Nat Noone

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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OK...I don't think any real CPG company would enter a new product category with 4 different brands. But Tilray is not a real CPG company, which is why they are entering the hemp-derived Delta-9 THC beverage category, with 4 different brands. "420 Fizz is a sleek and modern brand built off Tilray’s iconic 420 beverage platform. Enhanced with 5mg HDD9 per can, 420 Fizz is an exciting new seltzer with a refreshing taste. Herb & Bloom, a super-premium mocktail, offers a unique way to experience timeless classics with its harmonious blend of refreshing fruit notes infused with 5mg HDD9 per can. Each drink is crafted for a smooth and balanced experience, resulting in a delicious taste. Welcome to a world blooming with possibilities. Fizzy Jane's is a light and delicious seltzer with 5mg HDD9 per can and three classic flavors Blackberry, Blood Orange and Vanilla. A nostalgic brand created for the curious consumer. Happy Flower is inspired by classic cocktails, with a citrusy Margarita, a juicy Strawberry Daiquiri, and a bubbly and fruity Peach Bellini. Each Happy Flower cocktail contains 5mg HDD9 THC per 12oz. can and provides a new way for consumers to relax and unwind in a format that’s familiar, convenient, and delicious. Tilray will launch Happy Flower in partnership with Emergent Beverage in the Texas and Louisiana markets." That's 4 different brands to properly position and gain listings and generate consumer awareness and trial and refine...it's just too much at once. I spent 25 years in CPG, and ran a number of beverage-related brands like Maxwell House Coffee and Del Monte Fruit Drinks and Bacardi and Grey Goose Spirits and bev-alc RTD's and I cannot recall ever trying to launch 4 brands at the same time, especially into a still nascent and changing product category. It just seems business irresponsible - it might make for good investor fodder, but it's not smart marketing strategy.

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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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In the CPG industry it's not about how many doors/stores you get into it's about the quality of stores you get into. I look forward to building relationships with every retailer/buyer. Even though you may not be in a large bix box store at the moment focus on building relationships with independent retailers first then go from there. Building a personal brand helps out a lot in business. This is crucial to let buyers know about you and your products and why you started your business. #retail #growth #business #sales #mindset #businessgoals #businessrelationships #connection #integrity #cpg #startup

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🚀 #Nonalcoholic beer continues to GROW and GROW in the US at a 22% volume CAGR from 2019 to 2023, according to recent data by IWSR. It has also more than DOUBLED from a 0.5% volume share of total beer to 1.2%. A few other interesting stats is that NA beer is strongest in the northern states.  Every state has seen strong growth but, the biggest share growth has skewed towards the NE and NW of the US: 🍺 Maryland and Massachusetts both went from 1% share of total beer to 4%, growing at 49% and 39% (volume CAGR ’19-’23) respectively. 🍺 Massachusetts is the 22nd biggest beer drinking state in the US but the 3rd biggest non-alcoholic beer drinking state, and Maryland the 26th biggest beer state but 8th biggest non-alcoholic beer state. 🍺 Connecticut non-alcoholic share of beer went from 1% to 3%. New Jersey, Washington and Oregon all doubled their non-alcoholic beer share going from 1% to 2%. “What is interesting about this regional trend is that as northern states, they have more moderate climates that don’t traditionally lend themselves to over-indexing on beer consumption due to longer cold seasons,” observes Marten Lodewijks, President of IWSR’s US Division. “That would suggest the bigger driver of this growth is underlying consumer preference and not just a switch from full-strength to non-alcoholic beer during the hot summer months.” You can also see in the chart below there is more consistent growth of non-alcoholic beer throughout the year vs. a lot of volatility for full-strength beer. You can read more insights from the link in the comments.  ~~~~~~~~~~~~~~~ ♻️ #Repost if you like this content and follow me, Marcos Salazar 🍺🍷🥃 , for more content like this. ~~~~~~~~~~~~~~~ cc: Bill Paugh

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We discussed this on our latest episode of CPG Vibes, BIG BIG news from KeHE Distributors on 11/22, a new program dubbed 'AAP' (administrative allowance program). A flat 2 % off-invoice allowance for specific fees including New item intros, extra performance fees, MCBs, new item set up fees, and lumping fees. My quick thoughts: This is a step in the right direction for sure. UNFI implemented SSI which is a similar program to help brands budget for costs and fees associated with doing business with large national distributors. With all that said, these categories are pretty large and encompassing, so for all the other fees associated with Kehe that can chop down a brand's margin, will this program truly cover it? Likely not, but at least it covers some. What are your thoughts?

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QUESTION for business founders in CPG - when you were creating your brand and getting it off the ground, what is one thing you wish you didn’t spent so much money on and one thing you should have invested more in?

