Express Checkout #98 - the latest in CPG, Retail, and eComm

Hello hello!

I recently sat down with Dave Kaplan, founder of Death & Co, to discuss how his pioneering cocktail bar has evolved from its humble East Village beginnings into a real cultural force that's reshaping the beverage industry. Now in its 18th year, Death & Co stands as a testament to the power of quality and thoughtful evolution in the face of changing consumer preferences.

We explored how Death & Co is navigating the modern beverage landscape, from the digital transformation of cocktail culture to the exploding RTD market, and what it means for the future of premium beverages. Plus, Kaplan shares his current obsessions and the emerging categories you should be watching.

Talk about a glow-up! Magnolia Bakery, the NYC institution that's been serving up sweet treats for 28 years, is going all-in on CPG. And they're doing it in the most unexpected ways.

Let's rewind a bit. Magnolia's first dance with CPG was their ambient cookie line, which launched in 2023. But their latest move? Frozen banana pudding. 🍌 

After 3 years of R&D, they've cracked the code on the eternal banana problem (you know, that whole turning brown thing) and figured out how to maintain their signature creamy texture in a frozen state. And unlike other frozen treats that are one-and-done once thawed, Magnolia's pudding can do the freezer-fridge dance multiple times.

And when it comes to distribution, Magnolia's playing 4D chess. Instead of battling it out in the frozen aisle, they're taking their pudding to the skies (literally…launching on United Airlines), plus partnerships with DoorDash. This alternative channel strategy is already paying off, with the frozen line expected to contribute over 15% of annual revenue and distribution in 150+ cities through UNFI.

What makes this whole evolution fascinating is how Magnolia's managed to maintain their premium positioning while reaching entirely new audiences. Their mantra?

For a brand that started as a neighborhood staple, Magnolia is showing legacy food brands everywhere how to expand without losing your soul, or your edge.

Will you see Magnolia pudding in your local grocery freezer soon? Probably not in the next year. But with their current trajectory, they're proving you don't need traditional retail to build a national CPG brand.

🛒 CPG & Consumer Goods

• All sauces go to retail 🍅 

  • Sauz launched in Target nationwide—and even produced a Target-exclusive flavor, Cracked Pepper Parmesan Sauce 🤌. Since launching in 2023, Sauz has expanded from 300 to 3,000 retail locations.

  • Monte’s Fine Foods launched its new 24oz. sauce jars in 230 Target stores across Chicago, New York, and Los Angeles—and plans to expand into 1,000+ stores nationwide by the end of 2024.

  • Yo Mama’s Foods is expanding its pasta sauce offerings, now available in over 800 Albertsons stores and on Costco.com.

• Aaaand another holding co. UpSnack Brands, a newly formed venture, acquired Pipcorn Heirloom Snacks and Spudsy, two brands focused on better-for-you, sustainably-produced snacks.

  • UpSnack joins the likes of Simply Good, which acquired OWYN, and Our Home, which bought PopChips.

• This one I’m kinda surprised by. Bowery Farming, once valued at $2.3 billion, has ceased all operations and laid off its employees, according to an internal notice. The company had been struggling to secure financing or a buyer despite previous partnerships with major grocery chains.

• BFY (Bulk For You). ELAVI, a better-for-you snack brand known for its cashew butters, expanded its Costco presence from 15 to 30 stores within six months—without a broker.

• Hello, US. Meiji Co. Ltd., a major Japanese confectionery company known for brands like Yan Yan, Chocorooms, and Hello Panda, plans to invest $28 million in its North American subsidiary to expand production capacity for the Hello Panda biscuit brand, including a new product called Hello Panda Pretzel.

• Cut them off. Campari Group plans to accelerate its portfolio streamlining efforts by disposing of non-core brands. The company will focus on its premium spirits portfolio and newly created Houses of Brands, which include Cognac & Champagne, Aperitifs, Whiskey and Rum, and Tequila.

• The Great PB&J War of 2024 continues. Chubby Snacks is facing a(nother) class action lawsuit, this time for allegedly mislabeling the sugar content in their pre-packaged sandwiches—claiming lower amounts than actual testing shows.

  • This case underscores the growing scrutiny of nutritional labeling in the food and beverage industry, with brands like Poppi facing similar lawsuits over gut-health claims.

  • But what's especially notable here? Chubby is already being sued by Smuckers (owners of its main competitor, Uncrustables), who alleged that Chubby's product design and marketing too closely resemble their own. This double legal assault—facing both consumer allegations and competitor litigation—puts Chubby Snacks in a particularly challenging position.

