Express Checkout #17

Commerce news from the week of 3/13/2023

Author

Nate Rosen
March 19, 2023

Hello friends! Welcome back.

I’ll be at Shoptalk next week (thank you Kustomer!), who’s going to be in Vegas for it? I’d love to say hi! Can’t wait to chat all things retail!

This week I want to start by talking about Mark Rober’s new video on Zipline, a drone delivery company that was founded in 2014. There have been many discussions over the years around drone delivery and its viability, and this video convinced me of its value both for accessibility and convenience. Zipline is helping in the delivery of medical supplies and other essentials to geographically-limited or resource-poor areas of the world while also delivering snacks, diapers, salads, and other goods to cities and towns across the US.

The video highlights Zipline's achievements in Rwanda over the past six years, particularly its delivery of blood and medicine, which has helped save countless lives. The majority of the video is dedicated to this impressive feat. The second half of the video focuses on something closer to home. Zipline's recent announcement of a new autonomous drone delivery system that can complete a 10-mile delivery in just 10 minutes while remaining whisper quiet. Zipline has already announced partnerships with Walmart and Sweetgreen.

The video caught my attention because of its incredible storytelling by someone who truly loves the technology and the people behind it. I can relate to that. Mark wasn't sponsored by Zipline; he's simply a huge fan who wants to share the story. He only produces about 10 videos a year and always dedicates one to those who use engineering to benefit society. In a similar light, this is precisely what I want to do with any content I put out in the world.

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

Also, shout out to Gabi Barkho at Modern Retail for including me in this piece about Partiful!!

🔥 Big News - 10 items or less 🔥

  • Kellogg keeps snacks and cereal separate - Kellogg Company will separate into two public companies. The North American cereal business will be named WK Kellogg Co., while the global snacking business will be named Kellanova. WK Kellog Co. will include brands like Frosted Flakes, Froot Loops, and Kashi while Kellanova will include Pringles, MorningStar, and RXBAR. (source)

  • Unfortunately, more layoffs -

    • Klaviyo has laid off 140 staff members, approximately 10% of its workforce, across all teams, including engineering and design. They are heavily venture-backed, having received a $100 million strategic investment from Shopify in 2022. (source)

    • Tyson Foods will close two of its poultry processing plants, resulting in the loss of roughly 1,700 workers. (source)

  • Accessible clean beauty - Walmart has launched a new online shop, Clean Beauty. It will offer 900+ affordable clean beauty products made without ingredients on its Made Without List (MWL). The MWL was developed by reviewing state and federal regulations, consulting suppliers, and calling on experts such as the Environmental Defense Fund. (source)

  • Greenwashing or legit? - H&M has partnered with ThredUp, an online consignment platform, to launch a resale program. This partnership makes H&M the largest retailer to work with ThredUp. While H&M is known for its poor quality, fast fashion clothing, it remains to be seen whether this program will push the company in the right direction or if it’s merely greenwashing. (source)

  • Oat milk has been saved - Oatly has secured $425 million in new funding through a combination of a $300 million convertible note and a $125 million term loan B credit facility. While Oatly has experienced its share of ups and downs in recent years, this new funding will allow them to take an offensive stance. (source)

  • Bezos is judging you - A NY lawsuit alleges that Amazon's Go stores in New York illegally collect data on customers' size and shape without proper warning. Cute! (source)

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

🛍 Retail

  • Sephora and TikTok have launched an incubator program to help emerging brands succeed on TikTok. The program will feature three BIPOC-founded brands, with established creators serving as brand mentors. (source)

  • Clothing brands seek to be better

    • Primark launched initiatives to improve clothing durability, including a standard with WRAP, research on price-consumer behavior, and scaling up free clothing repair workshops. (source)

    • Uniqlo is expanding its repair service to stores in the U.S. The service, called Re:Uniqlo Studios, allows customers to bring in any Uniqlo clothing item for repair, reuse, and recycling. (source)

  • Chloé has launched a new digital ID system that enables customers to scan labels to learn about product origins and traceability. The system also allows direct resale on a co-branded platform powered by Vestiaire Collective. (source)

  • Five Below, Inc. announced a 12.7% increase in net sales for Q4 and an 8.0% increase for the full year of fiscal 2022. The company plans to open a record 200 new stores in 2023 and convert 400 stores to the new Five Beyond format while also rolling out new categories and services and enhancing marketing efforts. (source)

  • L.L.Bean's 2022 year-end results show all-time sales records for Men's and Women's apparel, and double-digit growth in Travel, Boots, and Inclusive Sizing. The Wicked Good Slippers are still the top-selling product, and sales of canvas bags hit a 10-year high thanks to the "Ironic Boat and Tote" trend. (source)

