Express Checkout #22

Commerce news from the week of 4/17/2023

Author

Nate Rosen
April 24, 2023

Hello hello!

How are we liking the Monday release of the newsletter? I think I may stick with it. Also I know these emails have been getting cut off in Gmail, so I may alter the format a bit soon. Let me know your thoughts on both!

Happy 4/20, Earth Day, and National Banana Day!!!

What a week! I hope y’all enjoyed some Cann, some climate friendly Moonshot Snacks, and had some of those tiny dried bananas from Trader Joe’s.

I do want to briefly talk about bananas. Something I learned is that a lot of people don’t like Bananas?! Even my fiancee doesn’t like them! I don’t get how that can be. They’re amazing. They’re apparently going to be a big flavor this summer according to GrubStreet! I simply do not get how you could hate this amazing yellow fruit.

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

🔥 Big News - 10 items or less 🔥

  • We'll never find out what was Beyond now - Bed Bath & Beyond has filed for bankruptcy and will sell off its merchandise before going out of business. The company's stores and websites will remain open for now, but store-closing sales will begin on Wednesday, April 26th, and the company will liquidate all of its inventory. (source)

  • Walmart drops a 3rd brand - Walmart is selling Eloquii, an online apparel brand for plus-size women, to FullBeauty Brands, after purchasing the brand for $100 million in 2018. This marks the retailer's third divestiture of a DTC brand this year after Moosejaw and Bonobos just last month. (source)

  • Kum & Go acquired - Maverik, a convenience store chain, has acquired Kum & Go, a family-owned convenience store chain with over 400 locations across 13 states, and Solar Transport, a tank truck carrier and logistics provider, from Krause Group. The financial terms of the deal were not disclosed. (source)

  • Popcorn > Chocolate?? - The Hershey Company has entered into an agreement to acquire two manufacturing plants from Weaver Popcorn Manufacturing, which will enable Hershey to strengthen its internal supply chain capabilities and sustain growth for its SkinnyPop brand. (source)

    • Hershey's has experienced significant growth in the salty snacks category. Its Salty Snacks division, which includes brands such as Pirate's Booty and SkinnyPop, now accounts for over 10% of the company's sales. Hershey aims to increase this figure to 20%, according to reporting by The Hustle.

  • Coke’s getting into fresh produce - Coca-Cola has licensed its Minute Maid and Simply brands for use on select fresh produce distributed by Frutura's Dayka & Hackett brand. This will expand its reach and potentially boost its healthy perception among consumers. (source)

  • IKEA goes big - Ikea plans to invest $2.2 billion in omnichannel growth strategy in the U.S., including new store models, pickup locations, and modernizing existing stores. (source)

    • Fun fact about IKEA: a majority of them are franchised! Which is wild to me considering they’re so huge. And I learned recently that it may be due to some kind of tax play according to this article form 2018.

  • Amazon slowly becoming Judge Dredd - Amazon has launched the Anti-Counterfeiting Exchange (ACX) in the hopes of making online shopping safer and to combat counterfeiters. Participating stores can share information about confirmed counterfeiters to identify and stop them more quickly. Retailers and marketplace providers are all invited to join ACX. (source)

  • Snapchat goes retail friendly - Snap is launching AR mirrors in some US stores such as Nike and Mens Warehouse to allow virtual try-ons. It's part of a new AR initiative which also includes products for music festivals and vending machines, and is also being sold to other brands through AR Enterprise Services. (source)

🗞️ News from the week (4/17/23 - 4/23/23)

🛍 Retail

  • REI to close Portland store due to theft and break-ins despite increased security measures, citing need for significant investment and outgrowing the location. Full-time workers will receive severance pay. (source)

  • Stores test in-store recycling programs:

    • Petco launched a recycling pilot in 40 stores with Trex, allowing customers to recycle plastic waste. Petco's sustainability strategy includes developing sustainable product lines, in-store programs, and a national bag fee. (source)

    • Sephora is expanding its Beauty (Re)Purposed program, in partnership with Pact Collective, to all of its 600+ stores in North America in May. The program collects and repurposes empty beauty and wellness product containers. (source)

  • Saks is expanding its Limitless membership program for top clients to include more services and benefits, such as access to members-only experiences, and one-of-a-kind merchandise. The program requires at least six store visits per year and a spending threshold in the six figures. According to Saks, they have thousands of members. (source)

  • David's Bridal has filed for Chapter 11 bankruptcy protection. The company will continue to operate and fulfill customer orders while seeking relief from the court. It is exploring a sale of all or some of its assets. (source)

  • Loop Neighborhood Market will deploy EV charging stations across its 130-store network, starting with Boost Chargers from FreeWire Technologies. Over the past few months 7-eleven, Shell, Chipotle, and countless other stores have launched EV charging initiatives. (source)

  • Lunds & Byerlys, a Twin Cities independent grocer, has partnered with Phood Solutions to more precisely track and reduce food waste at its deli food bars. (source)

  • Whole Foods is cutting several hundred corporate jobs over the next few months. The layoffs will not affect store or warehouse workers and no stores are closing. The downsizing will affect less than 0.5% of Whole Foods' 105,000 employees. (source)

