Express Checkout #14

Commerce news from the week of 2/20/2023

Author

Nate Rosen
February 26, 2023

Hello friends! This issue is a doozy, definitely grab a coffee and some snacks.

I just got back from a trip to Buffalo NY; shout out Andrew Erdle and Jonathan Jamil for meeting up with me! Jonathan has an awesome outsourced CX company called Springboard that uses Canadian and US based reps – really cool stuff for DTC brands!

Anywhere I go I always try to find cool and interesting retail. On the drive upstate I found this new and very nice rest stop. Turns out it’s part of a $450 million modernization project of the NY State Thruway to rebuild all 27 service areas on the route. All the new rest stops are operated by an Ireland-based c-store retailer Applegreen US. The stops are very nice and felt almost like an updated WeWork space.

And of course, I found a lovely little shop in the downtown called Realm. It had all of our favorite brands! Brands like Fishwife, Graza, Otherworld, and Fly by Jing.

📣 CPG BRANDS! There’s an interesting virtual event happening February 28th at 3pm ET: a panel hosted by Sweet Nothings + Naturally New York with panelists from Whole Foods Market, FreshDirect, and The Fresh Market who will share their insights around grocery retailer needs and how emerging food and bev brands can best partner with retailers. RSVP here

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🔥 Big News - 10 Items or Less 🔥

  • Olive oil in your coffee? 🫒+☕️? Starbucks is introducing a new line of beverages called Oleato, which infuses Starbucks coffee with Partanna extra virgin olive oil (yes you’re reading that right). The line will debut at the Starbucks Reserve Roastery Milan, followed by Southern California this spring. This is very real and yes I will be trying it the second I can. (source)

  • Microsoft beer soon? Bill Gates bought 3.8% stake in Heineken Holding for $902 million, through an individual capacity and the Bill & Melinda Gates Foundation. And he doesn’t even like beer!! smh (source)

  • AI Soda. Bain & Company and OpenAI have formed a partnership which will bring OpenAI's capabilities to Bain's clients globally. The Coca-Cola Company will be the first company to work with them to explore ways to enhance marketing and improve business operations. (source)

  • How do you milk an almond? The FDA has issued draft recommendations for the labeling of plant-based milk alts. They recommend adding a voluntary nutrient statement for products labeled as "milk" informing consumers how they differ nutritionally from dairy milk. This is just a draft document, so nothing is enforceable right now, and the FDA is taking comments on this. But the change could help push alt-milk companies to create more nutritionally-dense products. (source)

  • I think Walmart is more of an inside-kid. Walmart has sold its outdoor retailer Moosejaw to DICK'S Sporting Goods. The acquisition is expected to close in March 2023. (source)

  • Soylent Green is people. Starco Brands has acquired Soylent (not people), a pioneer in the “complete nutrition” category. Starco Brands has in its portfolio brands such as ART OF SPORT and Whipshots (vodka whipped cream). So Why is this important/interesting? Josh Schall breaks it down well here:

🗞️ News from the week (2/20/23 - 2/26/23)

🛍 Retail

  • FIT:MATCH has partnered with Savage X Fenty and Intel to launch an in-store fitting room experience called Fit Xperience, which uses Intel's RealSense technology and OpenVINO toolkit. FIT:MATCH is a digital platform platform that helps customers find the best fit for them using data. (source)

  • Glossier has officially launched this week at Sephoras across the US and Canada, as well as on their app and website. (source)

  • DoorDash expands further into grocery with a new partnership with ALDI allowing customer to order from their more than 2,100 ALDI locations nationwide. (source)

  • Instacart has announced four new platform technologies designed to help grocers offer more seamless, connected experiences to customers. (source)

    • These include:

      • Carrot Ads - expands with display ads to help grocers establish and grow their retail media networks

      • FoodStorm - upgraded to support items sold by weight

      • Caper Cart - allows retailers to remotely manage smart carts in real-time

      • Integrated fulfillment - for Rosie (Instacart’s white-label e-commerce solution for local and independent grocers) users, they can now use Instacart fulfillment services to pick, pack, and deliver orders

  • A non-profit retail trade group in NYC has partnered with a local security service to start testing the use of K-9 units to control shoplifting at retail locations like CVS. (source)

  • REI has introduced the 3rd iteration of its Product Impact Standards, which aim to address social and environmental concerns among its 1,000 brand partners. Some new changes include banning products that use PFAS, as well as new expectations around price equity across size ranges, inclusive sizing, and inclusive offerings for diverse hair types. (source)

