Dan Rabens

SAFE NOTES ARE NOW UNSAFE... OK so what is going to happen to the money that was poured into CPG Brands via these supposed SAFE Notes? Issue is that no priced round took place and now it is likely if it did happen it would be at a fraction of the valuation that was contemplated leading to massive dilution for the founder. Many have a cap...few have a floor. and unless they are converted it will be impossible to raise new money at any valuation. #cpg #safenotes #fundraising

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“Growing a CPG company, especially in the food and beverage space, ‘is astronomically harder today,’. ” Paul Voge you said it, man. So many truth bombs dropped in this article about the challenges and difficulties growing and scaling a CPG brand in today’s world. The cruel reality is that it takes a whole lot of money or a whole lot of time (and most times both) along with a fair amount of luck to have a chance at making it. If you dont have a ton of money then you better have a ton of time, some good fortune, and a product that can withstand many changes of the seasons (and "trends"). For most emerging brands today its all about survival and just finding a way.  There are lots of traps out there– lots of shiny objects– lots of vanity metrics hoping to be noticed and cared about–but at the end of the day sometimes its just about living to see another one. Here’s to all you day-to-dayers and week-to-weekers out there that are all just finding a way. Keep finding it.

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Roundup of All Things CPG This Week: (Follow for weekly roundups like these every Friday) 💼 Mergers & Acquisitions → Kirin Completes Fancl Buyout: Kirin finalizes the purchase of Fancl for $1.4B, continuing its strategic shift from beer (WSJ). → Newport Craft Distilling Acquires KEEL Vodka: Newport Craft adds KEEL Vodka to its portfolio (PR Newswire). → Walmart Acquires Vizio: Walmart buys Vizio for $2.3B, expanding into electronics (Intellizence). → Paramount Global Merges with Skydance: Paramount Global partners with Skydance in a $22.26B deal (Inside Arbitrage). 💰 Fundraising Highlights → Funding for UK’s Common Beverage: Secures six-figure investment led by James Watt (The Drinks Business). → InvestBev’s Ambitious Goal: Launches its fifth fund, aiming to raise $150M for beverage brands (Axios). → Emma Watson’s Renais Gin: Raises $2.3M to fuel growth in the luxury gin market (SEC). → ZeroFox Holdings Raises Funds: Secures investment from Haveli Investments to enhance digital risk protection services (Stock Analysis). → Agiliti Secures Funding: Thomas H. Lee Partners invest in Agiliti for growth in medical equipment services (Stock Analysis). 💄 Apparel, Cosmetics, and Wellness Updates → Briogeo Expands Product Line: Introduces new hair styling products at Ulta and Sephora (Glossy). → Unilever Prestige CEO Resigns: Vasiliki Petrou resigns to start a new investment fund (Business of Fashion). → Care/of Closes Operations: The personalized vitamin brand shuts down (Twitter). → Goop Launches Mascara: Gwyneth Paltrow’s brand expands its makeup line with a new mascara (WWD). → GlaxoSmithKline Acquires Aiolos Bio: GSK enhances its respiratory care portfolio (Stock Analysis). → Amgen Launches New Wellness Initiative: Focuses on personalized health and wellness products (Inside Arbitrage). 🍽️ Food, Beverage, and Alcohol News → Liquid Death’s New “Death Dust”: Enhanced flavors now available on Amazon (Instagram). → SCiFi Foods Shuts Down: Cultivated meat startup ceases operations after raising $40M (AgFunder). → DAVIDsTEA Introduces Sparkling Iced Teas: Launches its first ready-to-drink product (Instagram). → Mondelez Collaborates with Lotus Bakeries: New cookie and chocolate products in the works (Food Dive). → Top of the Mornin’ Coffee’s New Flavor: Introduces French Toast Flavored Coffee (Instagram). → Hulk Hogan’s Beer Launch: Debuts Real American Beer (Brewbound). 📊 Data and Distribution Developments → MERIT’s Financial Success: On track to reach $100M in sales this year (Business of Fashion). → Verb Energy Debuts at Earth Fare: Available in Earth Fare stores. → Burnt Faith Brandy at Tesco: Expands to the UK market. → Pioneer Natural Resources Partners with ExxonMobil: Focuses on sustainable energy solutions (Stock Analysis). → Alpine Immune Sciences Teams with Vertex: Enhances its immunotherapy offerings (Stock Analysis). Enjoyed this? Follow James Ball for roundups every Friday.

