Express Checkout #94 - the latest in CPG, Retail, and eComm

Hello hello!

This week, I had the pleasure of testing out the new Cumulus Machine—a coffee machine that ONLY brews cold coffees. Think: cold brew, nitro, and cold espresso. One of the coolest features? It makes nitro coffee by pulling the nitrogen directly from the air! Insane.

This speaks to a larger trend: Iced coffee is incredibly hot right now. The primary culprit? You guessed it: Starbucks. The coffee giant reported a staggering 75% of its beverage sales across its more than 15,800+ US stores were cold drinks in the third quarter of 2023. Their cold espresso sales alone grew by 13% YoY in that same period.

But it’s not just Starbucks. Wandering Bear Coffee is another company riding the cold wave. Known for its strong, organic cold brew packaged in those distinctive bag-in-box cartons, Wandering Bear has seen incredible growth—a 288% increase in sales volume in the past year alone, per Particl.

Their top-selling product—Cold Brew On Tap 96 oz—was selling (on average) 163 units per day during September 2024 according to Particl data! 👇️ 

Curious about why cold coffee is taking off? We broke it all down for you in our latest article with Particl (yes, I know I’m a poet).

Want access to real-time data on sales, pricing, and customer sentiment for over 10,000 retail competitors?

Siete was acquired by PepsiCo for $1.2bn…and the announcement was met with some seriously mixed reactions:

• From the Debbie Downers? Lots of fears about diluting the brand's authenticity or compromising its product quality under PepsiCo's large corporate structure.

• The positive spin: Melissa Urban, founder of Whole30, succinctly broke down why this is ultimately a good move.

melissau

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By partnering with PepsiCo, Siete gains access to greater resources, distribution networks, and marketing capabilities—all of which could help the brand reach more consumers and grow its product offerings. Plus? This move further validates that major corporations need startups to innovate on their behalf—and normalizes that some of the best innovation comes from culturally rooted brands.

🛒 CPG & Consumer Goods

• Caving to the PETA pressure. H&M announced plans to phase out virgin down and feathers by the end of 2025, aiming to use only post-consumer recycled sources. Currently, around 90% of the down and feathers in its products are recycled.

• RaaS: Resale as a Service. Béis, Shay Mitchell’s luggage brand, launched a resale platform called 'Second Béis' in partnership with Trove, reaching younger shoppers interested in sustainability (and probably cheaper prices).

• A wellness expansion. DTC wellness brand Apothékary partnered with Sprouts Farmers Market to launch its tinctures (love that word) into retail for the first time since its 2020 launch. Apothékary plans to expand further into retail distribution, including a major beauty retailer by the end of the year.

  • The tincture brand also partnered with Marvel to create some witches’ brew for the launch of Agatha All Along - great show btw

• Canned wine takes new heights. United Airlines expanded its economy cabin wine offerings to include new options from women-owned brands Just Enough Wines and Maker Wine.

  • United has served over 20 million glasses of wine this year - y’all need to chill.

• RTD FTW. Anheuser-Busch is investing $16 million to expand its Los Angeles brewery to increase production of its ready-to-drink canned cocktails, including Cutwater and Nütrl.

• Mellissa & Doug have some competition! Lalo, a baby and toddler products company, launched a play fridge and redesigned play kitchen, focusing on aesthetics and ease of assembly.

• New launches from an all-time fave. LEXINGTON BAKES launched a limited edition of artisan-crafted seasonal drops, featuring four innovative flavors: Peanut Butter Chip Cookie, Pumpkin Spice Espresso Brownie, Maple Pecan Chip Cookie, and Snickerdoodle Tahini Sugar Cookie.

  • Each flavor is created in collaboration with different artisan brands: French Squirrel, Equator Coffees, Raaka Chocolate, Seed+Mill, and Crown Maple.

  • I promise you: Lex’s cookies/brownies are worth every penny. I’d go broke for them.

💻 eCommerce

• Let’s get visual. Both Amazon and Google launched new visual search and shopping features this week:

  • Amazon introduced five new visual search features, including visual suggestions, the ability to add text to image searches, and a "More Like This" option for finding similar products.

  • Google Lens has existed for a while now, allowing shoppers to quickly find product details by simply taking a photo. Users can now discover new products without switching apps and refine their searches by combining images with text.

🛍 Retail

• Rethinking a high-tech store. Amazon closed three of its Go cashierless convenience stores in New York, reducing the total number to 17 across the nation—but the company remains committed to its Just Walk Out technology for third-party merchants.

  • This CNBC video did a great job breaking down the technology and Amazon’s goal with it in the future.

• BNPL wherever you are. Klarna launched became the first global payments provider to offer flexible payment methods on Adyen's in-store terminals across Europe, North America, and Australia.

• Seasoned hikers + Bushwick bros, unite. Salomon opened its first U.S. pop-up store in SoHo, New York City, dedicated to its Sportstyle footwear collection. This location serves as a test for the brand's planned expansion, which includes five physical stores in the U.S. by next year.

🏭 Supply Chain

• Strike avoided…for now. A tentative agreement has been reached to suspend the U.S. port strike involving 45,000 longshoremen, allowing nearly 40 East and Gulf Coast ports to reopen. The deal includes a proposed 62% wage increase over six years.

💸 Funding news

• Congrats to my former employer! Settle, a provider of working capital and accounts payable software, acquired inventory management startup Turbine to enhance its services for CPG brands facing high inventory levels. The company, has raised over $100 million in equity and $400 million in debt, is nearing profitability.

• Once Again acquired Big Tree Organic Farms, a California-based organic almond manufacturer.

• Atalanta Corp., part of Gellert Global Group, acquired Big Picture Foods, a Mediterranean food producer.

🧐 Interesting reads + data

• Cereal boxes are getting smaller, and consumers have noticed. A recent LendingTree analysis found that 71% of Americans have noticed shrinkflation, where products are reduced in size or quantity without a corresponding price decrease. Household paper products and breakfast items are among the most affected.

• 2024 holiday spending has consumers looking for a sale. Shoppers are prioritizing deals and discounts, with 71% looking for sales and coupons. Makes sense, as 91% of shoppers plan to spend the same as or less than last year.

  • Despite budget constraints, gifts and food remain top categories for splurging.

  • Shoppers are adapting their strategies, with many opting for digital coupons (75%), weekly ads (65%), and retailer websites (60%) to find the best deals.

😋 Brands and things I’ve tried this week

Two words. Pistachio 👏 Spread 👏 – Meet Pistakio!

Chocolate bars…without cacao? Yup! Mez is a new plant-based, chocolate-like treat using mesquite instead of cacao!

Thank you again to Particl for sponsoring this weeks newsletter! I highly recommend checking them out for real-time data on sales, pricing, and customer sentiment for over 10,000 brands - sign up for your free 14-day trial of Particl! 

See ya next week,

Nate :)

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