Express Checkout #32

Commerce and CPG news from the week of 7/3/2023

Author

Nate Rosen
July 10, 2023

Hello hello!

Happy Prime Day week (July 11-12) to those who celebrate! Amazon is expected to make $8.03 billion 💰️ in sales during this event, with nearly 175 million US adults using Prime. Which is an insane amount. That’s more than half the population of the US…go get something good!

I’m thrilled to announce you can now find me and my CPG loving-mind over on MentorPass!! Thank you Kenny Hanson for getting me set up. Pumped to help founders and operators scale their consumer brands! Let's chat! 💪 —> https://www.mentorpass.co/me/naterosen

Also, my good friend Hans and his husband Luis (co-founders of Wunderkeks) launched their latest venture, the Sunday Afternoon Foundation! Their mission to provide a safe space for individuals to express themselves and grow is truly inspiring. Learn more here!

To celebrate the foundation's launch, Wunderkeks will be hosting a bake sale 🍪 on TUESDAY, JULY 11th!! All proceeds from the sale will be dedicated to supporting the foundation. You can purchase their incredibly delicious cookies at www.wunderkeks.com! I promise they’re great cookies!

If you were sent this issue please consider subscribing!

This week I also had the pleasure of meeting up with my friend and founder of Couplet Coffee, Gefen! We went bodega hopping to find some friends’ brands, like Plink!

One more thing. Are you throwing an event or party where you'd like to include products from emerging CPG brands?

Mike MacCombie, Brian Folmer, and I run a CPG Sampling Whatsapp group with 100+ founders from all different categories looking for cool sampling and activation opportunities.

Complete this form to submit your event details! If you’re a brand who wants to join the group email me! 🙌 

🔥 Big News - 10 items or less 🔥

  • Meal company gets acquired - Mars Inc. has announced the acquisition of Kevin's Natural Foods. Kevin's will operate as a standalone business within Mars Food & Nutrition. The acquisition is expected to close in Q3 of 2023. (source)

  • High anxiety - PRIME, an energy drink backed by YouTube stars Logan Paul and KSI, is under investigation by the FDA due to its caffeine content of 200 milligrams per 12 ounces. The drink has gained viral popularity, particularly among children, prompting concerns from health experts and lawmakers about its potential health risks, including heart problems, anxiety, and digestive issues. (source)

    • Personally, I don’t understand the issue. Celsius drinks also are 200mg per 12 oz. Something is missing here, we’ll see how this plays out.

  • UPS strike looming - Negotiations between UPS and its Teamster-represented workers have broken down, with the contract set to expire on July 31. The Teamsters are demanding better pay, an end to a two-tier wage system, more full-time jobs, safety and health improvements, and stronger protections against harassment. A strike would have significant economic impacts. UPS is one of the largest shipping companies in the US and shipped 5.2 billion US parcels in 2022. (source)

  • Yeezy changes hands - Kanye West has reportedly chosen Dov Charney, a very controversial former founder of American Apparel, to be the CEO of the Yeezy brand. (source)

  • IPO Moves -

    • Birkenstock, owned by L Catterton, is reportedly meeting with bankers to explore options for the business, including a potential IPO. (source)

    • Meanwhile, Claire's has postponed its IPO due to unfavorable market conditions. The teen accessories retailer had indicated its plans for an IPO in 2021, but has now abandoned the plan. (source)

  • Greenhouse Accelerator Finalists - PepsiCo has announced the 10 finalists for its Greenhouse Accelerator Program, focused on supporting emerging Hispanic businesses in the food and beverage industry. Each finalist receives a $20,000 grant and mentorship. Here are the finalists:

    1. CHUZA Inc (I love their products!!)

    2. Date Better Snacks

    3. Dathic

    4. FoodWare

    5. Hyfé

    6. I Eat My Greens

    7. Katrina Brewing Co

    8. Pisqueya

    9. Tia Lupita Foods

    10. True Spirit Beverage Company

🗞️ News from the week (7/3/23 - 7/9/23)

