Express Checkout #15

Commerce news from the week of 2/27/2023

Author

Nate Rosen
March 05, 2023

Hello friends!

I’m writing this issue from a plane on my way to LA for ExpoWest (thank you JetBlue for having amazing WiFi). And if you’re in town I’d love to say hi!!

Congratulations to Emily Schildt, founder of PopUp Grocer (PUG), on opening her first permanent location at 205 Bleecker St in NYC. For those who don't know, PUG is a retail discovery destination that offers a curated assortment of up-and-coming food and beverage brands. They have had pop-ups all over the country, including in NYC, LA, Miami, DC, and Denver.

I definitely was a happy camper…

Snacks galore 🤩

The store was full of emerging brands, some I’ve tried some I haven’t yet. You can check out my haul at the end of this issue!

It's crazy that we’re just a few days away from ExpoWest!! If you’ve followed me for any amount of time on any form of social media you know I like my CPG products, especially my snacks. This is my Super Bowl, my Disney. If you’re here either stop by Adgile Media’s booth #2698 or email me to find time to say hello 👋

Also my friend Amrit from IndieCPG wrote this awesome guide on what to eat and drink while at ExpoWest! And if you're not attending, you can just consider it a shopping list!!

If you were sent this issue please consider subscribing! Now, let’s get into it.

🔥 Big News - 10 items or less 🔥

  • Erythritol bad 🙅‍♂️ - A recent study in the journal Nature Medicine suggests a connection between erythritol and cardiovascular events such as clotting, stroke, and heart attacks. However, it’s important to note that the research is still evolving and ongoing. (source)

    • Personally, I do not love most sugar substitutes, including this one, due to their taste.

  • Nordstrom exits Canada - Nordstrom is closing all of its Canadian stores, which only accounted for 3% of sales, and cutting 2,500 jobs as it winds down operations in the country. Nordstrom's focus is now on driving long-term profitable growth in its core US business. (source)

  • Gwyneth is raising - According to Axios, Gwyneth Paltrow and Moj Mahdara’s Kinship Ventures is raising a $75 million debut fund. They’ll invest in early-stage consumer goods and tech companies, including web3 startups. Checks will be between $500,000 and $3 million per company. Last year they participated in an $87 million investment in MoonPay. (source)

  • Beer (non-alc) + Coffee + Protein? - Athletic Brewing and Super Coffee have partnered to create Suped Up, the world's first pre-workout non-alc brew that contains 5 grams of protein. (source)

  • Should Arizona be worried? - Liquid Death, known for its cans of water meant to not look like water, has launched a new line of iced teas with appropriately metal names like Armless Palmer and Grim Leafer. They’re sweetened with agave, got a 30mg "microdose" of caffeine, and have 100% of the daily recommended amount of vitamins B6 and B12. (source)

    • Andrew over at New Belgium Brewing had an interesting breakdown on Twitter:

  • Target on the offensive - Target saw Q4 sales beat expectations despite a challenging retail environment, with revenue rising 1.3% to $31.40 billion and total same-store sales rising 0.7%. 2023 will definitely be a big year for Target. They plan to do the following: (source and source)

    • Expand their owned-brand portfolio by launching or expanding more than 10 owned brands. In an appeal to an increasingly value-conscious shopper, the retailer said it will offer more items starting at $3, $5, $10 and $15.

    • Invest $4-$5 billion to expand guest-centric services, operations network of stores, supply chain facilities, digital experiences and other capabilities

    • Open 20 stores this year in a mix of sizes and invest in about 175 stores throughout the year, ranging from full remodels to the addition of shop-in-shop experiences and same-day fulfillment spaces.