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Seinfeld fans: Remember the one about the yogurt shop?   Kramer invests in a “non-fat” frozen yogurt shop whose product is both delicious … and deliciously crowd-pleasing.   The only problem? The yogurt’s flavor-boosting ingredient turns out to be (spoiler alert) fat, spurring the shop’s angered fan base to cry false advertising.   Bogus product claims can land businesses and brands in hot water, and fast. This harsh truth is why, at GoTo Foods, we’ve woven education on marketing, claims and trademark law into our annual compliance training.   Like most big corporations, each year our associates must participate in several hours of compliance training. And while everyone completes certain trainings—such as sexual harassment awareness and AI policy updates—we also take this opportunity to connect associates with courses tailored to their roles.   Marketing and trademark education, for example, is earmarked for members of our PR, social media, marketing and brand teams. Those teams, and the seven incredible brands they support, manage a robust and far-reaching social media presence, and it’s imperative that each individual has a good working knowledge of what is—and is not—considered appropriate when it comes to logos, trademarks, images, cross-promotion and product claims.   [Case in point: Mentioning Seinfeld as a point of entry to compliance talk? A-OK. Photoshopping Jerry and the gang inside a Carvel to illustrate the point? That’s a no-no.]   For our international and retail channels/licensing teams, we require training on the Foreign Corrupt Practices Act (FCPA) and Office of Foreign Assets Control, providing valuable insights into international  trade sanctions and anti-corruption policies (like the fact that simply gifting a bottle of wine, under certain circumstances, could be perceived as a bribe!). For other teams, we’ve developed joint employer risk training to assist in compliance with ever evolving laws and regulations around the franchisor-franchisee relationship.   We know people are, hands down, the most important resource to any company. However, without the right investments and guidance, they can also be the biggest liability. That’s why we even make our compliance training a prerequisite for individual team members to receive their annual bonuses.   Like it or not, ignorance of the law doesn’t free us from accountability to it—and at GoTo Foods, one of the ways we’re developing people and potential is by empowering our associates with the knowledge they need for informed, independent decision making.   After all, it’s that knowledge base that helps our colleagues think more strategically, problem solve with confidence and engage a “No Limits” mindset that leads to the craveable experiences our guests love.   #GoToFoods  #CorporateCompliance #TrademarkTraining  #CareerDevelopment  #NoLimits #InternationalLaw #SocialMediaTraining

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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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As operator's attempt to appeal to varying consumers, Gen Z remains top of mind for many. Read the article below for tips on appealing to this group of young purchasers!  #Idahoan #FoodserviceIndustry #GenZ #DemographicTrends

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This acquisition is exciting because it represents a significant strategic shift for Lakeview Farms, opens up new growth opportunities, and adds dynamism to the yogurt market. It will be interesting to see how Lakeview leverages the Noosa brand and its expertise to innovate and compete in this new category. The yogurt market is valued at around $8 billion, offering significant growth opportunities for Lakeview Farms. Lakeview Farms is known for dips, desserts, and specialty items. This acquisition signals a bold strategic move into a growing market; diving headfirst into a competitive yogurt market dominated by giants like Danone and Chobani. This adds an element of surprise and could disrupt the existing landscape. Successfully navigating the refrigerated space requires a different approach and expertise - this has sometimes tripped up giant long established food CPG. The refrigerated sector demands agility, specialized capabilities, and a keen understanding of shorter shelf-life products... it requires different DNA

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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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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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Interesting take on the battle for consumers during months like Sober October and Dry January from Stephanie Cain 👇 Her commentary below with link in comments 🍻🥂🍹 The wine industry has launched an assault on #SoberOctober and non-alcoholic beverages as if the sole existence of the booze-less category is to put a hit against wine. With its new campaign, Come Over October, wine folks are declaring you should grab a glass instead of going sober, because wine brings people together. Instead, #wine should really be looking at their core messaging because that's why wine is declining. At the #ComeOverOctober kick-off party, I had a conversation with a salesperson of a wine distributor. He attempted to be ok with the evolution of wine by explaining that ready-to-drink, single-serve wine brand, BeatBox, marketed to the 21 to 25-year-old set, was crushing the market. He was all for it. While the brand has wacky flavors like blueberry lemonade wine, he felt that every wine consumer “starts somewhere.” It was promising to him because he said they would “continue their wine journey” and start “drinking real wine.” So many problems here but here is the big one: They don’t often continue the wine journey. News flash, wine people! Consumers don’t have time. We don’t desire it. We want to build connections, not spend the evening only discussing what we want to drink. We have jobs and travel and bills to pay and kids and dogs and aging parents and hell, we just want to buy a house. We have no job security. We have been hit with recession after recession. Right now, inflation is making our groceries cost some 40% more. You really think we are jumping at the time-consuming task of learning about wine? Get real. We’ll grab a #Martini. And start ranting. Which is exactly what I'm doing in today's The Mad Ones 👇 Link in comments. #health #wellness #marketing #alcohol #alcoholfree

