Express Checkout #16

Commerce news from the week of 3/6/2023

Author

Nate Rosen
March 13, 2023

Hello friends! Welcome back.

I’m coming to you a day late with this newsletter after a crazy week of traveling and working the floor at ExpoWest in Anaheim! I’m gathering all my thoughts, photos, and samples and will share something separately tomorrow about the show. So be on the lookout! It was amazing to see so many of you, both old and new friends, and many reading this right now.

I was a regular old snack king. Thanks Kristen for the amazing photo!!

Wow, was this past week one for the history books. I know many of you were feeling the weight of SVB’s collapse – it’s incredible that it happened while so many founders were out west at Expo. This weekend couldn’t have been easy. Whether or not you were directly affected, this was a big hit to the startup scene and many many livelihoods. With the fed stepping in on Sunday, I’m sure many are breathing easier this Monday.

On to some better news, in honor of National Ranch Day on March 10th, Van Leeuwen announced a new flavor in collaboration with Hidden Valley Ranch - and you guessed it, it's ranch! I will be trying this and reporting back.

If you were sent this issue please consider subscribing! Now to the good stuff.

🔥 Big News - 10 items or less 🔥

  • No cookies for you - The Girl Scouts are facing a cookie shortage due to production delays with one of their baking partners, Little Brownie Bakers. Some boxes are now being sold after market on eBay for $35! (source)

  • Swiss only - Toblerone will no longer show the Swiss Matterhorn mountains on its packaging due to a 2017 Swiss law requiring companies to exclusively manufacture in Switzerland. Toblerone's U.S. parent company, Mondelez, plans to showcase a modernized mountain logo and retain the faint outline of a bear on the mountain. (source)

  • Jack drinks his last Bang - Jack Owoc, controversial founder of Bang Energy maker Vital Pharmaceuticals, has been removed from his positions as CEO and chairman of the board of directors. (source)

  • Chili crisp for all! - Fly By Jing, a modern Chinese food brand, has secured $12M in Series B funding from Prelude Growth Partners and Pendulum. The funding will help the brand expand into national grocery retailers. (source)

  • Patagonia 🤝 Moonshot - Patagonia Provisions, the food and beverage division of Patagonia, has acquired Moonshot, a snack brand that focuses on climate-friendly food supply chains. This is apparently Patagonia’s first buy in 20 years! (source)

  • AI and Consumer tech - Humane, a software platform and consumer device company founded by ex-Apple team Imran Chaudhri and Bethany Bongiorno, has raised $100 million in a Series C round led by Kindred Ventures. The company is building a device and services platform for the AI era, and has secured strategic collaborations with Microsoft, OpenAI, SK Networks, LG, and Volvo Cars Tech Fund. (source)

  • The RTD we’ve been waiting for - SunnyD, that delicious orange flavored beverage, is launching a new hard seltzer called SunnyD Vodka Seltzer. (source)

  • Ulta is on 🔥 - Ulta Beauty reported record sales and earnings for Q4 2022, with net income rising 17.8% YoY to $340.8m. The company plans to open 25-30 new stores and remodel or relocate 20-30 locations in 2023, while accelerating growth across digital platforms. The company's net sales rose 18.2% to $3.2bn, and same-store sales grew 15.6%. (source)

  • More rocky seas for grocery delivery -

    • Food Rocket is shutting down due to lack of funding despite being profitable. (source)

    • GoPuff laid off an additional 2% of its workforce after previous rounds of layoffs. (source)

🗞️ News from the week (3/6/23 - 3/12/23)

🛍 Retail

  • KeHE is partnering with WeStock to bring first-party consumer data into their product decisions. KeHE will use WeStock's data to discover new products to carry based on a brand's consumer demand and empower their current suppliers to push their online customers in-store. Huge congrats to Cameron and the team! (source)

  • Texas-based grocery chain H-E-B has teamed up with Thumbtack to provide on-demand services in select stores. This move is similar to those of other companies aiming to foster more customer loyalty and enhance value for shoppers. (source)

