Express Checkout #21

Hello to now over 1,000 of you!! 🎉 🎉 🎉

I am so grateful to so many of you who have helped me reach this milestone. Thank you for reading, sharing, and encouraging me! Your support means everything, and I am so happy to continue bringing you the latest news and insights in the world of CPG and commerce every week! I plan to do so much with this, I’m pumped! Thank you so much for your continued support!

Now, I gotta know, has anyone tried the Starbucks Oleato olive oil drink yet? Can you confirm if it does make your tummy hurt more than a regular cup of joe?? Apparently it’s making people’s stomachs pretty upset 😬

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

Don’t forget, as a reader of Express Checkout you can get 25% off your ticket to Porte, a new modern retail conference I’m partnering with, happening June 3rd at Harlem Parish in NYC. All you have to do is use code FRIENDSOFPORTE2023. And don’t miss out on the opportunity to apply for a free ticket by 4/20! Learn more and register here!

Now on to the news of the week!

🔥 Big News - 10 items or less 🔥

• Bonobos sells - Walmart has sold menswear brand Bonobos to brand management firm WHP Global and Express in a $75 million deal. This is the second time this year Walmart has offloaded a direct-to-consumer brand that it bought under their former e-commerce President Marc Lore. Walmart originally purchased Bonobos in 2017 for $310 million while it was attempting to grow its online presence and compete with Amazon. (source)

  • This partnership makes way more sense. From an outside perspective, Walmart barely touched the clothing brand, kinda just let it sit. But as someone who has purchased from Bonobos in the past, I’m excited to see where it will grow under this new ownership. They have excellent products. I even got my wedding suit from Bonobos!

• No more free returns - Amazon is introducing a $1 return fee, marking a shift from their earlier free return policy. Retail experts say this move was inevitable and long overdue. The return fee is directed towards customers who are "gaming the system" and is not expected to cause significant changes in consumer behavior. (source)

  • Amazon did issue a statement the day after the news broke in a post entitled “Yes, you can still get free returns on Amazon—here's how”

• A fall from grace - Tupperware's stock value dropped 50% after warning of possible bankruptcy. The company is considering layoffs and reviewing its real estate portfolio to cut costs. It has been struggling to grow sales and compete with newer (and often less expensive) brands like Oxo, Pyrex, and Ziploc. (source)

• Another rebrand from JKR - Jones Knowles Ritchie has updated the Nordstrom Rack brand, drawing inspiration from the 70s and 80s to create a more distinctive visual identity. The refreshed brand will launch in spring 2023 across new and reworked stores. JKR announced their rebrand of Fanta just last week, they're on a roll! (source)

  • I hope they make their stores as welcoming as they made their new brand identity

• Don’t lie now - The FTC has warned almost 700 marketing companies that they’ll face civil penalties if they can’t back up their product claims with reliable evidence. Companies must have a reasonable basis to support objective product claims and to deter them from making deceptive claims in the future. Here’s the full list of affected brands. (source)

• Apple goes to India - Apple is set to launch its first retail stores in India, with stores opening in Mumbai on April 18 and in Delhi on April 20. Despite the limited market for high-end smartphones and laptops in India, Apple sees potential for growth in the country, which is the world's second-largest internet market. The company is also working on turning India into a key global hardware manufacturing hub. (source)

• Out of bankruptcy - Forma Brands, the parent company of Morphe, has emerged from bankruptcy and named a new CEO, Cliff Moskowitz. The acquisition was completed by a group of investors, including venture capital firm &vest, Jefferies Finance LLC, Cerberus Capital Management LP, and FB Intermediate Holdings LLC. (source)

🗞️ News from the week (4/10/23 - 4/16/23)

🛍 Retail

• Amazon's Dash Cart technology will be added to a fourth Whole Foods Market store in SouthGlenn, Colorado. Also, Amazon One, the company’s palm-based frictionless checkout option, has been introduced to 11 Whole Foods Market locations in Denver. Despite Amazon Fresh pausing store rollouts, Amazon continues to push its technology at Whole Foods stores. (source)

• Whole Foods has opened a new 50,000 sq ft store in Brighton, New York, its first location in the Rochester area. The Whole Foods CEO has said they have about 50 stores in its pipeline, with plans to open 30 or more stores a year. (source)

