Consumer VC Roundup #110

The Latest News For the Emerging Consumer Ecosystem

Hi friends,

The big news this week is that PepsiCo has acquired Poppi for $1.95 billion ($1.65 billion purchase price plus a $300 million tax credit). Rumors were circulating over the weekend that the deal was nearing completion. Congratulations to the Poppi team on achieving an incredible outcome!

CAVU played a major role in Poppi's success, having led each round of funding and holding a significant stake. While not technically an incubated brand, Poppi (originally called Mother) received an early investment from Rohan Oza of CAVU, who invested $400k for a 25% stake during their Shark Tank appearance. Beyond funding, CAVU significantly shaped Poppi’s brand, marketing, and growth strategy.

As Kiva Dickinson mentioned, this deal raises an interesting question: Will we see more investment firms incubating brands, leading all funding rounds, and maintaining larger, concentrated positions moving forward? Also…will we see Olipop get acquired by a strategic or go the IPO path?

A couple years ago I had the great pleasure of interviewing Alison and Stephen Ellsworth, founders of Poppi at SXSW. If you want to hear more about their founding story, Here’s the interview.

This Past Week In Consumer

🧃Consumer Brands👚

💰Fundraising💰

• Walgreens Boots Alliance is going private in a $10 billion deal with Sycamore Partners, with the transaction potentially reaching $23.7 billion. The deal, subject to regulatory approval and a 35-day "go-shop" period, is expected to close by Q4 of fiscal 2025. RTP

• UK tempeh brand Tiba Tempeh has raised over £1.1 million, led by Maven Capital Partners and supported by the British Business Bank, with Perfect Redd also investing. The funds will boost marketing, sales, and product development, with new launches planned for 2025. V

• Swedish cultivated meat startup Re:meat has raised €1 million in an oversubscribed funding round led by impact investor 8+ Ventures, with participation from food and tech industry investors, including the founder of Bastard Burgers and co-founders of Söderberg & Partners. V

• Dutch foodtech startup Cano-ela has raised €1.6 million to develop innovative plant-based ingredients from underutilized canola seeds. The round included existing investor Oost NL and new investors Value Factory Ventures and Ecoseed.V

💸M&A💸

• PepsiCo buys prebiotic soda brand, Poppi, for $1.95 billion ($1.65 billion + $300 million tax credit). CNBC

• Next Century Spirits (NCS) has acquired Blue Chair Bay Rum as part of its strategy to expand into the premium rum category. The brand, founded by country star Kenny Chesney in 2013, has sold millions of cases to date. JD

• Godrej Agrovet has announced plans to acquire full ownership of Creamline Dairy Products, solidifying its position in the Indian dairy market. The company, which already holds 51.9% of Creamline, will pay Rs9.3bn ($106.7m) for the remaining shares. Godrej Agrovet, backed by Godrej Industries, first invested in Creamline in 2005 and crossed the 50% ownership threshold in 2015. JD

• KNS International has acquired DTC footwear brand Birdies, with co-founder Bianca Gates joining as brand president. The deal, backed by Centre Partners, expands KNS’ portfolio, which includes Vance, Taft, and Journee. RD

• Wonder has acquired media company Tastemade for $90 million, expanding its strategy of integrating takeout, delivery, and meal kits with content and advertising. RTP

• Burcon NutraScience’s partner, RE ProMan, has acquired a protein production facility in Galesburg, Illinois, to integrate Burcon’s plant-based protein technologies, with commercial production set to begin in early 2025. V

🚀Debuts, Distribution & Expansion🚀

• De Kuyper Royal Distillers is launching Batched 0.0%, a non-alcoholic premixed cocktails range for on-premise customers in Europe. Initially rolling out in the Netherlands, UK, and Germany, the brand plans a global launch in the future. JD

• Danish dairy giant Arla Foods is expanding in North America through a manufacturing deal with South Dakota-based Valley Queen. The partnership will see Valley Queen produce whey protein for Arla’s Nutrilac ProteinBoost line, which is designed to enhance protein content in food and beverage products without affecting taste or texture. FD

• Good American is launching at Macy’s, expanding the department store’s denim assortment. Co-founded by Khloé Kardashian and Emma Grede, the brand will debut in 36 Macy’s stores this spring, growing to 79 stores by fall. Good American’s size-inclusive collection, ranging from 00 to 5XL, will also be available online and via Macy’s mobile app. RD

• Ross Stores opened 19 new locations in March, including 16 Ross Dress for Less and three DD’s Discounts stores, expanding in key markets. The retailer plans to open 90 new stores this year. RD

• Showroom Boon is launching its first retail concept inside Paris' Printemps to support indie designers as buyers increasingly favor big brands and commercial pieces. WWD

• Bath & Body Works is rolling out its new Gingham+ store design, featuring wider aisles, improved navigation, and experiential elements like scent bars, to over 15 locations, with plans for broader adoption in future U.S. openings. RTP

• CVS will open 12 small-format stores across the U.S. over the next year, focusing on full-service pharmacies and health-related products while cutting out typical retail items like groceries and cosmetics. RTP

• Despite political pushback, gender-inclusive skincare brand Good Light is expanding to all Ulta Beauty stores, reinforcing the demand for inclusive beauty in retail. BI

• Target is adding Slayyy Hair to its shelves, making it the first Black-owned braiding hair brand available at the retailer. BI

• New French wellness brand Mabel is introducing a mushroom microdosing plan aimed at supporting women's mental clarity and overall health. BI

• Florence by Mills, the clean beauty brand by Millie Bobby Brown, is launching a new Hair and Body Mist collection. The first scent, Soft Girl, a cozy gourmand fragrance, debuts on March 13, with more scents to follow. BP

