Express Checkout #33

Commerce and CPG news from the week of 7/10/2023

Author

Nate Rosen
July 17, 2023

Hello hello (to over 2,300 of you)!

How was everyone’s Prime Day? I was pretty happy with my purchases, I got some fun stuff.

Do you know who else had a good Prime Day? Hexclad and Dude Wipes (I’m a customer of both)! I was lucky enough to interview Jason Panzer, President at Hexclad (and a host of the 9 Operators Podcast), and Joey Thomas, Senior Director, E-commerce at DUDE Products. I’ll be dropping my interview with them tomorrow so stay tuned!!!

🎙️ I also recently sat down with my friend Dimitri Keselman on his podcast, the Consumer Rundown, to talk all the latest stories across CPG. Check out the episode now on Spotify and Apple Podcasts!

If you were sent this issue please consider subscribing!

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

Mike MacCombie (Surface Ventures), Brian Folmer (FirstLook VC), 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! 🙌 

🚨 Brands!! 7-Eleven has opened applications for its fifth annual Brands with Heart showcase! With the opportunity for the chosen brands to see their products on the shelves of 7-Eleven, Speedway, and Stripes stores across the US. Brands such as Agua Bonita, Aura Bora, Olyra, Freestyle Snacks, Mmmly, and UNiTE Bar. (Press release here)

👉️ Apply here 👈️ 

🔥 Big News - 10 items or less 🔥

  • Taking “Seen On TV” to a new level - Roku has partnered with Shopify to allow viewers to purchase products from Shopify merchants directly on their TV through Roku Action Ads. Viewers can check out with Roku Pay and return to their streaming experience after. This is the first commerce integration for independent Shopify merchants on TV streaming! (source)

  • Kim K is getting busy!

    • Her brand Skims is reportedly in the midst of a round of fundraising that could value the company at close to $4 billion, ahead of a potential IPO over the next 6 to 12 months. (source)

    • She is reportedly in talks to buy back a minority stake in her beauty firm, SKKN, from Coty Inc. The value of the stake has not been determined. Coty had bought a 20% stake in June 2020. (source)

    • Oh yeah, and she’s partnering with Alani Nu on a limited-edition energy drink called "Kimade" as part of their collaboration, "Alani by Kim K". It will be sold exclusively on AlaniNu.com and will also be available at national and international retailers later this summer. (source)

  • America's oldest craft brewery shutting down - Anchor Brewing, America's oldest craft brewery, is closing its doors. The brewery, founded in San Francisco in 1896, was purchased by Japanese brewing giant Sapporo in 2017 for $85 million, but efforts to revive the brand have failed. (source)

  • Bobbie Acquires Nature’s One - Bobbie, the mom-founded and led infant formula company in the U.S., has acquired Nature's One, the Ohio-based pediatric nutrition company, to strengthen domestic manufacturing and meet its full growth potential. The company is closing a $70 million Series C to acquire Nature’s One, led by a $35 million investment by PowerPlant Partners. (source)

  • Animal-free dairy maker splits up - Perfect Day plans to sell off its consumer products arm, The Urgent Company, to focus on its core competencies as a supplier of ingredients made via precision fermentation. The Urgent Company was created in 2020 to help stimulate market interest in “animal-free” dairy, building consumer brands including Brave Robot, Modern Kitchen, and California Performance Co. It also acquired Coolhaus in late 2021. (source)

  • Prime Day go brrr - According to Adobe Analytics, Prime Day 2023 generated the biggest daily online spending to date, with total spending across both days reaching $12.7 billion in the U.S., 6.1 percent YoY growth. (source)

🗞️ News from the week (7/10/23 - 7/16/23)

🛍 Retail

  • 7-Eleven is expanding its private label options, including a refreshed coffee program and is introducing 150 new private label products. The company aims to have 34% of sales from proprietary items by 2025, with 25% from fresh food and drinks and 8% from private label goods. (source)

  • Brilliant Earth, an omnichannel jewelry company focused on ethical sourcing, is opening four new showrooms in Fairfax, Chicago, Miami, and Walnut Creek, CA. The expansion brings total store count to 34 locations across the US. (source)

