Express Checkout #35

Commerce and CPG news from the week of 7/24/2023

Author

Nate Rosen
July 31, 2023

Hello hello!

I am officially in my late 20s. My 27th birthday was this past Sunday! Of course, I had a great snack and drink selection at my little friends picnic in Central Park. We had Somos, Lesser Evil, Zack’s Mighty Organic, Defy Wine, Yabai!, and Welch’s fruit snacks (iconic).

I also hosted my first coffee meet-up last week at Cometeer’s office (some of the best coffee you can buy!). Thank you Cometeer for hosting and thank you Patrick Johnson founder of Progress labs and Jess Cervellon the CX and marketing guru at Feastables and co-host of Oopsie Podcast for hosting it with me! I am planning on doing these at least 2x a month! If you’re in NYC and want to attend please let me know! (Next one will probably be August 14th!)

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🔥 Big News - 10 items or less 🔥

  • A strike avoided - UPS and the Teamsters (which reperesent about 330,000 employees) have reached a tentative collective bargaining agreement. The five-year agreement delivers apparent wins for employees, the company, and its customers, and is subject to voting and ratification by union members. (source)

  • Shopify has major updates - Shopify has released over 100 updates in its Summer '23 Edition. Here are some of the major updates:

  • Jell-O gets a facelift - Kraft Heinz's Jell-O has undergone a brand refresh after a decade, with design agency BrandOpus creating a new logo with a playful typeface, new color palette, and new fruit illustrations. The refresh is part of a larger trend at Kraft Heinz, with 18 brands undergoing refreshes in the past three years. (source)

    • My friend Oren made a great TikTok about the history of Jell-o, you can watch it here!

I think it looks good!

  • More legal action against Shein - H&M has filed a copyright infringement lawsuit against fast fashion Shein in Hong Kong. Shein is also facing other legal complaints, including a suit brought by independent designers under the Racketeer Influenced and Corrupt Organization Act and a suit from Temu alleging antitrust violations. (source)

  • Kellogg’s splitting up - Kellogg Company has filed a Form 10 registration statement with the SEC in connection with its previously announced plan to separate into two businesses, Kellanova and WK Kellogg Co. The separation is expected to be completed during Q4 of 2023, with existing Kellogg shareowners receiving shares in the new WK Kellogg Co. (source)

  • $800m consumer brand fund - Bansk Group, a New York-based private investment firm focused on investing in consumer brands, has closed its inaugural fund at $800 million. The firm targets investments in beauty & personal care, consumer health, food & beverage, and household products. The Fund has invested in four portfolio companies to date, including Red's All Natural, Woodstream, Arcadia Consumer Healthcare, and Eva NYC. (source)

  • Pepsi & Walmart go green - PepsiCo and Walmart have announced a 7-year collaboration to invest $120 million in supporting US and Canadian farmers in adopting regenerative agriculture practices on more than 2 million acres of farmland. (source)

  • RTD gets mostly acquired - Argentina-based Beliv has acquired a 78% controlling stake in RTD coffee brand High Brew, with the remaining shares held by its founder and current investors. The price of the deal was not disclosed. Beliv is part of multinational beverage corporation Grupo Mariposa and has a portfolio of over 40 brands and a presence in 30 countries. (source)

  • Truck carrier ceases operations -Truck carrier Yellow Corp. has ceased all operations and is expected to file for bankruptcy after months of negotiations with its Teamsters workforce. The company laid off most of its nonunion employees and stopped making pickups earlier in the week, and has been delivering the remaining freight in its network ahead of what appears to be a permanent closure. (source)

🗞️ News from the week (7/24/23 - 7/30/23)

🛍 Retail

  • Coach has opened a pop-up store in SoHo, New York to showcase its newly launched sub-brand, Coachtopia. The store features pieces from the latest Coachtopia collection, thoughtfully curated to highlight the use of upcycled materials, and will remain open until August 20, 2023. (source)

