Express Checkout #24

Commerce news from the week of 5/1/2023

Author

Nate Rosen
May 08, 2023

Hello!

If you've ever been curious about what my suitcase usually looks like, look no further. An American couple was caught trying to smuggle almost 400 pounds of Fruit Roll-Ups (with the old branding) into Israel! Another person was also caught trying to ship 350 lbs of the candy into the country! And why, you might ask? TikTok is the answer. There’s a viral trend happening where people are rolling ice cream in the candy, sounds delicious!

This weekend I was able to go to Big Night’s new location in the West Village. What a lovely store, amazingly curated and designed with fun treats from interesting glassware to all the interesting olive oils. Honestly, it’s the perfect store for a housewarming gift, a birthday, or just to treat yourself!

*chefs kiss*

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🔥 Big News - 10 items or less 🔥

  • Shopify has had an interesting week (source):

    • They announced Q1 2023 financial results, reporting $1.4 billion in revenue, a 57% YoY increase

    • The company sold its logistics business to Flexport, with Shopify receiving stock representing a 13% equity interest in Flexport

    • They also announced ~20% off the workforce would be laid off

  • Michele Obama enters CPG - Michelle Obama has joined PLEZi as a co-founder and strategic partner. PLEZi is a four-SKU line of kids-focused beverages with 75% less sugar than average 100% fruit juices. The brand plans to debut in Walmart over the summer and has promised 10% of its profits to a broader movement to promote kids' health. She will not be the face of the brand but plans to work behind the scenes. (source)

  • I guess malls are doing well - Specialty retailer francesca's Acquisition LLC has acquired California-based wardrobe essentials brand Richer Poorer, which will operate as a wholly-owned subsidiary. Francesca's has continued to prioritize growing its eCommerce channel, scaling tween brand franki by francesca's, expanding physical stores, and most recently launching a re-sale partnership with thredUP. (source)

  • I guess I’m making a Negroni tonight - Campari has revealed a new bottle design inspired by its home city of Milan. The new bottle will be rolled out internationally, with a launch event featuring a drone show in Milan and a series of events at the Cannes Film Festival. I’m liking what I’m seeing! (source)

  • “Beer” at 30,000 Feet - JetBlue will now serve Athletic Brewing’s non-alcoholic beer on all domestic flights starting in May. The NA beer has been on a winning streak for a while, and is bringing the industry with it. (source)

  • Real or Dupes - Lululemon launched an "Align Legging Dupe Swap" pop-up event in Los Angeles where shoppers could exchange their Align legging dupes for actual Align Pants for free. There is a growing trend of consumers seeking cheaper dupes with #lululemondupe amassing over 180 million views on TikTok alone. There are even brands selling dupes like Italic (which raised $37 million Series B in 2021), Element Brooklyn, and Dossier. (source)

  • Are strip malls cool? - Macy's has opened more off-mall stores in strip malls. The retailer has closed about 80 Macy's locations and plans to shutter another five this year. Macy's is experimenting with new store formats like Market by Macy's and Bloomie's, which have a narrower mix of merchandise than in the mall stores and have flexible layouts and displays. (source)

  • Johnson & Johnson's spinoff consumer health company, Kenvue, has just been listed on the NYSE valued at around $41 billion. Kenvue is compromised of brands like Tylenol, Band-Aid, Listerine, Aveeno, Neutrogena. (source)

  • Kraft making confusing meals - Kraft Heinz has launched a new brand, HOMEBAKE 425°/:30, which offers what the brand calls a mix-and-match collection of frozen meals with over 500 possible menu combinations from 15 base products. All offerings are uniquely designed to cook together in one standard oven at 425 degrees for 30 minutes due to the proprietary technology in the HOMEBAKE roasting pan and the unique cooking process. (source)

    • I kinda want to try this, I’m so curious how confusing this will be to use

🗞️ News from the week (5/1/23 - 5/7/23)

🛍 Retail

  • Nordstrom is closing its flagship store and Rack store in downtown San Francisco. The flagship store will close at the end of August, while the Rack store will close on July 1 ‘23. (source)

  • Bed Bath & Beyond's bankruptcy has left a lot of its vendors unpaid to the amount of ~$95 million, including SharkNinja, Tempur-Pedic, Keurig, and Fed-Ex. (source)

  • Century 21, the iconic off-price department store known for selling high-end designer fashions at steep discounts, is set to reopen its flagship store in downtown Manhattan on May 16. The business is now owned by IG Gindi who bought back the IP for $9 million along with a silent partner. (source)

  • Wayfair has launched the Digital Design Studio, a kiosk that allows customers to create and interact with a variety of design layouts and experience products in a digital, fully 3D room with photorealistic quality. The technology will debut at the Dedham, Mass. AllModern store. (source)

  • ALDI is adding 120 new stores in 2023, making it one of the fastest-growing grocers in the country, with more than 2,400 stores nationwide by the end of the year. (source)

  • The Container Store has partnered with thredUP on a new program that allows customers to resell gently-worn items for shopping credit at The Container Store. (source)

