Express Checkout #20

Commerce news from the week of 4/03/2023

Author

Nate Rosen
April 10, 2023

Hello!

I hope everyone has had a lovely Passover and Easter. I spent Passover Seder this year with family in the Philly area. Of course, I had to stop off at a Wawa, one of the best places on planet Earth, mostly because of the wall of Tastykakes (which I didn’t eat because they’re not kosher for Passover 👀)

The biggest news this week, which has seemingly been a long time coming, was the acquisition of famed luxury personal care brand Aesop by L'Oreal (source) for around $2.5B. Not a bad deal for a brand loved by many. Though a lot of those “many” probably have the element Brooklyn dupe refill and just kept the bottle 🤫. Aseop will be joining L'Oreal's Luxe Division of brands including Kiehl's, Youth To The People, Urban Decay, and Lancome. This acquisition fits right in line with L’Oreal’s other portfolio companies, including tried and true companies like Cerave and La Roche Posay.

I just hope it means I can finally get a discount on Aseop. It’s great stuff but so pricey!

Also, you can find me sharing my thoughts on Truff’s latest collaboration with Super Mario Bros Movie and brand collaborations in general in this Modern Retail article!

And speaking of collaborations, this new Talea x Tony’s Chocolonely beer looks dreamy! Talea simply nails their collab beers.

via Talea’s Instagram

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🔥 Big News - 10 items or less 🔥

  • I guess I’ll stick with Costco - Boxed, Inc. has filed for Chapter 11 and will sell its Spresso software business to its first lien secured lenders while winding down its remaining retail operations. (source)

  • Fanta Fanta, don’t ya wanta - Coca-Cola has unveiled a colorful new global brand identity for Fanta. The last refresh was in 2016.

    The branding was created by Jones Knowles Ritchie who also did the branding for Magnolia Bakery, Burger King, Dunkin’, Hippeas, Budweiser, and more. Looks pretty good! It’s interesting that they released this right after the Pepsi refresh. (source)

New logo on right (via The Dieline)

  • Mom, the fast-casual restaurants are fighting - Sweetgreen has renamed its "Chipotle Chicken Burrito Bowl" to "Chicken + Chipotle Pepper Bowl" as part of a tentative agreement with Chipotle to resolve a trademark infringement lawsuit. (source)

  • Fast-beauty - H&M Beauty is opening its first global flagships in Oslo in 2023, offering an upgraded in-store experience with a wide selection of beauty products, including Huda Beauty. The stores will have their own entrances and will offer beauty bars, inspirational products, and in-store beauty advisers. (source)

  • Preventing a rash - Johnson & Johnson has agreed to pay $8.9 billion over 25 years to resolve talc claims against them. The company's subsidiary, LTL Management, has re-filed for Chapter 11 bankruptcy protection. J&J still maintains its talcum powder products are safe. (source)

  • Getting back to the beyond - Bed Bath & Beyond has partnered with ReStore Capital on a $120 million lifeline to get some inventory back on the shelves. They’ve been struggling to stock its shelves after its vendors tightened their credit terms, cut limits and required prepayments before agreeing to fulfill orders. (source)

  • A new VC firm launches - Erin and Sara Foster have launched Oversubscribed Ventures, a VC firm focused on early-stage consumer tech. The firm has already invested in six companies, including bachelorette party planning app Bach and boxed wine company Juliet. (source)

  • (Properly) Get rid of that old flip phone - Best Buy has launched a new nationwide program that allows customers to recycle old electronics by mail, with prepaid boxes. (source)

    • I’ve used a similar service in the past through Nimble, which makes charging accessories.