  • IRI and NPD have rebranded as Circana, a combined company that provides advice on the complexity of consumer behavior. (source)

  • Green Zebra, a Portland-based healthy convenience store, has announced that it will be closing all three of its locations on March 31st after ten years in business. (source)

  • A&G Real Estate Partners will auction over 250 leases nationwide from Tuesday Morning Corp. as part of a store closure round in connection with the retailer's Chapter 11 reorganization. (source)

  • Best Buy has partnered with Atrium Health to develop hospital-level care offerings directly in a consumer's home. This move follows other major retailers, such as Walmart and Target, focusing their health care initiatives on out-of-home clinics. (source)

  • Roku and Best Buy have announced a first-to-market relationship across their advertising and retail businesses. Best Buy will provide its first-party data for targeting and closed-loop measurement, and shoppers will have exclusive access to Roku-branded TVs. (source)

  • Walmart plans to invest $1.49 billion in Mexico in 2023, a 27% increase from last year. Almost half of the investment will go to remodeling and maintenance of existing stores, while nearly 30% will be used for new stores and clubs. (source)

  • DTC apparel brand Buck Mason has opened its first store in Chicago's Lincoln Park neighborhood, marking its 23rd store. (source)

  • Ross Stores, Inc. has opened 19 new locations in 13 different states in February and March so far. They’re targeting around 100 openings in 2023. (source)

  • Lowe's is inviting entrepreneurs and businesses to apply for "Into the Blue: Lowe's Product Pitch Event," its largest live product sourcing event. The event will take place on June 13 and businesses with ready-for-market products can apply through March 20. Lowe's will invest up to $5 million in purchase orders with businesses selected through this event, along with the opportunity to have their products sold through more than 1,730 retail stores and online at Lowes.com. (source)

🛒 CPG & Consumer

  • Zevia has announced a rebrand for its entire portfolio in 2023. The refreshed design will begin rolling out to select retailers nationwide in late March, with wide national distribution hitting shelves in time for summer. I got to see it at Expo this year; the liquid is good but I’m not too bullish on the new design. (source)

    Thoughts on this change?

  • Athena Club, a personal care brand, has launched its line of hair removal products in 1,600 U.S. Target stores and on Target's website. The launch marks the brand's first major retailer partnership. (source)

  • Solawave, a skincare brand, has launched in 650 Ulta Beauty store locations and online at Ulta.com. (source)

  • Snoop Dogg has entered the ready-to-drink coffee market with Indo, a cold brew packaged in 12 oz. cans. (source)

  • Hershey is launching two plant-based confections made with oats: Reese's Plant Based Peanut Butter Cups and Hershey's Plant Based Extra Creamy with Almonds and Sea Salt bars. The move comes after the company trialed a plant-based chocolate bar in select markets in 2021. (source)

  • Goodles, a boxed macaroni brand, is launching a new line of boxed pasta. It’s their first venture into just noodles, and the product will be available in three shapes and formulated with ingredients like wheat flour, chickpea protein, and nutrients extracted from various vegetables. (source)

  • Meati Foods, plant-based meat made from mushroom root, has announced an expansion of its retail partnership with Sprouts Farmers Market nationwide. The company predicts $1bn retail sales in the next 5 years. This was definitely the hottest alt-meat at Expo, everyone was talking about it! (source)

  • 818 Tequila, which was launched by Kendall Jenner in May 2021, has expanded to the UK. (source)

  • Due to the increased interest in Mezcal, Pernod Ricard has added an "accessible" mezcal under its Del Maguey brand. The product is set to launch in the US in July 2023. (source)

  • Picadas, the first Mexican-made hard agua fresca, is now available in 200 H-E-B stores across Texas. The drink is made from real fruit juice and cane sugar alcohol, and comes in three flavors. (source)

  • Waterdrop, a rapidly growing hydration brand in Europe, is expanding its brick and mortar presence in the United States with over 3,000 stores in the next year. (source)

