Express Checkout #18

Commerce news from the week of 3/20/2023

Author

Nate Rosen
March 26, 2023

Hello from Las Vegas!

I’m in town for the next couple days for Shoptalk on behalf of Kustomer! If you’re around I’d love to say hi.

Last night I had a chance to go to the Meow Wolf’s Omega Mart experience with Jess Cervellon and Zoe Kahn of The Oopsie Podcast! It was truly something! Weird and funky is the best way I can describe it. It felt like if the creators of Portal wanted a physical real world experience.

As of writing this from my hotel room, I’m just a touch over 800 subscribers!! Thank you all for reading and supporting this endeavor. And with that little milestone met, I’ve started to make some small changes to Express Checkout, starting with an updated logo!

Shoutout to Andrew Bly for creating this new logo for me! Andrew runs ACB, a strategic packaging design/branding agency, and has worked on some amazing brands like Fabalish and Ithaca Hummus' new salsa! If you need any branding work done definitely hit up Andrew!!

Those who are close to me know I love bourbon and whiskey. And more importantly, I love going to distilleries. The last one I went to was Maker’s Mark in Kentucky and I think I found the next one on my bucket list (once it opens). Blue Run Spirits announced this week their Apple campus-esque new distillery and HQ in Georgetown, Kentucky (source). It will encompass a 35,000-square-foot distillery and a 20,000-square-foot rickhouse (a whiskey storage warehouse). LOOK AT THIS THING! It’s gorgeous!

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

🔥 Big News - 10 items or less 🔥

  • This is Genius - Heinz and Absolut have collaborated to create a tomato vodka sauce. The sauce is available for a limited time in the UK at Waitrose (sorry Americans) and is available for pre-order now. (source)

  • Going green-er -Allbirds created a zero-carbon shoe, the "M0.0NSHOT," using carbon-negative materials. It apparently has a carbon footprint of 0.0 kg CO2e and Allbirds plans to use the methodology and manufacturing processes from the Moonshot in other products. (source)

    • Will this be helpful or is simply making fewer products the way forward? Personally, I’m hopeful that their process can be shared with a larger manufacturer like Adidas. Only time and consumer dollars spent will tell.

  • Never-ending Layoffs

    • Amazon plans to eliminate about 9,000 more positions in AWS, PXT, Advertising, and Twitch in the coming weeks. (source)

    • Walmart is laying off hundreds of workers at five U.S. e-commerce fulfillment centers. (source)

  • Chipotle is making bets - As part of its Cultivate Next venture fund, Chipotle has invested in Local Line, a food sourcing platform, and Zero Acre Farms, makers of cultured oil. (source)

  • Consumer brands for the win - The Family Fund & Founder Community (F3C) has announced a $25 million fund to invest in late-seed and Series A consumer brands. The general partners included industry vets Kurt Seidensticker, founder of Vital Proteins; Sean Kelly, founder of SnackNation; and Josh Wand, founder of Forcebrands. F3C has made nine core investments to date in brands including Hopwtr and Ghost. (source)

  • Does peanut butter go with whiskey? - French distiller Pernod Ricard bought a majority stake in American peanut butter whiskey maker Skrewball. (source)

  • A win for meat from cells - GOOD Meat, the cultivated meat division of Eat Just, has become the latest yet another startup to receive a 'no questions' letter from the FDA affirming the safety of its process for growing chicken from cells. (source)

  • Restaurant to retail continues to grow -

    • Magnolia Bakery is following in the footsteps of its fellow NYC bakery, Milk Bar, by entering grocery stores for the first time with its Banana Pudding Cookie. The cookies come in three varieties and will be sold at Fresh Market and Harris Teeter locations across the US, as well as on Amazon. (source)

    • David Chang's Momofuku Goods has raised $17.5 million in growth funding to expand its product offerings and support its growing operations. (source)

  • Pepsi doing some good - PepsiCo is investing $216 million in partnerships with three farmer-facing organizations – Practical Farmers of Iowa (epic name), Soil and Water Outcomes Fund, and the IL Corn Growers Association – to drive adoption of regenerative agriculture practices across the US. (source)

  • Retail 🤝 healthcare - The oral health company quip has partnered with Walmart to offer virtual dental care services. These services include live video consultations with dentists, which are covered by most insurance or cost $35 out of pocket. (source)

🗞️ News from the week (3/20/23 - 3/26/23)