💻 eCommerce

• Watch out, Depop. Patagonia is now the first brand to implement Trove's new Resale Plugin, allowing for seamless integration of pre-owned items alongside new products on its ecomm site.

• Holiday upgrades for BNPL giant. Buy-now-pay-later giant Affirm redesigned its mobile app to encourage holiday spending by highlighting users' "purchasing power." The app now features a new search function for financing offers from partner retailers and allows users to track their existing payment plans.

🛍 Retail

• Has dupe culture gone too far? Williams-Sonoma is suing Dupe.com, alleging that the startup made false claims about its products and used its copyrighted images without permission.

• Gen Z’s fave lands in NYC. Princess Polly, an Australian fashion brand and ecommerce darling, will open its first New York City store in spring 2025. This expansion follows the brand's successful U.S. store openings since 2023.

• London is about to be extra comfy. Vuori opened its second flagship store in London, expanding its presence internationally and planning further growth in key markets worldwide.

🏭 Supply Chain

• Electrifying last mile delivery. Chevy's BrightDrop electric vans are being incorporated into Walmart's fleet by the end of the year, following a successful pilot of 400 vehicles.

• Back in hot water. Wayfair is closing its returns center and outlet store in Kentucky at the end of 2025, resulting in layoffs for ~218 employees. The decision comes as part of the company's efforts to reduce expenses amid ongoing weak demand.

• Chocolate…without cocoa? Voyage Foods announced the opening of a massive manufacturing facility in Ohio to produce its cocoa-free chocolate and nut-free spreads.

  • The plant, expected to be operational by the new year, will enhance the company's capacity to meet growing demand in the B2B and foodservice sectors. This expansion follows a partnership with Cargill as Voyage's exclusive global distributor for these products.

  • And yes, cocoa-free chocolate and nut-free nut spreads do exist. For me, they were…a miss. That being said, planet- and allergy-friendly alternatives could go a long way in foodservice. And with this new manufacturing prowess, I anticipate the quality will only improve.

• But what about my PespiMax?! PepsiCo plans to close four U.S. bottling plants and lay off nearly 400 workers as part of a strategy to streamline operations.

💸 Funding news

• Red Bull, who? Celsius Holdings, Inc. owner of the viral “fat-burning” energy drink, acquired it’s own co-man, Big Beverages Contract Manufacturing, for $75 million to enhance its innovation and production capabilities.

• Protein on protein on protein. 1440 Foods, a leading portfolio of sports and active nutrition brands including Pure Protein, Body Fortress, and MET-Rx, acquired FITCRUNCH, a protein bar brand founded by chef Robert Irvine.

• A well-deserved raise. Caldera + Lab, a men's skincare brand, raised $6 million in Series A funding led by HIPstr to accelerate growth.

  • Over half of U.S. men now use facial skincare products, a 68% increase from 2022, with 42% of men aged 18-34 opting for premium facial moisturizers over mass-market brands like Caldera. According to Particl data, the average revenue of male skincare products increased by 14% when comparing the last full month to the previous one. This growing market has also attracted significant investment, with Bravo Sierra raising $38 million since 2017 and W (Jake Paul's brand) securing $14 million in Series A and seed funding, led by Shrug Capital and Anti Fund.

• Sour candy is going viral. Final Boss Sour, a retro gaming-themed brand known for its healthier alternative to sour snacks, secured $3 million in Seed funding led by Science Inc. With a growing presence on social media, Final Boss Sour is positioned to reshape the sour snack market.

• The robots are taking over. Simbe, a provider of Store Intelligence solutions, raised $50 million in a Series C funding round led by Goldman Sachs—bringing its total funding to over $100 million. Simbe enhances retail operations through advanced AI and robotics, including its autonomous item-scanning robot, Tally.

• The rise of THC RTD. Uncle Arnie's, a hemp beverage brand known for its unique product offerings (like its 10mg THC shot), raised $4 million in a recent investment round, positioning the company for explosive growth in 2025. The company is excelling in both the hemp and regulated cannabis channels, recently securing a partnership with Green Thumb in Illinois.

• I kinda love this brand name. Inspired Beauty Brands, Inc. announced its acquisition of Fix Your Lid, a company known for its salon-quality men's grooming products made in the United States.

😋 Brands and things I’ve tried this week

Time for a good time! Something I’ve noticed about the NA market is the growth of cannabis beverages entering the space. Which I think is genius. People want to still feel something and it’s a great alc alternative. https://trygoodtime.com/

This might be one of my favorite things in my pantry right now…Fly By Jing x Daily Crunch

See ya next week,

Nate :)

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