🗞️ News from the week (4/03/23 - 4/09/23)

🛍 Retail

  • REI will make the switch to source locally generated renewable energy for all 181 of its stores. (source)

  • Ikea has launched a new service called As-is for its Ikea Family members. This service allows customers to reserve gently-used products online and pick them up in-store. This is part of the company's larger sustainability efforts which include a buy-back and resell program and a goal of becoming a circular business by 2030. (source)

  • Walmart has partnered with racquet sports booking platform Break the Love to offer 125,000 free reservations for Walmart customers and associates at pickleball venues across the US. (source)

  • Ralph Lauren has opened a concept store in Miami that accepts cryptocurrency payments through a partnership with BitPay. The store will also host a series of "innovative and immersive moments" as part of Ralph Lauren's Web3 push, including gifting Poolsuite members an NFT that unlocks access to an exclusive in-person event. (source)

  • Hy-Vee has opened its first Hy-Vee Health infusion clinic in West Des Moines, Iowa. The referral-based clinic offers treatments for various chronic conditions and features private and group infusion rooms. (source)

    • I think we’re going to see even more retailers get into the healthcare space. Hell even Best Buy has pushed into that category. Healthcare is positioned to be one of the biggest, if not the biggest, industry in the US.

  • Walmart has announced plans to add thousands of new electric vehicle fast-charging stations to its stores across the US by 2030. (source)

  • In other Walmart news, the retailer has announced that it will be cutting over 2,000 jobs across five e-commerce warehouses in the United States. This move comes as the company announced plans in March 2023 to eliminate hundreds of jobs at its e-commerce fulfillment facilities across the country. (source)

  • The Massachusetts Attorney General's Office issued $6.2M in citations against Gopuff for employee misclassification and other labor violations. Gopuff failed to prove its workers were independent contractors and failed to provide suitable paystubs and sick leave policy for its delivery drivers. (source)

🛒 CPG & Consumer

  • The delicious Undercover Snacks has announced that its products are now available at over 3,000 Walmart stores nationwide. There’s even a Walmart exclusive flavor, Chocolate + Sprinkles! (source)

  • Ritual, a vitamin brand, now offers four products available at Target. They also sell their products on their own website and have previously entered retail at Whole Foods and Amazon, earning over $100 million in net sales. (source)

  • Crocs launched "Customize Your Crocs," a program that allows organizations to customize bulk orders of Classic Clogs and Jibbitz charms with their own colors, graphics, and logos. What would you put on your crocs?? (source)

  • Blue Apron and DashMart by DoorDash have expanded their partnership to make Blue Apron's Heat & Eat meals available in 11 markets, including New York City. (source)

  • Lodge Cast Iron has partnered with Old World Spice to offer Skillet Cornbread mixes in four varieties. This is Lodge’s first CPG product to market. (source)

  • Frito-Lay and Quaker have opened a Learning Center in a greenhouse at PepsiCo's Texas R&D headquarters to field test different biodegradable packaging options. The Learning Center will be an educational resource and will help PepsiCo achieve its goal of making all its product packaging recyclable, compostable, biodegradable, or reusable by 2025. (source)

  • Starbucks is introducing new ready-to-drink (RTD) beverages, including the famous Starbucks Pink Drink, which will be available in grocery stores nationwide. Starbucks RTDs are part of the the North American Coffee Partnership, a joint venture between Starbucks and PepsiCo. (source)

    • This is great timing for Starbucks, as it feels like we’re at another height of people trying to recreate iconic Starbucks drinks at home.

  • Celebrities and their booze

    • Hip-hop artist Nelly has launched a new moonshine brand called MoShine. The product comes in two flavors, peach and passion fruit, and is triple-distilled and corn-based. (source)

    • Jennifer Lopez has launched her own boozy RTD drinks, The House of Delola. Their first release, "DELOLA SPRITZ," is available in three original cocktails and will be sold in store and on-premise beginning in April. Beam Suntory - who owns brands like Jim Beam, Maker's Mark, On The Rocks cocktails, and Pinnacle Vodka - is a minority investor and global distribution partner. (source)

    • Although not as well-known as the previous two, Jon Taffer, an entrepreneur and TV personality famous for his show "Bar Rescue," has launched a new whiskey brand called Taffer's Browned Butter Bourbon. (source)

  • Pressed and Barry's have partnered to launch two limited-edition post-workout recovery products, available online and at all locations nationwide. (source)

  • Tea Drops has launched at-home tea latte and bubble tea kits, available exclusively at select Target stores nationwide. (source)

  • Molson Coors has launched Barmen 1873 Bourbon, its first true bourbon offering, named after the Coors family's German hometown and the year Coors Brewing launched. This move builds on Molson Coors’ broader goal to expand its portfolio beyond beer to include other beverages such as energy drinks, THC beverages, hard seltzers, and other RTD cocktails (source)

