The Consumer VC Roundup #121

The Latest News in Emerging Consumer Brands, Tech & Commerce Enablement

Today’s Consumer VC Roundup is brought to you by, Highbeam.

Running a brand? Highbeam is the all-in-one banking and cash management platform built specifically for consumer brands.

It combines no-fee banking, automated treasury to maximize yield on idle cash, flexible credit, bill pay, and live 13 week cash flow — plus AI agents that automate tedious manual spreadsheet work

Brands like Birddogs, New York or Nowhere, Ridge, and Avocado use Highbeam to stay ahead of cash flow, make significantly more money on idle cash, and access credit that fits how brands actually operate. Build your brand. Keep your cash.

Includes a free 3-month trial of the AI Analyst.

---

Hey friends,

Hope you had a great weekend and week last week. We’re shifting this newsletter to Tuesdays. Let me know if that works for you or if you prefer me releasing this over the weekend.

The Big News

• e.l.f. Beauty just bought Rhode for $1 billion. The deal breaks down like this:

  • $600M in cash

  • $200M in stock (2.6M shares)

  • $200M tied to future performance

    That’s 3.8x LTM net sales of $212M as of March 31, 2025.

    Rhode only launched in mid-2022. No retail presence yet — it's been DTC only until now. That makes this valuation even more impressive.

    But it also raises a fascinating question:

    👉 What happens when you acquire a talent-led brand?
    How do you off-ramp the talent (if ever) without losing the brand’s identity? I know Hailey will likely stay on for three years with $200M tied to future performance. But what does that off-ramp actually look like during/after the three years?

• David, the protein bar company founded by RXBar founder Peter Rahal, raises $75 million led by Greenoaks, with participation from Valor Equity Partners – Just Food

  • In addition, they acquire Epogee, the ingredient supplier that developed EPG. EPG is a plant-based fat alternative that is less calories and less fat. EPG plays a crucial role in David’s nutritional profile: 28 gram of protein with just 150 calories.

  • They are expected to hit $100 million in there first full year of sales and are currently in over 3,000 retail stores.

📰 Consumer News📰

• A U.S. federal court has blocked several of Donald Trump’s sweeping tariff orders, ruling he overstepped his emergency powers. The injunction halts tariffs on Canada, China, Mexico, and a global 10% duty, though the decision is currently paused pending appeal. RD

• Victoria’s Secret has temporarily shut down its website and some in-store services due to a security incident, though physical stores remain open. The company is investigating the issue with third-party experts and has not yet provided a timeline for full restoration. RD

• Gap Inc. expects tariffs to add $250M–$300M in costs this year, potentially reducing operating income by $100M–$150M despite mitigation efforts. While Old Navy and Gap saw Q1 sales and market share gains, Banana Republic remained flat and Athleta continued to struggle. RD

• Mondelēz sued Aldi, accusing it of copying Oreo and Chips Ahoy! packaging on seven products. The lawsuit claims Aldi’s packaging confuses consumers and harms Mondelēz’s brand. Mondelēz seeks damages and an injunction to stop Aldi from using the designs. FD

• A Skechers shareholder has sued the company over its $9.4 billion buyout by private equity firm 3G Capital, alleging the sale process was controlled by founder Robert Greenberg and his family, who hold 60% voting power, favoring a single bidder and excluding minority shareholders. The lawsuit demands more disclosures with the SEC to ensure the deal’s fairness. The buyout values Skechers at $63 per share, 20% below its 52-week high, and could earn Greenberg over $1 billion. Skechers declined to comment due to pending litigation. FN

🧃Consumer Brands👚

💰Fundraises💰

• JamJar Investments, founded by the creators of Innocent Drinks, has made a significant investment in hydration brand Humantra, valuing the company in the high eight figures. JamJar is now a majority shareholder alongside Dubai-based HB Investments. The funding will support Humantra’s UK retail expansion and global growth. JD