  • Neiman Marcus has partnered with Ferragamo to offer exclusive products across 7 stores in the US. (source)

  • SHEIN is hosting its first-ever SHEIN X Design Summit in Los Angeles on April 1 to showcase independent designers and the SHEIN X incubator program (source)

  • 7-Eleven has launched 7Charge, a new EV charging network and app in the US that will expand to Canada. The network provides fast-charging services and boasts one of the largest and most compatible fast-charging networks of any retailer in North America. (source)

  • Rite Aid partnered with Amazon to offer 2-hour delivery to Prime members in Newark, NJ and Burbank, CA for a wide range of products, excluding prescriptions. (source)

  • Amazon has opened a c-store at a university in Virginia that uses its Just Walk Out technology, making it the first university c-store in the US to use frictionless checkout technology. (source)

  • BJ's Wholesale Club has partnered with Simbe to deploy Tally, an AI-powered solution to improve operational efficiencies and enhance the member experience. Retailers like Hy-Vee and ShopRite also use Tally. Stop & Shop uses a similar robot called Marty from Badger Technologies. This is what Tally looks like👇 (source)

 

🛒 CPG & Consumer

  • Krispy Kreme is closing its North Carolina factory that produces its CPG products, resulting in the loss of 102 jobs and the ultimate demise of its grocery SKUs. The company will focus on its fresh doughnut business, which utilizes a hub-and-spoke business model to deliver doughnuts to grocery retailers. (source)

  • Kikkoman is launching a soy-free umami flavor sauce called Kikkoman Umami Joy Sauce, which is made with fermented tomato extract, salt, and water. It is expected to be available in retail locations later in 2023. (source)

  • Bella Hadid's Kin Euphorics has partnered with Boy Smells candles to launch three new candles, each with a recommended Kin Euphorics flavor pairing to be sipped on while the candles burn. (source)

  • BeatBox beverages partners with the Dallas Mavericks and Dallas Stars sports teams to market and sell their products at American Airlines Center. Mark Cuban invested $1M for 33% equity in the company in 2014 on Shark Tank. (source)

  • Entertainment Arts Research, a diversified beverage and media group operating in the craft beer, craft soda, and craft spirit market segments, has announced that it is changing its name to "The Original New York Seltzer Beverage Corporation," after its iconic portfolio brand. (source)

  • Orlando Bloom is now the Chief Wellness Officer at Form Nutrition, a plant-based nutrition company. (source)

  • Albertsons adds 12 new plant-based products to its private label Open Nature brand, including dairy-free cheese and oat ice cream. (source)

  • Vanessa Hudgens has relaunched her skincare line, KNOW Beauty, with a new detoxifying clay face mask. The Glacial Bay Clay Mask is available exclusively on Amazon. (source)

  • Birchbox's website is back after being disabled for weeks, but users still can't checkout. There are concerns from customers and vendors about the company's silence and unpaid bills. (source)

  • Plantae Bioscience, an Israeli startup, has used CRISPR gene editing techniques to reduce the levels of bitter-tasting saponins in yellow peas by up to 99%. The breakthrough could lead to improved taste in pea protein products. (source)

  • Shiru launched OleoPro™, a plant protein-based fat ingredient for use in alternative protein food products. The ingredient received positive feedback from the industry, including leading alternative protein company UPSIDE Foods. (source)

  • Nike is set to stop using kangaroo skin in its shoes, replacing it with a proprietary synthetic material. (source)

  • Activision Blizzard CMO Fernando Machado joins NotCo as Chief Marketing Officer to oversee integrated marketing teams across 10 countries. (source)

  • Explorer Cold Brew has revealed its new rebrand from creative agency TRUFFL. Congrats Cason, it looks great!! (source)

  • Cetaphil launched an AI Skin Analysis tool that generates personalized skin assessment scores and skincare recommendations in seconds using Perfect Corp’s tech. (source)

  • Opici Wines & Spirits has partnered with Weekday Wines, a low alcohol and lower calorie wine brand sourced from California. (source)

🏭 Supply Chain

  • KeHE Distributors has partnered with Rodale Institute to advance organic and regenerative practices and products in the food industry. (source)

  • Serta Simmons Bedding is implementing Blue Yonder's Integrated Demand and Supply Planning solution to improve manufacturing efficiency and meet customer demand. The solution will offer a holistic view of the supply chain planning process. (source)

  • The USPS spent more on ground transportation in fiscal year 2022 and Q1 ‘23, with trucking expenses growing faster than air expenses. For the whole year, the USPS expects to use less commercial air transportation and more surface transportation. (source)