🛒 CPG & Consumer

  • Mattel and Gap have announced a new apparel collaboration featuring Mattel's brands and Gap's signature icons. The first product drop will be the Gap x Barbie collection, available for the entire family starting May 23. (source)

  • Garnier has partnered with Loop Industries to create a bottle for its Micellar Water made of 100% recycled PET plastic from previously unrecyclable plastic. (source)

  • Clorox Co will cut about 200 positions, or ~4% of its non-production workforce. The move is expected to generate annual savings of $75 million to $100 million. They’ve joined a growing list of companies that have reduced their workforce due to recessionary fears in the US. (source)

  • Zara has collaborated with textile waste recycling company Circ to launch a new womenswear collection made using recycled polycotton blended textiles. The launch of the collection follows Inditex’s $30 million Series B investment in Circ last year, which aims to promote circularity through technological innovation. (source)

  • Belgian customs destroyed ~2,300 cans of Miller High Life beer due its "Champagne of Beers" label, which violated France's protected designation of origin (PDO) for Champagne. The beer was on its way to Germany when customs workers in Belgium decided the label was in violation of the PDO. (source)

  • Nick Shackelford, a partner at Structured Agency, has launched a new brand called BREZ. The brand offers a drink with a flavor profile that includes elderflower, micronized THC and CBD, and Lions Mane. Shackelford aimed to create a mocktail that doesn't cost a lot and doesn't taste like a headache. The brand launched on April 20, 2023 - nice. (source)

  • Bob Dylan's Heaven's Door Spirits is opening a new distillery in Kentucky in September 2023. The distillery will feature two separate still houses, a visitor center, an 18th-century grist mill, cabins, and a Moravian barn. The brand also plans to open a brand experience in Louisville, Kentucky, featuring a small live music venue, a private event space, a restaurant and bar, and a 15,000-square-foot immersive art experience. (source)

  • Blue Bunny has partnered with Stuffed Puffs Filled Marshmallows to launch a new line of frozen treats, including scoopables and sandwiches. They’ll be available exclusively at Walmart this month. (source)

  • Marlow Foods, the parent company of Quorn, is launching Marlow Ingredients to make its mycoprotein available to other food and beverage manufacturers. The move comes as the company seeks to tackle climate change and become a net-positive business by 2030. (source)

  • Kings County Distillery has collaborated with Parlor Coffee to create a new Coffee Whiskey, made from a blend of Kings County's finest whiskeys and Parlor's Cold Brew. It will be available for purchase at the distillery and through national distributors starting April 19th. (source)

  • The US Court of Appeals ruled that the labeling of I Can’t Believe It’s Not Butter Spray as having zero calories and grams of fat per serving is not misleading because it is classified as a spray. The court found that the Nutrition Facts information that breaks down information based on a single spray is accurate and matches consumer use. (source)

  • Ayana Bio has introduced its first ingredients produced through plant cell culture, which can offer a reliable supply of botanicals without a lot of the supply chain issues associated with conventional agriculture. (source)

  • Kellogg has discontinued its Incogmeato burger, part of its MorningStar Farms brand lineup, after debuting the product in 2020. The plant-based meat category has faced headwinds as growth has stalled, and Incogmeato burgers never reached the level of ubiquity with consumers that similar brands such as Impossible Foods and Beyond Meat’s burgers have. (source)

  • Upside Foods has announced new cultivated ground meat products, including chicken sausages, sandwiches, and dumplings, as it awaits regulatory approval. The company has also developed a chicken cell line that could reduce production costs and bring cultivated meat closer to price parity with conventional meat. (source)

  • Peace Tea is launching malt-based hard teas in three flavors with 5% ABV, available in 24-ounce cans starting September 2023 in select US convenience stores. The partnership between Coca-Cola and Molson Coors aims to tap into the growing hard tea market. (source)

    • Coke’s push into RTDs is not going unnoticed either, just recently they launched an official Jack and Coke in a can.

🏭 Supply Chain

  • Amazon has opened a new one-million-square-foot fulfillment center in Missouri, dedicated to handling oversized products such as furniture and sporting equipment. The facility is already operational with 150 employees, and Amazon hopes to employ 500 at the center to maximize its capacity. (source)

  • Lots of truck recalls:

    • Daimler Truck North America is recalling 54,375 trucks across six models due to a possible defect in the windshield wiper linkages, which may break and cause visibility problems. (source)

    • Volvo Trucks North America and Nikola Corp. are recalling several hundred electric trucks each due to safety issues. (source)

  • LEGO and Novo Nordisk have agreed to purchase e-methanol, a lower-carbon alternative to conventional plastic ingredients, from European Energy's large-scale plant in Denmark. LEGO plans to use e-methanol in some types of its building bricks, while Novo Nordisk will use it to substitute fossil-based plastic in medical devices. (source)

  • Walmart debuted the first of 5, 15-liter compressed natural gas engines in North America, supplied by Cummins and fueled by Chevron with compressed natural gas linked to renewable natural gas, as part of its goal for a zero-emissions transportation fleet. (source)