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A simple quote from Mike Tyson and one of my favorites of all time: "Everybody has a plan 'till they get punched in the mouth." It rings true in the day to day battles of business, especially in CPG. Here are some examples many CPG founders go through or ones I've personally battled: 🥴 You launch a product, did all the research for R&D, focus group testing, and reviewed the packaging thousands of times before launching, but still something went wrong either with shelf life, negative consumer/retailer feedback, or weak sales on shelf 💰 You had cash flow projections in place and expected that with X amount raised, it would last you for Y Months, but ran short of runway and were scrambling to raise more cash to keep the company going in difficult times 🤝 Formed partnerships, only disappointed to find out the partner backed out, or it wasn't the partnership you envisioned and now you are doing damage control and it's causing emotional pain to be with this person 🚛 Brought on a distributor thinking they would push the brand and it would be an estimated cost, but they didn't do their job, and the costs ended up sky-rocketing from chargebacks, thus losing money on every unit 😲You release a great product, and then a competitor comes up with a version of yours that is a lower price point and they have all the marketing dollars in the world to out-compete you. I can go on and on, but in this business, like any business, you have intentions when you go into it, and many times, it doesn't turn out the way you envisioned. What's your story of getting punched in the mouth?

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There are three critical things to communicate when it comes to growing your CPG brand. Whether it’s investors, buyers, distributors or anyone else who you need to get on board. 1. Where are you going? Vision is a word that gets thrown around a lot, but when you define what that actually means it’s the answer to a simple question. It’s a powerful guide for your behavior everyday. It’s critical to know where you want to be years down the line, if you are going to build alignment with key stakeholders along the way. EVERYONE wants to go to the promised land, so tell them where that is, what it looks like and feels like to be there, bring this place to life in your core essence and share that passion with anyone you wish to enroll in your pursuit. It’s not enough to just talk about revenue, white space, or data. That’s all very important, but people need to believe that you see it, that it’s a real place that exists, and it’s just a matter of making the trek. 2. Why should people care? Assuming that making it to the promised land includes a compelling value prop that’s linked to clear differentiators in your category that customers actually care about and you have data to support this no matter how young you are. Okay, that’s maybe an assumption I shouldn’t make, but if you don’t have that, definitely don’t make the trek. If you have that, then don’t overthink this question. This question is all about why any stakeholder will make more money with you than without you. Ultimately that’s the baseline that will get any stakeholder on board. Investors have thousands of deals to choose from, buyers have thousands of brands/products to choose from, distributors have only so much room in their facilities/trucks. At some point you have to articulate why yours is better from that black and white perspective. If you don’t have this answer completely dialed in for every stakeholder, nobody will believe that you are the right guide to follow to the promised land. 3. How are you going to make it happen? It’s impossible to anticipate every twist and turn along the way, but you should have a very clear picture of what you and your team are capable of doing to execute this vision. Not that it can be done, or even the best route to take, but your demonstrable ability to make it happen. The more specific you are the better. The more commitments you have the better. Even when you have those things it sometimes is not enough so you need to combine these tangible plans with perseverance. If you can’t speak to these three things clearly with conviction and passion, it will be hard for anyone else to take you seriously enough to invest their time or money. Don’t fluff it either, give people the straight sauce. Even if it’s not perfect (shocker, it never is, and if you believe it is people won’t believe you), a little authenticity will help build trust, so don’t paint the perfect picture, just lay out the argument in a way that is very real.

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HUGE deal: PepsiCo is acquiring Siete Foods for $1.2 billion. Before you doubt that valuation, I’ll say it:  Siete earned their price tag. CPG is hard.  Fundraising in this economic environment is hard. Disrupting stale categories (beans, tortillas, salsa, sauces) is hard. Challenging multi-brand, billion-dollar companies is very hard. Winning market share in salty snacks (chips) is very very hard. Building a multi-category food brand is very very very hard. Getting acquired by your biggest competitor – near impossible. All of those accomplishments are a legacy to be proud of. But the hardest work is just beginning. Because now it’s the family of founders’ job – all 7 of them –  To protect the legacy that they’ve built. To preserve the values that made this brand what it is today. To fight for what they believe when literal billions are at stake. Siete Family Foods x PepsiCo, Keep fighting the good fight. #food #innovation #mergers #acquisitions #marketing #finance

