Express Checkout #19

Commerce news from the week of 3/27/2023

Author

Nate Rosen
April 03, 2023

Hello friends! I don’t know about you but last week was crazy. Between attending Shop Talk in Las Vegas, apartment hunting, and helping to produce Adgile’s upcoming podcast (it’s going to be a good one), it’s been a whirlwind!

Anyhoo, I want to start off by talking about Pepsi’s fresh rebrand! I think this is a huge upgrade from the previous multimillion-dollar rebrand that was introduced in 2008. Let us not forget the truly overdone document they produced going into too much detail about how they came to that logo.

The new one harkens back to some of the original Pepsi designs, there’s remnants of the late 60s logo and the logo from the early 70s to early 90s!

Personally I’m still a fan of the logo from the early 2000s, pre 2008 change. I think I’m just nostalgic for my childhood 🤷‍♂️

I can’t continue without mentioning some of the April Fool’s posts from brands that I enjoyed. And yes, I do enjoy these. It’s nice to see brands and marketing teams having fun!

I have to say my favorite was from Jibby, especially with Passover coming up this week. Incredible stuff!

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

Finally, I want to tell you about a new modern retail conference that I’m partnering with called Porte. Porte is a one-of-a-kind conference that brings together over 300+ brands, buyers, thought leaders, and retailers to forge new relationships and discuss the latest trends in the retail industry. The Express Checkout community is invited to Porte’s NYC conference set to take place on June 3rd, 2023 at Harlem Parish. Don’t miss out on the opportunity to apply for a free ticket by 4/20. And if you can’t wait, use FRIENDSOFPORTE2023 to get 25% to get your ticket now at a discounted price! Learn more and register here!!

🔥 Big News - 10 items or less 🔥

  • Sexual Wellness (finally) making it big - Maude will become the first sexual wellness brand to be offered in Sephora, one of the largest beauty retailers. This is a huge win for the intimacy category and for the brand’s founder, Éva Goicochea! Huge congrats! (source)

  • A step in the right direction - H&M has expanded their extended size assortment, featuring products that go up to 2XL in stores for ladies and men and up to 4XL online for ladies and 3XL for men. Size inclusivity, and inclusivity more broadly, is a big issue in fashion, so hopefully, this will bring more awareness and positive change to the industry. (source)

  • Jefferies needed some eye shadow - Forma Brands, the bankrupt owner of Morphe makeup, has been acquired by lenders Jefferies Finance LLC and Cerberus Capital Management for $690 million in debt relief. Forma Brands entered bankruptcy in January 2022 due to supply chain issues and reduced consumer demand for color cosmetics. (source)

  • SVB has its savior! - First Citizens Bank has acquired Silicon Valley Bridge Bank (SVB) with loss share coverage. Axios put together this great timeline of events leading up to SVB’s collapse a few weeks ago. (source)

  • Apple’s best product? - Apple has introduced a new feature called Apple Pay Later. This feature allows users to split purchases into four payments spread over six weeks, with no interest or fees. Users can apply for loans ranging from $50 to $1,000, which can be used for online and in-app purchases. The loans can be managed within Wallet. (source)

  • Banana Republic enters a new category - Banana Republic has launched BR Home, a new selection of premium bedding, rugs, pillows, and decor, exclusively created and curated by Banana Republic. The collection is available online and in select US stores. (source)

  • Bezos goes to the cinema - Amazon is reportedly considering acquiring the embattled theater chain AMC Entertainment, which has been financially impacted by the COVID-19 pandemic and Hollywood's shift to streaming services. Amazon could use AMC's theaters for marketing, cross-selling services, and data collection, while also providing a lifeline to the struggling theater chain. (source)

  • Walmart is done with Roblox - Walmart has quietly removed its advergame, Walmart Universe of Play, from the Roblox platform just six months after its launch. (source)

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

🛍 Retail

  • Several beauty and wellness brands, including Corpus Naturals, Mineral Health, Monastery, and Saint Jane allege e-tailer Standard Dose owes them money for inventory it purchased and has stopped responding to requests for payment. Some brands report the problem began last year, while others state they haven't been paid since 2021. Standard Dose has not commented on the allegations. (source)

  • Sephora reportedly plans to sell its beauty products on Zappos of all places, according to a webinar in which executives spoke about the new partnership. Sephora said that the Zappos opportunity would be offered to all the brands it sells and distribution will be handled by Sephora. Zappos customers will have access to Sephora’s Beauty Insider Program, and Sephora shoppers will be able to collect loyalty points at both retailers. Interesting… (source)