  • Redbox has signed a deal with TikTok to feature curated content on more than 3,000 video screens on Redbox kiosks across the U.S. Brands will also have the opportunity to buy advertising that runs alongside the TikTok content, providing a unique opportunity to reach new audiences and drive engagement. (source)

This is too much

  • Walgreens has acquired 120 pharmacies from Brookshire Grocery, including pharmacy customer prescription files and related pharmacy inventory. (source)

  • Claire's has rebranded its ear piercing service as Pierced, with a new logo and design aesthetic aimed at resonating with a Gen Z and Gen Alpha. The move comes as competitors like Studs and independent piercing shops continue take market share. Piercing is a major revenue driver for Claire's, and the company plans to promote the new push with its second-ever TV commercial. (source)

  • Dollar General has launched DG Cash Back Program in partnership with Ibotta, allowing customers to earn cash back on eligible purchases online or in store. (source)

  • Babies R Us is set to open a flagship store at the American Dream mall in New Jersey, just a week after rival Buy Buy Baby failed to find a buyer and began liquidating its stores. (source)

  • Lidl is reportedly closing five underperforming stores in the US, while ramping up operations at two recently opened stores. The closures follow Lidl's decision to lay off around 200 corporate employees in February. Lidl first entered the US in 2017. (source)

🛒 CPG & Consumer

  • Porsche has partnered with online paint brand Backdrop to bring historic Porsche paint colors to your walls. The collection includes Irish Green, Speed Yellow, Ruby Star, and Riviera Blue, and will be available exclusively at Backdrop's website. This has to be one of my favorite collabs I’ve seen. (source)

GORGEOUS 😍 

  • L'Oréal and Verily have launched a multi-year study called My Skin & Hair Journey to better understand the factors that contribute to skin and hair health over time. The registry will enroll thousands of self-identifying US women to develop a body of knowledge about perceptions and owned experiences of skin and hair health. (source)

  • Sean “Diddy” Combs has launched Empower Global, an immersive e-commerce platform that exclusively features products created and sold by Black entrepreneurs. Empower Global has unveiled over 70 brands and plans to introduce over 200 brands by year's end. (source)

  • Connecticut has reduced the excise tax on beer by 16.7%, from $7.20 to $6.00 per barrel, effective July 1, 2023. The tax cut is intended to support the state's craft brewery industry, which has seen significant growth in recent years. The state has over 120 locally-owned breweries. I’m personally a big fan of Two Roads Brewing. (source)

  • Upcycling company Do Good Foods, which converts grocery food waste into nutrient-dense animal feed, has filed for Chapter 11 bankruptcy protection. The company raised $169 million in 2021 and launched Do Good Chicken. (source)

  • ADM has launched Knwble Grwn, a brand of sustainably sourced plant-based food ingredients produced by small or underrepresented farmers using regenerative agricultural practices. (source)

💻️ eCommerce 

  • Shipt has partnered with online gaming developer Voldex to create a back-to-school shopping experience within the popular racing game Driving Empire on Roblox. Users can play as a Shipt shopper (fun??), delivering school supplies and snacks to customers while earning in-game currency. (source)

  • eBay has completed its acquisition of Certilogo, a provider of AI-powered digital IDs and authentication for apparel and fashion goods. (source)

  • Chinese ecommerce platform Temu has been accused of copying Amazon storefronts, including product images, descriptions, and "browse trees". Many affected sellers have complained and filed lawsuits against Temu, but the company has not taken down the pictures. (source)

  • SSENSE has introduced an AI chatbot using OpenAI technology and the brand's proprietary AI model to empower shoppers with the ability to ask questions and receive AI-recommended product links. (source)

  • Fondue, an eCommerce cash-back rewards platform was acquired by Postscript, the leading SMS marketing platform for Shopify brands. (source)

🏭 Supply Chain

  • Atomix Logistics, a Milwaukee-based startup that provides customized shipping fulfillment for online businesses, is moving to a 60,000-square-foot warehouse near Milwaukee Mitchell International Airport, doubling its current facility's size. The company also plans to double its team size. (source)