  • Martinis on-the-go

    • Grey Goose has launched a RTD classic martini, of course, made with their vodka, dry French vermouth, and a dash of orange bitters. The 750ml bottle contains eight to ten servings. (source)

    • If vodka isn’t your style, Tip Top Proper Cocktails has launched a RTD Gin Martini made with dry gin and vermouth, and designed to be served straight from the can or in a coupe glass. (source)

  • Tillamook, a dairy brand, and New Seasons Market, a grocery retailer, are partnering on a regenerative agriculture project to cut carbon and protect on-farm ecosystems in Tillamook County. They will plant native vegetation on regional dairy farms to sequester carbon, protect water quality, and provide wildlife habitat. (source)

  • Kentucky has passed a bill to phase out the tax on aging barrels of spirits. The tax has been paid by the industry for over 50 years and the Kentucky Distillers' Association has obviously welcomed the move. The tax will be removed over the next 20 years, giving local governments time to diversify their tax bases. The Kentucky Bourbon industry generates $9 billion for the state's economy and sustains over 22,500 jobs. (source)

  • Dolce & Gabbana has partnered with Saudi-based property developer Dar Global to launch a high-end hotel in the Maldives, with no completion date yet announced. The Italian luxury label has also revealed plans for residential ventures in Miami and Marbella. Other luxury brands such as Bulgari, Dior, and Giorgio Armani have also entered the hospitality industry. (source)

  • The Laundress has issued another recall, this time for 800,000 units of its Fabric Conditioner products. The recall is due to the products containing a carcinogen. Consumers who have purchased the recalled products should stop using them and contact The Laundress for a full refund. So far, no incidents or injuries have been reported. The recalled products were sold online and in stores nationwide from 2011 through November 2022. (source)

  • Julie, an emergency contraception provider, has doubled its retail footprint by entering 5,600 CVS locations and 1,500 Target locations in addition to its initial rollout in 4,500 Walmart stores. The brand only launched in September 2022. (source)

  • Kontoor Brands, the parent company of Lee and Wrangler, has launched Global Design Standards to guide designers and product developers in reducing the environmental and social impacts of its denim brands. The standards focus on preferred materials, low-impact fabrics, and low-impact finishing, and will be a company-wide effort. They’ll launch a consumer-facing element, identifying products that meet the standards later this year. (source)

  • Streetwear brand WaveyBaby has sued MSCHF over its Wavy Baby sneakers, alleging that the art collective refused to settle when sent a cease-and-desist letter. This isn’t MSCHF’s first time in legal battle with a shoe company, they fought with Nike over the Lil Nas X shoe. (source)

  • Sephora adds chocolate supplement brand Sourse to its ingestible wellness offerings, focusing on its beauty options, including Skin Glow Bites and Hair Grow Bites. Sourse is the first chocolate-based brand to enter Sephora. (source)

🏭 Supply Chain

  • UPS is opening a new $79.5 million, 40,000 sq ft sorting facility at Tampa International Airport in Florida to better support its Next Day Air deliveries. (source)

  • FedEx is consolidating its operating companies into one organization to improve efficiency, meet evolving customer needs, and reduce costs by $4 billion by 2025. This transition will bring all FedEx operating companies into Federal Express Corporation, creating a unified air-ground network under the FedEx brand. (source)

  • United Natural Foods Inc. (UNFI) has leased a 1.3-million-square-foot distribution center in Manchester, Pennsylvania packed with technology and automation solutions to enhance their network capacity. (source)

  • Kroger announced a new delivery station in Austin, Texas that will use robots to pack orders and deliver groceries directly to customers' doors, working with the company's Dallas fulfillment center. (source)

  • Diageo is closing its Baltimore plant by June, resulting in the layoff of 97 employees. The closure is part of the company's efforts to boost efficiencies and cut expenses. (source)

    • Many CPG companies have been doing the same over the past few months. Tyson, McCormick, Misfits Market, and more.

