Dropz Secures Funding, JuneShine Buys Flying Embers 🍹

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CPG WIRE
March 05, 2024

Welcome back to This Week in CPG, folks. Hope y’all had a relaxing weekend and a productive Monday. We have lots to cover so let’s dive right in:

  • Clinical Skin buys Glytone 💉

  • Naturanic raises $2M 🇧🇷

  • Redmond family launches haircare brand 🧴

  • Howler Head debuts RTDs 🐵

  • OLIPOP targets $400M in sales 📈

Dropz Secures Funding 💦

Dropz, a Swiss startup that produces functional water enhancers, secured an undisclosed amount of seed funding. The round was led by Redalpine Venture Partners with additional participation from Oyster Bay, Backbone Ventures, and Roland Brack. 

Founded in 2021 by co-founders Zafar Hasher and Sabrina Balestra, Dropz offers consumers dissolvable cubes that release a mix of essential vitamins and natural flavors to make tap water a little more exciting and enjoyable.

Dropz is quite similar to Waterdrop, the Vienna-based brand that launched in 2016 and surpassed $100M in sales in 2021, although Dropz is slightly more sustainable. Whereas Waterdrop packages each individual cube in plastic to protect from moisture, Dropz ships their cubes in eco-friendly bulk packaging. See below. 

Dropz and Waterdrop are interesting brands for a few different reasons. First, their products make hydration much more sustainable and cost-effective for consumers. Instead of seeking out a sugary sports drink that’s bulky to ship and more expensive to purchase at retail, consumers can get their flavorful hydration fix via a dissolvable cube. A 20-count of Dropz costs roughly $10, so it’s considerably less expensive per unit than ready-to-drink options. 

Second, both brands offer a wide variety of functional benefits, so if a consumer needs a caffeine fix or perhaps vitamins and minerals that promote healthy skin and hair, their needs will be met. 

More on the fundraise here.

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Deals 💰

Mergers & Acquisitions 

  • In a surprise move yesterday, JuneShine announced that it’s acquiring Flying Embers, a brand that also competes in the canned cocktail & hard kombucha categories. It’s an all-stock transaction and the situation at Flying Embers was described as “distressed.” There are two ways to spin this acquisition. The Positive: the deal brings together two of the most popular brands in the category so there are manufacturing and distribution synergies. The Negative: JuneShine appears to have a high burn rate, and Flying Embers torched $20M in venture capital in two years, so this is a union of two unhealthy businesses that will need an awful lot of cash. Brewbound

  • New Jersey-based Clinical Skin is acquiring a skincare brand, Glytone, from Pierre Fabre Laboratories for an undisclosed sum. Glytone, which has been owned by Pierre Fabre for more than two decades, is best known for its solutions that combat aging and hyperpigmentation. Happi

Fundraising

  • Brazilian better-for-you snack brand Naturanic raised $2M in Series A funding as it looks to scale in the U.S. The round was led by Brazilian investment firm Moriah Asset. The brand is currently available exclusively via Amazon. PR Newswire

What’s New 🤩

Apparel, Cosmetics, and Wellness

  • The family behind haircare brands Aussie, acquired by Bristol-Myers Squibb in 1997, and Renpure, acquired in 2018, are launching a new haircare brand called V&Co. The brand is debuting with four shampoo & conditioner duos that target different hair types. WWD

  • Wellness brand Lemme just rolled out some impressive displays at Sprouts and they look great 👇 Twitter

  • Hydration brand CURE introduced a new line of electrolyte supplements for children called CURE Kids. The new line is available on their website and Amazon. Instagram

  • Water brand Evian just launched a new line of hydrating facial sprays that are available exclusively at Ulta Beauty… PR Newswire

Food, Beverage, and Alcohol

  • Catalyst Spirits, the spirits incubator behind Howler Head and Oceanus Hibernicus, is entering the RTD category with Howler Head & Cola. The new RTD whiskey cola is currently only available in Australia but will launch in additional markets soon. PR Web

  • Oatly is expanding its presence in the coffee creamer category with its new line of Oatmilk Creamers. Four flavors are available: Sweet & Creamy, Vanilla, Caramel, and Mocha. Food Dive

  • After a successful test launch in Nevada, Modelo is taking its new Spiked Aguas Frescas line to 15 additional states. Beverage Daily

  • Luxury baked goods brand Lexington Bakes dropped a new product — Cosmic Forest Cookie. Twitter

  • Mezcal brand The Lost Explorer is pushing into the tequila category. Drinks International 

  • Blender Bites and Orgain are collaborating on a co-branded product called Superberry Sport. The post-workout smoothie product will debut later this year. GlobeNewswire

Data 🖥️

  • BFY soda brand OLIPOP is seeking $400M in sales this year. The Information

  • PRIME is still growing at a strong clip but not quite as rapidly as it once was. Twitter

Distribution News 🚚

  • Labneh brand Yaza is launching at Erewhon, Pavilions, and Lassens.

  • Natural haircare brand Rucker Roots launched at Walmart.

  • Siete launched two more cookie SKUs at H-E-B.

  • CurlDaze launched its new GroDAZE line exclusively at Walmart.