🛍 Retail

  • Pop Up Grocer has announced an in-store loyalty program. Customers who shop at their flagship store will earn 4% cash back for future purchases for every dollar spent. (source)

  • Foot Locker has announced plans to close 400 stores in North America by 2026 as part of a rebranding effort, focusing on strengthening standalone stores and new concepts. (source)

  • Uniqlo plans to open 20 stores annually in North America over the next four years, aiming for 200 stores in the region. (source)

  • Dollar General opened its first store outside the US in Mexico, with plans to open up to 35 stores by the end of fiscal year 2023. The new store offers affordable household essentials, financial services, a bakery, and a tortilleria, with products sourced primarily locally. (source)

  • Panera Bread will implement Amazon One checkout technology where customers will be able to make purchases by scanning their palm, without the need for credit cards, loyalty cards, or mobile devices. Would you be comfortable using this? (source)

  • DoorDash has announced new partnerships with retail stores, including Lush Cosmetics, Victoria's Secret, and Party City, to offer on-demand delivery of their products. They also added new features including flexible delivery options, optimized search and discovery, and better communication with Dashers. (source)

  • Giant Food has partnered with Maryland-based chain Nalley Fresh to open its first in-store fast-casual restaurant at its Ellicott City, MD location. (source)

  • A bill allowing grocery stores to sell wine in Connecticut has died in committee. Liquor laws in the US are so weird. (source)

  • Ollie's Bargain Outlet Holdings, Inc. has reported its financial results for the fourth quarter and fiscal year 2022. The company's net sales for the quarter were $549.8 million, up from $501.1 million in the previous year. They plan to open 45 stores this fiscal year and expand their distribution centers to support over 700 stores. (source)

  • Scotch & Soda has filed for bankruptcy in the Netherlands due to cash flow issues. (source)

  • Kohl's announced the locations of the next 250 stores that will be opening up the large 2,500-square-foot Sephora shop-in-shops in 2023. They also plan to open 50 smaller-format Sephora shops by the end of the year. (source)

🛒 CPG & Consumer

  • Health-Ade has partnered with the Los Angeles Dodgers to offer its new line of canned kombucha at Dodger Stadium. (source)

  • Hydro Flask has launched a trade-in program in the US for customers to return old, unwanted and non-functioning Hydro Flask products in exchange for redeemable store credit. Customers will receive a unique promo code of $5.00 for each used Hydro Flask product returned. (source)

  • Funky Mello, a maker of plant-based marshmallow cremes, has launched a new sweet and salty snack pack called Dippsterz. The product pairs FitJoy’s gluten-free pretzel sticks with vanilla-flavored fluff formulated with aquafaba, and is free from the top eight allergens. (source)

    • Funky Mello is one of my favorite products, tastes so good!

  • The FDA has granted generally recognized as safe (GRAS) status to FiberSmart, a sweetener made from tapioca starch. The ingredient is over 90% dietary fiber, 20% as sweet as sugar, and has a low glycemic index. It can be used as a potential substitute for maltodextrin. (source)

  • Veso, a natural aperitivo brand from San Francisco, has partnered with California wine distributor Revel Wine to expand distribution throughout the state. (source)

    • Congrats Chris!!

  • YouTuber Jacksepticeye (29.2M subs) has re-introduced his Top of the Mornin' coffee brand. Congrats Hugh and team! (source)

  • The Pickle Juice Company has announced its expansion into the European market available for purchase online through Poppin Candy, the world's largest online food and beverage company. (source)

  • Canned mimosa company Ohza is expanding its reach through partnerships with major U.S. retailers, including Walmart. Ohza will begin rolling out to Walmart shelves starting in April 2023. (source)

  • New brands in Ulta

    • Boka, a personal care brand has entered the retailer both online and offline (source)

    • Beauty and wellness brand Golde has also entered Ulta Beauty (source)

  • Beauty brand Winky Lux has expanded into Canada through a partnership with Shoppers Drug Mart. (source)

  • Custom hair color brand eSalon is launching its Personal Colorist Kit in over 1,900 CVS stores nationwide. (source)

  • Diva International, the company behind the Diva Cup, has rebranded and launched a new product, the Diva Disc, to celebrate its 20th anniversary. The company's products are sold in 40 countries and 20,000 North American retail doors. (source)

  • Levi's is partnering with Lalaland.ai to develop AI-generated models that represent diverse body types, ages, sizes and skin tones. (source)

  • Parade has launched its first swimwear collection, featuring two one-piece styles, three bikini tops and four bottoms. (source)

