Express Checkout #84 - the latest in CPG, Retail, and eComm

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Now onto the news of the week!

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🗞️ News from the week (7/22/24 - 7/28/24)

🔥Big News 🔥

• Meati facing legal trouble. Alt-meat startup Meati Foods is facing a class-action lawsuit for allegedly falsely advertising its products as made from mushroom roots—when they’re actually made from a strain of filamentous fungus called Neurospora Crassa. Sounds a lot like a similar lawsuit filed against Quorn Foods in 2016…

• The return of Boxed. Online wholesale retailer Boxed is back under new ownership after being purchased by MSG Distributors following its Chapter 11 bankruptcy. The new owner is partnering with Spresso, an ecommerce tech company previously owned by Boxed.

• A flamin’ hot mess. A former PepsiCo executive, Richard Montañez, is suing the company, claiming that he created Flamin' Hot Cheetos and that his career was affected when PepsiCo denied his involvement.

🛒 CPG & Consumer Goods

• Chipotle announced a new lineup of beverages—including Poppi, Open Water, and Coke Zero.

  • Poppi can also be found at fast-casual places like Just Salad, while Olipop made waves with Sweetgreen.

• Wasn’t it always BFY? Beyond Meat launched a new plant-based protein called Sun Sausage, which is not intended to replicate beef, pork, or poultry—but is positioned as a better-for-you offering.

  • Here’s the thing: Beyond Meat, Impossible, and the like were never positioning themselves as healthy, just environmentally-friendly…which made people think they were healthy.

• Jennifer Aniston’s haircare brand, LolaVie, launched in Ulta Beauty at Target, offering a limited assortment of its products. The brand initially launched direct-to-consumer in 2012 and expanded into Credo Beauty in 2023.

• Experiential or bust. Primal Kitchen and Pinterest collaborated to create the Colorful Kitchen Pop-Up, a unique experience that combines Primal Kitchen's condiments with Pinterest's top food and kitchen trends. The pop-up already happened in NY and is coming to Chicago this week and LA the next!

  • Why are they doing this? According to Ana Goettsch, Primal Kitchen’s Head of Marketing, they tested out experiential last year and wanted to double down this year for a few reasons: A) people haven’t heard of them, B) consumers are looking for great ways to experience brands, and C) consumers need to try the product, especially when there’s a price hike from their current go-tos.

• It’s about time… According to new Mintel research, more than half of US men now use facial skincare products, marking a 68% increase from 2022. This trend is particularly prominent among Gen Z men.

  • My take? More and more men are taking their skin—and general health—seriously. Why? Young people are questioning traditional gender roles + more brands are rising to the meet the moment. There’s an opportunity to target men who still need something “manly” (🙄) and men who are more open to something branded differently than traditional skincare.

• Foodservice = massive unlock. Califia Farms, a leading plant-based beverage brand, acquired Uproot Inc., a plant milk dispenser system for foodservice. The acquisition will allow Califia Farms to expand its portfolio and bring its plant milks to more dining locations.

💻 eCommerce

• Better profit planning. Iris finance, an AI-powered finance and accounting data platform is introducing channel profit and loss statements, providing daily visibility into Shopify, Amazon, and Retail (like CVS and Walmart) P&Ls.

🛍 Retail

• Another in-house collection. Ulta Beauty is relaunching its in-house Ulta Beauty Collection with a new focus on Gen-Z. The collection will have more than 700 SKUs.

  • Private label is all the rage. Walmart, CVS, Walgreens, Target, and many more have been doubling down on their own in-store brands.

• The hottest retail trend? Personalization. Walmart’s first annual State of Adaptive Retail Report highlights the shift towards more “adaptive retail,” AKA a focus on personalized shopping experiences and meeting unique consumer habits and preferences.

• Price sensitivity is in. Ross Stores opened 24 new locations across the US. With these additions, Ross Stores aims to reach 2,900 Ross Dress for Less and 700 dd's DISCOUNTS locations.

• Do grocery wine sales hurt liquor stores? A new study examined the impact of allowing grocery stores in Tennessee to sell wine. The results? This policy did not significantly increase liquor store closures, boosted state sales tax revenues, and led to a surge in wine sales—ultimately stabilizing the number of liquor stores.

• Drink every time I say INDOCHINO: INDOCHINO and Nordstrom are expanding their partnership with five new INDOCHINO shop-in-shop locations across the US. This expansion brings the total number of INDOCHINOs within Nordstrom to 32.

• Physical retail is far from dead. Despite the rise of AI and other tech in online shopping, 32% of consumers still value physical stores. Fifty-seven percent of shoppers want to see and touch items before purchasing, and 68% seek expert advice for high-value purchases. Additionally, 66% of consumers find private-label products as good as branded alternatives.

• World Market plans to open several new stores, including a 14,500 sq.-ft. store in Cincinnati and 6 additional stores in the US by the end of 2024.

🏭 Supply Chain

• Supply chain logistics company Stord acquired the fulfillment services operation of Pitney Bowes' eCommerce division. This acquisition marks Stord's second eCommerce purchase in four months.

• Automation across the board. Kroger partnered with Ocado Group to implement new automated technologies in its Customer Fulfilment Centres.

💸 Funding news

• Southern Glazer's Wine & Spirits acquired Horizon Beverage Group, Inc., expanding its presence in the New England market.

• Building the cannabis infrastructure. LeafLink, a NYC-based cannabis wholesale platform, acquired Dama Financial, a cannabis banking platform.

• Summer Fridays received an investment of an undisclosed amount from TSG Consumer Partners.

• See, men are using skincare. W, Jake Paul’s men's personal care brand, raised $14 million in Series A and seed funding with support from Shrug Capital and Anti Fund. The company is set to reach roughly $50 million in its first year and has been listed as Walmart’s best launch in its ‘Emerging Brands’ category history.

• Fable and JamJar have invested in Bibbi Parfum, a niche Swedish-French fragrance brand that launched in late October 2023.

• Cherub, an incredible platform for brands and angels to get paired up, has acquired Pearl Influential Capital, a leading SPV management company.

🧐 Interesting reads + data

• The Great De-Conglomeration

• "Sales" - a Misunderstood Role in Consumer Products.

😋 Brands and things I’ve tried this week

GoodPops was kind enough to send over one of the best collabs I’ve seen in a while – GoodPops x Ore-Ida! (Fun fact: Ore-Idea invented the tater tot!)

Thank you Reggie and Kismet for sending Ginger some amazing treats and Doggy stuff

Nate :)

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