Bacardi Bets on Cognac 🥃

GM and Happy Saturday, folks. Here’s what we have on the docket this morning:

• Bacardi buys out Jay-Z (sort of) 🥃

• UK confectionery consolidation 🍭

• Miley Cyrus invests in self-tanning 🧴

• Nick Giannuzzi venture fund 💰️

• e.l.f. Cosmetics to the moon 🚀

The Big Story 📰

Spirits firm Bacardi Limited has increased its stake in D’USSE, the multi-billion-dollar cognac brand that it co-owns with Shawn “Jay-Z” Carter.

While initially 50/50 partners, Bacardi is now the majority owner of D’USSE, although Jay-Z will retain “a significant ownership stake in the brand.”

This marks the end of a rather messy and litigious affair for Bacardi and Jay-Z. Late last year, Jay-Z sued a Bacardi affiliate, claiming they intentionally mismanaged D’USSE so Bacardi could acquire the brand at a lower price.

Oddly enough, this appears to be a win-win for both parties. Jay-Z gets his desired payout — projected to be in the range of $750m — and Bacardi gets majority ownership of the world’s fastest-growing super-premium cognac brand.

More on the transaction here.

Deals 💰️

Mergers & Acquisitions 

• Georgia-based whiskey brand Shortbarrel has acquired Old Fourth Distillery, one of Atlanta’s oldest distilleries. Old Fourth Distillery was closed in December 2022 by its previous owners. The acquisition includes Old Fourth’s intellectual property and inventory. The Spirits Business

• UK-based confectionery business Serious Sweets Company (SSC) purchased a local peer, Mallow & Marsh, for an undisclosed amount. Mallow & Marsh’s packaging is very cute. FoodBev

• Italian confectionery giant Ferrero acquired Fresystem, an Italian manufacturer of frozen pastries. Naples-based Fresystem has worked with Ferrero for several years. Just Food

• Bollman Hat Company agreed to acquire a majority stake in Kangol, a British streetwear and headwear brand. The seller, UK-based Frasers Group, will retain a 49% stake. Fashion Network

Fundraising

• Singer Miley Cyrus invested an undisclosed amount in Dolce Glow, a self-tanning brand founded by celebrity tanning artist Isabel Alysa. Dolce Glow launched in 2016 and its current retail partners include Nordstrom, Neiman Marcus, Saks, and Revolve. WWD

• Per a recent SEC filing, Chinese restaurant turned CPG brand XCJ secured an additional $21m in funding. Last February, XCJ raised $10m from the likes of Imaginary Ventures, Gold House Ventures, and Hyphen Capital. NOSH

• The talented Anne Hathaway has invested in The EVERY Co., a precision fermentation startup that produces animal-free proteins. You’ll find their animal-free proteins in Pulp Culture, a “hard pressed juice” brand. Business Wire

• Symrise AG, a German producer of flavors and fragrances, invested in Synergio, an Israeli biotech startup that makes next-generation ingredients for sustainable consumer products. WWD

• Kelpi, a British startup that’s developing compostable packaging from seaweed, secured more than $3.5m in funding from Science Creates Ventures, Green Angel Syndicate, and others. UKTN

What’s New 😍

• Per Beverage Insights, CPG lawyer and investor Nick Giannuzzi is launching a $300m venture fund called Humble Growth Fund. Giannuzzi’s law firm, Gianuzzi Lewendon, has advised on over 500 transactions. Twitter

• Sovereign Brands, the spirits firm backed by Pernod Ricard, unveiled its newest brand — The Deacon Scotch Whiskey. Another impressive bottle from the Sovereign Brands crew. The Deacon

• The Vita Coco x Captain Morgan collaboration is finally here. Vita Coco Spiked with Captain Morgan comes in three flavors: Pina Colada, Strawberry Daiquiri, and Lime Mojito. Have a feeling this is going to perform well. PR Newswire

• The Beast Unleashed, the new alcoholic line from Monster Energy, is live in six states: AZ, CA, CO, FL, OH, and IA. Stack3d

• Welly, the first aid kit brand founded by serial entrepreneur Eric Ryan and acquired by Unilever, launched a line of body care products. Glossy

• Oat milk category leader Oatly is now displaying carbon footprint labeling on its U.S. products. Food Dive

• Iconic hot sauce brand TABASCO collaborated with creator and influencer Tinx on a limited-edition hot sauce dressing. TABASCO x TINX Avocado Hot Sauce Dressing is only available on Amazon for $9.99. Business Wire

• Per CMO Cody Plofker, clean makeup brand Jones Road Beauty is opening a store in Greenwich Village very soon. Twitter

• New York-based skincare brand Biography is expanding into body care. WWD

Data 💻️

• Hershey hits $10B in revenue in 2022. Chocolate & popcorn prove recession-proof. Food Business News

• Mass beauty brand e.l.f. Cosmetics (NYSE: ELF) is performing very well. Q3 net sales grew 49% to $146.5m and the brand expects sales to grow close to 40% for FY 2023. Turns out you can build a great business by selling quality products at affordable prices. WWD

• Muddy Bites has now produced 115,000,000 mini waffle cones. Wild stat, great products. Twitter

Distribution News 🚚

• Gen-Z favorite Bubble Skincare to launch at Beauty Bay in the UK.

• Fishwife is now available nationwide at Whole Foods Market.

• Hairitage by Mindy launched their anti-dandruff line at Walmart.

• Haircare brand PATTERN now available at Macy’s.

• Cereal brand Magic Spoon added 6,800 new stores (Albertsons, Walmart, and Kroger).