🛒 CPG & Consumer

  • Victoria's Secret has launched a new bra called Forever Bra, with pads made of a plant-based fabric. Customers can return the bras, and the pads will be removed for proper recycling. The wires and clasps cannot be recycled and will be sent to a waste-to-energy system. (source)

  • Fabletics, the activewear brand co-founded by actress Kate Hudson, has launched a line of scrubs. The brand conducted research among its two million VIP members and discovered that 300,000 wear scrubs every day. (source)

  • Harpoon Brewery has created its first cannabis beverage, Rec. Weed, in partnership with Novel Beverage Company. The non-alcoholic drink is made with passionfruit puree and green tea, has 5 milligrams of THC, and is only 25 calories and 3 grams of sugar per can. (source)

  • Barstool Sports and Phusion Projects have launched Pirate Water, a new 16oz malt beverage in four flavors with an ABV of 10%. (source)

  • Beauty subscription brands IPSY and BoxyCharm have officially merged to create a combined portfolio, offering BoxyCharm's focus on brands and merchandise with IPSY's personalization and customization exclusively at IPSY.com and on IPSY's app. (source)

  • Skechers has collaborated with fashion icon Diane von Furstenberg to create a capsule collection. (source)

  • Oatly has announced the pre-launch of their new plant-based cream cheese, exclusively available in Philadelphia. The limited release is in partnership with Spread Bagelry and Philly Bagels and will be available through March 31st. (source)

  • Dole Foods is partnering with Israeli start-up BlueTree Technologies to reduce the sugar in its juice. The tech removes disaccharides (complex carbs like lactose, sucrose, maltose) from the juice, leaving the monosaccharides (simple carbs like glucose and fructose) in, which maintains the sweetness, aroma, and mouthfeel association of sugar. The technology can be applied to dairy, beer, and fruit juice. (source)

  • Cantrip became the first cannabis company certified as an active advertiser on Twitter, following a change in Twitter's policy to allow cannabis companies to advertise. (source)

  • Frozen food brand Daily Harvest will launch some of its products in a undisclosed retail chain this summer, according to CEO Rachel Drori. The brand hasn’t been in the news much since the whole lentil debacle, we’ll see how this plays out. (source)

  • Danone North America has announced a $65 million investment to create a new bottle production line in Jacksonville, Florida, which will increase production of several of its coffee and creamer brands in the U.S. (source)

  • Kraft Heinz has launched a new hot sauce under its Tingly Ted's brand, created in collaboration with English singer-songwriter Ed Sheeran. (source)

  • BrewDog has announced plans to expand in China through a deal with Budweiser China, which will start brewing three of BrewDog's beers at its Putian craft brewery. (source)

  • Clean beauty company Beautycounter has partnered with Ulta Beauty to make its best-selling skin care and cosmetics available in 500 Ulta Beauty stores across the U.S. beginning March 5. (source)

  • Hally, an at-home hair-color brand, has introduced 100 new brand ambassadors who are all students at Baylor University. They all have followings ranging from 1,000 to 200,000. (source)

  • Congrats to Blue Norther, delOrigen, Growth Spurt, Leisure Project, RoRo’s Baking Co., and Wunderkeks on being selected for the next SKU Food & Beverage accelerator cohort!

  • Just as nepo babies mooch off their parents success, so is Silk Nextmilk. They launched an ad campaign featuring the children of celebrities wearing a plant-based 'stache, reminiscent of the iconic Got Milk milk mustache campaign. I think it’s a fun campaign! (source)

🏭 Supply Chain

  • Target will invest $100 million to build 6 new sortation centers across the US in the next three years, bringing the total to 15 by the end of 2026. Target has found that sortation centers could lower the average cost to deliver orders by nearly a third and could deliver an estimated more than 50 million packages this year, double last year's total. (source)

  • Flytrex, a drone delivery service, has reported high customer retention in its first test in Holly Springs, NC. The company reached ~60% of households within range, with 50% retention after one year. Other major brands, such as Starbucks, Domino's, DoorDash, and Walmart, have also experimented with drones to make on-demand deliveries more accessible. (source)

  • Dole foods was hit by a ransomware cyberattack earlier this month that temporarily shut down production plants, causing food shipments to halt to grocery stores in North America. (source)

