Whipnotic Scores Seed Funding 🍨

Welcome back to This Week in CPG, folks. Here’s what we’re covering this morning:

• Whipnotic secures funding 🍨

• Manna scoops up Nor-Cal Beverage 🧃

• Style Capital’s hot streak continues 🔥

• Pernod backs Boisson 🥂

• Woody Harrelson drops spirits brand 🥃

• Epres heads to Goop 🤝

The Big Story 📰

Whipnotic, a New York-based startup that’s bringing innovation to the long-dormant whipped cream category, secured $2.5M in seed funding. Participants in the funding round include GTM Investments, East Dune Holdings, and Crenshaw Ventures.

Founded by sisters Tracy Luckow and Lori Gitomer, Whipnotic differentiates from Reddi-Wip and other private-label players via its technology. At first, this might be difficult to compute — why are “technology” and “whipped cream” being used in the same breath — but Whipnotic owns an interesting bit of proprietary technology that infuses whipped cream with fruit juices and flavors as it’s being expelled. The result is a much more flavorful and novel experience for consumers.

Since hitting the market in July of 2022, Whipnotic has been busy building its retail presence. In addition to their east coast presence at Balducci’s, Citarella, DeCicco Family Markets, and Kings, Whipnotic has been pushing westward with launches at Central Market, Harmons, The Fresh Market, and many other regional outlets.

Per their CEO, Lori Gitomer, the majority of the seed funding will be used to expand their retail presence, launch into the food service channel, and increase brand awareness.

I’m pretty bullish on Whipnotic. They’re focused on a large, sleepy category — it’s expected to be a $10.3B category by 2025 — and they’ve clearly differentiated from legacy players like Reddi-Wip by focusing on unique flavors, bright, compelling packaging, and a proprietary delivery system.

Learn more about Whipnotic here.

Deals 💰

Mergers & Acquisitions 

• Manna Beverages & Ventures, an affiliate of private equity firm Manna Capital Partners, will acquire Nor-Cal Beverage Company for an undisclosed sum. Nor-Cal Beverage is one of the largest independent contract manufacturers of beverages west of the Mississippi. Nor-Cal currently operates two facilities in Anaheim and Sacramento. Business Wire

• Milan-based private equity firm Style Capital purchased an 80% stake in French apparel and accessories brand Soeur at a valuation of roughly 70M EUR. Style Capital has posted some massive wins lately. They sold a 15.3% interest in Golden Goose, and they sold a majority stake in Australian fashion label Zimmermann at a valuation of over $1B. Fashion Network

• Second Nature Brands agreed to acquire Sahale Snacks from The J.M. Smucker Company for $34M. Sahale is a premium nut and fruit snacks brand with net sales exceeding $48M. Second Nature owns a number of snack brands including Kar’s Nuts and Sanders Candy. Last December, they purchased Brownie Brittle from Encore Consumer Capital. PR Newswire 

Fundraising

• Leading non-alcoholic beverage retailer Boisson landed $5M in backing from Convivialité Ventures, the venture arm of Pernod Ricard. Connect Ventures, an investment partnership between CAA and NEA, also participated. Boisson also announced that Sheetal Aiyer will take over as CEO. Business Wire

What’s New 🤩

Apparel, Cosmetics, and Wellness

• Rhode Skincare, the super popular cosmetics brand founded by Hailey Rhode Bieber, introduced its Peptide Lip Tint in a new shade — Espresso. Beautiful package ⬇️ Rhode

• Speaking of Hailey Bieber…her longtime makeup artist Katie Jane Hughes launched her own beauty brand called KJH Brand. Her debut product is the Hyper Shine High Lite Kit which retails for $75 and is supposed to give customers a dewy, luminous complexion. Glossy

• Skincare brand Topicals launched a new bundle and campaign with Teyana Taylor as guest creative director called Teyana’s Edit. Very fun ⬇️ Topicals

Food, Beverage, and Alcohol

• Outstanding Foods collaborated with Chamberlain Coffee on a new line of gluten-free mocha cookies. The packaging is perfect. I’m curious when Chamberlain Coffee will transition to Chamberlain Goods and focus on non-beverage products. The opportunity for better-for-you candy and confections under the Chamberlain brand is endless. Twitter

• Low-sugar candy brand BEHAVE unveiled a fantastic brand refresh. I’m very happy they did this. Candy, even better-for-you candy, is supposed to be fun and the version 1.0 of their packaging looked like an East German commodity. Bravo on the brand refresh ⬇️ Instagram

• Per John Craven of BevNET, non-alc agave cocktail brand Parch is dropping a new flavor, Desert Margarita, soon. Love their branding. Twitter

• Children’s nutrition brand Once Upon a Farm launched a new line of Refrigerated Oat Bars that’s available at Target and Wegmans. Competition was heating up in the refrigerated bar category with Mid-Day Squares, Perfect Bar, and Honey Mama’s vying for dollars. Now it just got a little more competitive. PR Newswire

• Beloved actor and activist Woody Harrelson just launched an eco-friendly spirits brand called Holistic Spirits Company. They sell two products: Origen Holistic Vodka and Harmony Holistic Gin. The Spirits Business

• Brooklyn Brewery collaborated with Yolele Foods on yet another beer. Fonio Rising is a Double Pilsner that’s made using fonio, a very resilient West African grain that has thrived for over 5,000 years. What a beautiful can ⬇️ Instagram

Data 🖥️

• Monster Energy volume was down 7.7% while Red Bell volume decreased by 1.5%. On the other hand, Celsius volume shot up 112.2% while Alani Nu jumped 53%. This is for the four weeks ending on September 9th. Twitter

Distribution News 🚚

• Craft kombucha brand Walker Brothers will launch at The Fresh Market.

• Intimate skincare brand Luna Daily launched at Boots in the UK.

• epres, the new haircare brand founded by Olaplex chemist Dr. Eric Pressly, is now available via goop.

• Children’s nutrition brand Yumi launched its line of nutrient-dense snacks at Whole Foods Market.