The Consumer VC Roundup #101
The Latest News For the Emerging Consumer Ecosystem
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Hey friends,
Happy New Year. Thinking of all those in Los Angeles who have lost their homes and are displaced. As someone who lives here, this has been a tough week. It’s numbing and heartbreaking to see. I hope everyone is safe.
Towards the end of the month we will be hosting coffee events bringing the consumer ecosystem together in quite a few cities. More to come next week. On to the latest news in consumer –
This Week In Consumer
🧃Consumer Brands👚
💰Fundraises💰
InvestBev, a private equity firm specializing in the adult beverage industry, has made a strategic equity investment in Renais, a premium UK-based gin brand. This investment supports InvestBev's strategy to grow its portfolio in the expanding gin market. PRNewswire
Auréa Group has invested in Zenagen and ACT/IV haircare brands, expanding its portfolio into premium haircare. This follows the Group’s acquisition of The Body Shop last year. Zenagen and ACT/IV are owned by U.S.-based Nutraceutical Research Innovations. BeautyPackaging
💸M&A💸
AB InBev’s Brazilian unit, Ambev, is selling its Do Bem juice brand to Brazilian fruit juice producer Tial. The sale will allow Ambev to focus on other brands and business segments. JustDrinks
Flowers Foods, Inc. will acquire Simple Mills for $795 million in cash. This deal expands Flowers' presence in the better-for-you snacking segment, diversifies its portfolio, and is expected to boost net sales and adjusted EBITDA immediately. PRNewswire
Safety Shot, a US-based wellness company, is acquiring plant-based energy drinks maker Yerbaé Brands. Yerbaé generated $12 million in revenue in fiscal 2023. The deal involves exchanging Yerbaé’s shares for 20 million shares of Safety Shot stock, valuing the transaction at $15.2 million in equity and $19.7 million in enterprise value. The deal is expected to close in Q2 2025. JustDrinks
Louis Dreyfus acquires BASF’s Food and Health Performance Ingredients Business, expanding its plant-based offerings. The deal includes a German production site, three labs, and 300 employees transitioning to Louis Dreyfus. Financial terms were not disclosed. FoodDive
Sparc Group, operator of brands like Lucky, Eddie Bauer, and Forever 21, has merged with JCPenney to form a new company called Catalyst Brands. The new entity will be led by former JCPenney CEO Marc Rosen. Bloomberg
Tru Fragrance has acquired clean fragrance brand Lake & Skye after a nearly 7-year relationship. Tru, which is part of Monogram Capital Partners' portfolio, initially partnered with Lake & Skye in 2018. Capital Southwest provided debt financing for the acquisition, but further deal details were not disclosed. BeautyIndependent
🚀Debuts, Distribution & Expansion🚀
Mondelēz International expands Chips Ahoy! beyond cookies with new Baked Bites. These chewy, square-shaped treats debut in a Blondie flavor, with more varieties to follow. Packaged for on-the-go or at-home snacking, Baked Bites offer a more indulgent twist on the classic cookie. FoodDive
Amazon is launching a new ad product, Amazon Retail Ad Service, which allows other retailers to use its ad technology to sell product ads on their own websites. This move significantly shifts Amazon’s advertising strategy, as it aims to compete with adtech companies like Criteo and Publicis-owned Epsilon. Adweek
Best Buy is launching a new third-party marketplace in mid-2025, expanding beyond electronics. The platform will offer a broader range of products, providing sellers with more branding opportunities. This follows a previous attempt from 2011 to 2016, which was discontinued due to low revenue and confusion around returns. ModernRetail
Barnes & Noble plans to open around 60 stores this year, following the 57 U.S. stores and 12 UK stores it opened last year. The retailer currently operates 650 stores. RetailTouchPoints
Phyla, a brand using phages to fight acne, is launching exclusively at Sephora. The brand, backed by Shiseido, offers a three-product system and a set, including Acne Phage Serum, Anti-Blemish Moisturizer, pH Balancing Gel Cleanser, and the Acne Phage System. The products are currently available online and will be featured in nearly 90 Sephora locations in March. BeautyIndependent
Ashley Tisdale’s brand, Being Frenshe, has entered the haircare market with a new Hair Wellness collection focused on holistic hair and scalp health. The collection features clean, skin-care grade ingredients and is powered by MoodScience Scent Technology, designed to enhance the self-care experience. BeautyPackaging
🪇Collabs🪇
Pabst has partnered with Anheuser-Busch to produce Pabst Blue Ribbon beer products, starting this quarter. Pabst CEO Paul Chibe stated the agreement will enhance the company's supply chain and support retailers and distributors. The move follows the end of Pabst’s nearly 20-year production deal with Molson Coors. FoodDive
Brenntag Specialties has partnered with Cambrium to introduce NovaColl, a vegan collagen, to the UK and key European markets like Ireland, Iberia, France, and Italy. The collaboration combines Brenntag’s distribution expertise with Cambrium’s AI-driven biotechnology for active ingredient development. GCIMagazine
RéVive partnered with Lele Sadoughi to create a limited-edition ArtJar for its Moisturizing Renewal Cream. The jar features 3D-effect diamonds on the label, offering a tactile experience and transforming it into a decorative art piece, with packaging support from Berlin Packaging. GCIMagazine
Retail research firm Coresight Research has partnered with NextRivet to launch CoreRivet, a new consultancy offering tailored advice and services to retail and real estate executives on technology and implementation. RetailTouchPoints