• David, the protein bar company founded by RXBar founder Peter Rahal, raises $75 million led by Greenoaks, with participation from Valor Equity Partners – Just Food

• Dolce & Gabbana has secured an additional $170 million in debt financing to support its expansion into the beauty and property sectors. The deal also includes a refinancing of existing loans, signaling the Italian fashion house's intensified investment in growing its presence beyond fashion. BOF

💸M&A💸

• e.l.f. Beauty is acquiring Hailey Bieber’s skincare brand Rhode for $1 billion, with $800 million paid at closing and $200 million tied to future performance. The deal, expected to close in Q2 of fiscal 2026, follows E.l.f.'s continued sales growth, including a 28% increase in fiscal 2025. RD

• Hudson’s Bay has agreed to sell up to 28 store leases in Ontario, Alberta, and British Columbia to Ruby Liu Commercial Investment Corp., led by Chinese billionaire Ruby Liu. Liu plans to develop a new modern department store concept in Canada, though she cannot use the Hudson’s Bay name, which was recently acquired by Canadian Tire. The lease acquisition follows Hudson’s Bay filing for creditor protection and initiating liquidation of all 80 stores, a move expected to cut 8,000 jobs. The deal is pending court and landlord approvals. WWD

• Williams-Sonoma has acquired the intellectual property of college decor brand Dormify and plans to relaunch it in 2026. The move aims to expand Williams-Sonoma’s reach among younger consumers by leveraging its design and logistics strengths. For now, Dormify's site redirects shoppers to Pottery Barn Dorm. RD

• Italy’s Tenuta Ulisse has acquired organic winemaker Cirelli Wines. Terms of the deal were not disclosed. JD

• Essilorluxottica is set to acquire Optegra eyecare clinics from MidEuropa to expand its medical technology presence. Optegra operates over 70 eye hospitals and diagnostic centers across several European countries, offering treatments like cataract surgery and laser eye surgery. The deal is expected to close later this year; financial terms were not disclosed. FN

🚀Debuts, Distribution & Expansions🚀

• Nike is returning to Amazon after a six-year break, aiming to offer better product access and experiences for U.S. consumers. Third-party sellers must sell through their Nike inventory by July 19. At the same time, Nike plans to raise prices on many footwear products. RD

• Walgreens has opened its 12th micro-fulfillment center in Brooklyn Park, Minnesota, to serve nearly 200 Midwest stores and process about 13 million prescriptions annually. This marks a renewed push in its automation strategy after pausing last year to improve efficiency and cut costs. RD

• Warby Parker is expanding its AI efforts with a new iOS app feature called Advisor, which offers personalized frame recommendations based on face scans and style preferences. The company also partnered with Google to develop AI-powered smart glasses, set to launch next year. RD

• Living With Ivey, a Florida-based clean beauty and lifestyle retailer, is expanding to Southampton this summer and New York City’s Tribeca this fall. With three South Florida stores, it offers 180+ brands, mostly in beauty and wellness. Popular products include skincare, supplements, and home fragrance. Founder Ivey Leidy’s Instagram following of 72,400 helps drive sales, with the company projecting 5X growth this year. A recent viral video led to a $95 serum selling out in hours. BI

• ShampooHotel, a destination-inspired hair and body care brand, has launched exclusively at Ulta Beauty online, with select store availability beginning June 8. The brand features professional-grade formulas in four vacation-inspired scents across shampoos, conditioners, body washes, and lotions. BP

• Aveda has joined the U.S. Amazon Premium Beauty store, offering its full range of vegan hair, skin, body, and lifestyle products. The brand also features an immersive Hair Care Guide to enhance the shopping experience. BP

• Dolly Parton is launching a line of Southern-inspired frozen meals in partnership with Conagra Brands. The single-serve options include Beef Pot Roast, Chicken and Dumplings, Country Fried Steak, and Shrimp and Grits, along with a frozen peach cobbler. These are now available at retailers across the U.S. FD

