BIRK Makes Key Hire, Zedd Backs BetterBrand 🥯

Author

CPG WIRE
November 09, 2023

GM and Happy Thursday, folks. Here’s what we’re covering this morning:

  • Tiffany Wu joins BIRK 🩴

  • Zedd invests in BFY bagels 🥯

  • Needed scores $14M 💊

  • Siete drops something sweet 🍭

  • Celsius delivers monster Q3 📈

Shout-out to Numeral for making e-commerce sales tax so easy.

BIRK Makes Key Hire 🩴

Global footwear firm Birkenstock has named Tiffany Wu as its Managing Director for Greater China, a major step as the company looks to increase revenue outside of the United States and Europe.

Wu, an alum of UC Irvine (go Anteaters) and Peking University, brings over 18 years of omnichannel fashion and luxury experience to the table. After a three-year stint at global advertising agency Ogilvy, Wu founded and sold a premium leather goods brand called Heirloom. Most recently, Wu worked as a consultant helping Western brands break into the Chinese retail market. 

This is an exciting hire for a number of reasons. First, one of the most attractive aspects of BIRK before it went public early last month was its growth potential in APAC. In the first half of 2023, only 10% of BIRK’s net sales came from APMA (Asia Pacific, Middle East, and Africa). That equates to about €63M in total APMA sales, so China and greater APAC is a massive opportunity for Birkenstock. 

Second, Birkenstock likes to control its distribution as opposed to delegating it to third parties. The company is careful to partner with premium retailers to ensure that Birkenstock is a) in front of the right consumers and b) merchandised properly. Wu’s retail relationships and experience in China will make that considerably easier for Birkenstock. 

APAC is a $500M opportunity for BIRK, and Tiffany Wu seems like the ideal leader to bring it to fruition.

A Message From Numeral

Shark Tank brand The Woobles tried managing sales tax themselves. While it was fine early on, they grew faster than ever, and soon Adrian (co-founder) was wasting dozens of hours on spreadsheets, trying to figure out sales tax. 

They tried using Avalara but it fell short as well. That’s when they switched to Numeral and haven’t looked back since. 

Deals 💰

Mergers & Acquisitions 

  • Griffo Distillery, a craft spirits distillery that’s based in Petaluma, CA, was acquired by MGD Acquisition, an investor group. The distillery, which is best known for its gins and whiskeys, was founded by husband-and-wife duo Michael & Jenny Griffo in 2013. The Press Democrat

  • Indian beauty and personal care company Mamaearth officially went public on the BSE (Bombay Stock Exchange). Mamaearth was founded by Hindustan Unilever alums and couple Varun & Ghazal Alagh in 2016. Reuters

Fundraising

  • Award-winning DJ Zedd has invested in BetterBrand, a producer of low carb, high protein baked goods like The Better Bagel. Terms of the investment weren’t disclosed, but Zedd joins a number of celebs like Patrick Schwarzenegger and Emmy Rossom on the cap table. Business Wire 

  • Los Angeles-based prenatal vitamin brand Needed closed a $14M round which was led by The Craftory. Seae Ventures and Crescent Ridge Partners also participated. Axios

  • Wonder Group, a retail and cloud kitchen startup that connects consumers with meals that are typically made at top restaurants or by celebrity chefs, raised $100M from Nestle. The most shocking detail is that Wonder Group was valued at $3.5B in June…and they don’t even have 10 locations yet. Say what you will about founder Marc Lore, but the guy sure knows how to fundraise and drive up valuations. CNBC

  • Ayurvedic skincare brand Sahajan closed its first round of outside funding. Details are scarce but investors include Ridgeline Ventures, Wonderment Ventures, and a number of angels like Celeste Burgoyne (Lululemon exec) and Yvonne Strahovski (actress). Sahajan launched eight years ago and retails at Credo Beauty. Beauty Independent 

  • Pittco Management, the family office of AutoZone founder Pitt Hyde, launched a new investment arm that’s focused on the distilled spirits industry. PDI Spirits will focus on Bourbon aging at first. PR Newswire

What’s New 🤩

Apparel, Cosmetics, and Wellness

  • Khy, the new fashion label that Kylie Jenner launched about a week ago, teased its newest collection, drop 002, which launches on November 15th. Khy did north of $1M in sales during its first hour of business 🔽 Instagram

  • Austin-based jewelry brand Kendra Scott launched its new fragrance collection. Three scents are available with prices ranging from $30 to $120. Happi

  • Skincare brand Dr. Dennis Gross partnered with Hydrafacial on a new product — Phyto-Retinol Firming Booster. The retinol formula is delivered via Hydrafacial’s patented Magic Wand 🔽 Business Wire

Food, Beverage, and Alcohol

  • Dr Pepper is getting into the spicy beverage game with its latest limited edition product — Dr Pepper Hot Take. Sadly the product is only available to Pepper Perks rewards members ☹️ PR Newswire

  • The newest product from Siete Small Batch is something sweet — Coconut Cajeta Caramel Sauce. Only five ingredients which is super impressive. Can’t wait to try it 🔽 Twitter

  • LesserEvil Snacks dropped some fun popcorn flavors for the holidays. Chocolate Candy Cane and White Chocolate Matcha are available online now. LesserEvil has been on a roll lately 🔥 Instagram

  • KRAFT Singles has joined forces with Top Chef finalist Shirley Chung to launch a fresh take on the soup dumpling. Dubbed Souplings, the new product combines grilled cheese and tomato soup into an All American soup dumpling. Shockingly, Kraft Heinz has been doing a lot of interesting things on the product innovation and marketing front lately 🔽 Forbes

  • Latin American beverage firm Beliv has launched a new gut-friendly soda brand called Mighty Pop in the United States. Beliv has been making some big moves lately. Earlier this year, they purchased Austin-based High Brew Coffee. Mighty Pop is available on Amazon and at Giant/Martin’s stores. FoodBev

Data 🖥️

  • Energy drink brand Celsius delivered a massive third quarter. Q3 net sales were up 104% to $385M and net income landed at $70.5M. Celsius also revealed that it’s the #1 energy drink brand on Amazon, and the #3 energy drink in MULOC with 10.5% market share. Celsius is an absolute juggernaut 🔽 Twitter

Distribution News 🚚

  • Hummus brand Little Sesame is now available on GoPuff.

  • Plant-based chocolate brand LoveRaw is now available on Virgin Atlantic flights.

  • HOP WTR launched at Foxtrot Market.

  • Sparkling prebiotic beverage brand wildwonder launched at Target in the Midwest.