• More retail layoffs…

  • Best Buy is reducing its staff and focusing on its Totaltech membership and health business as more shoppers buy online and sales of electronics wane. In the past fiscal year, about a third of its U.S. sales came from online business, and over 40% of online sales are picked up in stores. (source)

  • RH, formerly known as Restoration Hardware, is laying off about 440 employees, including 58 at its headquarters in Corte Madera, due to challenges faced by the retail furniture industry, including the pandemic, inflation, and a dip in home values. The job cuts will save the company about $50 million annually. (source)

  • David's Bridal is pursuing a sale and will lay off over 9,000 workers nationwide, starting from April 14 to August 11. (source)

• Martie, an online grocery store that sells heavily discounted surplus groceries and household items, has launched in Texas. The company partners with CPG brands and producers to stock surplus pantry goods and sells them online directly to consumers at up to 70% off retail. (source)

  • Shout out to Amrit from IndieCPG for putting me on to this site! Though it’s only available in the West Coast, adding Texas continues its expansion eastward.

• American Eagle Outfitters and ThredUp have partnered to launch a resale shop for secondhand AE clothing. Additionally, American Eagle has partnered with Snapchat for a pop-up shoppable AR Lens showcasing select styles from the collection. (source)

• Walmart has announced plans to close four of its eight stores in Chicago, citing growing financial losses. Three of the stores are in predominantly Black and low-income neighborhoods, and their closures will disproportionately affect residents who rely on them. (source)

🛒 CPG & Consumer

• Blackbird Foods partners with Daring Foods to launch Blackbird Buffalo Pizza featuring Daring's Breaded Plant Chicken Pieces, exclusively available at US Sprouts Farmers Markets starting April 17. (source)

• Taco Bell is partnering with Yellowbird Hot Sauce to offer a limited time version of its Nacho Fries, featuring a Spicy Habanero Ranch sauce. (source)

  • Yellowbird also has my favorite version of Sriracha on the market!

• Melibio's plant-based honey, Mellody, is now available for purchase at Eleven Madison Home in New York City as part of the Tea & Honey box. (source)

• Babybel parent company Bel Group is partnering with Climax Foods to develop AI-powered plant-based cheese products. The companies will use AI to create low-carbon, nutritious, and affordable plant-based versions of popular cheese brands. (source)

• Cann, a top-selling cannabis-infused beverage, has launched in New York via DTC, licensed dispensaries, and traditional retail. Its mission is to provide a better-for-you alcohol alternative and change the way people think about drinking. Cann makes microdosed ‘social tonics’ that are infused with 2mg THC + 4mg CBD. (source)

  • Zooming out a bit more, this is part of a bigger trend around cannabis. MJBiz forecasts cannabis retail sales will exceed $33.5B in 2023, with sales of almost $57B by 2028. The industry injected $90B into the economy in 2022 and is expected to reach $170.7B by 2028! There is so much appetite for cannabis products and we’re still so early. Once laws start to relax nationally, this space is going to explode. Cann is well positioned to be a leader in the space.

• Red Stripe has announced their foray into the RTD category with the launch of two new canned rum cocktails. The cocktails are aimed at the spirit-based cocktail segment and will be available in Florida and select markets across the northeast. (source)

• Topo Chico and Molson Coors have launched Topo Chico Spirited, a new line of RTD cocktails made with tequila or vodka, real juice, and filtered sparkling water. This is the second boozy Topo Chico to come to market after their hard seltzers. (source)

• CULT Food Science Corp. has partnered with JellaTech to launch a line of collagen-enhanced pet foods under the Indiana Pets brand. (source)

• Care/of, a DTC vitamin and supplement brand, has expanded its retail presence by launching at 308 Sam’s Club stores across the U.S. Non-members can also purchase the products online for an additional 10% fee. This move follows Care/of's partnership with Target earlier this year and represents a growing trend among DTC brands seeking out wholesale partners to increase their reach. (source)

• Pangaia has partnered with 3D printing pioneers Zellerfeld to create the Absolute Sneaker, which features a thermoplastic polyurethane construction that can be melted down and reused. The Absolute Sneaker will be available online from April 13 and will retail for around £200. (source)

• James Charles, a popular beauty influencer and former collaborator with Morphe, has announced the launch of his own make-up brand, Painted, this summer. Details on the products have not yet been confirmed. Charles rose to fame on YouTube and has a large following on social media, but has also faced serious controversy in the past. (source)