  • Gatik, a market leader in autonomous middle-mile logistics, is collaborating with Kroger to transport customer orders within its Dallas distribution network using autonomous box trucks. The trucks are set to launch in Q2 2023. (source)

  • UNFI has announced measures to enhance its supply chain and customer experience. The company will deploy new Systems Application Enterprises, Inc scanning technology and Symbotic's AI-powered automation system at its 1.15 million square foot Centralia distribution center. (source)

  • Waffle manufacturer Marson Foods is investing $35 million in itself to create a new distribution facility and production lines in Hazelwood, Missouri, to increase capacity. (source)

  • Snack manufacturer G&S Foods has broken ground on a new plant in Hanover, PA. The plant is set to open in mid-2024. (source)

  • WeStock is partnering with Thrive Market. (source)

  • Rivian is reportedly in talks with Amazon to dissolve the exclusivity clause of their commercial EV van deal. Amazon confirmed that the exclusivity deal still stands. (source)

💻 eCommerce

  • Klarna has partnered with Clarity AI to launch conscious badges in the Klarna App, providing comprehensive metrics about electronics purchases, including brands’ greenhouse gas emissions and energy derived from renewable resources. (source)

  • Apple has launched "Shop with a Specialist," a new service that offers live video shopping experience for customers in the US directly on apple.com. (source)

💸 Funding, Exits, M&A, and VC

  • DRNXMYTH raises $3.7M to manufacture packaging in the US and expand retail footprint. (source)

  • EnWave has sold NutraDried Food Company's assets, including Moon Cheese, to Creations Foods. EnWave also made a commercial license agreement with Creations to produce cheese snacks in the US. (source)

  • Shaw-Ross International Importers acquires TYKU, a leading premium sake brand in the US, from Diageo for an undisclosed sum. Diageo acquired TYKU in 2020. (source)

  • Amboy Street Ventures closed a $20M fund to back women's health and sexual wellness startups, focusing on six areas of women's health and sexual wellness at seed and series A stages. Amboy has invested in brands like Dame and Aunt Flow. (source)

  • 3Z Brands acquires Leesa Sleep, a well-known DTC sleep brand. This marks 3Z's third acquisition in the last year. 3Z Brands portfolio includes Helix Sleep and Brooklyn Bedding. (source)

  • Southern Glazer's Wine & Spirits acquires WEBB Banks, a premium wine and spirits distributor in the Caribbean, Central America, and South America, as well as the travel retail and cruise sector. (source)

  • DressX raises $15m in Series A funding round to expand its digital fashion offerings. The company provides over 3,500 digital clothing and accessory items for virtual worlds and AR. (source)

  • Khaite has secured investment from Stripes to expand its business. The company plans to open ten stores in the next five years. Since 2016, Khaite has achieved triple-digit growth and generated over $100 million in revenue. (source)

  • Simon Property Group announced a new $5.0 billion multi-currency unsecured revolving credit facility, replacing the existing $4.0 billion credit facility. (source)

  • Nimble Robotics raised $65 million in a Series B round led by Cedar Pine, a private investment firm, and included participation by DNS Capital, GSR Ventures, and Breyer Capital. The funding will be used to build a network of robotic fulfillment centers aimed at reducing warehouse space by up to 75%. (source)

  • Zurich-based firm Verity has raised $32m in a Series B funding round to expand its drone-based inventory tracking system. The firm's drones are already being used by Samsung, logistics firm DSV and IKEA's Swiss operation. (source)

  • Pet care startup Bundle x Joy has raised $1 million in seed funding to expand its footprint in retailers. The company offers curated product bundles of supplements and treats for dogs on subscription and is available in over 450 retail locations of Sprouts, Whole Foods, and some specialty stores. (source)

  • Mayan, a company that builds optimization and automation technology for Amazon sellers, has raised $5M in Series A funding led by Bright Pixel. (source)

  • Stripe has raised over $6.5 billion at a valuation of $50 billion for its Series I fundraise. (source)

🧐 Interesting reads

💡 Reports, research, and trends

🐦 Interesting Tweets

😋 Brands and things I’ve tried this week

Shout out to Shray for sending over some Kaged goodies - that morning workout got me GOING.

I also had the opportunity to try the new Ryl tea, which launched only recently and raised $6.7 million. Honestly it tasted great!

In the same Whole Foods haul I also got the brand new Nguyen RTD (yummy!), Zack’s Mighty chips (my favorite tortilla chips), Casa Verde salsa de elote, and Core’s new cookies.

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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