  • Kraft Heinz Not Company, a joint venture between Kraft Heinz and The Not Company, is launching its plant-based mayo product, NotMayo, in select US markets this month. The company plans to expand nationwide and enter Canada later in 2023. (source)

  • Pedestrian Project, a new foot care brand, has launched with a focus on creating a beauty-inspired, clean and efficacious product line to disrupt the outdated foot care category. Congrats Matt! (source)

  • Kenneth Cole launched a six-piece range of CBD-based skin and body care products, their first entry into the space. (source)

  • Skincare brand Starface has released its first full body Fruit Pack, which includes eight patches inspired by fruit and is four times larger than its original Hydro-Stars. (source)

  • Health-Ade is expanding with new 11.5 oz canned kombucha in four flavors. (source)

🏭 Supply Chain

  • Oracle plans to launch sustainability capabilities in its Supply Chain Manager platform in the second half of 2023. The updates will help users calculate emissions from shipping and optimize decisions. The new capabilities will allow shippers to understand transportation emissions beyond weight and distance traveled. (source)

  • Uber is considering selling or spinning off its Freight business into a separately traded entity via an IPO. (source)

  • Samsonite partnered with ReverseLogix, a return management system, to provide a self-activated warranty and repair portal for its customers. (source)

  • Heartland Food Products Group, the parent company of Splenda, has invested $50 million in a stevia farm in central Florida. The farm will reduce carbon dioxide emissions by sourcing stevia locally, rather than from outside the US. (source)

  • Raymour & Flanigan is implementing the Körber WMS solution to modernize its warehouse management system and is upgrading to the Oracle NetSuite ERP platform to streamline financial processes, inventory, and customer service management. (source)

  • WARP launched "DirectFresh," a service for perishable shippers with same-day and next-day direct store delivery. The service offers end-to-end solutions for fresh freight. WARP's technology connects temperature-controlled cross docks and carriers to provide perishable shippers with a one-stop-shop for their logistics needs. (source)

💻 eCommerce

  • Chicory, an ad platform, has partnered with Warner Bros. Discovery to enable shoppable recipes on FoodNetwork.com, Food.com, and CookingChannelTV.com. This lets users go from inspiration to checkout quickly with Chicory's shoppable ingredients button. WBD will also use Chicory Premium, which provides contextual, in-recipe ads to enhance the user experience. (source)

  • KERV Interactive's Dynamic Destination allows advertisers to direct users to unique destinations through QR codes featured in CTV/OTT ads based on triggers such as location or time of day. Audi of America was the first to use Dynamic Destination for an OTT ad campaign and captured over 98% of viewers, leading users in 115 zip codes to their local Audi dealership. (source)

💸 Funding, Exits, M&A, and VC

  • Shein aims to raise $2 billion in a funding round this month, with a $64 billion valuation, and is targeting a U.S. listing in the second half of 2023. The UAE sovereign wealth fund Mubadala and existing investors General Atlantic and Sequoia Capital China are among the major investors, with Tiger Global Management as a new investor. (source)

  • Sierra Nevada Brewing Co. has made a minority investment in Riot Energy, a Venice, California-based energy drink company. The California brewery will eventually produce and package Riot Energy products once its CanDo Innovation Center is up and running. This is one of my favorite energy drinks on the market! (Other favorites of mine include Update, Ghost, and Celsius). (source)

  • SOURCE Global, a company that creates drinking water using sunlight and air, has acquired Proud Source Water. (source)

  • Odyssey Wellness, the makers of the first sparkling energy drink infused with functional mushrooms, has completed a $6.3M series A capital raise to accelerate growth across all distribution channels. (source)

  • Langers, a family-owned juice company, has acquired the bottled-water brand, GEN Z. Yes this brand is real and surprisingly (ok, maybe not that surprising) wasn’t started by Gen Z but rather a team of Millennials and Gen Xers. (source)

  • Next Gen Foods, a food tech company that produces plant-based chicken TiNDLE, has acquired Mwah!, a startup that creates dairy-inspired products made from plant-based ingredients. The acquisition marks Next Gen Foods' first expansion into plant-based dairy and meat. (source)

