The Consumer VC Roundup #89
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Hey friends,
Hope you had a great week. The big news in CPG from this past week was BetterBrand, which produces high protein bagels and once valued at $176 million, seems to be in trouble. They delivered moldy products, unfulfilled many orders to customers and a few rumors ranging fromtheir founder/CEO is hiding out in Europe, to they’re shutting down or going through a hostile takeover. Snaxshot has the story.
Last year, BetterBrand raised a $6 million Series A at a pre-money valuation of $170 million. What I didn’t understand at the time was why at that valuation you’re only raising $6 million. That’s only diluting less than 3.5% of the company. For a Series A, that’s a VERY small percentage. The commentary was focused on the pre-valuation number (which was BIG), not the amount raised number. After I read it last year, I texted an investor friend and told him I was puzzled and didn’t get it. He didn’t quite understand it either and thought of some situations. But the situations didn’t sound like normal situations. If anyone has reasons why this would happen in any deal (only dilute less than 3.5% of the business in the Series A), I’d love to hear them.
On to the consumer news of the week & events for this month.
This Week In Consumer
🧃Consumer Brands👚
💰Fundraises💰
Sofie Pavitt Face, the skin-care brand founded by aesthetician Sofie Pavitt, has secured seed funding from True Beauty Ventures. Known as the "cool girl’s acne whisperer" by Nylon, Pavitt now has a notable investor backing her brand. BeautyIndependent
Moët Hennessy (LVMH Moët Hennessy Louis Vuitton SE) has made a minority investment in French Bloom, a luxury nonalcoholic sparkling wine brand. French Bloom combines French chardonnay and pinot noir blends to meet the rising demand for alcohol moderation. This move follows Moët Hennessy's reported decline in sparkling wine revenue during the first half of 2024. Financial details of the deal were not disclosed. FoodDive
Meatable, the Dutch cultivated meat startup, is preparing for its Series C funding round, scheduled for early 2025. The invite-only event will include investors, policymakers, and industry leaders. The funds raised will support the company's efforts to scale and commercialize its technology, with the ultimate goal of licensing its manufacturing capabilities to meat companies. FoodDive
💸M&A💸
Private equity firm Butterfly Equity is acquiring Duckhorn Portfolio, a luxury wine company, for $1.95 billion in an all-cash deal. Duckhorn, based in Napa Valley with 11 wineries across the West Coast, will become privately held but continue to operate under its name. FoodDive
Mondelēz’s VC arm, SnackFutures, has acquired a minority stake in U.K. doughnut brand Urban Legend, known for its air-fried, lower-calorie treats. This move supports Mondelēz’s growth in the healthier bakery sector. FoodDive
Emmi Group, the Swiss milk processor and dairy products company, has finalized its acquisition of French pastry maker Mademoiselle Desserts Group. This move will create a "Desserts PowerHouse," doubling Emmi's sales in the premium desserts niche and positioning the company as a global leader in the growing premium dessert category. FoodBusinessNews
Tengram Capital Partners has sold HRB Brands to Sodalis Group, a European beauty and personal care platform. HRB, known for brands like Alberto VO5, Zest, and Brut, is present in over 30 million households across the Americas. Under Tengram's ownership since 2020, HRB expanded into Latin America and strengthened its brand portfolio. GCIMagazine
🚀Debuts, Distribution & Expansion🚀
Bumpin Blends, founded by Lisa Mastela, MPH, RD, has launched its smoothie cubes at over 1,400 Walmart locations. The brand, known for simplifying nutrient intake, offers flavors like Watermelon Prickly Pear and Peanut Butter Cup. This expansion follows a successful launch in Sprouts and reflects its rapid growth, gaining celebrity fans like Jenna Dewan. PressRelease
Nestlé is entering the global cuisine market, valued at $110 billion, by launching two new frozen brands: Mings for Asian food and Tapatío for Mexican cuisine. Targeting younger consumers eager for bold, international flavors, Nestlé partnered with celebrity chef Ming Tsai for Mings and collaborated with the family-owned Tapatío hot sauce brand and Mexican chefs to ensure authentic taste. FoodDive
Chobani, the strained yogurt brand, is expanding its high-protein offerings with a new line of Greek yogurt cups and drinks, featuring up to 30 grams of protein per serving. These products are made with natural ingredients and contain no added sugar, catering to the growing demand for nutrient-rich foods. The new line also includes a rebranded version of its former Complete drink, now part of the Chobani High Protein range. FoodDive
Impossible Foods is expanding its product lineup with three new family-friendly items: Lion King Chicken Nuggets (in collaboration with Disney), Meal Makers, and Impossible Corn Dogs. These ready-to-make products will be available in grocery stores in the coming weeks, aiming to appeal to a broader audience of plant-based food enthusiasts. FoodDive
Uniqlo has reopened its expanded flagship store at White City's Westfield, now spanning two floors with a new Kids & Baby section featuring a play area. Alongside the reopening, Uniqlo launched a Crisis x Mr Men Little Miss collaboration, supporting the homelessness charity by donating clothing to Crisis Christmas services. FashionNetwork
Parisian label Soeur has launched its first menswear line, Frère. The brand describes the new collection as embodying polished, classic style with effortless elegance. Frère aims to make getting dressed a cultural statement, reflecting personal influences like films, music, and books. Each piece is designed to tell a story, blending nonchalant ease with refined details. FashionNetwork
Deinde, a clean clinical line targeting inflammation as part of a preventative skin health care regimen, launhches its Barrier-Building Moisture Cream, designed to aid in reducing the impacts of inflammaging to help sustain positive skin health and longevity. The face cream moisturizes and helps improve barrier function, and provides long-lasting moisture for soft, nourished skin. GCIMagazine