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Shanken News Daily Impact Databank: RTDs And Tequila Resilient As Spirits Market Slows .........Tequila is another bright spot. While growth has slowed into the single-digits, agave-based spirits are expected to surpass vodka for the first time and become the industry’s largest category in dollar value terms by sometime next year. Tequila marketers are investing in innovation to keep the momentum going. Jose Cuervo, the nation’s largest-selling Tequila, recently released Devil’s Reserve, a spicy-flavored 30% abv offshoot, retailing at a suggested price of $21 a 750-ml.................... Passing Vodka????????? Thats impressive. If you arent in the tequila or mezcal game you should be. Beverage Solutions || Big Dog New York LLC can help. I think quality flavored tequilas and different expressions will be the next wave of growth within the agave category. Jose Cuervo Proximo Spirits

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CELSIUS Holdings, Inc. reported earnings for Q3 with a drop of 30% in revenue an a 9% decrease in margins with a profit of $0.0/sh. This comes after they announced the purchase of a 170,000 sq ft coman earlier this month. There’s been ongoing issues with distribution and the relationship with PepsiCo that have impacted sales. It should be noted Keurig Dr Pepper Inc. owns a % of Celsius. I recently mentioned the decrease in revenue is partly due to consumer behavior change from c-store to bulk. The company confirmed that today noting that bulk stores like Sam’s saw an increase of 15% in revenue as consumers are being more frugal and buying in bulk vs c-store. How will Dr Pepper fix the relationship with Pepsi? https://lnkd.in/gbmNWChg

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Trends season has officially begun! The Whole Foods Market has released its 2025 Food & Beverage trends report. Personally, I'm really liking the prospect of the "crunch/texture" trend highlighted. I'm thinking its a trend that can be applied to most any product category. Also, I happen to really love Popadelics which are ALL about that satisfying crunchy texture. Other trends highlighted include these: 1. International Snacking 2. Ever-Adaptable Dumpling 3. Hydration Hype 4. Tea's Time 5. Next-Level Compostable 6. More-Sustainable Sips 7. Sourdough Stepped Up 8. Plant-Based Aquatic Ingredients 9. Protein Power-Up We'll be working on our annual metatrends analysis over the next few months as the trends reports flood in between now and 2025...stay tuned. What trend stands out to you most? #food #beverage #trends #nutrition #diet #plantbased #foodscapefinds https://lnkd.in/g8tGSaTd

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The cannabis companies that ‘WIN’ in 2025 and beyond will have these five things in common: 1) They understand the scale that they are trying to achieve and their entire operation is appropriately focused based on that scale. -Local companies need to market and connect locally (in an extremely authentic way) while focusing on profitable, sustainable revenue streams that are mostly consumer driven. -Statewide companies need to do the hard math and modeling to understand what realistic growth means for them. Set specific growth targets based on achieveable modeling. Too many statewide brands operate, market and spend like a national brand, and it will cost them in the end. -National brands must focus on lean profitability and maintain a highly targeted approach to their spending, despite a world that may seem like it has limitless customers. 2) They don’t try to do it all. Developing mastery and economies of scale in specific sectors, while building strong partnerships in the rest of the market, is the model for success in the years to come. The great companies from 2025-Federal Legalization will seek out expansion via truly strategic partnerships (and careful aquisitions) while the mediocre companies attempt to do it all themselves. The largest, best capitalized MSOs will be buying up statewide and regional businesse with lean, focused, positive-cashflow operations, which solve specific problems in their infrastructure. 3) They are building a business that is designed for the New World of Cannabis, and the Era of Commercialization. -We aren’t trappers anymore. -Hitting licks can only take you so far. -Weed is a CPG product. -THCA is sold openly online and in gas stations. -D9 Bevs and Gummies are sold in some of the deepest red states. -Weed by mail is probably here to stay. -Mushrooms are legal in various cities and states. -Consumer trust in a brand is the most valuable asset in the industry. No matter their scale, the companies that win in the next five years will integrate themselves into the new ways consumers interact with and purchase cannabis…. (Online, DTC, Low-Dose, Mixed Nootropic, Bev, Smoke Shop/Gas Station, Mass Market, Seshes, N.A. bars/lounges, add-on dispensary licenses) 4) They build continuous feedback loops with their customers. The great brands and companies that succeed into the 2030’s will have a deep, data-based understanding of their consumers at all levels. Brands must understand the buying criteria of the stores that carry them as well as the buying criteria of the consumers that drive sell-through. The very best will encourage a rewarding consumer engagement loop that directly influences operational decision making. 5) They just don’t quit. (In fact, they continue to innovate, pivot, and understand that at the end of the day, their business is change). A lot of cannabis operators will quit in the next five years. In all business, but especially in cannabis, sometimes it’s just about being there tomorrow.

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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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