  • Cerebelly, a science-backed baby food brand, has closed an oversubscribed Series A funding round. The round was led by investors including Knudsen Capital, H Venture Partners, Imaginary Venture Capital Partners, Babybelly LLC, and Redcap Investments LP.. (source)

  • Macallan has acquired a 50% stake in Grupo Estévez to secure exclusive supply of its Sherry casks, forming a joint venture. (source)

  • Heineken has received approval to acquire a controlling stake in Distell Group and Namibia Breweries, creating a new business in Africa. Heineken will invest €2.4 billion to own a 65% stake in the newly-formed company. (source)

  • Authentic Brands Group is close to buying Boardriders, the parent company of Quiksilver and Billabong surfwear brands, for around $1.3 billion, according to sources. (source)

  • Ares Management has invested $375 million in WHP Global, the parent company of retailers such as Toys R Us and Express. This investment will allow for future mergers and acquisitions. (source)

  • Marlboro maker Altria Group bought NJOY for $2.75B, including full ownership of NJOY's e-vapor product portfolio, after exiting its stake in Juul Labs. The deal includes $500M in cash payments contingent on certain regulatory outcomes with NJOY products. (source)

  • EG Group sold 26 Minit Mart locations in the US for $48 million, representing nearly 12% of its overall Minit Mart assets, as part of its long-term strategy to reduce debt. (source)

  • Powered by People, a digital wholesale platform, has raised $13.6 million to continue scaling global operations and technology. The platform provides technology solutions to small-batch, independent maker brands from over 70 countries to sell their sustainably made goods at scale to retail and trade buyers. (source)

  • The D'Amelio family's 444 Capital, a $25M fund, has made four of its first six investments in female-founded businesses, including Incredible Health, Yumi, PairEyewear, and Yardzen. The fund invests in high-growth tech businesses with an average investment size of $200,000-$1,000,000. (source)

  • Coterie, a baby care brand known for high-quality diapers, has announced that entrepreneur Karlie Kloss will be joining as an investor. (source)

  • Shaun Neff and PJ Brice, the entrepreneurs behind Beach House Group, have launched Beach House Ventures, a venture incubator focused on beauty and lifestyle brands. The new venture vehicle offers emerging brands the financial benefits of a private equity firm, as well as a shared service platform, brand building expertise, and global retail relationships. Beach House Group has already created well-known brands, including PATTERN with Tracee Ellis Ross and BÉIS with Shay Mitchell, and is set to surpass $250 million in annual revenue. (source)

  • Marc Nathan and Jeff Jacobs have started the Consumer Packaged Growth Syndicate, which aims to select consumer packaged goods startups worth backing. The syndicate has already attracted more than 50 investors interested in pooling funds to back alluring food and beverage businesses. (source)

  • HanesBrands has completed the refinancing of its 2024 Notes by closing on a new Senior Secured Term Loan B Facility worth $900 million. (source)

  • WeightWatchers, also known as WW International, saw a surge in its stock price after announcing plans to acquire Sequence, a telehealth platform that provides treatment for obesity. (source)

🧐 Interesting reads

💡 Reports, research, and trends

🐦 Interesting Tweets

😋 Brands and things I’ve tried this week

Given that this week I went to a Snaxshot event and ExpoWest, I tried A LOT of items. Maybe too many 🥴

But here are a few of the items I tried this week! Expect an extended version in my ExpoWest breakdown soon!

Tempo Snacks cannabis-infused – solid crackers

Jinx boozy pouch – definitely boozy, definitely tasty

Kiddi Winks Plant-based milk – yummy!

This first three I had at a Snaxshot event, the next few are from my time at ExpoWest!

CheeseBits Strawberry Mozzamini Pearls – very good

Flip Whip “creamy ranch” – pretty tasty if you ask me!

Agua Bonita Horchata – probably my favorite sip at Expo

Konscious Plant-based Sushi – I was wildly impressed with this one

Both beef AND veggie burgers – honestly really tasty, and it was nice to have some real meat

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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