  • Wayfair has canceled plans to invest $63.2 million in a 1.2M sq ft Houston fulfillment center due to falling sales and a declining customer base. (source)

  • Major ocean carriers commit to transitioning from paper bills to electronic bills of lading by 2030, in a bid to eliminate inefficiency and accelerate the digitization of trade. (source)

  • Misfits Market will close three fulfillment centers and lay off 649 employees on April 8th according to recent Worker Adjustment and Retraining Notification (WARN) Act notices. This is part of its consolidation strategy following its acquisition of Imperfect Foods. (source)

💻 eCommerce

  • Newegg is expanding its influencer program to include tech influencers in its livestream commerce initiative. These influencers can feature products in their content and earn commissions on generated sales with no limit. Additionally, they have free access to the company's California studio facilities to create content. (source)

  • SaksOff5th.com has hired a new SVP of e-commerce to enhance their loyalty program, personalization, search relevancy, and merchandising on the app and website. In 2021, Saks Off 5th split its stores and DTC operations into separate companies. (source)

  • GoDaddy has launched Payable Domains, which allow entrepreneurs to register a new domain and start accepting payments from customers even if they do not yet have an online store. (source)

💸 Funding, Exits, M&A, and VC

  • Rebuy has raised $17 million in Series A funding led by M13, with Dynamism Capital, R-Squared Ventures, Peterson Ventures, and Sidekick Partners also participating. The platform uses AI and no-code technology to help Shopify merchants personalize their customers' shopping experiences through upsells, cross-sells, and post-purchase follow-ups. (source)

  • Kiwibot has partnered with Kineo Finance to secure $10 million in funding to help manufacture and scale its robotic delivery fleet. They’ve also been deploying robots across college campuses and formed partnerships with Grubhub and Sodexo. (source)

  • Tyson Foods has signed an agreement for an undisclosed amount to acquire Williams Sausage Company, a Tennessee-based company that makes fresh and fully cooked sausage, bacon, and sandwiches. (source)

  • According to unnamed sources, L Catterton is in talks to acquire Ilegal Mezcal. The rise in consumer demand for mezcal has sparked M&A interest in the market, with Pernod Ricard, Diageo, and Campari Group making significant acquisitions in recent years. (source)

  • Casa Maestri Distillery, one of the largest tequila producers in Mexico, has acquired Bellagave Infused Tequila. The acquisition expands Casa Maestri’s portfolio of premium Tequila brands. (source)

  • BlueCargo, a port logistics SaaS provider, has raised $11 million in funding. The company provides a platform that tracks containers at terminals and provides users with the documentation and financial tools to handle all their drayage needs in one place. (source)

  • Logistics startup Slync has raised $24 million led by Goldman Sachs in a combination of equity and debt. The company is trying to distance itself from its founder who was charged with misappropriating $20 million from the company. Slync's technology platform connects disparate shipping and logistics systems, ingesting and processing data to automate various repetitive processes. (source)

  • New Zealand-based startup Tracksuit, has raised $5 million in its first external round to expand further into the US market. Tracksuit offers a brand insights tool that tracks metrics like brand awareness, consideration, preference, and usage, and measures them against a company's competitive set. (source)

  • Running apparel brands Oiselle and Janji have merged, with Oiselle founder Sally Bergesen taking an advisory role and Janji's cofounders staying on. (source)

🧐 Interesting reads

💡 Reports, research, and trends

🐦 Interesting Tweets

😋 Brands and things I’ve tried this week

Prime energy - Regardless of your opinion on Logan Paul, his brand has been gaining momentum. When I came across a new SKU I had to try it. Although it's sugar-free, I found it to be excessively sweet. One thing that concerns me though is how clearly the product is marketed towards children, despite containing such a high amount (200mg) of caffeine.

The MOST Oreo - I wrote about this one the other week and have been keeping my eye out for it. I found it on GoPuff and was finally able to try it. I wish it tasted more like cookies and cream, it just felt like a regular Oreo with more cream (and the cream was a little more moist than a regular Oreo). I also found it to be a tad too sweet. Plus 110 calories for one cookie is a lot…I still plan on finishing the package.

Boba x Ice Cream - This was delicious, and lactose free to boot! If you can find this (I got it on GoPuff) definitely pick some up. I’m going to try the Ube x S’mores flavor next.

Thanks for reading! I'll be back next week with more commerce news straight to your inbox. If you have any suggestions, feedback, or stories or posts I missed, let me know!

Nate :)

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