  • The Body Shop US is expanding its refill program to include makeup. Refill stations are now available in 800 stores globally, and The Body Shop US offers refill stations in 50% of its stores. (source)

  • Dollar General is introducing new store layouts called "Beauty Reinvention" in approximately 300 stores this fiscal year, with an expanded beauty section that includes new exclusive skin and hair product lines. (source)

  • J. Crew Group, which operates the Madewell and J. Crew brands, has undergone layoffs that impacted a small number of roles, according to a company spokesperson. (source)

  • Carvana opens its 35th "car vending machine" in Garden City, NY, offering customers the option to pick up their vehicle or have it delivered to their homes. This comes after they eliminated 2,500 jobs back in January and another 1,500 a few months before that. I still think these car vending machines are fun. Who doesn’t like a vending machine? (source)

  • Fortnum & Mason has opened a gin distillery in its flagship store in London, offering small-batch gins and other drink options. Customers can watch their bottles being filled and will be encouraged to refill them with future batches. (source)

  • Sprouts Farmers Market plans to stop distributing single-use plastic bags to shoppers by the end of 2023, with the elimination effort already underway in California at over 100 stores and set to expand to five more states next month. (source)

  • Ice Ice Baby! Southeastern Grocers partnered with Relocalize to introduce the world's first autonomous hyper-local micro-factory for ice production that aims to reduce greenhouse gas emissions, water waste, and plastic pollution. They also introduced Party Cubes, the world's first hyper-local, certified plastic-negative, packaged ice. (source)

  • Choice Market, a convenience retailer, plans to open at least five more Mini-Mart c-stores that rely exclusively on cashier-less checkout by the end of 2023, with further national expansion in 2024. The company's growth has been supported by a new Series A funding round. (source)

  • Lululemon's revenue surged 30% in 2022, but the purchase of connected-fitness platform Mirror resulted in a $442.7 million post-tax impairment charge in Q4. The business has almost been entirely written off, and Lululemon is considering a future of no longer producing the Mirror hardware. Lulu purchased Mirror for $500 million in June 2020. (source)

  • Parent company Walgreens Boots Alliance (WBA) is reportedly considering selling or floating UK retailer Boots by the end of 2023, in order to focus on its US domestic market. This would be the second time Walgreens has tried to sell Boots, having put the company up for sale in January 2022 with a price tag of around $8 billion. (source)

  • True Religion has partnered with Aurorae Group to expand into China, with plans to open 65 stores by 2026 and offer its products on major e-commerce marketplaces such as Tmall.com, JD.com, Douyin.com, and Dewu.com. A license agreement with Aurorae Group will cover both existing and new products developed specifically for the Chinese market. (source)

🛒 CPG & Consumer

  • Surprisingly not an April Fools prank, Nissin releases a breakfast ramen flavor to its famous Cup Noodles brand. I will be trying to source this and will update you all. (source)

  • Brands close their doors

    • New Age Eats, a California-based cultivated pork maker, has shut down due to financial problems including a substantial amount of debt, a lack of investment dollars, and no path toward commercialization. (source)

    • Portland-based food manufacturer Eliot's Nut Butters is shutting down due to a series of costly hiccups with various contract manufacturers, despite having its best sales year in 2022. (source)

  • 818 Tequila is now a B Corp business. Along with this, they have launched the "Buy a Bottle, Give a Brick" campaign with Sacred to donate one brick to local Mexican infrastructure projects for every bottle of 818 Tequila purchased. As a result, 818 Tequila has donated almost $400,000 to the Program. (source)

    • Other companies are also running similar programs, like Simple Vodka, which donates a whole meal to someone in need for every bottle sold!

  • Whipshots, a vodka-infused whipped cream created in collaboration with Cardi B and Starco Brands, has sold over two million cans since its release in December 2021. The brand is expanding across the US and is now available in 26 states, with plans to add more. (source)

    • Unfortunately, it’s not as tasty as it sounds…

  • Gainful has launched a customizable protein product at Target stores, allowing customers to create their own protein blends using 11 different Gainful products. This is yet another customizable DTC first brand to come to Target, Function of Beauty (haircare) and Hawthrone (body care) are two others. Gainful’s introduction to target feels like very natural extension of their DTC product. I think I’ll be a customer. (source)

  • Roar Organics, maker of delicious hydration drinks, has just released hydration powders called ROAR Plus. (source)

  • Une Femme wines have launched at Target! The young wine brand has been able to land some solid accounts - Delta airlines, Marriott Hotels, Sprouts, Caesars Entertainment (source)