  • MAPCO has opened its second checkout-free store in Nashville powered by Grabango's technology. The system uses computer vision to eliminate waiting in line and scanning items, improving store operations and boosting shopper loyalty. (source)

  • Kroger has converted a store in Franklin, Tennessee, to self-checkout-only and plans to do the same at another store in the state. The move is aimed at enhancing the customer experience and includes the addition of new belted checkout lanes to accommodate customers with larger baskets. (source)

  • REI Co-op is expanding its rentals, day tours, and multiday adventures to support its multiyear strategy of getting three million people to experience nature each year. The company has launched three Canadian Rockies trips and added new US destinations, doubling its paddling operations and expanding its day tours in the Bay Area. REI has also added nearly 30 multiday itineraries. (source)

  • Fragrance brand Snif (which I am a customer of, I have Sweet Ash) is launching three of its bestsellers in 525 Ulta Beauty stores as part of the retailer's Sparked program. The scents include Sweet Ash, Tart Deco, and Golden Ticket, and each retail for $65. (source)

🛒 CPG & Consumer

  • Actual Veggies is expanding into Whole Foods Market stores nationwide with its black bean burger and super greens burger in the freezer aisle. (source)

  • Konscious Foods has launched the world's first frozen plant-based sushi rolls, poke bowls, and onigiri stuffed rice snacks. The plant-based seafood brand is now available at all Whole Foods locations throughout North America. (source)

    • These were really one of my favorite bites at ExpoWest this year.

  • Anheuser-Busch is letting go of hundreds of corporate employees, less than 2% of its corporate workforce. The decision will not impact frontline employees such as brewery and warehouse workers, drivers, and field sales. The company has faced a lot of backlash this year, including criticism from advocacy groups for its response to a promotional video featuring a transgender influencer. (source)

  • French's and Skittles have teamed up to release limited-edition Mustard Skittles in honor of National Mustard Day. The unique candy will be given away for free via an online sweepstakes and at in-person pop-up events in Atlanta, Washington D.C., and New York City. (source)

  • Better Booch, a Los Angeles-based kombucha maker, has released a sparkling tea beverage called Cha. The new product is a gut-healthy alternative to soda. (source)

  • Hilmar Cheese has launched PROtelyze Extend, a hydrolyzed whey protein isolate that enhances protein content and texture in nutrition bars. The product addresses the issue of protein bars hardening on the shelf due to moisture pickup, and extends shelf life while maintaining sensory attributes. (source)

  • Ingredion has developed a zero-calorie sweetening solution called PureCircle Clean Taste Solutions, which can be used in a variety of applications including beverages, dairy, tea, coffee, sports nutrition, bakery, confectionery, savory, sauces, and dressings. (source)

  • Yough, a better-for-you dough brand, has launched a two-ingredient pizza dough made with yogurt and organic wheat flour for direct-to-consumer purchase on their website. The dough offers lower calories, carbs, and higher protein content per serving than other pizza crusts. (source)

  • Plant-based dairy co Miyoko's Creamery has laid off 12 staff members across various roles, following a similar round of layoffs in February. The company has also not provided an update on its CEO search since interim president Jon Blair stepped down in June. (source)

  • US-based indoor farming company AppHarvest has filed for Chapter 11 bankruptcy protection and plans to sell its Kentucky greenhouse to its distribution partner Mastronardi Produce. (source)

💻️ eCommerce 

  • Amazon has launched a new page called "Your Recalls and Product Safety Alerts" for customers to view product recalls and safety information for items they purchased on Amazon. This new feature aims to make it easier for customers to be aware of recalls on products they have purchased, navigate to get more information about recalls, and view refund or return options. (source)

  • Wayfair has launched a new app, Decorify, which uses generative AI to enable customers to create “shoppable” and “photorealistic” images of rooms in their homes or apartments in new styles. (source)

  • WooCommerce merchants will be among the first to integrate with TikTok's new Shop feature, allowing brands to sell directly on the social media platform. The beta program will allow merchants to bring their entire inventory to TikTok Shop, with in-feed videos, livestreams, and a product showcase tab on their profile page. (source)

