The Consumer VC Roundup #88
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Hey friends,
What a week! In CPG, Siete Foods was acquired by PepsiCo for $1.2 billion, which is a massive deal not only for Siete Foods, but also for the rest of the CPG ecosystem. And in technology, OpenAI is now valued at $157 billion with its latest fundraise. We’re also hosting 10 coffee events & happy hours in October around the country bringing together consumer ecosystem (I know, that’s just as impressive 😉). You can find details of those events at the end of the email.
One question in consumer technology that has been top of mind for many investors and technologists I interview is – what will be the next major consumer platform after mobile? We’ve seen Apple launch their goggles – the Vision Pro. And this past week, Mark Zuckerberg debuted Orion, Meta’s first AR glasses. It begs the question, will glasses be the next platform shift and the main computing platform, replacing the phone? Or will AR glasses be more like the iPad – a nice to have?
On to the consumer news of the week & events for this month.
This Week In Consumer
🧃Consumer Brands👚
💰Fundraises💰
💆🏻♀️ Sofie Pavitt Face, the skincare brand founded by aesthetician Sofie Pavitt, has received seed funding from True Beauty Ventures. Pavitt, known as the "cool girl’s acne whisperer" by Nylon, has attracted attention with this new investment. BeautyIndependent
🫧 California Naturals, the natural hair and body products brand, is expanding its retail presence through a new partnership with CVS, as it prepares to close its Series A funding round. BeautyIndependent
🥤 Coca-Cola Consolidated, the independent soft drinks bottler, has invested $25 million in its West Memphis, Arkansas, facility to expand its bottling capacity. The addition of a new bottling line increases the plant's output from 26 million to 29 million cases annually. JustDrinks
🍺 Anheuser-Busch is investing $16 million to expand its Los Angeles brewery, enhancing production of its "beyond beer" beverages like Cutwater and Nütrl vodka seltzer. The investment also includes upgrades for producing 25-ounce cans, driven by growing demand, and improvements in water conservation and emissions reduction efforts. FoodDive
💸M&A💸
🌯 PepsiCo is acquiring Mexican American food company Siete Foods for $1.2 billion, marking its first food acquisition in five years. Known for its grain-free tortillas and products catering to dietary restrictions, Siete's offerings are sold in major retailers like Target and Whole Foods. This deal aligns with PepsiCo's strategy to expand its healthier food options, following previous acquisitions like Bare Snacks and PopCorners. CNBC
🐶 Ollie, a pet food subscription service, has acquired pet health tech startup DIG Labs to launch an AI-powered tool that analyzes dog stool. This move aims to differentiate Ollie in the competitive $103.3 billion global pet food market by offering advanced pet diagnostics to enhance pet health and well-being. TechCrunch
👙 Bravissimo, a leading lingerie retailer specializing in D cup and above, has been acquired by Wacoal Europe. Founded by Sarah Tremellen in 1995 after struggling to find larger cup-sized bras, Bravissimo has grown into a brand focused on helping customers feel confident in their lingerie and swimwear. PressRelease
🍩 Mondelēz International’s venture capital arm, SnackFutures Ventures, has acquired a minority stake in UK-based Urban Legend, a healthier doughnut and pastry brand. This investment supports Mondelēz’s strategy to expand in the better-for-you bakery market, with Urban Legend's air-frying technology reducing sugar, fat, and calories by up to 75% compared to traditional doughnuts. Financial terms were not disclosed. FoodDive
🍸 Diageo has acquired Ritual Zero Proof, a leading non-alcoholic spirits brand in the U.S., to expand its presence in the zero-proof beverage market. Ritual offers alcohol-free alternatives to gin, whiskey, and tequila. Financial details of the deal were not disclosed. FoodDive
🍶 Danone has proposed to acquire the remaining shares of Lifeway Foods, a kefir manufacturer, for approximately $283 million, or $25 per share. This offer comes amid ongoing family disputes within Lifeway’s leadership and increasing shareholder pressure to sell. Danone currently holds a 23.4% stake in Lifeway. FoodDive
