Modern Retail’s Post

In this current economic climate, investors are looking to back companies with proven concepts and, ideally, a path to profitability. As such, for the past year, consumer packaged goods companies have found capital harder to come by. But fresh capital appears to be in sight, as evidenced by new funds dedicated to backing early and mid-stage CPG. This week, a new fund called Alethia Opportunity Fund I was announced, which will largely focus on funding brands in the alcoholic and nonalcoholic beverage space. Over the next year, Alethia’s $50 million fund will lead or co-lead seed, Series A, and B financing, with check sizes ranging between $500,000 and $2 million. A larger growth equity investment firm called Humble Growth also launched this week with a $312 million fund dedicated to CPG startups, with plans to write checks between $10 to $40 million. The fund will focus on four verticals: food, beverage, beauty and pets.

#DTC brands used to be #PrimeDay-averse. But now, they are wholeheartedly participating in the two-day Amazon sales extravaganza. It’s just one of many ways in which DTC startups are morphing into regular old brands. #amazon #retail In this piece by Anna Hensel, we speak to Jordan Nathan of Caraway, Suze Dowling of Pattern Brands, and Ronak Shah of Obvi.

EILEEN FISHER, INC. is testing out #AI. The apparel brand saw conversions increase by about 50% for shoppers that use its new fit tool, The Closet. In this piece by Melissa Daniels, we speak to Blair Silverman, and Roger Williams, CLMP™ of Marigold.

Primal Kitchen (Primal Nutrition, LLC)'s latest pop-up collaboration is with Pinterest, with both companies aiming to capitalize on #food and #wellness trends. In this piece by Gabriela Barkho, we speak to Ana Goettsch, Sara Pollack, and John Clear of Alvarez & Marsal.

Etsy sellers voiced mixed feelings about the marketplace's new policy that clarifies the origin of products listed on the platform. The announcement, delivered to sellers on Tuesday morning, comes as #Etsy tries to crack down on mass-manufactured items. Story by Julia Waldow

What founders decide to do with stagnant zombie brands is proving to be the defining issue of the #DTC space in 2024. In this piece by Anna Hensel, we speak to Azora Zoe Paknad, Fan Bi, Manica Blain, and Brandon Yoshimura.

Nike has had a complicated relationship with third-party retailers in recent years after it pulled products out of their shelves to advance its direct-to-consumer strategy. In 2021, #Nike finance chief Matthew Friend said that the brand had “exited about 50%” of its retail partners. The move had a dramatic impact on traffic and revenue for wholesalers. Foot Locker, DSW Designer Shoe Warehouse, Dunham's Sports and Olympia Sports were some of the brands impacted by Nike’s #DTC strategy. Foot Locker’s shares in February last year plummeted nearly 35% — clearing roughly $950 million in market value — when it announced it was not selling as many Nike products that year. For DSW, Nike generated 7% of its sales back in 2020.

With little capital to go around, some brands are finding themselves saying no to big retail launches and refocusing on e-commerce. #retail #wholesale In this piece by Gabriela Barkho, we speak to Cameron McCarthy of WeStock.

Sauz has gone from launching in Erewhon at the end of 2023 to being in at least 500 doors this summer. Here's how it did it. In this piece by Melissa Daniels, we speak to Troy Bonde, Winston Alfieri, and Eleanor Hayden of Hayden Consultancy.

Women's #workwear brand Argent has dressed high-profile women in politics, entertainment and tech for nearly a decade. Now, it's sharing their thoughts, stories and advice via a new podcast. #retail In this piece by Julia Waldow, we speak to Sali Christeson, and Anjali Bal of Babson College.