Kraft Heinz Explores Breakup, Ulta Buys Space NK 💄

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

• Mizkan acquires Zing Zang 🍅

• Ferrero scoops up cereal maker 🥣

• Spindrift partners with Patricof Co 🏀

• Glossier collabs with Magnolia Bakery 🧁

• SMPL continues to deliver growth 💪

Deals 💰

Mergers & Acquisitions 

• Kraft Heinz is reportedly planning on splitting into two separate entities. Warren Buffett and 3G Capital facilitated the merger of Kraft and Heinz in 2015 but thus far the packaged foods giant has underperformed. Total revenue exceeded $25B in 2024 yet their market cap sits around $31B. By separating its more valuable, higher-growth brands from underperforming ones like Oscar Mayer and Maxwell House, Kraft Heinz believes it will command a higher valuation. WSJ

• Ulta Beauty, the largest specialty beauty retailer in the U.S., is acquiring British beauty retailer Space NK from Manzanita Capital. Terms of the deal were not disclosed. With more than 1,400 stores across the U.S. and over $11B of revenue in 2024, Ulta Beauty is now turning its attention to international growth. Space NK currently operates 83 stores in the UK and Ireland. The acquisition gives Ulta Beauty a considerable edge over Sephora which recently prioritized growth in the UK. Retail Dive

• Mizkan America has acquired cocktail mixers brand Zing Zang from NexPhase Capital for an undisclosed sum. NexPhase acquired Zing Zang in 2016 for $35M and it’s now the #1 bloody mary mix brand in the U.S. PR Newswire

• Global confectionery firm Ferrero officially acquired WK Kellogg for $3.1B. The acquisition is Ferrero’s largest since they shelled out $2.8B for Nestle’s U.S. candy division in 2018. The cereal category is far from hot right now but Ferrero will be able to maximize WK Kellogg’s stable of cereal brands. WSJ

Fundraising

• Sparkling water brand Spindrift partnered with Patricof Co to bring a number of athletes on board as investors. The new athlete investors in Spindrift include Kevin Durant, Livvy Dunne, Sophie Cunningham, DK Metcalf, and a handful of others. Gryphon Investors acquired a majority stake in Spindrift at the beginning of the year. PR Newswire

• UK-based functional beverage brand Goodrays secured €5.7M in a mix of debt and equity financing. Guinness Ventures led the round and a number of athletes and angels also participated. Ben Dando, the former International Managing Director at Liquid Death, also joined the Goodrays team. Goodrays is best known for their line of sparkling CBD beverages. EU Startups

• Minneapolis-based Peace Coffee raised $1.4M in equity funding from undisclosed investors. Peace Coffee exited the coffee shop business in 2020 to focus on selling its beans & RTS beverages in the retail channel. SEC

What’s New 🤩

Apparel, Cosmetics, and Wellness

• Swimwear brand Elise x Elisia has pivoted to body care and launched a single SKU: Papaya Glow Nectar Body Wash. The $35 SKU is available exclusively via their website. Per Circana, sales of body care products jumped double-digits in Q1. Beauty Independent

• Glossier collaborating with Magnolia Bakery on a fun new product — Banana Pudding Balm Dotcom. The new product launches online and at Sephora on July 17th. Instagram

• Fabletics and Malbon Golf teased a collaboration that’s dropping on July 23rd. Instagram

Food, Beverage, and Alcohol

• Dimitri’s is a new lightly fried pita chip brand from Chicago. They launched with two flavors — Classic and Garlic & Herb — which are both additive and preservative-free. Dimitri’s is currently rolling out at independent retailers across Chicago and will launch a whipped feta dip line in the coming months. Instagram

• Avaline, the organic wine brand co-founded by Cameron Diaz and Katherine Power, collaborated with Stella McCartney on a limited edition rosé bottle. The new bottle will be available online and at select retailers in the near future. PR Newswire

• O’Neill Vintners & Distillers just launched a clean energy drink called Cataylst. For the vertically integrated wine & spirits company, this is certainly a departure. The energy drink contains 120mg of caffeine, 10 calories, 0 sugar, and no artificial sweeteners. Global Drinks Intel

• Powerade is bringing back its Power Water line with four flavors: Mountain Berry Blast, Watermelon, Tropical Pineapple, and Strawberry Kiwi. The line is expected to hit shelves nationwide in September. Instagram

• Wolves Whiskey partnered with Willett Family Estate to launch a 10-year-old blended rye whiskey. Beautiful label. Instagram

• Pickle-in-a-pouch brand Van Holten’s collaborated with Pringles on a limited edition flavor: Sour Cream & Onion. The new product will be available at Five Below, H-E-B, and Amazon. Van Holten’s

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Data 🖥️

• Simply Good Foods (Nasdaq: SMPL) continues to deliver very solid growth. The owner of Quest Nutrition, OWYN, and Atkins reported that YTD net sales jumped 13.2% to just over $1B. Quest Nutrition net sales hit $630M while OWYN added $99M in net sales during the period. As expected, Atkins continues to struggle. Twitter

• According to a report from market research firm Alpha Driver, GLP-1 users are seeking out multi-textured snacks like beef jerky, gum, and Nerds Glummy Clusters. Due to their reduced appetites, GLP-1 users enjoy snacks that prolong the sensory experience and compensate for reduced consumption. Thanks to CPG Secrets for sending this over. Food Business News

Distribution News 🚚

• JVN Hair is launching at over 700 Ulta Beauty stores.

• CHUZA launched storewide at The Fresh Market.

• GORGIE Energy launched at Harris Teeter.

• UK-based XOXO Soda launched at over 500 SPAR locations.