• Australian SPF brand Ultra Violette has expanded into the U.S. through a partnership with Sephora. The brand's six Skinscreens, including the new Vibrant Screen, will be available in 592 locations and online. BP

• Charlotte Tilbury has launched at U.S. luxury beauty retailer Bluemercury, now available in key stores nationwide and online. The lineup includes customer favorites as well as new releases like the Immediate Eye Revival Patches, Exagger-Eyes Volume Mascara, and Fragrance Collection. BP

• Nails Inc has launched It’s Topless, the first-ever 4-in-1 nail polish, combining a base coat, treatment, color, and top coat in one bottle for a seamless, salon-quality manicure in a single step. BP

💰Funds Raising Funds💰

• Anheuser-Busch is investing $4.2 million to upgrade its Williamsburg, Virginia brewery, reinforcing its commitment to domestic beer production. The facility, which produces Bud Light, Michelob Ultra, and Natural Light, will receive new equipment to boost efficiency. FD

↪️Rebrands & Relaunches↩️

• Boohoo Group is rebranding as Debenhams Group and shifting to a multibrand platform model under new CEO Dan Finley. The move builds on Debenhams’ success since Boohoo acquired it in 2021, aiming for a “stock-lite and capital-lite” approach while overseeing brands like PrettyLittleThing, Karen Millen, and Dorothy Perkins. WWD

• Martha Stewart is relaunching her apparel and gardening collections on QVC while introducing new culinary, home decor, and textile lines. Her apparel line, Martha Stewart Signature, debuts on March 31, with more product drops planned throughout the year. WWD

• Cult-favorite Cocofloss has rebranded as Cocolab to reflect its expanding oral care lineup beyond just floss. BI

🪇Collabs🪇

• The Estée Lauder Companies are partnering with Adobe to integrate Firefly generative AI into its digital marketing, streamlining content creation by automating tasks like resizing assets to boost efficiency and accelerate campaign execution. BP

📰 Consumer News📰

• The EU has announced retaliatory tariffs on US food and drink imports, including beer, wine, whiskey, rum, and dairy-based beverages. This move follows Washington’s decision to tax steel and aluminum shipments. The industry group SpiritsEurope expressed “extreme concern” over the impact on spirits trade. JD

• President Donald Trump has threatened to impose 200% tariffs on wine, Champagne, and other European alcoholic products if the EU does not remove its 50% tariff on U.S. whiskey. The warning comes after the EU announced countermeasures to Trump's 25% tariffs on steel and aluminum, which include reinstating tariffs on bourbon, boats, and motorbikes starting April 1. FD

• The Consumer Brands Association, representing major companies like PepsiCo, Conagra, and Mondelēz, has urged the White House to grant targeted tariff exemptions for essential imported ingredients, including cocoa, coffee, and certain spices, which are not produced in the U.S. FD

• President Donald Trump has paused tariffs on nearly all agricultural products traded between the U.S., Mexico, and Canada for one month. The temporary suspension, which applies to USMCA-compliant imports, extends a prior exemption for car imports and delays duties until April 2. However, steel and aluminum tariffs are still set to take effect on March 12. FD

• California's wine supply has reached a 20-year low as the state's grape crush fell by 21.7% in 2024, according to the US Department of Agriculture. The total crush stood at 2.88 million tons, the lowest since 2004, when it was 2.78 million tons. JD

• US immigration policy under the Trump administration may negatively impact off-price retailers like Burlington, TJX, and Ross. Analysts suggest that immigration crackdowns are reducing Hispanic consumer spending, a key customer base for these retailers. While factors like tariffs, recession fears, and declining consumer sentiment typically benefit off-price retailers, this demographic shift poses a potential challenge. RD

• In the battle of Saks vs. customers, vendors, and Dallas, Nordstrom emerges as the winner. As Saks Global faces backlash over unpaid vendors, poor service, and a lease dispute that shut down Neiman Marcus’ flagship, it risks losing market share to competitors. Analysts are now calling for new leadership. RD

• L’Oréal SA has voluntarily recalled its Effaclar Duo acne treatment in the U.S. after independent lab Valisure detected high levels of benzene in acne treatments containing benzoyl peroxide (BPO). BP

• E.l.f. Beauty faces a class action lawsuit alleging it inflated revenue, profits, and inventory figures, following a report by Muddy Waters. The company refutes the claims, calling the report “incomplete” and “flawed.” BP

🔻Closures, Bankruptcies & Downsizes🔻

• Fossil Group is implementing layoffs and store closures to reduce costs amid declining sales. In Q4, net sales fell 19% to $342.3 million, though net losses shrank 73% to $7.6 million. The company exited the smartwatch category and plans to save $100 million through February layoffs, a shift to a distributor model in some markets, and closing 50 more stores. RD

• Skin care brand Futurewise is shutting down, ending online orders after March 24. Known for its “slugging” products, the brand has launched a 60% off sale as it winds down. RD

• Hudson’s Bay Co. filed for bankruptcy protection, citing Trump-era tariffs and a tough consumer environment. The retailer, which operates Hudson’s Bay and Saks stores in Canada, faces a liquidity crisis and has secured $11 million in financing to continue operations. RD

• Hims & Hers is doubling down on weight loss treatments, abruptly shutting down its teledermatology brand Apostrophe after spending $16 million on a Super Bowl ad criticizing the healthcare system. BI

💻eCommerce and Retail Software💻

• Kroger has launched a new ecommerce business unit to unify its online customer experience, led by CIO Yael Cosset in his new role as EVP and Chief Digital Officer. RTP

• Lowe’s has introduced Mylow, an AI assistant developed with OpenAI, to help MyLowe’s loyalty members with home projects, offering guidance on renovations, maintenance, and product selection. RTP

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