Express Checkout #31

Commerce news from the week of 6/26/2023

Author

Nate Rosen
July 03, 2023

Hello hello! (heads up! this issue may get clipped in gmail, so please check out the web version at expresscheckout.co)

This past week was fun! I had the pleasure of attending the 67th Summer Fancy Food Show. There were so many fun snacks, incredible founders, and even Top Chef’s own Tom Colicchio! Look at us, best of friends.

Here are some highlights!

Favorite Sip - Shanky’s Whip

Most impressive - Off-Piste plant-based jerky (texture and taste was spot on) 

While I didn’t love this product from Armored Fresh, their almond milk sliced American cheese slices were amazing!

The biggest things I noticed was how everyone and their mother had a sauce, condiment, or seasoning brand! It was insane, I personally tried a ton of hot sauces 🔥 

You can check out this article from my friend Monica on key trends from this year's show!!

––

Something every founder hopes for happened to the team at Mid Day Squares…..a celebrity organically shared they’re a huge fan of the brand. Who you ask? Kim Kardashian! She was being interviewed by Vogue on what she keeps in her bag. You can check out the video here!

One of the founders confirmed it was indeed organic!

If you were sent this issue please consider subscribing!

Now on to the news of the week!

🔥 Big News - 10 items or less 🔥

🗞️ News from the week (6/26/23 - 7/2/23)

  • Should IKEA be worried? Nah.. - Wayfair is set to open its flagship store in a suburb of Chicago spring 2024, featuring 19 departments and an in-store restaurant. The move comes as Wayfair seeks to embrace the omnichannel model. The company has previously opened small stores for some of its sub-brands, including Joss & Main and AllModern. (source)

  • Haus is back! - The Naked Market, owners of brands including Rob’s Backstage Popcorn and Flock Foods, has acquired Haus, a low-alc aperitif brand, and relaunched it with three of its best-selling products. It’ll continue to be sold DTC and start expansion into retail. The Naked Market has also decided to award 5% of the company to previous Haus employees, founders, and investors through a structured program. (source)

  • ABG makes bank - Authentic Brands Group has raised $500 million in funding from General Atlantic. Reports suggests that they’re now valued at $20 billion. ABG owns 40+ brands, including Forever 21, Sports Illustrated, and the IP rights of Marilyn Monroe and Shaquille O'Neal. (source)

  • FTC tackles reviews - The FTC has proposed a new rule to ban fake reviews and testimonials, including prohibiting the sale or procurement of fake reviews, review hijacking, buying positive or negative reviews, and illegal review suppression. (source)

  • Bye bye Diddy - Diageo has ended its partnership with Sean Combs after the rapper sued the company, accusing them of neglecting their co-owned Tequila brand. Diageo responded by claiming Combs made $1bn over the last 15 years from Cîroc and DeLeón, while investing only $1,000 compared with Diageo's $100 million investment. (source)

  • No one is taking my Diet Coke - Aspartame, a common artificial sweetener used in products such as Coca-Cola diet sodas, is set to be declared a possible carcinogen by the International Agency for Research on Cancer, the WHO's cancer research arm. (source)

  • Overstock no more - Overstock.com is set to rebrand as Bed Bath & Beyond after purchasing the retailer's intellectual property assets last week. (source)

  • Monster buys Bang ⚡️ - Monster Energy Drinks. has won the bid to acquire Vital Pharmaceuticals, the maker of Bang Energy, for $362 million. A hearing for sale approval is scheduled for July 13. (source)

🛍 Retail

  • Kohl's and Sephora are expanding their partnership by adding 50 new small-format shops. The first five small-format test locations have generated solid sales and exceeded expectations. By 2025, Sephora will have a presence in all of Kohl's 1,100+ locations. (source)

  • Reformation has opened its 39th global retail location, which is its 4th store in New York. The store features the RefRecycling program, which allows customers to trade in used goods from the brand for credit. (source)

  • Estēe Lauder Companies has launched the Responsible Store Design program to assess and design retail stores with a focus on sustainability. The program covers areas such as waste reduction, water and energy conservation, and responsible material sourcing. (source)

  • Jewelry retailer Alex and Ani has closed 20 retail stores and left seven brick-and-mortar stores open as part of its ongoing restructuring efforts. (source)