  • Sephora will require customers to make a minimum online purchase of $25 in order to receive their once-free birthday gift, starting June 1. Customers can still redeem their birthday gift in Sephora stores without a minimum purchase requirement. This change follows other retailers' modifications to their "free" offers. (source)

🛒 CPG & Consumer

  • Swoon has collaborated with Barbie to release a sugar-free pink lemonade, with 10% of net sales going to the Barbie Dream Gap Project. The drink is available online and in stores nationwide. I was able to try it at ExpoWest in March, very tasty! (source)

    • I’m bummed they didn’t do a collab with the Oppenheimer movie

  • 9 start-ups have been selected to participate in Mondelēz International's third cohort of CoLab. Each will receive access to Mondelēz International’s experts, global network, and a $20,000 grant:

    • CocoTerra: enables chocolate lovers to create their own chocolate at home

    • DreamPops: plant-based, clean label frozen pops, bites, and shelf stable candy crunch

    • Freezcake: small bites of fresh and creamy cheesecake

    • Incredible Eats : edible spoons and straws as alternatives to single-use plastic utensils

    • Legally Addictive: offers cracker-based cookies with chocolate and handmade salted toffee

    • Mezcla: delivers a crunchy snack bar experience with a mix of plant protein and unique flavor profiles

    • New Gem: makes plant-based wraps as alternatives to bread, tortillas, and seaweed

    • Steiner’s Coffee Cake of New York: brings fresh ideas to gluten-free coffee cake

    • Whoa Dough: a shelf-stable cookie dough bar that is plant-based, gluten-free, and vegan

  • Mondelēz has opened a new Global R&D Innovation Center in Whippany, New Jersey, with an investment of nearly $50 million. The state-of-the-art facility includes pilot and scale-up capability for cookies, crackers, and candy. (source)

  • Omsom, a popular Asian home cooking brand, has launched a new line of shelf-stable meals called Saucy Noodles. The noodles come with a packet of sauce and are available in four flavors: soy garlic, coconut lemongrass curry, garlic black pepper, and chili sesame. (source)

  • Little Saints, a mocktail brand known for combining Reishi mushrooms, CBD, and terpenes in their ingredients, has released St. Mezcal, their first non-alcoholic spirit. (source)

  • Partake Foods has launched a vegan, gluten-free, and top 9 allergen-free Classic Graham Cracker. It’s available at Target stores nationwide starting June 4th. (source)

  • ROAR Organic has been named the Official Hydration Partner of the Carvana PPA Tour for the 2023 pickleball season. (source)

  • Shake Shack has permanently added three new plant-based items to their menu, including a veggie burger, dairy-free chocolate frozen custard, and a dairy-free chocolate milkshake. The desserts were developed in partnership with NotCo, makers of NotMilk. Founder, Daniel Meyer, is also an investor in NotCo. (source)

  • Farmer's Fridge, a Chicago-based company that sells pre-made meals, is rapidly expanding its retail presence to capitalize on consumers' demand for fresh, convenient food. The company's products are sold at 400 retail locations across the US and is targeting 1,000 locations by the end of the year. Farmer's Fridge runs its own distribution network, placing about 20 new vending fridges weekly! (source)

  • Good Dye Young, the hair dye brand founded by Hayley Williams (Paramore) and Brian O'Connor, is launching in all Ulta Beauty stores and online. The brand has seen a 67% YoY growth rate since 2016 and projects $20M in retail sales for 2023. (source)

  • Crate & Barrel has launched its first-ever collaboration with chef and cookbook author Molly Baz. The collection includes nearly 60 new pieces and is to die for. (source)

  • (for some reason) Emma Watson and her brother Alex are launching a new gin called Renais Gin, made from a grape spirit base and upcycled French pressed wine grape skins and lees. The gin will be available in the UK for £60 via the brand's site in a limited initial run of 3,500 bottles. (source)

  • Ritual launches its first skin care supplement, HyaCera, which targets hydration, fine lines, and wrinkles. (source)

  • Revlon emerged from Chapter 11 bankruptcy as a private company. The company formed a new board of directors with senior executives, including Executive Chair Elizabeth Smith. (source)

  • Helen of Troy, owner of brands like Hydro Flask and OXO, is cutting 18% of its product portfolio as part of a supply chain overhaul with an expected $20 million in savings by 2024. The restructuring plan, known as Project Pegasus, also includes cutting approximately 10% of its workforce. (source)

  • The San Francisco Giants received a shipment of Dude Wipes after most players experienced gastrointestinal issues following a trip to Mexico City. They sent the team 100 packs of Dude Wipes, four Dude Bomb "toilet stank eliminators," and 12 toilet sprays. (source)

  • Sam Edelman launched ReLove in partnership with Archive, a platform promoting resale of pre-owned Sam Edelman shoes. (source)

🏭 Supply Chain

  • Giant Food has opened a new e-commerce fulfillment center in Manassas, Virginia, expanding its service to over 140 new zip codes and adding beer and wine for local deliveries. (source)

  • Amazon has opened a new fulfillment center in Windsor, Connecticut, which will employ over 2,000 local workers and utilizes innovative robotics tech to process and deliver customer orders. (source)