  • Luxury consignment site The RealReal is winding down its beauty business to focus on its core business. The company will continue to sell existing inventory but will not be restocking anything once sold. (source)

  • ADM, a global food processing company, has launched Knwble Grwn, a brand of direct-to-consumer ingredients sourced from farmers who use regenerative agriculture practices. The brand aims to expand ADM's consumer products portfolio while reducing its greenhouse gas emissions. (source)

  • Petco has partnered with Freshpet to offer customized, refrigerated meals for dogs through a meal subscription plan available on petco.com. (source)

  • Fragrance brand Snif has partnered with Prince to launch a fragrance called Ace Ace Baby, along with co-branded apparel. David Grutman, Prince’s creative director, has been working hard to bring the tennis brand off the court through similar partnerships, such as with Vacation Inc. (source)

Looking good!

🏭 Supply Chain

  • Alcohol distributor RNDC has filed a counterclaim against spirits conglomerate Sazerac alleging misconduct and claiming Sazerac tried to work outside the 3-tier system. Sazerac had previously filed a lawsuit against RNDC claiming unpaid invoices and unprofessional conduct. (source)

  • MDS Foods, a cheese manufacturer based in Ohio, is investing nearly $9 million to expand its operations in Tennessee. The expansion will add new cheese production lines and cooler space for distribution. (source)

  • Tyson Foods is investing $70 million to build a new hatchery in Hope, Arkansas, which will triple capacity and replace the existing facility. (source)

  • Maersk is piloting BionicHIVE's SqUID automated solution for warehouse management at its California facility. The system sorts, selects, and puts away packages automatically. (source)

  • JD Logistics US has opened its third self-operating warehouse in California, expanding its footprint to over 1.3 million sq ft of warehousing space, providing omnichannel fulfillment services, and it uses a container transport unit robot system. (source)

  • Irish drone delivery company Manna Aero plans to expand to mainland Europe and the US in 2023, targeting dense urban centers. They have already completed over 100k deliveries in Ireland and are trending to hit over 1k deliveries per day. (source)

  • Walmart and Packsize have collaborated to create the Ultra5, a right-sized, on-demand box machine that can produce up to 600 boxes per hour. It minimizes the costs and environmental impact of unneeded corrugated box material. (source)

💻 eCommerce

  • DoorDash has added a cash on delivery option to its DoorDash Drive platform, allowing customers to pay in cash for eligible first-party orders. (source)

  • Snapchat is now offering its augmented reality (AR) capabilities to enterprise customers through its AR Enterprise Services (ARES) product. ARES offers four key functionalities, including AR try-on, 3D viewer, fit and sizing recommendation technology, and enterprise manager. (source)

  • Athletic apparel brand Vitality has partnered with recommerce solution provider Recurate to launch a peer-to-peer resale marketplace called Vitality Revitalized. (source)

  • DejaWooo, a new search engine for pre-owned luxury fashion, has launched. The platform combs through over 1 million luxury products from over 3,000 brands listed on various online resale platforms. (source)

  • Flash, an India-based startup founded by a former Flipkart executive, has created an app that lets users create an email ID with a @flash.co domain that can be used on all shopping platforms. It also lets users connect it to their Gmail, so the app can build a summary of their orders in the last 12 months and show a report of their e-commerce expenses. Flash is planning to launch in the US this year. (source)

    • Depending on execution, this app could be a good competitor to the Shop app, and an interesting app overall.

  • Amazon appears to be considering the release of a new web browser, according to a user survey that asked detailed questions about browser features. (source)

  • Instacart Health has announced several new initiatives to promote healthy living and expand access to nutritious food (source)

    • New Technologies for Health Care Providers

    • Industry-First Ads Capability for Fresh Produce

    • Cutting-Edge Food as Medicine Research

💸 Funding, Exits, M&A, and VC

🧐 Interesting reads

💡 Reports, research, and trends

🐦 Interesting Tweets

😋 Brands and things I’ve tried this week

Huge shout out to Brett Fuss and the Pereg team for sending out this box of amazing seasonings! Pereg is a brand I grew up with, it’s always in my pantry.

I got to try one of the new Mr Beast Feastables bars, the new Deez Nuts bar which has peanut butter in it. Not too bad, though definitely not my favorite chocolate bar.

Thank you Brian Folmer for sending over a FirstLook VC box! For those unaware it’s basically Shark Tank in a box. If you’re a VC or angel investor you should explore signing up!

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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