📈 International investment group CDPQ has raised its stake in Canadian dairy processor Saputo, Inc. to around 4.5% by acquiring an additional 13.5 million shares at $27.96 each, totaling approximately $378 million. FoodBusinessNews
💰 Euroitalia has acquired the beauty and fragrance license for the Moschino brand from Aeffe for €98 million ($110 million). This deal expands Euroitalia's portfolio, which already includes licenses for Versace and Michael Kors. An initial payment of €39.6 million has been made, with the remaining amount due on November 29, 2024. GCIMagazine
🚀Debuts, Distribution & Expansion🚀
🧘🏼 Apothékary, a DTC wellness brand, has entered its first retail partnership with Sprouts Farmers Market, making its products available in over 400 stores nationwide since the brand's launch in 2020. BeautyIndependent
🌸 Curive Healthcare, a new consumer health and wellness incubator, has launched its first brand, Plum, which focuses on addressing intimate skin dryness. BeautyIndependent
🥃 Mark Anthony Brands, owner of White Claw, has launched Cloud House, a coffee-infused rum, in the UK. The rum, made with Arabica coffee from Colombia’s Sierra Nevada de Santa mountain range, debuts on Amazon on 7 October and is sourced from a local Colombian rum producer. JustDrinks
🧴 Evereden's new teen skincare collection, featuring a $93 bundle of its Steer Clear Gel Cleanser, Balance Up Clarifying Toner Pads, and Let’s Bounce Gel-Cream Moisturizer, has quickly become one of the brand's top three bestsellers within a week of its launch, appealing to Gen Alpha. BeautyIndependent
🩸 Dame, the organic and reusable period products brand, is expanding its mass-market reach by launching in nearly 1,000 Walmart stores across the U.S., building on its existing presence at Target. This comes as prestige retailers show less interest in the sexual wellness category. BeautyIndependent
☕ Nestlé's Nespresso has launched its first ready-to-drink coffee in the U.S., named Master Origins Colombia Ready to Drink Coffee. This limited-edition beverage is part of a pilot program aimed at tapping into the growing popularity of RTD products, allowing Nespresso to extend its reach beyond home and office consumption. FoodDive
✨ The Honest Company has introduced a vegan, fragrance-free collagen skin care duo, consisting of a cream and serum aimed at enhancing skin firmness and minimizing wrinkles. GCIMagazine
🧴 SickScience has launched a body-sculpting serum called DropOff ($48) designed to address concerns like cellulite, sagging skin, and stretch marks. The serum utilizes NX35 technology, a peptide complex combined with pineapple stem enzymes, to work at the molecular level for a firmer, smoother appearance. GCIMagazine
🪇Collabs🪇
🏎️ LVMH and Formula 1 have announced a 10-year partnership starting in 2025, involving several LVMH brands such as Louis Vuitton, Moët Hennessy, and TAG Heuer. The collaboration will offer sponsorship opportunities across the sport, further aligning LVMH with motorsport. Details of the partnership will be revealed next year. BusinessOfFashion
↪️Rebrands & Relaunches↩️
🍫 Elavi, the healthier alternative to Nutella, is back in double the Costco locations across Southern California after exceeding sales targets earlier this year. With a refreshed look, enhanced formula, and larger pallets, its low-sugar, vegan chocolate cashew butters continue to meet rising demand. Now available in 30 Costco warehouses. PressRelease
🔻Closures🔻
🍺 Haus Cramer Gruppe, the producer of Warsteiner pilsner, plans to close its drinks production facility in Thannhausen, Bavaria, by the end of the year, citing overcapacity and challenges in the German beer market. The closure will impact 18 jobs. JustDrinks
🥔 Lamb Weston, a supplier of frozen potato products, is closing its Connell, Washington plant and cutting around 428 jobs, or 4% of its workforce, due to sluggish demand from restaurants and retailers. The company will also temporarily reduce production across its North American network, with expectations of continued soft demand through fiscal 2025. FoodDive
💻Consumer Software💻
💰Fundraises💰
💸 OpenAI has completed a $6.6 billion fundraising round, bringing its valuation to $157 billion—an increase of over $70 billion in just nine months. The round was led by Thrive Capital and includes investments from Microsoft, Nvidia, SoftBank, and the United Arab Emirates investment firm MGX. NYTimes