Rothea, a new gentle and anti-aging skincare brand, will launch on November 1, inspired by a daughter's love for her mom with the tagline “Born from love, made for you.” The debut product, Resilience Cream, features six scientifically proven ingredients, including 1% Bakuchiol, Vegan Phyto Collagen, a 4 Peptide Complex, Niacinamide, a 5 Ceramide complex, and Hyaluronic Acid, all packaged in FSC-certified materials. BeautyPackaging
E.l.f. Cosmetics has made its debut at Sephora Mexico, marking the brand’s first appearance in Sephora globally. This launch includes the brand’s viral “Holy Grails” and aims to democratize access to quality beauty products at affordable prices, empowering customers to express their true selves. BeautyPackaging
Merit, the cruelty-free minimalist makeup brand, is making its first foray into fragrance with the launch of Retrospect, a complex scent developed over two years. This extrait de parfum features nearly 30% fragrance oil, ensuring long-lasting wear with just one spray. Retrospect will be available starting October 22nd, expanding Merit's minimalist beauty offerings into the fragrance category. BeautyPackaging
Cosrx has launched the Alpha-Arbutin 2 Skin Discoloration Serum, suitable for all skin types. This gentle serum targets blemish concerns, promoting a clearer complexion while soothing and hydrating irritated skin. The fast-absorbing formula enhances spot improvement and offers a refreshing, non-sticky feel. BeautyPackaging
Shark Beauty has launched two new Air Multi-Styling Systems, the Shark FlexFusion and Shark FlexFusion Straight. These ceramic tools feature air-straightening FlexFusion technology for damage-free heating, allowing for versatile styling on both wet and dry hair. BeautyPackaging
🪇Collabs🪇
Nexxus has launched "The Style Swap" collab with Lindsay Lohan, highlighting the versatility of its Styling Line. The campaign recreates iconic looks from Lohan's fan-favorite characters, showing off the range of styles achievable with Nexxus products. BeautyPackaging
THG Labs has partnered with Clean Food Group to develop sustainable raw materials and oils for beauty and personal care products using food waste. This collaboration aims to create low-impact, high-performance oils, drawing on THG's extensive experience in skincare, haircare, and suncare. BeautyPackaging
Wella Professionals has launched a new Power Duo inspired by the upcoming movie musical Wicked, marking its first global co-branded partnership. The limited-edition Ultimate Repair and Color collections feature movie-themed packaging and include formulas designed to repair and strengthen both hair and nails. This collaboration ties into the story of Elphaba and Glinda, highlighting their unique friendship and destinies. BeautyPackaging
Sally Hansen has launched a limited-edition Halloween collection in collaboration with Reese’s. The Sally Hansen x Reese’s collection includes eight Insta-Dri nail polishes, two glow-in-the-dark shades, and two Salon Effects Perfect Manicure designs, all themed for the spooky season. BeautyPackaging
Galderma has extended its decade-long partnership with the National Breast Cancer Foundation (NBCF) to continue supporting breast cancer research and treatment efforts. BeautyPackaging
↪️Rebrands & Relaunches↩️
Sunshine Botanicals has rebranded with new earth-tone packaging that highlights its holistic skincare approach. The updated look reflects a commitment to authenticity and wellness, while the product line remains unchanged, focusing on rejuvenating and restoring aging and problematic skin using natural elements. BeautyPackaging
🔻Closures🔻
Lamb Weston, the supplier of frozen potato products, plans to close its aging processing plant in Connell, Washington, and temporarily cut certain production lines across North America. This restructuring includes a 4% workforce reduction, affecting about 428 jobs. CEO Tom Werner cited sluggish demand as the reason, expecting it to continue through fiscal 2025. FoodDive
💻Consumer Software💻
💰Fundraises💰
Farther, the leading technology-centric financial advisory firm, closed a $72 million Series C funding round to expand its advisor network and enhance its wealth management platform. Co-led by CapitalG, the independent growth fund of Alphabet (Google's parent company), and Viewpoint Ventures, this funding round elevates Farther's post-money valuation to $542 million. PRNewsWire
Holobiome has closed an oversubscribed Seed round of $9M. The round was led by iSelect Fund, with major participation from Corundum Systems Biology, Satori Neuro, SkyRiver Ventures, Pace Ventures, Valor Equity Partners, and Astanor. The company's initial success with substantial non-dilutive funding laid the groundwork for this sizeable institutional round. PRNewsWire
OpenGradient, a leading decentralized AI infrastructure company, has raised $8.5M in seed funding. With a mission to accelerate open-source AI, OpenGradient democratizes model ownership, streamlines AI deployment, and enables universal access to AI. PRNewsWire
MeWe, a privacy-focused social media network with over 20 million users, is launching a growth agenda to promote Web3. The Series B funding round, led by McCourt Global, aims to accelerate MeWe's growth and drive innovation. Plans include AI integration, new Web3 features, targeted user acquisition marketing, and the introduction of a native token to boost user engagement and platform utility. PRNewsWire
🛒eCommerce & Retail Tech🛒
💰Fundraises💰
FlexFactor, a cutting-edge provider of decline recovery solutions for eCommerce brands, announced the completion of its $16.8 Series A funding round. The round was led by Bessemer Venture Partners, with additional participation from seed investors. PRNewsWire
Numeric has raised a $28 million Series A round led by Menlo Ventures, with participation from new investors IVP and Socii Capital, and existing investors Founders Fund, 8VC, Long Journey, Access Industries, and Friends & Family Capital, and others. This investment will accelerate engineering hiring and product development, supporting Numeric's aim to enable real-time decision-making from financial data. PRNewsWire