🛍 Retail

  • Travel brand Monos has opened its first retail location, a flagship store in Vancouver. The store features Monos' color collection, core pieces and many travel accessories. The company plans to open additional stores outside British Columbia in the coming years, following a $10m Series A and $30m Series B funding round last year. (source)

  • Madhappy, a lifestyle brand focused on mental health and optimism, is collaborating with Los Angeles Dodgers, Roscoe's House of Chicken 'N Waffles, and Courage Bagels to create capsule collections. The brand has received a $1.8 million investment from LVMH and plans to open its first permanent store in Los Angeles later this year. (source)

  • Southeastern Grocers has launched a new private label store brand product line called Know & Love. The product line includes over 1,000 clean label products across a wide range of food, beverage, and household categories free from nearly 100 undesirable ingredients. The Know & Love product line will roll out exclusively in Fresco y Más, Harveys Supermarket and Winn-Dixie stores gradually through next year. (source)

Southeastern Grocers’ Know & Love

Target’s Good & Gather

idk about y’all but this looks just like Target’s private label brand 🤷 

  • The Christmas Tree Shops is liquidating its 72 remaining stores after failing to find a buyer in time to satisfy its lenders. The retailer had defaulted on its $45 million bankruptcy loan at the end of June. Going out of business sales have begun at the retailer's stores nationwide. (source)

  • Festival Foods is partnering with Upshop to use AI forecasting and inventory management tools to streamline ordering processes and production operations for its fresh foods operations. (source)

🛒 CPG & Consumer

  • Anheuser-Busch has partnered with Los Sundays Tequila to create a new line of RTD seltzers. The launch features an exclusive merch capsule collection in the tequila brand's signature style, a sampling program, and OOH. (source)

  • Actor Danny Trejo has launched Trejo's Spirits, a line of non-alcoholic spirits. (source)

    • Danny is no stranger to the entrepreneurship world. He owns multiple restaurants including Trejo's Tacos, Trejo's Cantina, and Trejo's Coffee & Donuts

  • DTC vitamin and supplement brand Care/of has launched on Amazon, marking the first time the brand has been offered through an e-commerce retailer other than its own site. The launch follows a deal in April to offer products through Sam's Club. (source)

  • Japan Airlines is testing a new clothing rental service called "Any Wear, Anywhere" in summer 2023. The service allows customers to select clothing, the total number needed, and the reason for their visit, among other things, and starts from ¥5,000 (approximately $35). The airline has partnered with Sumitomo Corporation to procure, launder, and deliver clothes, while Wefabrik will provide made-in-Japan products sourced from excess inventory and pre-owned clothing platforms. The airline plans to measure changes in total luggage weight carried by inbound passengers and use the data to calculate the total reduction in carbon emissions resulting from the reduced weight of the aircraft. (source)

    • This is one of the most interesting stories I’ve seen in a while. I’m very curious how this will play out. 🤯 

  • Canada Goose is launching its first pair of sneakers this summer as part of its Transformation Program, which includes expanding its product range and DTC business. (source)

  • Snoop Dogg's latest venture, Snoop Doggie Doggs (perfect name), is launching in retailers such as Petco, PetSmart, and Kohl's with its line of dog clothing, toys, and accessories. The brand launched on its own website and Amazon in late 2022 and has seen a 450% online sales growth compared to the launch phase throughout last November and December. (source)

  • United Airlines has added a Vegan Breakfast Bagel featuring a JUST Egg patty to its menu for US domestic flights exceeding 1,190 miles. (source)

  • UK-based brand Something & Nothing has started production in the US and is targeting further sales in the country, which currently accounts for 55% of its sales. The company has recently taken over distribution of its own drinks in the US and has begun producing at a 3PL in Vermont. To facilitate growth, the company has also dropped the word seltzer from the packaging and marketing materials for its soda range, which includes Hibiscus and Rose, Yuzu and Cucumber variants. (source)

    • This is one of my favorite drink brands out there so I am pumped to see them expanding in the US! Definitely go try to find their drinks if you can. Incredible liquid.