• Pangaia launched its most advanced plant-based activewear collection, "365 Seamless Activewear." It uses 100% bio-based Evo Nylon from plants and Hyosung’s regen Bio Max elastane, made from 98% renewable resources. Pangaia is the first brand to use regen Bio Max elastane commercially, cutting carbon footprint by 27% and ozone depletion by 82% compared to conventional spandex. FN

🪇Collabs🪇

• Burt’s Bees and Mike’s Hot Honey launched a limited-edition lip balm inspired by Mike’s signature sweet and spicy sauce. The balm will be available starting May 29. BP

• Kiehl’s has partnered with Life Time to offer select hair and body care products at nine of its New York City country clubs this summer. Members will have exclusive access to items like the Amino Acid Shampoo, Form 133 Conditioner, Grapefruit Body Wash, and Crème de Corps in club dressing rooms and showers, with potential expansion to additional locations. BP

↪️Rebrands & Relaunches↩️

• Conscious Beauty Collective has rebranded as Power Beauty Collab and shifted to a shop-in-shop model, curating clean indie brands for salons and studios. The name change follows a trademark dispute with Ulta Beauty. The brand aims to expand to 25 locations, up from 14. BI

• Banana Republic is repositioning with a return to its heritage safari aesthetic, now reimagined as “modern utility” under Gap Inc. CEO Richard Dickson and head of marketing Meena Anvary. The brand is leaning into premium fabrics, versatile silhouettes, and functional design cues to evoke a sense of exploration with a contemporary edge. WWD

• Cécred and the BeyGOOD Foundation, founded by Beyoncé, have relaunched the Cécred x BeyGOOD Fund with a $500,000 commitment for its second year. Now available nationwide, the initiative supports emerging stylists and beauty entrepreneurs through scholarships, business grants, and training—highlighting the essential role salons play in their communities. BP

• Miu Miu’s London flagship reopens June 7 with a new concept focused on culture and community, featuring its full collection and an exclusive Upcycled preview. A launch event and Miu Miu Club night curated by Little Simz follow on June 12. The relaunch comes amid a 60% sales jump and Prada Group’s £250M purchase of the store’s building. WWD

• Beautycounter is making its return as Counter on June 25, following its buyback from foreclosure by founder Gregg Renfrew and investors from G2G. The clean beauty pioneer will relaunch with a new look, updated formulations of fan favorites, and a revamped sales model called "community commerce." The 50-product lineup includes reimagined versions of hits like the Vitamin C serum, Countertime serum, and Dew Skin tinted moisturizer. BOF

🔻Closures, Bankruptcies & Downsizes🔻

• Hudson’s Bay will lay off over 9,000 employees—about 90% of its workforce—by mid-June as it winds down operations following its bankruptcy filing in March. The company sold its intellectual property to Canadian Tire and offloaded several leases, with only around 100 staff remaining to close out operations. RD

• Indian spirits producer Radico Khaitan has withdrawn its new whisky brand Trikal from the market due to concerns over the brand name, following an internal review. JD

• General Mills plans job cuts as part of a multi-year restructuring to boost productivity. The initiative will cost about $130 million, with over half for severance. The changes will largely finish by fiscal 2028. The company also lowered sales and profit forecasts due to weaker U.S. snacking demand. FD

• J.M. Smucker will close its Hostess plant in Indianapolis by early 2026 to consolidate production. The facility has 259 employees. Smucker acquired the plant in its $5.6 billion Hostess purchase two years ago and will share more details with its June 10 earnings report. FD

• UK fashion retailer Next has abruptly closed one of its three factories in Sri Lanka, cutting 1,416 jobs. The factory, located in the Katunayake Free Trade Zone near Colombo, was shut due to high operating costs and ongoing unprofitability. The closure sparked protests, with over 800 trade union members losing work. Next promised severance packages for affected employees. FN

Thanks for reading!