• P&G is discontinuing its precision makeup device, Opte, after launching it in 2019. The device utilized tiny cameras to scan for blemishes and cover them with a special serum, eliminating the need to apply makeup on the entire face. P&G Ventures will continue to offer technical and warranty support but will no longer fulfill new product or refill orders. (source)

• Jonah Hill has seemingly launched a new “ironic” clothing line called "Meaningful Existence." He was seen showing off the brand with Real Housewife star Lisa Rinna at a Los Angeles Lakers and Phoenix Suns' game. Per the website, the brand’s mission is “to spread joy throughout the universe by monetizing happiness,” mocking wellness lifestyle brands. (source)

  • I don’t find this particularly funny or effective. If you don’t like the idea of companies selling wellness mantras on t-shirts, then maybe just… don’t sell wellness mantras on t-shirts. There’s much better ways to counteract consumerism or help people find happiness in this crazy world. What do you guys think?

• Philadelphia Cream Cheese is teaming up with H&H Bagels in New York to offer "tax-free bagels" for a limited time in response to the city's "bagel tax." The bagels will come pre-filled with cream cheese, making them ineligible for the tax, and will be available in three flavors at H&H Bagels locations in Manhattan from April 14-18, as well as for online delivery, you can buy them here! (source)

  • Some background….NYC is imposing an 8 cent tax on all "altered" bagels, including sliced or toasted ones!

🏭 Supply Chain

• Snowflake, a cloud data company, has recently launched the Manufacturing Data Cloud, which provides manufacturers with a platform to leverage their industrial data, leading to better supply chain performance and smart manufacturing initiatives. (source)

• Apple announced a 2025 goal to use 100% recycled cobalt in Apple-designed batteries, recycled rare earth elements in magnets, and recycled tin soldering and gold plating in printed circuit boards. They are also working towards making every product carbon neutral by 2030. (source)

💻 eCommerce

• Qurate Retail Group, the parent company of QVC and HSN, has launched a new livestreaming shopping app called Sune. Customers can access live shows and short-form video reviews and tutorials, and can browse and buy products directly through the app. Sune also has a community of live show hosts, called "Sunesetters.” (source)

💸 Funding, Exits, M&A, and VC

• PepsiCo has launched its Greenhouse Accelerator Program: Juntos Crecemos, focusing on driving growth of emerging Hispanic-owned food and beverage businesses through collaboration and innovation. The program will select ten high-potential brands and provide them with six months of mentorship, $20,000 in grant funding, and personalized support to accelerate their growth. The highest potential business will be awarded an additional $100,000 to continue its expansion. Apply by May 15th here! (source)

• Midwest Growth Partners has successfully raised $170 million with its third investment fund. The private equity firm specializes in investing in lower middle market companies that require liquidity for succession planning or growth investment, with a specific focus on the food and agriculture, manufacturing, and distribution industries. (source)

• Frozen food brand 8 Myles has raised $1.05 million in seed funding to expand its operations and hire its first full-time employee. The brand, founded in 2015, produces macaroni and cheese dinners without preservatives or artificial ingredients. (source)

• Youthforia, a makeup and skincare brand founded by Fiona Co Chan, has closed a seed round of funding from True Beauty Ventures and Willow Growth Partners. The funding will support the brand's expansion, including significant wholesale expansion with Ulta, building out team resources, and investing in marketing. (source)

• The Courtin-Clarins family's venture capital arm, Famille C Participations, has acquired a controlling stake in U.K.-based organic skincare brand Pai. (source)

• Colavita has acquired O Olive Oil & Vinegar from Curation Foods, a subsidiary of Lifecore Biomedical. O is a producer of products including organic extra virgin olive oil, champagne vinegar, and sherry vinegar. Paolo Colavita has been named CEO of O and will lead the growth of the brand in the US and worldwide. (source)

• Boston-based liquor brand Ghost Tequila has raised over $9m in a new funding round, with investment from Boston private investment firm The Raptor Group. The company has also appointed Jeff Popkin, former CEO of Mast-Jägermeister US, as its new CEO. (source)

• Brooklyn-based Kintra Fibers raised $8m in Series A funding for its bio-based polyester alternative, backed by H&M Group Ventures, Bestseller’s Invest Fwd, Fashion for Good, New York Ventures, Tech Council Ventures, and Fab Ventures. Kintra uses corn glucose to create biodegradable resin, and is launching a pilot with Bestseller, Inditex, and Reformation. (source)