  • Frito-Lay, a division of PepsiCo, plans to deploy over 700 electric delivery vehicles in the US by the end of 2023 to reduce annual greenhouse gas emissions. (source)

  • Target has achieved its first TRUE Zero Waste certification for its supply chain facility in Hawaii by diverting over 90% of its waste through recycling, donation, reuse, and reduction. (source)

💻 eCommerce

  • Mercari has launched Merchat AI, a shopping assistant powered by ChatGPT. The tool offers personalized shopping experiences by generating tailored recommendations based on customers' preferences and needs. Merchat AI is currently available as a beta experience on the web via mercari.com/merchat. (source)

  • Instacart has launched Ads Academy, a self-paced online training and certification program for advertisers and brand partners to learn how to run ad campaigns on Instacart. (source)

  • Haut.AI has launched SkinGPT, a skin simulation platform that generates photorealistic images of how a user's skin may change over time using different skin care products. These simulations can be used by beauty brands and retailers to allow consumers to preview long-term cosmetic benefits. (source)

💸 Funding, Exits, M&A, and VC

  • Cure Hydration raised $5.6 million in Series A funding, led by Lerer Hippeau with additional participation from new and existing investors including Valedor Partners, Simple Food Ventures, Great Oaks Venture Capital, Joyance Partners, Silas Capital, Kim Clijsters (a Belgian Tennis player) and others. (source)

  • Cookie dough brand Doughp has launched an equity crowdfunding round to raise $618,000 for research and development, marketing, and retail growth. (source)

    • Doughp offers some of my favorite ready-to-eat cookie dough. Whether or not you choose to support this fundraising campaign, I highly recommend picking some up to try!

  • EcoSoul Home is a Bellevue, Washington-based provider of eco-friendly home essentials products. The company has recently raised USD 10M in Series A funding led by Accel with participation from Singh Capital Partners. (source)

  • Gryphon Investors has acquired Vetnique Labs, a pet health and wellness platform known for its Glandex supplement. (source)

  • Stryve Foods, makers of air-dried meat snacks, has secured $4.1 million in debt financing through secured promissory notes with a 12% annual interest rate to fuel additional growth (source).

  • Razor Group, an e-commerce aggregator, has acquired Stryze Group in an all-share deal. Razor Group has also closed its Series C funding round at $88 million, bringing its valuation to $1.2 billion. Razor has acquired other aggregators, including Valoreo in Latin America and Factory14 in Europe, and has 140 assets under its umbrella with ‘22 net revenues of $453M. (source)

  • Rally, a modular checkout platform for e-comm merchants, has raised $12 million in Series A funding led by March Capital, which was joined by Felix Capital, Commerce Ventures, Afore Capital, Alumni Ventures, and Kraken Ventures. Rally allows merchants to change the front end or back end of their website without affecting the other. (source)

  • NoFo Brew Co., an independent craft brewer in the US, has acquired Tantrum Brewing for an undisclosed amount. The deal includes all of Tantrum's assets, land, and brands, including its 10,000 square-foot brewery and hospitality site. NoFo expects to be operating at the location by early summer. (source)

  • Online retail platform THG has received a preliminary buyout proposal from Apollo Global Management, causing shares to surge over 40%. THG, which owns beauty and nutrition e-commerce sites, was valued at over $10 billion in early 2021 but has seen its shares lose over 90% of their value due to a string of profit warnings. Apollo must announce a firm intention to make an offer by May 15 or walk away. (source)

  • Imperial Trading Company, the fourth-largest convenience store distributor in the U.S., has expanded its footprint in the southeast by acquiring Alabama-based City Wholesale, a regional competitor with stores across Alabama, Georgia, Florida, Mississippi, and Tennessee. (source)

  • The Lotus Beverage Alliance, a US-based collective of six craft beverage equipment manufacturers, has officially launched as a stand alone company. The alliance brings together Alpha Brewing Operations, GW Kent, Twin Monkeys, Stout Tanks and Kettles, Brewmation, and Automated Extractions under one roof, becoming the only end-to-end provider dedicated to ‘crafting possibilities’ for beverage makers. (source)

  • Ynsect, a Paris-based insect-farming startup, has raised $175 million in funding. However, it has laid off 20% of its workforce and plans to shift its focus to more lucrative markets. It will also prioritize smaller facilities and partnerships. (source)

  • Odeko, a New York-based operations software partner for independent coffee shops and other small businesses, raised $53M in Series D funding, bringing the total amount to $177M. The round was led by existing investor B Capital, with support from GGV Capital and Tiger Global Management. Other investors included Amex Ventures, KSV Global and FJ Labs. (source)

🧐 Interesting reads

💡 Reports, research, and trends

🐦 Interesting Tweets

😋 Brands and things I’ve tried this week

While exploring HomeGoods of all places I found the Snack Club Tajin chilli & lime gummy rings! Honestly very good. I do wish they packed a bit more of a punch!

I also stopped by Fresh Market for a late night snack haul, grabbing the consistently delicious Belgian Boys Pancakes and my favorite flavor of Jenni’s - the Lemon & Blueberry Parfait

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

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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