Morning Brew - ☕️ Keep the change

The baby formula shortage hits DTC-friendly retailers
Morning Brew June 01, 2022

Retail Brew

Mavrck

It’s Wednesday and if you can find a Mexican Pizza at a Taco Bell near you, text us immediately—it’s selling out and we have a craving.

But we know what you’re really craving: a chance to see us in-person. So join us on October 25 in NYC for The SKU: Retail Brew Summit 2022. Come for the content, stay for the connections. Early-bird pricing ends soon, and you’d make a great early bird, so register here and invite your most punctual friends.

In today’s edition:

Katishi Maake

DTC

A new formula

Bobbie baby formula unboxing Bobbie

With a national baby-formula shortage putting the spotlight on DTC companies like Bobbie to help struggling caregivers find baby formula, retail partners like Lalo, who carry the brand’s product, are feeling the pressure.

As the baby-care company opened its NYC flagship last November, Lalo curated a selection of products from other brands, including Bobbie, to sell items like skin-care products, diapers, and baby formula. Amid the shortage, Lalo has been selling “a few dozen cases a month,” co-founder Michael Wieder told Retail Brew, now moving through its monthly allotment in two to three weeks.

“If Bobbie [could] allot us more, we would move it,” he said. “There are parents that are certainly on the hunt and looking.”

All hands on deck: About 84% of shoppers in search of baby formula reported difficulty finding it on shelves in the past month, according to a recent Numerator survey.

  • Lalo is limiting customers to two $28 cans per transaction, which Wieder said roughly is a one-week supply for one child.
  • 25% of customers from the New York City area coming to Lalo’s Noho store are from outside Manhattan.
  • Wieder said Lalo is in touch with Bobbie on at least a weekly basis to update them on the velocity of sales and the opportunity to sell more through their store.

Here’s how Lalo plans to meet the need for having a diverse product selection for customers.KM

        

COMMUNITY

Coworking with Al Sambar

Coworking with Al Sambar Al Sambar

On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

After graduating from the Naval Academy, Al Sambar was a pilot in the Navy, flying primarily throughout the Western Pacific. “It was very exciting as a 22-year-old to be given the proverbial ‘keys’ to a plane and told to go fly every day,” he told us.

But even after he left at the rank of lieutenant more than seven years later, he still kept getting things off the ground.

Sambar is general partner at XRC Labs, a VC firm with a retail technology and CPG focus, where he helps manage Series A and other funding rounds for tech startups. Before that, he worked for 26+ years at Kurt Salmon, part of Accenture Strategy, where he focused on retail digital strategy. He also told us he personally has been an angel investor in about a dozen startups, including Recurate, a startup that builds and manages resale programs for retailers.

When he’s not helping shape companies, Sambar, who lives in Carmel, California, spends a lot of time in the even more delicate pursuit of shaping glass. About 15 years ago, he fell in love with glassblowing, and today he and his son own a glassblowing studio, Monterey GlassWorks, in Sand City, California.

How would you describe your job to someone who doesn’t work in retail? Pretty simple really—we look for retail tech and consumer brand startups trying to change the world for the better, invest in them, then support them to help them grow.

One thing we can’t guess about your job from your LinkedIn profile: I own a glassblowing studio in Monterey, California, where we fund residencies for emerging artists from all over the world. This year, we have artists traveling in from as far away as New Zealand and Poland.

Which emerging retail trend are you most excited about this year, and why? Well, I find all of our metaverse, NFT, and Web3-related startups intellectually fascinating. Hard not to. But the trend I root for most is circularity and conscious consumerism. This isn’t a new or flashy one, but one that, like a swell, continues to grow slowly year after year as climate change becomes less ignorable.

What’s the worst piece of business advice you’ve received? “You’ll never be successful if you don’t fix your disorganization and lack of attention to detail.” I heard that my whole life on nearly every performance review I’ve ever received. The book StrengthsFinder 2.0 by Tom Rath was a true gift to me when it came out, because it gave me explicit permission to do what I’ve always done—to stop hand-wringing about my weaknesses and continue to find joy in my strengths.

Hands down, the best fast food restaurant chain is…Chipotle. I’m mostly a veggie eater and can’t get enough of that sofrita with extra hot sauce!

        

TOGETHER WITH MAVRCK

Is your influencer marketing impacting sales?

Mavrck

Sometimes, influencer marketing feels like the Wild West. How do you know if your influencer programs are actually carrying any significant, ya know, influence out there in social’s vast expanse?

Mavrck is all about actionable insights. That’s why their free guide, Influencer Marketing Best Practices for Retail Brands, outlines how to leverage a wide range of social channels to achieve real, strategic results for your biz.

Everyone wants to prove ROI, which is why this guide highlights how to accurately measure the impact of your influencer programs. Check out how Express drove sales by working with their creators in innovative ways + learn how to create an effective ambassador program that seamlessly boosts brand loyalty.

Get your free guide here.

WHAT ELSE IS BREWING

  • Amazon is facing an accelerated FTC investigation for possible antitrust violations.
  • Salesforce’s quarterly revenue was up 24% over last year.
  • Dia & Co. acquired fellow plus-size brand, 11 Honoré.
  • Victoria’s Secret saw quarterly revenue fall 4.5% from a year ago.
  • Mattel is making a Laverne Cox Barbie, its first modeled on a trans person, and it’s among the best-selling new “doll playset” releases on Amazon.
  • Glock is being sued by a victim of a recent NYC subway shooting, under a recent New York State law enabling civil suits against gunmakers (and retailers).

TOGETHER WITH PLACER.AI

Placer.ai

Psst: They spilled the tea. The retail tea, of course. Wondering who’s leading some of the largest store-fleet expansions in the industry? Find out the answer + other nuggets of juicy info in Placer.ai’s latest report, Top 10 Retail Brands to Watch in 2022. They’ve put a particular emphasis on industry shaker-uppers (aka the good stuff). Get it here.

SWAPPING SKUS

Today’s top retail reads.

Tapping in: With the likes of Gucci and Tiffany’s investing in Vietnam, the luxury market in the country is heating up and is likely to continue to grow. (Business of Fashion)

Taking stock: As inflationary concerns drive away some consumers, grocers are increasingly challenging food companies on rising costs. “We do what everyone else does. We shout and rattle our desks,” said Jonathan Weis, CEO of Weis Markets. (The Wall Street Journal)

New territories: From a tea brand focused on growers in former global conflict zones to a spice company that links Afghan spice farmers to the world, several veterans have set up businesses in regions they were deployed to. (The New York Times)

Make money moves: Meet Money Scoop, our personal finance newsletter covering everything you wanna know about student loans, mortgages, and retirement planning—plus plenty more. Sign up here.

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Written by Katishi Maake, Andrew Adam Newman, Jeena Sharma, and Erin Cabrey

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