  • Hallmark has opened a second distribution center in Missouri to optimize and centralize its distribution network. The 850,000-square-foot facility will serve as the distribution hub for all their tchotchkes aiming to reduce transportation needs and use around 1 million fewer cardboard boxes annually. (source)

  • Walgreens will close an e-commerce distribution center in Illinois and lay off 393 employees as part of its strategy to streamline operations and become a consumer-centric healthcare business. Walgreens' supply chain operations are seeing a big overhaul as it opens more automated micro-fulfillment centers to fill prescriptions and reduce pharmacist workloads. (source)

  • Urban Outfitters is implementing an AI-based merchandise planning platform from o9 to optimize decision-making and adapt to trends, seasonality, and unique demand drivers. The platform includes merchandise financial planning, assortment planning, demand planning, allocation, and replenishing capabilities. (source)

💸 Funding, Exits, M&A, and VC

  • Foraged, a marketplace for wild and specialty foods based in Washington, DC, raised $2.7 million in seed funding led by Bessemer Venture Partners, with participation from several notable investors such as Yelp co-founder and CEO Jeremy Stoppelman, StubHub co-founder Eric Baker, Shopify President Harley Finkelstein, and Fiverr founder and CEO Micha Kaufman. (source)

  • Silo, a San Francisco-based provider of technology solutions for the food supply chain, has raised $132 million in funding led by First Citizens Bank and Koch Disruptive Technologies. (source)

  • New York-based Leverage, a provider of an end-to-end supply chain visibility platform, has raised $7 million in funding led by Chicago Ventures, with participation from Las Olas Venture Capital, Remarkable Ventures, Tensility and Florida Funders. (source)

  • Sampler has acquired AdMass, adding AI and UGC capabilities to its product offering. The acquisition will allow Sampler clients to incorporate UGC capabilities into their campaigns, leveraging the power of brand advocates and the social reach of Sampler's growing community of nano-influencers. (source)

  • Hair care brand Bread Beauty Supply has raised a undisclosed multimillion-dollar seed funding round led by Fearless Fund, a venture capital fund that supports Black entrepreneurs. (source)

  • Oddity Tech, an Israel-based beauty and wellness products company, plans to raise up to $315.8 million in its U.S. IPO and seek a valuation of up to $1.7 billion. The company aims to price its shares between $27 and $30 each and will list on the Nasdaq under the symbol "ODD." Goldman Sachs, Morgan Stanley, and Allen & Co are the lead underwriters. (source)

  • JP Packaging LLC has acquired Toll Pack, a producer of customized flexible packaging solutions based in Pennsylvania. The acquisition allows JP Packaging additional capacity, enhanced disciplines, and new customer access, broadening and expanding its current capabilities in sachet, custom die cut sachet, fitment pouch, and refill pouch production. (source)

  • Simbe Robotics, a company leveraging AI and robotics to elevate the performance of retailers with real-time insights into inventory and operations, announced a Series B equity financing round of $28 million, led by Eclipse. (source)

    • Simbe’s core product, the Tally Robot, is being used by many grocery retailers including BJ's Wholesale and Wakefern Food Corp!

  • Foundry has acquired Blu Atlas, a DTC men's personal care brand, for an undisclosed 8-figure sum, marking Foundry's third acquisition in the men's personal care industry. Foundry has also acquired Supply Razors, Stryx and Craft & Kin. (source)

  • Lantern, an early-stage startup, has raised $6.8 million in seed funding to build a B2B platform that combines a customer data platform (CDP) with customer success tools. The round was led by Primary Ventures and Moxxie Ventures, with participation from 8VC, 8-Bit Capital, Coalition, and several prominent industry angels.

🧐 Interesting reads

💡 Data, reports, and trends

😋 Brands and things I’ve tried this week

It was 7/11 this past week which means one thing, free Slurpee day!!! Hope everyone snagged one!

coke + cherry, a classic

I also received a ton of macadamia nut based products from House of Macadamias team! These spreads are seriously tasty stuff. The white chocolate one was surprisingly really good. I’m not much of a white chocolate fan but this might have converted me.

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

Nate :)

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