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UNFI just reported a surprisingly good Q3. Everyone in our industry should be celebrating. Their earnings call outlined how their larger Natural/Organic/Specialty accounts (WFM/TFM/GFH) are performing well. It’s a good thing, that these accounts are continuing to perform well and showing consumer resilience against persistently high pricing. This opens more innovation into more doors, and allows for the transfer of market share from Big CPG to emerging brands. It’s also a good thing their simplified fee structure (SSA) is paying off and producing more sustainable EBITDA rates for them because the stability of their supply chain network is important for retailers. There’s a nascent cottage industry built around helping small brands navigate UNFI’s “deduction” process. It’s important to understand that this 7% “Inside Income” forms the basis of their core profitability model. Nobody is going to “outsmart” or “outhustle” that 7% model long-term. Every brand signs the Policies and Procedures document and the details are all in the minutiae there. It’s important to understand that UNFI does not make its profits selling product…they earn more than 100% of their EBITDA by BUYING product. Their fees aren’t “predatory” they are just optimized for mature, larger brands who make up more than 80% of their sales. If you want a simplified no deduction model, and you don’t want to have to patchwork together 5-10 smaller distributors to reach national scale, you should work with us instead. We only make money when we sell product and we only work with emerging, growth brands. ALL of our fees are posted on our website, and we explain them to every brand that onboards with us in a 30 minute call. We can onboard you by the end of the day today if you want. Otherwise, UNFI is a very competent incumbent, and they are here to stay. Pod Foods #innovation #unfi #grocery

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“When do you make money in this industry?” Several startup CPG founders have asked me this question. It’s a question I’ve often pondered myself. I consulted with a few trusted industry friends, veterans who’ve seen both sides—the retail and the brand perspectives. Here’s what they shared: 🎯In the CPG industry, 85% of brands fail within the first two years. 🎯It usually takes about 24 months for a brand to break even, as it typically requires 18 months for consumers to adopt a new product into their lifestyle. 🎯Early profitability is possible if you focus intensely on local (or regional) distribution, select your retailers wisely, push hard on marketing to drive product velocity, and operate with lean, cost-efficient practices. As you can see, CPG industry is a tough market, requiring cash and time investment, especially during the initial growth stages. It’s easy to grow impatient, like myself, to question whether we are doing things right or if success is even on the horizon. My approach is: I commit fully for two years. That period gives me a clearer indication of where things might be heading; anything sooner is premature. If, after all the effort, the business doesn’t pan out, that’s okay too. Life is about exploring various paths and discovering our callings along the way. Commit wholeheartedly, and regardless of the outcome, live without regrets.❤️ #CPGIndustry #StartupLife #Entrepreneurship #BusinessStrategy #RetailInnovation #MarketingTips #BrandBuilding #ProductDevelopment #ConsumerGoods #BusinessGrowth

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To sell more beverages at retail, you gotta "get lips to the liquid," says Michael Russo, Chief Growth Officer at Wild Bill’s Craft Beverage Co. And Wild Bill's certainly knows how to do that. For more two decades the brand has been selling its nostalgic flavors of soda from taps on portable wagons at fairs, festivals and other events such as New York's Comic Con. Customers would buy a 34-ounce barrel mug with the Wild Bill's logo etched onto it (and often customized with the event logo, too), fill up, and return for unlimited refills during the event. The variety of sodas includes classic favorites like Root Beer, Black Cherry, Orange Cream, and Vanilla, as well as seasonal flavors like Rocket Pop and non-boozy Mojito in the summer. Customers would then register their mug online to receive event alerts and special promotions. However, when the pandemic shut down in-person events, Wild Bill's pivoted and launched a line of ready-to-drink beverages in cans that are now available in more than 1,300 stores. With in-person events now back in full swing, and the Wild Bill's pop-ups at 400 events each year, the brand has started leveraging these massive sampling opportunities to drive sales at retail. Brand ambassadors at these events are well-versed in which local retailers carry the RTD cans and provide coupons to drive traffic to them. In addition, since customers register their mugs online, Wild Bill's keeps them aware of new retail locations and also sends them promotions via email. For example, Wild Bill's has pop-ups at 50 events in Ohio each year, and at these events its brand ambassadors direct customers to Jungle Jim's International Market to find the RTD cans. In this video with Joseph Tarnowski, recorded at ECRM's Foodservice Session, Michael gives an overview of the company, and details on how "getting lips to liquid" at these events helps to drive sales of the RTD sodas at retail. He also discusses their plans to expand distribution at independent restaurants, so if you are a foodservice operator looking to add a bit of nostalgic flavor to your mix of beverages, you can find Wild Bill's on RangeMe or at an upcoming Foodservice Session (we'll link to it in the comments below). #beverage #foodservice #retail #restaurants #hospitality #cpg #ecrmrangeme