    • Launch drive up returns, allowing customers to return items for free from their car through the Target app within 90 days of purchase

    • Expand its sortation center network to over 15 locations by the end of 2026, improving its next-day delivery capabilities

🗞️ The rest of the cart (2/27/23 - 3/5/23)

🛍 Retail

  • Best Buy has reported 10% YoY decrease in revenue and plans to close 30 large format stores. Their CEO expects another down year for consumer electronics in fiscal year ‘24, but predicts that ‘23 will be the bottom of the decline in tech demand. Still, they plan to implement 8 Experience store remodels and open 10 outlet stores. (source)

  • Macy's plans to expand its off-mall small format stores, Market by Macy's, in the coming years after seeing favorable results in Q4 22, with an 8% increase in sales YoY. These stores are approximately one-fifth the size of the mall locations. (source)

  • Amazon is closing 8 of their AmazonGo locations as they continue to rethink strategy (source)

  • Lots of Walmart news this week:

    • Walmart is closing all its Portland, Oregon stores (source)

    • Walmart is opening 28 new healthcare centers in the US in 2023, with over 75 centers planned by the end of 2024. (source)

    • 💰 👀 Walmart and Citi Bank have partnered to introduce a digital platform connecting SMBs in their US-based supplier network with over 70 lenders who can provide loans of up to $10 million. (source)

  • Dollar Tree is expanding its grocery offerings, adding thousands of cooler doors, and launching hundreds of private-label products. (source)

  • DoorDash has partnered with Chase to launch its first-ever credit card, the DoorDash Rewards Mastercard. Cardholders can earn 4% cash back on DoorDash orders, 3% cash back on dining, 2% cash back on grocery stores, and 1% cash back on all other purchases. (source)

  • Sprouts Farmers Market plans to accelerate the rollout of its smaller store format, with at least 30 new stores based on the less expansive design set to open in 2023. The new store design is built around a 23,000-square-foot box, with a stronger focus on produce. The grocer also plans to close 11 stores based on the older design in 2023. (source)

  • Scotch & Soda, a clothing brand, is up for sale. It’s currently owned by Sun European Partners and the sale is being advised by consultants Teneo. (source)

  • Instacart launches Instacart Business, a B2B service that connects small businesses with retailers across the U.S. and Canada. The service is designed to serve companies that make purchases in smaller quantities, such as snacks for a breakroom, and will offer stock lists, re-ordering and auto-order, flexible delivery options, business credits, and tax exemption benefits. They’ll also work with various organizations to help better reach woman and minority-owned businesses. (source)

🛒 CPG & Consumer

  • Uoma Beauty is partnering with QVC to expand its reach, with the full range of products available on the channel from March. (source)

  • Another brand gets into resale. Carhartt has launched Carhartt Reworked, a resale program in partnership with Trove. (source)

  • Underwear brand Parade has launched at 400 Targets around the country. (source)

  • NotCo launches High Protein NotMilk, a plant-based milk alternative with 15g of protein aimed at fitness and sports enthusiasts. (source)

    • The one thing I find missing from a lot of alt-milks is the protein content, so I’m glad to see more brands thinking about this.

  • Dave's Killer Bread is launching bars in three flavors to expand the brand's reach into the snack bar category. (source)

    • makes sense they’re pushing into this category, the snack bar space is heating up with some significant attention from large brands like Mars with Kind and Mondelez with Clif Bar

  • High Noon has released a Tequila Seltzer. Made with real tequila and real juice. (source)

  • XCJ, maker of frozen soup dumplings and other ready-to-eat Chinese street foods, has rebranded as MiLa as it preps for a retail rollout. (source)

  • Alec's Ice Cream, a regenerative-verified and USDA organic ice cream made from A2 dairy, is now available in over 1,000 stores across the US, including Sprouts Farmers Markets and Natural Grocers. (source)

  • More ice cream news, Planet Based Foods is expanding into the non-dairy frozen dessert category with a new organic hemp-based vegan ice cream, available in three flavors. (source)

  • Renegade Foods has launched a shelf-stable vegan salami that can be stored, shipped, and merchandised without refrigeration. (source)

  • General Mills has discontinued its Bold Cultr brand of animal-free dairy products due to deprioritization of funding, according to a statement on the Bold Cultr website. (source)

  • Jones Soda is partnering with American Fizz to expand into England, France, and Belgium in 2023. (source)

  • Dairy Farmers of America (DFA) has partnered with Good Culture to produce lactose-free milk infused with probiotics. The product will be launched on the East Coast and eventually distributed nationally. (source)

    • Good Culture has my favorite cottage cheese and sour cream on the market!