Ipsy has teamed up with Gabrielle Union to curate its February Icon Box, featuring makeup, skin, and hair products that reflect her journey of self-expression. Union will also narrate Ipsy’s Black History Month social campaign, "Black Joy Is Beautiful," which celebrates embracing and expressing one's authentic self. BeautyPackaging
↪️Rebrands & Relaunches↩️
Fruit juice brand Odwalla has returned to the U.S. market after being discontinued by Coca-Cola in 2020. Now owned by Full Sail Partners, a Warburg Pincus subsidiary, the brand's juices and smoothies will be produced by Mexican company Grupo Jumex at its vertically integrated sites. Distribution will be managed by Vilore Foods in the U.S. and Canada. JustDrinks
📰 Consumer News📰
Diageo has closed its Chase Distillery in England, moving production of Chase spirits to its Cameronbridge Distillery in Fife, Scotland. JustDrinks
A study by Cornell University and Numerator found that households with at least one GLP-1 drug user reduced grocery spending by 6% within six months, with higher-income households cutting spending by nearly 9%. Purchases of calorie-dense snacks dropped 11%, pushing CPG companies to adapt products and marketing. FoodDive
Danone plans to sue Lifeway Foods, alleging CEO Julie Smolyansky engaged in "self-dealing" and the board breached fiduciary duties. The dispute arises after Lifeway's board granted Smolyansky nearly 300,000 shares without Danone's required consent. Danone, which owns 23.3% of Lifeway, recently offered to buy the company for $27 per share. Lifeway has faced longstanding family disputes. FoodDive
Smithfield Foods, owned by China's WH Group, has filed to go public on the Nasdaq under the ticker "SFD." The offering's timing, share count, and price range are yet to be determined. WH Group plans to sell 20% of its shares, valuing Smithfield at $5.38 billion, amid pork industry pricing pressures and scrutiny over agricultural ties to China. FoodDive
The FTC is suing Southern Glazer’s Wine and Spirits for price discrimination, claiming the distributor withheld volume discounts from smaller retailers while offering them to larger chains. The lawsuit, filed on Dec. 12, alleges the practice has been ongoing since 2018. FoodDive
Canada is preparing retaliatory tariffs on U.S. goods if President Trump imposes a 25% import tax on Canadian products. The list includes items like ceramics, steel, furniture, whiskey, orange juice, and energy exports. The goal is to inflict economic damage while sending a political message. CNNBusiness
JCPenney and SPARC Group have formed a joint venture called Catalyst Brands, combining brands like Aéropostale, Brooks Brothers, and Eddie Bauer. Catalyst Brands starts with over $9 billion in revenue, 1,800 store locations, and 60,000 employees. It has sold Reebok's U.S. operations and is exploring options for Forever 21. RetailTouchPoints
L’Oréal is facing six class action lawsuits related to its CeraVe and other acne products, alleging that they were contaminated with benzene, a cancer-causing chemical. The U.S. Judicial Panel on Multidistrict Litigation will decide later this month whether to consolidate the lawsuits for centralization after hearing oral arguments. BeautyPackaging
🔻Closures & Bankruptcies🔻
French food delivery startup Epicery is shutting down after nine years, citing financial challenges and inflation impacting customer spending. Despite scaling back operations, the company reported a 2023 EBITDA of -€4.69M on €2.57M in sales. TechCrunch
Alico Inc., a major Tropicana orange supplier, will exit the citrus business by 2025, citing hurricanes and plant diseases that cut Florida production by 73%. The company plans to pivot to a diversified land business, selling or leasing its citrus acreage for farming, commercial, or residential use. FoodDive
Wayfair is exiting Germany after 15 years, citing challenges in turning the brand into a household name there. The closure will result in approximately 730 job losses. Wayfair plans to focus on other international markets, with the UK outperforming Germany in terms of success. RetailTouchPoints
REI is shutting down its Experiences business, which had been losing millions annually. The closure will result in over 400 job cuts, including 180 full-time positions and 248 part-time guides. The decision comes after years of financial losses, despite serving 40,000 customers in 2024. Customers with bookings will receive full refunds. RetailTouchPoints
💻eCommerce and Retail Software💻
💰Fundraises💰
PrettyDamnQuick (PDQ), a startup providing technology to help retailers customize and test shipping and checkout flows, has secured $25 million in Series A funding. Founded in 2020, PDQ serves around 200 customers and processes approximately 30 million orders monthly, amounting to $4 billion in gross merchandise volume. TechCrunch
💻Consumer Software💻
💰Fundraises💰
Fintech company nsave has launched an investment platform offering people from high inflation countries the ability to protect and grow their wealth with trusted dollar, sterling, or euro accounts abroad. The platform provides access to US equities, ETFs, and funds. nsave also raised $18 million in Series A funding, led by TQ Ventures and supported by Sequoia Capital, Y Combinator, ACE Ventures, and Proton Foundation. PRNewswire
💰Funds Raising Funds💰
Scrum Ventures, a San Francisco and Tokyo-based early-stage venture capital firm, closed its first vertically focused tech fund, Scrum Sports & Entertainment Fund I (SSE). The new fund, which closed at $68 million, invests in technology companies that support the growth of the sports and entertainment sector but also transcend the vertical and address market inefficiencies in other industries. PRNewswire