  • Ohio-based Middle West Spirits is expanding its operations, creating a second plant with a 75,000-square-foot distillery, a grain recycling center, and a packaging and bottling facility. The expansion will create 80 new jobs and make the company one of the top ten whiskey and spirits producers in the US. (source)

  • Yishi Foods, a manufacturer of healthy oatmeal in Asian-inspired flavors, has launched two new flavors: Mango & Cream Oatmeal and Chocolate Chili Oatmeal. The new flavors join Yishi's existing lineup of Taro Bubble Tea, Matcha Latte, and Toasted Black Sesame. Congrats Lin and team!! (source)

  • Christina Aguilera has been named Co-Founder and Chief Brand Advisor of Playground, a sexual wellness brand that creates intimacy products. (source)

  • Modelo has launched a new line of Spiked Agua Frescas, a malt beverage available in four flavors with real fruit juice. Currently only available in Las Vegas as a test market. (source)

  • The FTC is investigating Southern Glazer's Wine and Spirits, the largest U.S. alcohol distributor, for possible violations of the Robinson-Patman Act and Section 5 of the FTC Act. The probe is in its early stages and the agency is seeking information on wine and alcohol sales by distributors and retailers around the U.S. (source)

  • Adidas and Beyoncé are ending their four-year Ivy Park partnership early due to creative differences and lackluster sales. Beyoncé will maintain exclusive rights, and the split highlights Adidas' inability to find a celebrity partnership as relevant as Yeezy. (source)

  • On the other side of celebrity partnerships, Lizzo has launched her own shapewear brand, Yitty, in partnership with with great success. The line includes bodysuits, smoothing shorts, tanks, unitards and more, and aims to transform the narrative around shapewear. Lizzo, who was involved in the design of every style, wants to bring a message of body positivity and self-love to the line. (source)

  • Blueland, a brand that specializes in refillable home care products, has achieved profitability in 2022 despite significant macroeconomic challenges. Kinda crazy this has to be news. But good for them! They’re a category leader and I’m glad to see them thriving. (source)

  • Logan Paul and KSI's sports drink, PRIME, has become the official sports drink of the Los Angeles Dodgers. This partnership follows their previous deal with the UFC and marks another step in the drink's exponential rise in popularity. (source)

  • Madhappy, a clothing brand that focuses on mental health, and Lululemon have partnered to create a new line of running gear. As usual with Madhappy products, it looks amazing. (source)

  • MìLà, formerly Xiao Chi Jie, has partnered with actor Simu Liu as Chief Content Officer and brand ambassador. (source)

  • Liquid Death, the canned water brand, has teamed up with NBA star Jalen Green to sell "Hoop Head" balls, which feature a severed head in place of a basketball. The balls are being sold for $125 (no thanks) and were designed by Will Carsola, creator of Adult Swim's Mr. Pickles. (source)

  • Pangaia, a material innovation company and fashion brand, and Natural Fiber Welding (NFW), an Illinois-based material innovation company, have launched a leather-like puffer vest called Air Gilet. This is the first ready-to-wear item featuring plant-based leather that can be made at scale. The vest is made from a newly reformulated and thinner version of Mirum from NFW, the plant-based leather alternative previously developed by Natural Fiber Welding. (source)

  • Proven has launched a new sister brand called Noteworthy which uses AI for personalized fragrance recommendations. Customers can take a 5-minute quiz to receive recommendations for four fragrances out of Noteworthy’s 17 total fragrances. (source)

  • Kiva Confections, a California-based cannabis edibles company, has partnered with burger chain Fatburger to release a limited edition cannabis-infused ketchup. The ketchup will contain 10mg of THC per packet and will be available for purchase at select Los Angeles locations beginning April 6th. (source)

🏭 Supply Chain

  • Optoro, a returns platform, has partnered with Gap Inc. to improve the customer returns experience and supply chain innovation for Old Navy, Gap, Banana Republic, and Athleta. (source)

  • Agility Robotics has introduced the latest version of Digit, a robot designed for logistics work that is adaptable to various workflows and easy to deploy into existing warehouse operations without expensive retrofitting. (source)

kinda cute, no?