  • Sazerac, the owner of spirit brands like Buffalo Trace, has won a counterfeit lawsuit against distributor Allocated Liquor, which sold nearly identical imitations of the brand's products. Allocated Liquor has been ordered to pay $30,000 in damages. (source)

  • Brooks Running has launched a recommerce program called ReStart, partnering with Trove to refurbish and resell used Brooks footwear in the U.S. (source)

🏭 Supply Chain

  • The Fedrigoni Group is opening an innovation center in Verona, Italy to develop sustainable premium papers, materials, and self-adhesives. The center will include four areas for research, development, innovation, and customer experience, and is expected to be fully operational in Q1 2024. (source)

  • DHL Express has opened its first hub in Atlanta, which will connect 19 cities in the Southeast with global markets, with about 20,000 pieces per hour being sorted through the facility. The hub will also operate as a contingency airport to a fellow hub in Miami. (source)

  • DoorDash has officially ended its 15-minute grocery delivery test program in NYC just after about a year and a half. The company cited inflation and difficulty in finding a sustainable model. (source)

💸 Funding, Exits, M&A, and VC

  • Theo Chocolate has announced it’s merging with American Licorice Company, with the deal expected to close in Q3 2023. Theo Chocolate will close its Seattle plant and reduce office staff as part of an ongoing restructuring exercise. American Licorice Company supplies brands such as Red Vines and Sour Punch, employs 667 workers across the US, and generated revenue of $156.2m last year. (source)

  • California Naturals, a new hair-care brand, has just launched with products priced under $10 and exclusive distribution at Target. They’ve raised $4 million from investors including Elizabeth Street Ventures, Midnight Venture Partners, L Catterton, and Sandbridge. Tony Hawk also surprisingly joined as chief culture officer, responsible for creating content and helping to engage the skate culture and community! (source)

  • Everything Marketplaces has launched a $10 million venture fund called Marketplace Capital (clever name) to back early-stage marketplaces, primarily investing in the Pre-Seed to Series A stages. Its LP includes funds like Craft Ventures and FJ Labs. (source)

  • Derek Jeter has joined Meati Foods, the producer of animal-free meat made from mushroom root, as an investor and advisor. (source)

  • Australian non-alcoholic spirits producer Lyre's has raised nearly $22.9 million in a funding round led by investors DSquared and Morgan Creek Consumer Fund. (source)

  • Westrock Coffee has secured $75 million in equity investments from HF Capital and the Herbert Hunt family, with plans to use the funds to complete two new can lines and a new $300m facility in Arkansas. (source)

  • Clean haircare brand Allyoos has secured $300,000 in funding and is expanding its DTC distribution, digital marketing, and assortment. Allyoos expects to introduce a styling product later this year and plans to fundraise again soon. (source)

  • Public Ventures has launched a $100 million impact fund that seeks out life science and clean tech startups, particularly in Canada. The fund is domiciled in the U.S. but will concentrate mainly on Canada. (source)

  • Boxhub, an online marketplace for buying and selling new and used shipping containers in the US, raised $12.4 million in Series A funding led by AlleyCorp, with participation from Solasta Ventures, Interplay VC, FJ Labs, and Hum Capital. (source)

  • NYC-based Slang.ai has raised $20 million in funding, including a recent Series A funding round led by Homebrew with participation from Stage 2 Capital, Wing VC, Underscore VC, Active Capital, and Collide Capital. Slang provides AI-powered phone agents for restaurants and retail businesses. (source)

🧐 Interesting reads

💡 Data, reports, and trends

😋 Brands and things I’ve tried this week

This week I got to try the newest collaboration between Sweet Nothings and Rind Snacks! I really like the Sweet Nothings nut butter bites and this one is no different. Really like how they went with pear for the flavor here, usually not my fruit of choice but it works well here.

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

Nate :)

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