  • Poshmark has launched Posh Lens, a new feature allowing shoppers to search for secondhand styles with photos. The feature leverages Naver's visual search technology and AI-based capabilities to match or closely match the searched image with available listings. (source)

  • Fanatics, a global digital sports platform, has launched Fanatics Live, a community-driven platform for live shopping experiences via a dedicated app. Fanatics Live is working with a broad range of partners, including Major League Baseball, SLAM Magazine, and VeeFriends, to provide unique product offerings and talent appearances. (source)

🏭 Supply Chain

  • Amazon has opened a new robotics fulfillment center in Detroit, expanding its operations and transportation network in the state. The 823,000-sq ft facility will support the 10 fulfillment and sortation centers and 13 delivery stations servicing Michigan, and employ over 1,200 people. (source)

  • The Port of Oakland, Port of Long Beach, and Port of Los Angeles received over $700 million in grants from the California State Transportation Agency to fund 15 projects that will increase capacity to move goods throughout the state's global trade gateways. (source)

  • Breadsource Corp. is investing $18.4 million to build a fully automated manufacturing facility in Scarborough, which will triple production capabilities and create 13 new jobs while upskilling 40 current jobs. (source)

💸 Funding, Exits, M&A, and VC

  • Stay Ai, a recurring commerce enablement platform for subscriptions, clubs, and memberships, has raised $15.1 million in Series A funding. A portion of the round, $8.6 million, was led by Telescope Partners, with participation from Boulder Food Group, Riverpark Ventures and Vanterra Capital, and the remaining $7.5 million was led by Watchfire Ventures and a group of individuals, including Sharma Brands founder Nik Sharma and Postscript founder Adam Turner. (source)

  • Authentic Brands Group has acquired footwear brand Rockport out of bankruptcy, expanding its diverse footwear portfolio. The financial terms of the deal were not disclosed. (source)

  • Goodwater, a VC firm focused on consumer tech investments, raised over $1 billion across its family of early and growth stage funds. The firm has backed 79 early and growth stage startups in 19 countries around the world including social media company musical.ly, fintech app Toss, and British neobank Monzo. (source)

  • German food-tech startup The Oater has raised a seven-figure euro pre-seed funding round led by SodaStream CEO Rüdiger Koppelmann. The company plans to use the funds to produce oat drink machines and enter the market. (source)

  • Specialty grocer Erewhon has made a strategic equity investment in Zuma Valley, a maker of organic coconut products sourced directly from small family farms in the Philippines. (source)

  • Brevel, an Israeli startup, has raised $18.5 million in seed funding to expand its algae-based ingredient production platform. The company claims to have developed a high-yielding process combining LED lighting and sugar-based fermentation to produce a neutral-tasting complete protein at cost parity with soy and pea. (source)

  • Cash-flow management firm for consumer brands Settle has secured a $145 million credit facility from Silicon Valley Bank to expand its ability to offer working capital to consumer brands and e-commerce businesses. This new financing comes on top of a $280 million revolving credit facility from Citibank and Atalaya that Settle secured last year, and $100 million in equity financing from investors. (source)

  • Supply Change Capital, a female and Latina-owned VC firm, has closed its first fund with $40 million in capital commitments, targeting investments in the global food industry. The firm invests in deep tech food, agriculture and ingredient, supply chain technology, and enterprise software, with a thesis around securing the future food supply. Supply Change Capital has already deployed $13 million across 15 startups. (source)

🧐 Interesting reads

💡 Data, reports, and trends

😋 Brands and things I’ve tried this week

This week I tried a new hydration powder, Salud! Very very very tasty! And they have a bunch of interesting flavors and SKUs. I particularly liked the cucumber lime flavor in both the energy and hydration SKUs. I’ll definitely be buying these again!

I have also been really enjoying my Huron SPF moisturizer. Goes on really easily, doesn’t leave a white streak, and doesn’t leave me oily.

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

Nate :)

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