FounderSix Lands Funding, Rhone Buys Out Catterton 💰

GM and Happy Thursday, folks. It’s been a wild few days in CPG Land so we have lots to cover. Here’s a quick preview:

• FounderSix closes round 💄

• Rhone buys out investor 💰

• F1 star debuts non-alc spirit 🥃

• Kate Upton joins Vosa Spirits 🍸

• Sol de Janeiro is a rocket ship 🚀

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The Big Story 📰

FounderSix, a brand incubator that builds influencer-led beauty brands, secured $12M in funding from KD Capital, a Hong Kong-based venture firm.

KD Capital has built an interesting portfolio of brands that exist at the crossroads of consumer and technology. In addition to FounderSix, they previously invested in OkCupid (online dating), NOC Coffee Co. (premium coffee retailer), Citadel Casing (eco-friendly wine cases), and Sheer (lingerie).

Founded in 2020 by Oli Goulden and Pieter Wittgen, FounderSix has launched three influencer-led beauty brands thus far. Most recently they launched Anablue, a premium haircare brand that utilizes traditional Moroccan ingredients, with Lauren Perez, an influencer and former Creative Director at Alo and Good American.

Prior to Anablue, FounderSix partnered with YouTuber Allie Glines to launch Ravie Beauty, and with TikTok’s Alex Renee on ARY WORLD. According to WWD, the three brands are expected to generate $15-20M in first-year sales.

Though FounderSix seems to be performing well, they’re far from the first incubator to focus on talent-led beauty brands, and the space is getting very crowded. Maesa was one of the first movers and has produced a variety of thriving brands like Frenshe, Hairitage, and Kristin Ess Hair. Beach House Group has also found a tremendous amount of success partnering with celebrities like Millie Bobby Brown, Kendall Jenner, and Tracee Ellis Ross on beauty brands. Lastly, there’s A-Frame Brands, a relative latecomer that’s launched brands alongside Naomi Okaka, John Legend, and Gabrielle Union.

While the field is no doubt crowded, FounderSix has carved out a niche for itself by focusing on smaller creators who are passionate or knowledgeable about a particular field e.g. makeup tutorials or haircare. It’s actually a pretty novel approach to brand building. Instead of partnering with a celebrity simply because they’re famous, FounderSix is partnering with influencers who are successfully building large audiences due to their passion and expertise.

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Deals 💰

Mergers & Acquisitions 

• Rhone, the premium men’s activewear brand that launched in 2014, has formed a special purpose vehicle (SPV) to buy out L Catterton, the consumer private equity giant that backed Rhone in late 2017. Now that L Catterton is off the cap table, Rhone’s new SPV investors include Gabe Plotkin, David Blitzer, Steve Young, and others. The founders of Rhone, Ben & Nate Checketts, mentioned that they weren’t dissatisfied with L Catterton, they simply wanted to hold the company longer than the typical private equity cycle. Entrepreneur 

• Scottish beverage firm A.G. Barr, the owner of IRN BRU, has acquired Rio Drinks for £12.3M in cash. The seller is regional brewer Hall & Woodhouse. Rio is known for their sparkling waters which contain real tropical fruit juice. Beverage Daily

Fundraising

• Viral bagel shop PopUp Bagels closed an $8M funding round led by Stripes. Other investors include Tastemaker Capital, Darren Rovell’s venture firm, and Habitat Partners, the venture arm of brand agency Red Antler. A variety of celebrities also participated. Stripes has already backed a number of retail plays including Erewhon and Levain Bakery. Restaurant Business Magazine

• Supermodel and entrepreneur Kate Upton has become a co-owner in ready-to-drink cocktail brand Vosa Spirits. Vosa produces two vodka-based beverages: Vodka Water and High Line. They also announced a distribution agreement with Southern Glazer’s and will expand outside of their home state of Michigan. PR Newswire 

• Signature Brew, a UK-based craft brewer that’s known for collaborating with musicians, raised over £700K on crowdfunding platform Seedrs. The brand expects to surpass £5M in sales this year. Seedrs

• GOZEN, a biomaterials startup that produces alternative materials for use in the automotive and fashion industries, raised $3.3M in seed funding. The round was led by Happiness Capital. GOZEN unveiled their flagship product, LUNAFORM, with Balenciaga at Paris Fashion Week. FinSMEs

What’s New 🤩

Apparel, Cosmetics, and Wellness

• Zara-owner Inditex announced an agreement to buy recycled polyester from Los Angeles-based circular textiles startup Ambercycle. Inditex will spend $74M sourcing recycled materials from Ambercycle. A major win for the startup that launched in 2015. Reuters

• Beyoncé unveiled the name of her newest fragrance — Cé Noir — which is available for pre-order now. The real question is when is Beyoncé launching her much-awaited haircare brand? Business of Fashion

• Podcast host and intimacy coach Cat Meyer launched a new sexual wellness brand called Head South 🔽 Beauty Independent

• Model and actor Derek Chadwick launched a new cosmetics brand called Chaddy. Their first product is the Chaddy Matte Lip Plumper. Chaddy is a perfect brand name 🔽 Beauty Independent 

Food, Beverage, and Alcohol

• Formula 1 legend Lewis Hamilton partnered with spirits innovator Casa Lumbre to launch Almave, a new non-alcoholic agave spirits brand. Almave uses blue agave and various distillation techniques to produce a spirit that’s similar to tequila, but obviously non-alcoholic. Stunning bottle 🔽 PR Newswire

• Popular Asian pantry staples brand Fly By Jing unveiled their latest product — Chengdu Crunch. Instagram

• Chad Michael Studio produced an absolutely gorgeous bottle and label for Gallivanter Gin, a new gin brand from Australia. The details on the bottle are impressive. Great coverage by Chloe Gordon 🔽 The Dieline

• WNWN Food Labs, a London-based producer of cocoa-free chocolate, launched a line of chocolate bars that pays homage to some of the most iconic chocolate brands in the UK. Cadbury can’t be happy 🔽 Vegconomist

Data 🖥️

• Sol de Janeiro is still growing very, very fast. L’Occitane Group reported H1 results and Sol de Janeiro delivered net sales of $270M. Sol de Janeiro's H1 net sales for the previous year were $98.6M. For context, L’Occitane Group acquired 83% of Sol de Janeiro at a valuation of $450M in late 2021. Incredible. Twitter

Distribution News 🚚

• Safely, the home care brand founded by Kris Jenner & Emma Grede, launched at Whole Foods Market.

• Popchips and Food Should Taste Good are now available on JetBlue.

• Fabrizia Spirits announced a distribution partnership with Southern Glazer’s.

• PB2 launched their plant-based baking mixes nationwide at Walmart.