  • Israeli startup Aleph Farms has signed manufacturing deals in Israel and Singapore to scale up cultivated meat production. (source)

  • Yellowstone actor Ryan Bingham is launching a new line of Texas whiskeys called Bingham's Bourbon. (source)

  • Motif FoodWorks has partnered with IngredientWerks to explore ways to optimize heme protein production through molecular farming. IngredientWerks will produce Motif's HEMAMI™, which is bioidentical to the heme protein found in beef, using broad acre crops such as corn. (source)

    • If heme sounds familiar, Impossible Foods often touts that it uses heme from soybean roots to make its “beef” bleed like the real stuff.

  • B&G Foods is considering additional divestments after selling the Back to Nature brand to the Barilla Group in December 2021. The company is reviewing other divestiture possibilities, such as selling the Green Giant business, to improve its margin profile and growth prospects. (source)

  • Eat Just is laying off 18% of its workforce, or about 45 people, in its Just Egg division in an effort to reduce expenses and bring its egg products closer to profitability. (source)

  • Sanzo announces the release of their sixth fruit-forward flavor, Pomelo (source)

  • Ooni has launched two new additions to its line of ovens, the Ooni Volt 12 Indoor & Outdoor Electric Pizza Oven and the Karu 12G Multi-Fuel Pizza Oven. The Volt 12 is Ooni's first electric indoor and outdoor pizza oven. (source)

  • Swiss shoe company On has launched its first collection of kids and pre-teen footwear, available now through the brand's website and Nordstrom. (source)

  • Speaking of shoes, D'Amelio Brands (of TikTok fame) is launching a women's shoe collection in June. (source)

  • Crossnet, known for its four-square volleyball game, has released a four-way pickleball game that is the world's first of its kind. The net is regulation size and can quickly adjust from a standard pickleball net. (source)

🚨 Attn CPG founders🚨 Whole Foods has opened applications for its 2023 Local and Emerging Accelerator Program (LEAP), which seeks to work with local brands. Participants receive mentorship, educational programs, and potential financial support, and their products may be placed on Whole Foods Market shelves at the end of the six-month program. Applications close April 7th 2023

🏭 Supply Chain

  • Daimler is recalling 19 truck models due to a steering issue that could lead to increased crash risk. (source)

  • Cargo airline Ameriflight agreed to purchase 35 air cargo drones from Sabrewing. The drones can carry over 2,000 pounds and use both traditional and sustainable aviation fuel. They can move cargo between facilities faster than vehicles and land in locations other aircraft cannot, reducing the cost of airport transfers. (source)

  • The USPS has awarded contracts for 9,250 electric vehicles and 14,000 charging stations as part of its vehicle electrification strategy to deploy over 66,000 electric vehicles by 2028. (source)

  • Jewelry retailer Alex and Ani has outsourced its warehousing and fulfillment to Stord. (source)

  • Embark Trucks laid off 230 employees to cut costs and is exploring strategic options, including liquidating assets. The autonomous trucking company previously raised $47M prior to going public in 2021. (source)

  • UPS plans to reduce its business with Amazon in 2023 as Amazon builds its own logistics empire to gain greater control over delivery. MWPVL International, a firm that tracks Amazon's growth, estimates that the number of Amazon packages handled by UPS in 2022 was 1.3 billion, down from 1.41 billion the previous year. (source)

💻 eCommerce

  • Michaels has launched a new online marketplace with a curated selection of third-party sellers to expand its online assortment to over 1 million SKUs. (source)

  • Koji has launched a new e-book tool that lets creators sell e-books and audiobooks from within social media platforms. The tool has custom add-ons and shareable previews, and Koji takes a 10% fee. (source)

  • Pinterest is testing a new ad format called "Premiere Spotlight" that allows brands a premium placement on the app's search page for 24 hours. (source)

💸 Funding, Exits, M&A, and VC

  • Immi, a plant-based instant ramen company, has raised $10 million in Series A funding to expand its reach into nationwide retailers. The round was led by Touch Capital (hey Grace 👋) and included celebrity investors such as Naomi Osaka, Usher, and Apolo Ohno. (source)