• Counter, a frozen food startup founded by former Walmart merchants Jeff Ferrell and Benn Manning, has raised $1.2 million in seed funding ahead of its launch in Sam’s Club stores this summer. (source)

• Carbon Robotics raised $30 million in a Series C funding round led by new investor Sozo Ventures, with participation from existing investors Anthos Capital, Fuse Venture Capital, Ignition Partners, Liquid2 and Voyager Capital. The Seattle-based company will use the funding to expand its precision weed-control system for speciality crops in North America and international markets, develop new software and hardware, and scale manufacturing. (source)

• Universal Standard has acquired Henning, a plus-size luxury womenswear brand. Henning's focus on workwear will contribute to Universal Standard's fall 2023 collection. Universal Standard sells clothing ranging from sizes 00 through 40 and has collaborated with other brands to advise on inclusive sizing. (source)

• Kite, a commerce company co-founded by former GoFundMe CEO Rob Solomon, has raised $200 million in equity funding from Juxtapose and Blackstone. The company invests in and operates digital-first consumer product brands, with the aim of accelerating their businesses across e-commerce, social, retail, and beyond. Kite has already acquired undisclosed businesses in the fitness and self-improvement categories. (source)

• Sleep Country Canada Holdings has acquired 100% ownership of Casper Sleep Inc.'s Canadian assets for $20.6 million in cash and $20 million in convertible notes. Sleep Country will receive a cumulative $4.5 million marketing transition fee from Casper Sleep Inc. over the next four years and three-year warrants which would convert into a ~1% stake in Casper Sleep Inc. upon exercise. (source)

• San Francisco-based fitness technology company Tonal has secured $130 million in funding from existing investors, including L Catterton, Cobalt, Dragoneer, Kindred Ventures, and THVC. The company has also appointed Krystal Zell as CEO, replacing founder Aly Orady, who will become chief technology officer. (source)

• On-demand delivery platform Frayt has raised $7 million in Series A funding to expand its last-mile services in the Midwest. Frayt connects shippers to drivers for same-day or scheduled out deliveries, and currently serves over 50 markets with more than 12,000 drivers. (source)

🧐 Interesting reads

• CEO Andy Jassy’s 2022 Letter to Shareholders (via Amazon)

• Is Amazon a Retailer, a Tech Firm, or a Media Company? How AI Can Help Investors Decide (via HBS Working Knowledge)

• Why Is Ice Cream So Easy to Love? (via the Atlantic)

• Major retail players are walking back their metaverse strategies (via Modern Retail)

• How Outdoor Brands Can Sustain the Pandemic Boom (via ESW)

• Higher restaurant prices have consumers turning to frozen pizza (via Winsight Grocery)

  • The best frozen pizza I’ve ever had was Katie’s Pizza and Pasta! Freaking incredible!

• Grocery inflation in March continues months-long decline (via Grocery Dive)

• Diary of a Brand: Hoka. How Hoka sneakers went from obscurity… (by Michelle Wiles | Better Marketing)

• Oh Yeah: A Brief History Of Kool-Aid's Hype Man (via the Dieline)

• Water ‘Recipes’ Are TikTok’s Latest Dubious Diet Culture Fad (via Eater)

• The Full Story of MTVJesse (Ex Nelk) (via Colin and Samir | YouTube)

💡 Reports, research, and trends

• What’s driving US ecommerce growth in 5 charts (via Insider)

• The Snacking Supernova: How to Win in the 2023 Snacking Universe (via Circana)

• 2022 U.S. Retail Sales Data for the Plant-Based Foods Industry (via Plant Based Foods Association)

• What the lack of premium grocery stores says about disinvestment in Black neighborhoods (via Brookings)

• Private label’s record sales continue (via Winsight Grocery)

🐦 Interesting Tweets

• Josh Schall on what’s going on with Bang energy

• Josh Mohr on Liquid Death CEOs response to recent Forbes article

😋 Brands and things I’ve tried this week

Thanks Health-Ade for sending over their new canned kombuchas. These are, as always, absolutely delicious!!

And thank you Luke for sending over some replenishable shower curtains from his company Outlines!

🙋‍♂️ I’m also on the hunt for home goods! I’m moving to a new apartment early May and would love suggestions on everything - dressers, bed frames, side tables, accent chairs, the works! Pls share!

I do, of course, plan to share what I’m filling my pantry with!

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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