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🚀 Big thanks to ECRM for featuring our Chief Growth Officer, Michael Russo, in a fantastic interview discussing Wild Bill's omni-channel strategy! Joseph Tarnowski, speaking from the perspective a of buyer, posed the PERFECT question that truly captures what sets Wild Bill's apart: "How are you going to support the product once it's on my shelves and get it into consumers' baskets?" The answer is simple: we build brand loyalty by delivering an authentic, unique, and nostalgic experience at local events—something we've been successfully doing for 20 years. 📍 Special shoutouts to our amazing partners where this strategy is perfectly displayed: - Associated Food Stores and FanX® Salt Lake Comic Convention™ in the Utah market - 35+ events in New Jersey annually to support ShopRite, Kings Foods, Balducci's Food Lover's Market, Livoti’s Old World Market, etc. - 30+ events (The Ohio State Fair, Fan Expo Cleveland, etc.) in Ohio annually to support Jungle Jim's International Market, Walking Distance Brewing Co., Candy Craze, Urbana Brewing Co., etc. 💡 When the pandemic hit, we pivoted to launch our ready-to-drink (RTD) beverages in cans, now available in over 1,300 stores. With events back in full swing, our pop-ups at 400 events annually are key to driving sales at retail. Our brand ambassadors expertly direct customers to local retailers and provide coupons to boost traffic. Michael also shares insights on expanding our distribution to independent and small/medium sized chain restaurants. If you're a foodservice operator looking to add some nostalgic flavor to your beverage mix, you can find us on RangeMe or at an upcoming #ECRM Foodservice Session. Check out the full interview with Joseph Tarnowski and learn how "getting lips to the liquid" is driving our retail success! 🍻 #Beverage #Foodservice #Retail #CPG #Restaurants #Hospitality

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🔋 This year, energy drink brands are maximizing athlete-influencer partnerships, and the results are paying off: Energy drink brands like Accelerator Active Energy, G FUEL, CELSIUS Holdings, Inc., Red Bull, C4 Energy, and Gatorade Fast Twitch are increasingly marketing with athlete-influencer’s to: ➊ Target younger audiences by partnering with athletes who resonate with a broad range of kids and teens. ➋ Showcase their products authentically in athletes' training and game-day routines through organic content. ➌ Promote energy-boosting products on college campuses, engaging a very relevant buyer demographic: college students. ➍ Drive sales through affiliate marketing and sweepstakes promoted via athletes' social media. By utilizing Out2Win's Intelligence Platform, energy drink brands identify and pinpoint athletes who genuinely connect with their target market, maximizing ROI on marketing campaigns. Athlete partnerships are fueling higher social media engagement, with energy drink brands fully embracing them as an innovative marketing strategy. For a full analysis of these partnerships and the latest insights in athlete-influencer marketing, subscribe to the Weekly Report below! ⬇️ https://lnkd.in/eP_4enwc #Influencermarketing #NIL #DigitalMedia #SportsMarketing #SocialMedia #BrandPartnerships Laura Bonds Nicholas Lacagnina Michael Fine Zach Harris Henry Pommer Marquel Carter Lei Hookano Zach Schotz

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Are you aware of the programs out there for emerging brands? More and more, retailers and distributors are becoming very aware that consumer demand for new and emerging brands is higher than ever in CPG. BIG guys are looking for the LITTLE guys that might be the next BIG thing. Here are just a few: 🌟 McLane Company, Inc. Emerging Brands Marketplace powered by Mable 🌟 US Foods Direct Marketplace available through Mable 🌟 7-Eleven Brands w/ ❤️ 🌟 Target's Forward Founders and Target Takeoff 🌟 Walmart Open Call 🌟 Sprouts Farmers Market Innovation Center 🌟 If you know of others not listed - please let me know in the comments! If you haven't read the recent article from Nosh.com's Shauna Golden about retail chains sourcing exciting emerging brands, then be SURE to read the article in the comments. You'll read valuable insight on a few of these emerging brands programs from Yasmin Curtis (Two Fish Foods) , Sabeena Ladha (DEUX), Emily Knapp (Stellar Granola), Israel Moreira (Doughp), Scott Gutche (Walmart), and me (Bon Bee™ Honey). And BONUS heads up! The application for 7-Eleven's Brands w/ ❤️ is live NOW through November 3. Check out the link in comments to apply. (pic here from our recent stint with Brands w/ ❤️ ... now THAT's a Slurpee.) #LeaveNoRockUnturned #emergingbrands #retailgrowth #cpg #veteranowned #womenowned #familybusiness #sharktank