  • Poppy Handcrafted Popcorn has closed a $3 million Series A funding round led by JACS Capital, the family office of former GE CEO and investor Jeff Immelt. (source)

  • BelliWelli, gut-friendly bars, recently closed a $15.4 million series A round led by The Invus Group, a private equity firm that mainly invests in early-stage growth companies across consumer products, food, retail, software, and medical devices. (source)

  • Westrock Coffee has acquired Bixby Roasting, enhancing omnichannel marketing capabilities. (source)

  • Wella, a better-for-you foods manufacturer, has acquired Thunderbird, an Austin-based maker of nutrition bars. The two companies had previously partnered when Wella became Thunderbird's co-packer. (source)

  • Oats Overnight has raised over $20 million in Series A capital to expand its retail presence and product development. The funding round included participation from Singh Capital Partners, BFG Partners, and other venture capital firms. (source)

  • Sweet Harvest Foods Holdings has acquired Sweet River Honey, a beekeeping business based in Texas. The transaction comes a year after Sweet Harvest merged with Nature Nate's Honey Co. (no relation to me 🤷‍♂️) to become one of the largest honey packers in North America. (source)

  • Motocross athlete Carey Hart has acquired US craft lager brand House Beer, previously owned by a group of investors. (source)

  • Great Kitchens Food, a US manufacturer of private label take-and-bake pizzas, has acquired the Uno Foods division of Uno Restaurant Holdings. The terms of the transaction have not been disclosed. (source)

  • Future Fields has raised $11.2 million in a seed extension round to scale up fruit flies as production vehicles for high-value recombinant proteins. Future Fields takes the gene for the protein it wants fruit flies to express and inserts it into the genome at the embryo stage. When the fly grows up, it secretes the protein from its cells. Fruit flies are low maintenance, requiring far less water and food and low-budget accommodation, and have superior machinery vs bacteria or yeast cells to facilitate complex protein production. Insane 🤯 (source)

  • Textile recycler Circ has raised $25 million in a funding round backed by Avery Dennison, Zalando and Korean manufacturer Youngone. (source)

  • French bio-tech firm Pili secured $15.8 million to produce high-performance biobased indigo, reducing CO2 emissions and requiring 1/5 of the water. (source)

  • Fulfil Solutions has recently emerged from stealth mode and secured $60 million in Series B funding. In partnership with The Save Mart Companies, the company has opened its first automated dark store to facilitate a same-day grocery delivery and pick-up service called Lucky Now. (source)

  • Seoul-based startup Indent has raised $8.1 million in a Series A funding round for its video review marketing tool called VREVIEW. (source)

  • Crstl, a startup that provides a no-code electronic data interchange (EDI) platform has raised $4.4 million in Seed funding led by Mastry Ventures, with participation from Village Global, Alumni Ventures, SuperAngel VC, OnDeck, Mensch Capital Partners, Harizury, and a group of individual founders and executives. (source)

  • Wunderkind, a behavioral marketing platform, has raised $76 million in a Series C funding round led by Neuberger Berman. (source)

  • Live Tinted raised $10M in a Series A funding round led by Monogram Capital and aims to accelerate retail growth and innovation, while continuing to champion multicultural beauty. (source)

  • L Catterton has acquired a majority stake in the French clothing brand A.P.C. This move is intended to expand L Catterton's international presence while maintaining the authenticity of the A.P.C. brand. L Catterton has previously invested in several apparel brands, including Birkenstock, Ganni, and Savage X Fenty. (source)

  • Foxtrot, an upscale convenience store, has raised $18.6 million in debt financing from existing investors to fund new store openings and continue its expansion. (source)

    • If anyone from Foxtrot is reading this, please come to NY 🙏

🧐 Interesting reads

💡 Reports, research, and trends

🐦 Interesting Tweets

😋 Brands and things I’ve tried this week

Here’s what I snagged from PopUp. Some Mint Chaat Popcorn (very minty, very fun), Plink, Immi ramen (congrats on the raise!), Heyday Canning (the other can is coconut curry chickpeas), FreshFizz Hibiscus Ginger Ale, then not shown is Blake’s Seed Based Chewy Granola bar!

My PopUp snack haul

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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