Monday Newsletter 10/07/24

😋This Week in CPG 10/07/24

October 07, 2024

Hey ,

Happy Monday! Last week it was announced that Siete Foods is being acquired by PepsiCo for $1.2 Billion, and honestly it brought a ton of emotions. First off, super excited for the founding team. They worked their ass off building an amazing family run company with great better for you products. It’s been a while since we had a major CPG exit, which is definitely needed in this drought of investor opportunity we find ourselves in. The last acquisition to generate this much excitement was the RxBar + Kellogg acquisition a few years back.

Veronica, Miguel, and the rest of the family took a simple idea and turned it into a multi-million dollar company creating amazing products. Hats off to them on this accomplishment.

I’m my family is a HEAVY consumer of Siete Foods. Like… at home right now I have:

72 bags of their tortilla chips

24 bags of their nacho tortilla chips

32 bags of Churro Chips

1 half eaten cost bag of churro chips

A Costco pack of their almond tortillas in the freezer

2 Bags of Mexican Wedding Cookies

2 bags of Mexican Chocolate cookies

1 Jar of salsa

So to say I’m invested as a consumer is an understatement. I like the brand because they create products using healthy ingredients with delicious Mexican American flavors. They use alternative flours, avocado oil, and coconut sugar in most of their products.

Recently I noticed they started creating new products with cane sugar instead of coconut sugar and I got worried. Are all their products going this direction?

With the PepsiCo acquisition in concerned that they’ll determine these better for you ingredients are part of the company’s paleo past, and not their future as a modern Mexican American brand.

That said, I do have a takeaway for you as a CPG brand. How do you get acquired by an amount this large? Have a business worth buying. The best deals for founders is when your company is bought, not sold. If you have to go out finding a buyer, you’re already starting from a position of weakness.

So if your goal is to be acquired, build a $400 million dollar business that someone will beg you to buy.

Best,

Jordan Buckner

CPG NEWS

A roundup of CPG news that happened last week.

🛒 Retail Rollouts

  • 🍫 Elavi, co-founded by Michelle Razavi and Nikki Elliott, is doubling its presence in Southern California Costco stores, with a refreshed look for its low-sugar, vegan chocolate cashew butters.

  • 🥭 Seal the Seasons, founded by Patrick Mateer and Alejandro Piasecki, is launching its Blue Spirulina Tropical Blend Smoothie Kit at Wegmans, Giant Foods, and more, expanding their locally sourced frozen fruit lineup.

  • 🌿 Apothékary, founded by Shizu Okusa, has launched its wellness tinctures in over 450 Sprouts Farmers Market locations across the U.S., focusing on customer health store preferences.

  • 🌶️ Yellowbird Foods, co-founded by George Milton and Erin Link, has landed nationwide in Kroger, bringing their spicy sauces to more consumers.

  • 🐷 Pork King Good, founded by Lauren Koston, has launched their Dill Pickle Pork Rinds in Tractor Supply Company stores, offering a savory snack option to shoppers.

  • 🍇 Realsy, co-founded by Austin Patry and Sophia Karbowski, has hit the shelves at Wegmans Food Markets, expanding their footprint in the Northeast with their dried fruit products.

  • 🍉 ROAR Organic, founded by Roly Nesi, is now available through Buffalo Strive Markets, offering their healthy beverages in micro-markets across the region.

  • 🌶️ Homiah, founded by Michelle Tew, officially launches at H-E-B stores across Texas, offering its full range of Malaysian-inspired products, including Sambal Chili Crunches and curry pastes.

🤝 Brand Partnerships

  • 🥪 Haven's Kitchen, founded by Alison Cayne, has partnered with Hero Bread, offering their AIOLI on the brand’s website to help customers hit free shipping and upgrade their sandwiches.

  • 🍪 Lexington Bakes, founded by Lex Evan, kicks off its 2024 seasonal lineup today with a Peanut Butter Chip Cookie collaboration with French Squirrel, the first of four bi-weekly drops featuring limited-edition flavors.

💸 Investments and Acquisitions

  • 💼 Siete Family Foods, founded by Veronica, Miguel, and Aida Garza, announces its $1.2 billion acquisition by PepsiCo, marking a significant milestone for the Mexican-American food brand as it plans to scale its operations.

🎉 News to Celebrate

In collaboration with Amber Caro from Marketbite.

Have news to share?

EVENTS

Webinar: How to Operate Successfully As A Family Business

Running a business is hard, and running it with family brings its own unique opportunities and challenges. In this conversation we’ll explore how two cousins started Josh Packaging and are now bringing in the next generation to run the business. We’ll also discuss the impact on spouses and family when running a business.

Webinar: How to Fund Your Brand for Growth

Access to funding for CPG brands has fundamentally changed over the past two years, with early stage VC funding significantly decreasing.

So how big do you need to be before the smallest VCs will consider you and how do you fund your growth before then?

Join me as I talk with Veronica Lehman and Andrew Reynolds on how to fund your brand for growth in today’s environment.

Webinar: How to Build Effective Digital Sampling Campaigns

Needing to drive sales in grocery stores? Creating a digital sampling campaign is one of the best ways to do this. It allows you to:

  1. Drive existing customers to purchase in their favorite stores

  2. Acquire new customers to the brand to purchase in store

  3. Increase sales velocity at targeted retailers

In this webinar we’re breaking down exactly how to build effective sampling campaigns using digital rebates that effectively reach your goals.

PODCAST

187. Business Insurance Roadmap

As a CPG founder, you’ll encounter new risks at each stage of your business. I spoke with Russ Taylor of SecureCPG to share a roadmap for anticipating potential challenges and proactively addressing them, ensuring that your brand is resilient and prepared for success at every stage of your journey.

Listen on:

186. The Story of Mr. Lid - Creating a Story Around Plastic Storage Containers

Plastic storage containers for food and home organization are a fairly commoditized category. I spoke with Pall Musaev about how he purchased the Mr. Lid brand from the original founders and is transforming it into a fun brand that supports sustainable storage solutions.

Learn More at https://mrlid.com/

Listen on:

FINANCE

2024 Grant Opportunities

As of October 2024, there are numerous grants and accelerators available for founders globally and in the United States. Below is a list of 60+ grants designed to support and advance various entrepreneurial ventures. Thanks to the Greater Englewood Chamber of Commerce for compiling this list.

OPERATION

CPG Business Calculator

Introducing our CPG Business Calculator – the perfect tool to help you gain a clear understanding of your brand’s Retail and E-commerce revenue, margins, product costs, expenses, and breakeven unit sales.

Download now and get the insights you need to drive growth!

MARKETING

How to Succeed Selling in Whole Foods

Whole Foods has long been recognized as a key player in the natural food retail market. With its focus on organic, high-quality products, it has become a tastemaker and entry point for many food and beverage brands. While there are now various routes to market, succeeding in Whole Foods can significantly impact your brand’s growth. However, getting onto Whole Foods shelves is no easy feat. With their evolving requirements and a highly competitive landscape, it’s essential to have a solid strategy.

This guide will help you understand what it takes to successfully get into and grow within Whole Foods.

JOIN

FOR BRANDS

If launching or scaling your own food and beverage business is a  goal of yours, let us help you realize your dream and avoid unnecessary struggle. Join as a Premium Member.

FOR PARTNERS

Work with Founders to identify their problems and share solutions to help them overcome the challenges of growing their companies. Join as an Expert Partners.

About Foodbevy

Foodbevy helps food and beverage brands grow from startup to scale through inspiration, education, and partnership.

Jordan Buckner

Founder

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