  • Alo Yoga plans to open over 50 new stores, with the first of its new locations slated for Paris and London. The company aims to open one new store every week in 2024. (source)

  • CVS Health has signed two agreements to purchase renewable energy to power over 400 locations in Texas and 147 locations in Michigan. These investments are part of CVS Health's goal to source 50% of its energy from renewable sources by 2040. (source)

  • Dollar Tree is expanding its product selection to include items priced up to $5 (hmmm 🤔) in categories like frozen foods and bread. The company's "multi-price" strategy has increased basket size, but comes as consumers feel the effects of inflation. (source)

  • Starting this month, all Staples locations will accept Amazon returns, with nearly half of Staples' almost 1,000 stores already accepting Amazon returns. (source)

🛒 CPG & Consumer

  • Daily Crunch and Cleveland Kitchen are partnering to launch Dill Pickle + Pepitas Sprouted Nut Medley. It will be available online starting July 15th, Amazon August 15th, and in retail nationwide this fall. (source)

  • The National Milk Producers Federation (NMPF) has urged the FDA to enforce its standard of “identity for milk,” stating that it is "baseless, preposterous and absurd" to call animal-free dairy milk. The NMPF argues that products such as Bored Cow, which contain whey protein from fermentation, do not meet federal standards to identity as milk. (source)

    • You can read their letter here

  • Allbirds has announced its first carbon-neutral shoe, the M0.0NSHOT, made using carbon-negative regenerative wool and components made using methane-capture bioplastic. The shoe is expected to be available in Spring ‘24. (source)

  • Oscar winning director, Taika Waititi has joined RTD coffee company Taika, as Chief Creative Officer. Absolutely genius. Their launch video is amazing! (source)

  • DTC sleepwear startup Lunya has filed for Chapter 11 bankruptcy. The filing cites iOS 14 changes and expensive retail leases as major problems. (source)

  • Patagonia Provisions has partnered with 11 independent US craft breweries to introduce lager-style beers brewed with Regenerative Organic Certified Kernza and organic ingredients. (source)

  • RIND Snacks has launched its first trail mix product, RIND REMIX. The product is first launching in a piña colada flavor and is available exclusively in Costco locations in LA, with expansions plans for new flavors and a broader rollout this fall. (source)

    • I’ve had the pleasure of trying this many times, and I can say it’s a must buy!!!

  • Kim Kardashian's underwear label Skims plans to open its first permanent stores in LA and New York in 2024, with at least 4 stores planned. The company is considering international flagships and domestic markets that attract regional tourism for future expansion. (source)

  • Fresh off a funding announcement, BetterBrand is introducing a low-carb, high protein bun in three varieties: pretzel, sesame, and brioche. (source)

  • Ardent Mills has launched two new products, Egg Replace and Ancient Grains Plus Baking Flour Blend. Egg Replace is a 1:1 replacement for dried and liquid whole eggs, while Ancient Grains Plus Baking Flour Blend is precisely blended from whole-food ancient grains and chickpeas to provide more quality protein than traditional flours. (source)

  • Tattoo care brand Mad Rabbit is expanding to over 1,800 Walmart locations this summer, after seeing 138% YoY sales growth and closing a $10 million Series A. (source)

  • Blake Lively has launched Betty Booze, a new line of gourmet low-alcohol, sparkling canned cocktails. The line includes three cocktails made with real ingredients and no artificial flavors or sweeteners. Betty Booze is part of the expansion of the Betty Buzz brand of sparkling NA mixers. (source)

  • Panera Bread has launched Panera Grocery Rewards, which gives customers a $5 e-gift card for use at its restaurants when they spend $20 on Panera goods in grocery stores. The promotion aims to raise awareness of the chain's growing CPG lines. (source)

🏭 Supply Chain

  • FedEx Express has retired 18 aircraft as part of ongoing cost-cutting measures, with plans to take out another 29 aircraft in 2024. The company has been reducing Trans-Pacific and Trans-Atlantic flying to match demand. (source)

  • DHL eCommerce Solutions has relocated its Orlando facility to a new 129,000 sqft site. The $15.4 million investment includes automation features such as two last-generation line sorters machines and two sliding shoe sorters from NPI, which can process over 28,000 domestic and international parcels and packages per hour. (source)