  • Ryder System recorded a $30 million asset impairment charge in Q1 due to devaluing equipment used in a Pennsylvania warehouse for Bed Bath & Beyond. They also previously noted a $20 million asset impairment charge for Q4 due to an early termination of a distribution center in California also for BBB. (source)

  • Logistics companies project44 and Nexxiot have partnered to offer customers enhanced shipment and asset intelligence, enabling them to integrate conditional and location data with the largest supply chain network in the world. (source)

💻 eCommerce

  • Lucky and Sephora have partnered to allow customers to see Sephora's store inventory in real time on any brand's DTC website, enabling same-day delivery or in-store pickup. (source)

  • Wix has partnered with Shippo to offer Wix business owners a shipping solution that integrates Shippo's shipping capabilities directly into the Wix Dashboard. (source)

  • Sprouts Farmers Market and Instacart have partnered to launch a retail media network powered by Instacart's Carrot Ads solution. (source)

  • The Fresh Market has launched a beta release of a generative AI live shopping option that allows shoppers to use an in-video chat feature even after its shoppable livestreams have ended. (source)

  • Peacock has launched Must ShopTV, an AI-powered shoppable ad format that allows viewers to buy products that appear in Peacock content. The capability is powered by KERV Interactive. (source)

  • Uber has expanded its advertising offerings to provide CPG brands with sponsored item opportunities directly on the Uber Eats app. (source)

  • Ryan Breslow's Love, a health and wellness marketplace, has launched with an initial offering of 200 curated products. Love has raised $20 million in total. Brewslow is the founder and former CEO of eCommerce company Bolt. (source)

  • Amazon's Inspire, a TikTok-like shopping feed, is now available to all US customers on the Amazon mobile app for iOS and Android. Creators in the Amazon Influencer Program can post content to Inspire and receive commission when customers shop. (source)

💸 Funding, Exits, M&A, and VC

  • GoodShip, a cloud-based procurement platform, has raised $5 million in seed funding co-led by Ironspring Ventures and Chicago Ventures, with participation from previous investors including Fuse VC, Cercano Management, and project44's Jett McCandless. The platform provides shippers with data analytics and insights into their individual procurement ecosystems. (source)

  • Pietra, an e-commerce infrastructure company, has raised $16 million in a Series A extension led by M13. In total, they have raised $36 million in total. Pietra has helped creators build out back-ends for launching and scaling product lines, and currently boasts 100,000 active users. (source)

  • Intrinsic, an omni-channel consumer health company, has raised $15 million in new funding to focus exclusively on women's health, bringing the company's total funding to $128 million. Intrinsic's portfolio focuses on mothers in the prenatal and postpartum phases, with a range of offerings including devices, consumables, and topical treatments. (source)

  • Spirit of Gallo has acquired Fishers Island Lemonade, a female-founded beverage brand known for its premium craft cocktails packaged in a can. (source)

  • Hero Bread, the maker of better-for-you bread and baked goods, has closed a Series B funding round, bringing their total funding to $47.5 million. They have also announced a national retail launch in 2,300 stores across 32 states. Hero Bread's investors include Cleveland Avenue, DNS Capital, Union Grove Venture Partners, Composite Ventures, GreatPoint Ventures, The D'Amelio Family Fund, and 444 Capital. (source)

  • Bear Fight, an American single malt whiskey co-owned by Seth MacFarlane, has received a $1.9 million investment from Texan banking firm Valedor Partners and Matthew Bronfman, chairman of third-party spirits producer Next Century Spirits. (source)

  • Tempo Crackers, a cannabis snack brand, has secured an undisclosed amount of funding from manufacturing partner Punch Edibles to expand beyond California into new markets. (source)

  • Duckhorn Portfolio has agreed to acquire North Coast Winery and Vineyards in California for approximately $55 million. (source)

  • Men's grooming brand Cleverman has raised $1.8 million in seed funding from L'Attitude Ventures, Fab Co-Creation Studio Ventures, and various angel investors. (source)

  • Henry Rose, a genderless fine fragrance brand founded by Michelle Pfeiffer, has announced a Series A investment led by Sandbridge Capital. (source)

  • 1-800-FLOWERS.COM, Inc. has acquired SmartGift, Inc., an intelligent gifting platform, to expand its corporate gifting capabilities. SmartGift provides customized gifting solutions. (source)

🧐 Interesting reads

💡 Data, reports, and trends

🐦️ Interesting Tweets

😋 Brands and things I’ve tried this week

This week I ran into the founder of Gigantic, Stu, and snagged some of his absolutely delicious chocolate bars! I’m a huge fan of the banana pecan 😋

What I love about these bars is that they are not focused on being super healthy or functional, but on simply tasting better while being less overwhelmingly sweet.

I also picked up a B.T.R bar from Pop Up Grocer this week, not too bad! Reminded me of the super thin powerbars from the early 2000s.

One of the non-edible things I tried this week was the famous Krave Beauty Beet The Sun sunblock! It’s a really great sunscreen!! And I’ll use any brand that tucks some yiddish words in their copy.

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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