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Calling all Shark Tank enthusiasts, CPG Brands, and anyone who loves a good entrepreneurial story! 📢 Are you curious about Shark Tank and the entrepreneurs that have stood on "the carpet"? Tune in to CPG Vibes with Alex Bayer and Wade Yenny for their first edition of "Outside the Tank" THIS Friday, 4/19, 2:30pm pst / 5:30pm est. You'll hear from #SharkTank CPG entrepreneurs that will undoubtably inspire you, make you laugh, and may even give you your next "ah-ha" moment. This podcast includes a stellar lineup of Shark Tank alum: Jake Deleon (Fila Manila), Kirsten Maitland (Rebel Cheese), Michael Pan (Pan's Mushroom Jerky), Sean Riley (DUDE Wipes), Kendra Bennett (Bon Bee™ Honey), and Paul Voge (Aura Bora) There is much to learn from this group... not to mention our unique (and perhaps slightly crazy) CPG journeys. Here's how to tune in LIVE on LinkedIn: -Click the link in the comments -Hit the attend button -You'll get the notification when the show is live on Friday, 4/19 Ongoing sponsors: Vdriven Consulting and RangeMe. This week's special sponsor: Social Nature See you there!! 💛 #cpg #retail #entrepreneurship #grocery #SharkTankproduct

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Year after year I’m impressed with the number of innovative, new beverage brands that enter the market. As always, #BevNet provides an amazing opportunity for these brands to be seen, to learn, and to network. There were so many takeaways, but here are three to share from this year’s conference: 1. If you’ve been waiting for the #Hemp-#THC infused beverage category to take off, it’s here. We saw lots of great new brands and very impressive data on sales volume and consumer demand. 2. Interesting advice from Whole Foods Market: It’s no longer enough to just present a great brand. You need a great brand with a strategic plan for success. 3. With #NIL there’s a growing opportunity to use student athletes as influencers and brand endorsers. If you’re looking to reach GenZ this is a great way to go. Thanks again to the team at #Bevnet for making every show invaluable. #beverageindustry #entrepreneur #innovation #kickstartflorida SAS Sales and Marketing

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#DYK that only 14,191 stores in #CA can sell spirits-based #RTDs, whereas over 28,000 stores can sell malt- & wine-based RTDs? It is UNFAIR to force spirits lovers to make a special trip for their fav spirits products. Tell your #CA Reps to support SB 277, to allowing spirits RTDs to be sold under the same license used for beer and wine!

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Why is the CPG journey from inception to consumer so freaking difficult?? So many hurdles to overcome and battle through... The system is broken and we have been trying to figure out how to build some kind of a road map that allows founders to at least have an idea of what is coming. After talking to 100's of founders and industry experts we have compiled the beginnings of what we feel should be able to help, we are calling it SKU Trails. This info is straight from the source and from our own experiences. We simply laid it out in a way that we feel can at least start to shed some light on the journey of CPG products. We've worked on this layout with a few founders and their brands already (including our own) and its been invaluable. Gonna start sharing the madness and we encourage any and all feedback as we do. The ULTIMATE goal is to help the ecosystem and improve the chance of brand success! Jonny Boyarsky Tim Xenos Catapult Commercialization Services Trevor Davis #cpg #founder #journey

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Exciting Updates from RodeoCPG! We’re back in action after a fantastic time at Newtopia and are re-energized to bring more value to the CPG community! As part of our re-focusing effort, we’re ramping up our content engine to provide more insightful, actionable content designed to help CPG brands thrive. We’ll be diving deep into topics that matter most to you, from supply chain optimization to sales strategies, and much more! 🔍 To kick things off, we’re starting with the 3 key metrics every CPG brand should be monitoring to maximize efficiency and growth. First up: 1️⃣ Inventory Weeks on Hand: A critical metric for balancing stock levels, reducing waste, and avoiding lost sales. Stay tuned for a deeper dive into how managing this effectively can keep your brand ahead of the curve! 📈  💬 We want to hear from you! What topics would you like us to cover in our upcoming content? Drop your ideas in the comments or send us a message – let’s keep the conversation going! Plus, don’t miss out on learning more about our latest innovations: ⭐ Pitchable Analytics: Cut down data processing time by 90% at just 1/3 of the cost of comparable solutions. ⭐ RodeoCPG Services: From outsourced sales management to operations support, we’re here to help your brand reach new heights! Stay tuned for more updates, insights, and events from us! #CPG #ContentMarketing #SupplyChain #DataAnalytics #SalesStrategy #RodeoCPG #Innovation

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