  • Trader Joe's is building a new food assembly and distribution facility in Palmdale, California with anticipated completion in Q4 2024. The 1.03 million square feet facility will offer 800-1,000 job opportunities and consist of three buildings, including a freezer building and an accessory building. (source)

💻 eCommerce

  • Thingtesting has launched a loyalty program called Thingtester, which rewards users for contributing to the community through writing reviews and other contributions. Users progress through 10 levels and can earn rewards such as access to Thingdrop and an invite to an exclusive Slack community. (source)

  • Microsoft has announced new AI-powered shopping tools for Bing and Edge, including automatically generated buying guides, AI-generated review summaries, and a tool called Price Match that helps users request a price match from retailers. (source)

  • QVC and HSN have launched channels on Amazon Freevee, offering customers approximately 40 hours a day of live programming across both channels. (source)

  • Virtual creation platform soona has acquired Trend, a UGC company that has helped over 1,500 companies showcase their products. (source)

  • TikTok is reportedly launching an online retail store in the US next month, featuring its own line of products. The store will sell a variety of items via a dedicated e-commerce tab in TikTok Shop. (source)

💸 Funding, Exits, M&A, and VC

  • Pronghorn, a company focused on cultivating the next generation of Black entrepreneurs and executives in the spirits industry, has received a commitment of $200 million to invest in 57 Black-owned spirits brands over the next ten years. (source)

  • Factored Quality has raised $7.1 million in total funding from Y Combinator, Vinyl Capital, PPVP, Dynamo Ventures, BAM Ventures, Amity Ventures, and 40+ founders in supply chain tech and eCommerce. Factored Quality has helped brands like Canopy and Halfdays save significant amounts of money in rework and returns errors. (source)

  • Half Magic, a makeup brand created by Donni Davy, the head makeup artist from HBO’s “Euphoria,” has closed its investment round led by Alliance Consumer Growth. (source)

  • Constellation Brands has acquired Domaine Curry, a luxury Napa Valley wine brand founded by Ayesha Curry and Sydel Curry-Lee with a focus on quality and dedicated to women. (source)

  • Lucas Bols has acquired Nuvo Sparkling Liqueur from the London Group for $5.7 million. (source)

  • Whole Earth Brands, the owner of Equal sweetener, has received a buyout offer of $4/share from its largest shareholder, Martin Franklin, who already owns 21% of the business. Franklin plans to combine it with Royal Oak Enterprises, a maker of charcoal. (source)

  • Coffee brand Lucky Jack was acquired by private label manufacturer Magnum Coffee Roastery. (source)

  • Innova Memphis has raised $40 million for its Innova Ag Innovation Fund VI, which will invest in startups addressing the evolution of agriculture through automation and digitization technologies. The fund is part of the Rural Business Investment Program, which aims to bring more capital to rural areas of the US. (source)

  • Joyful Ventures has launched a $23 million sustainable protein fund to invest in early-stage startups working on regenerative protein solutions, including plant-based, fermentation, molecular agriculture, and cultivated technologies. (source)

  • Kering, the parent company of Gucci, has acquired French fragrance brand Creed in an all-cash transaction from funds controlled by BlackRock and the current chairman, Javier Ferran. (source)

  • Outdoor specialty retailer Backcountry may be up for sale as its parent company, TSG Consumer Partners, is considering selling the Utah-based retailer. (source)

  • Cart.com, an Austin-based e-commerce comapny, has raised $60 million in a Series C funding round, bringing its valuation to $1.2 billion. The round had participation from B. Riley Venture Capital, Kingfisher Investment Advisors, Snowflake Ventures, Prosperity7 Ventures, and Legacy Knight. (source)

  • Consumer tech brand Nothing raised $96 million in funding led by Highland Europe, with participation from existing investors GV, EQT Ventures, C Capital, and Swedish House Mafia. (source)

  • Everytable, a LA-based food company, has raised $25 million led by Dohmen Company Foundation, with participation from existing investors. (source)

  • Shopify has officially announced its venture arm and have launched http://shopify.vc/, a website inviting commerce founders looking to raise funds. (source)

🧐 Interesting reads

💡 Data, reports, and trends

😋 Brands and things I’ve tried this week

Pretty much just things at fancy food!

🤷‍♂️ 

Thanks for reading! If you have any suggestions, feedback, or stories or posts I missed, let me know!

Nate :)

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