but I am lactose intolerant, granted that doesn’t stop me from indulging in dairy delights. But when my friend Isabel told me about her new brand I was pumped. Say hello to Laurel's, A2 dairy RTD coffee beverages! They were super tasty and my tummy was A-OK after!

See ya next week,

Nate :)

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