  • Chewy is closing two old fulfillment centers in Pennsylvania and Nevada and moving operations nearby, as part of its automation initiatives. (source)

  • American Eagle Outfitters is launching AI-powered inventory-tracking technology in 500 stores across the US with technology platform Radar. The technology uses RFID and computer vision to track inventory accurately in real time. (source)

💻 eCommerce

  • Instacart is introducing new marketing solutions and loyalty capabilities for retailers to make online grocery shopping more personalized and affordable for customers. Retailers can serve targeted promotions to customers using the Instacart app or their Instacart Platform-powered websites and apps, and offer discounts when customers sign up for their loyalty programs. They’re one of the first marketplaces to offer native sign-up for grocers' loyalty programs. (source)

  • Newegg, a PC-focused web store, has integrated the ChatGPT AI system into its PC Builder tool, but the results have been underwhelming. The AI-generated builds have been expensive and often do not meet the requested specifications. (source)

💸 Funding, Exits, M&A, and VC

  • Rob's Backstage Popcorn, a savory snacking brand co-founded by The Naked Market and The Jonas Brothers, has raised $7 million in a series A round. The investment was led by Palm Tree Crew, with participation from Hershey, UTA Ventures, and several Hollywood A-listers. (source)

  • Smalls, a startup that makes human-grade food for cats, raised $19 million in a funding round that includes investment from Mars and General Mills. Smalls' sales were in the eight figures in 2022 and have typically doubled year-over-year since its launch in 2017. (source)

  • Per a Snaxshot post and further confirmation from the founders, Pineapple Collaborative has been sold to Fresh N Lean, an organic prepared meal delivery service in the US. (source)

  • Estée Lauder's New Incubation Ventures has invested in British fragrance brand Vyrao. The funding will be used for marketing, advertising, and supporting retailers in the US, Australia, and Japan. (source)

  • Active recovery footwear brand Oofos has completed a funding round led by Derek Carr, Alex Smith, and Dawn Staley. (source)

  • Private-equity firm AUA has acquired US meat-snacks manufacturer Western Smokehouse for an undisclosed amount. (source)

  • Femtec Health, the owner of Birchbox, is looking to sell the beauty subscription service along with three other businesses in its portfolio. The sale memo includes intellectual property for Femtec and Birchbox, encompassing nine global patents, 40 trademarks, customer and vendor lists, and social and digital media assets. Birchbox has not shipped products since October 2022…yikes (source)

  • CULT Food Science Corp. has agreed to acquire Because Animals Inc.'s consumer brand assets and patents to develop and commercialize cultivated pet food products. (source)

  • WPP has acquired Obviously, a social influencer marketing agency based in New York, with operations in San Francisco and Paris. (source)

  • Two Boxes has launched with $4.5 million in seed funding, led by Vinyl Capital. The company provides a more intelligent and efficient way for brands and 3PLs to process returns. (source)

  • Superfiliate, a platform that transforms affiliate links and referral codes into personalized shopping experiences, has raised $3M in seed funding led by Hawke Ventures and Vanterra Ventures. (source)

  • Bluestar Alliance has acquired Scotch & Soda, a Dutch fashion brand, for an undisclosed amount. The brand just last week announced it had filed for bankruptcy. (source)

  • British intimate care brand Luna Daily is set to launch in over 260 Sephora stores in the United States after raising $3.7m in a seed round from Redrice, Joyance and Velocity Juice as well as angel investors. (source)

    • With this an Maude, clearly Sephora is ready to make a positive change

  • Gen Phoenix, formerly known as ELeather, has raised $18 million in funding from investors like Dr. Martens, Jaguar Land Rover, and Tapestry. (source)

  • Authentic Brands Group has offered to buy Boardriders, the parent company of several action sports and lifestyle brands including Quiksilver and Billabong. deal is expected to be completed in Q3 2023 and is subject to certain conditions and approvals. (source)

  • Texas-based Kent Kwik Convenience Stores will acquire Tom Thumb Food Stores, a family-owned convenience-store chain with 14 company-operated stores and three Subway franchise locations in South Florida. (source)

  • Wildpack Beverage Inc. has announced a 12-month secured term loan of $20 million and a security agreement with Manna Capital Partners. Wildpack provides sleeving and labeling, co-packing, and packaging sales for beverage brands. (source)

🧐 Interesting reads

💡 Reports, research, and trends

🐦 Interesting Tweets

😋 Brands and things I’ve tried this week

This week I went to H Mart and got a couple snacks. My favorite would have to be either the shelf-stable peach mochi or the peach drink. Must have a thing for peaches this week…

I also picked up what seems to be a new SKU from Sol-ti, an Energy+ SuperShot. To be honest, I bought it because of the square bottle. Freaking love square bottles!

But it did taste great and wasn’t too pricey! Would buy again.

And finally a shout out to Tai Adaya the founder of HABIT for sending me her sunscreens to try!

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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