  • Nissin Foods USA (maker of Top Ramen and Cup Noodles) has invested millions in its Lancaster, PA manufacturing facility to increase output of its instant ramen products by 15%, in response to growing consumer demand. Nissin has also launched the "Manufacture with Green Energy" initiative, with plans to supplement electricity used in its manufacturing process with renewable energy. They’re even offering EV parking at the plant for their employees. (source)

💻 eCommerce

  • Obsess, an experiential e-commerce platform enabling brands to create immersive 3D virtual stores, has launched AVA, a self-serve virtual store builder, that enables brand teams to create and customize virtual stores using proprietary 3D editing and rendering technology. (source)

  • Poshmark has launched Posh Shows, a peer-to-peer livestream shopping program that allows any user to live stream their items with a live auction. It has been used by over 100,000 users since the beta phase launch. (source)

  • ThredUp, an online thrift and consignment shop, has launched a Fashion Footprint Calculator, which helps consumers gauge their environmental impact. (source)

💸 Funding, Exits, M&A, and VC

  • GoodBelly maker NextFoods has acquired Cheribundi, a functional tart cherry juice for an undisclosed amount. The two brands will retain their own branding and audiences. (source)

  • Hype, a marketing and payments platform for creators and small businesses, has raised $10M in Series A funding led by King River Capital. (source)

  • S2G Ventures has launched a $300 million Special Opportunities fund to provide flexible financing for social and environmental impact startups working in capital-intensive, asset-oriented industries including agriculture, energy and oceans. (source)

  • Staytuned Digital has raised $34 million in equity and debt from TenOneTen, Rembrandt VC, Hawke Ventures, and Tacora Capital to continue developing a software suite for e-commerce brands, with a focus on the Shopify ecosystem. The company has acquired seven apps and is working with over 28,000 customers. They aim to become the "Salesforce suite for e-commerce stores.” (source)

  • Curbside drive-thru grocer JackBe has raised $11.5 million in capital from various individual investors and strategic partners such as GP Investments, LLC, as well as a successful WeFunder campaign to expand its business. The company offers customers the ability to place an order anytime and anywhere, and to pick up when they want. It is also the only grocer that guarantees no substitutions 100% of the time. (source)

  • Babylon Micro-Farms has raised $8 million in Series A funding led by Venture South with participation from Virginia Venture Partners, Hull Street Capital, and New Theory Ventures to expand its remotely-managed vertical farming technology business. (source)

  • Chicago-based Aqua Cultured Foods raised $5.5 million round led by Stray Dog Capital with participation from H Venture Partners, Aztec Capital Management, and Amplifica Capital, with follow-on investment from current investors to expand its low-cost production platform for whole cuts of fungi-based seafood as it gears up to enter the market this year. The startup can make multiple seafood alternatives with its fungi-based platform. (source)

  • French dairy conglomerate Danone invested $2 million in Wilk, an Israeli startup that developed cell-based technology for cultured human breast and animal milk, to collaborate on developing cultured breast milk components for infant formula. (source)

  • Greek biscuit maker Olyra Foods raised $4 million led by Bimbo Ventures, the investment arm of Mexican multinational food company Grupo Bimbo, which now owns a roughly 30% equity stake to expand its retail presence in the breakfast category. They plan to hire a director of marketing and invest in digital presence. (source)

    • This is one of the few snacks I consistently have in my pantry. It’s basically an upgraded BelVita

  • Dokkaebier, the Asian-inspired craft brewery, announced that it has acquired Federation Brewing for an undisclosed amount. (source)

  • InvestBev has announced the closing of its Fund IV at $45 million, which will focus exclusively on investing in new fill and aging spirits while still in barrels. The fund is led by Managing Partner Brian Rosen and CIO Giuseppe Infusino. (source)

🧐 Interesting reads

💡 Reports, research, and trends

🐦 Interesting Tweets

😋 Brands and things I’ve tried this week

One of my favorite things about Pop Up Grocer having a permanent location in NYC is I can easily get my friends fun little goodie bags. Sometimes I do this in lieu of wine when coming for dinner 🙂 This weeks haul had some goodies!

Strawberry Chuza, Lexingtion Bakes, and some Outstanding Foods cheese balls.

I also tried the two new Olipop flavors, snagged them at Whole Foods. And also Hal’s, which is simply the best.

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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