Morning Brew - ☕ Barista edition

Oatly’s annual sustainability report says it all.
Morning Brew July 29, 2022

Retail Brew

Lexer

Friday is today. Consumer spending rose 1.1% in June, says the US Commerce Department. Get those last-minute purchases in this weekend, before July ends and we lose the streak! Winner gets a toaster with Uncle Sam’s face engraved on the side.

In today’s edition:

—Erin Cabrey, Jeena Sharma

SUSTAINABILITY

Hitting the right oat

An illustration of Oatly's light blue oat milk carton. Some loose oats are scattered around its base, and a few oat stalks are sticking out of the hole at the top like it's a vase. Francis Scialabba

As more brands set goals to reduce their climate footprint, they’re turning to sustainability reports to update stakeholders—investors, consumers, employees, and yes, even journalists—on their progress.

It can be a cumbersome ordeal, but oat-milk maker Oatly, which has been publishing reports since 2018, has found ways to add a splash of style.

Amid a slew of scientific terms like “energy intensity per produced liter,” and “carbon dioxide equivalents,” the 51-page 2021 Oatly sustainability report published in June also featured a cartoon head of Ashley Allen, its chief sustainability officer, and puns like “prOATocol.”

The sustainability reporting process is voluntary—which means there’s a “lack of recording consensus or criteria” for companies to follow universally, Erin Augustine, Oatly’s director of supply-chain sustainability, told Retail Brew.

Oatly abides by the Global Reporting Initiative, an independent Amsterdam-based organization that publishes a universal standard for companies to follow, as well as sector and topic-specific guidelines.

  • The guidelines for reporting are used by retailers like Walmart and Hormel Foods.
  • Headquartered in Malmö, Sweden, Oatly also follows reporting mandates from the Swedish government, Augustine said.

With standard data reporting paired with Oatly’s signature voice, Augustine, whose CPG background includes managing sustainability at Kellogg’s, said, “We try to balance the needs of different audiences when we write this report.”

Planning it oat out: Augustine said that building the sustainability report takes nine months, so work on the 2022 version will begin in October. While it’s spearheaded by the CSO and the 25-person sustainability team, the report is a team effort across 50+ employees.

Read how Oatly creates its annual sustainability report.AC

        

TOGETHER WITH LEXER

’Tis the season to upgrade your retail strategies

Lexer

Ho ho hold up—are we already talking about holiday shopping?

Yep. We are. Thanks to surging inflation and rising interest rates, the 2022 retail holiday season is gonna look a lot different than in years past. That means your retail business needs to be proactive about shifts in consumer confidence and discretionary spending.

Luckily, Lexer’s 2022 Retail Holiday Guide was designed to help you prep and adapt accordingly.

This li’l stocking stuffer contains seven actionable strategies that’ll help maximize your ’22 retail holiday sales. Find out how to embrace alternative channels, reduce reliance on paid media, combat declining discretionary spending, and more. 

Snag the guide here.

BEAUTY

Don’t brush past this

Don’t brush past this Ilia Beauty

Earlier this week, we shared just how bright the future of SPF really is. Beyond skin care and makeup, brands are also digging into SPF for hair.

  • Swedish hair-care brand Sachajuan, for instance, introduced one of its first SPF products, a hair styling cream.
  • Sunscreen fave Supergoop has its Poof Part Powder Sunscreen, a powdered formula to protect the scalp from the UV rays.
  • Goldilocks, a luxury hair-care label founded in 2022, is also working on a mineral SPF 30 product to be applied to colored hair and hair extensions.

“What’s also interesting is that SPF [products for skin care] actually [don’t] work on hair itself…SPF only is effective on skin because it’s made for the dermis,” Devin Graciano, hair stylist and head of product development at Goldilocks, told us.

Manola Soler, senior director at Alvarez & Marsal, calls these innovations the “skinification of hair”—and she expects there’s more to come.JS

        

SUPPLY CHAIN

Run DTC

Run DTC Getty Images

Nike has always been known for helping its customers run more efficiently, but these days it’s getting noticed for running its own business more efficiently, too. Over at our sibling CFO Brew (they’re in the corner office, obvs), Drew Adamek limbered up and wrote about how Nike has become more fleet of foot when it comes to its supply chain:

Nike’s 2021 first-quarter results contained some bad news for investors and the company. Like many companies last year, the Oregon-based sports apparel and sneaker manufacturer was seeing pent-up demand for its products, but global supply-chain disruptions meant they weren’t getting to customers.
But Nike had an advantage that other companies didn’t: It had been pivoting away from a retail wholesale model to a digital-first, direct-to-consumer model, a key strategic initiative years in the making. So the global supply-chain mess pushed the company to intensify the adoption of its new supply-chain technologies.

Those technologies, Drew explained, were highlighted at Nike’s 2022 Q1 earnings call with investors, where the company’s EVP and CFO Matt Friend said, “As we accelerate our consumer-led digital transformation, we are developing and refining new capabilities that are transforming our operating model, quickly becoming a competitive advantage for Nike.”

Supply-chain uncertainty is likely to linger well into next year. To maintain a competitive edge, companies are looking to invest in digital supply-chain technology now and in the future. Not every company is going to be able to pivot to a more digital supply chain on the scale that Nike has, but recognizing the need to meet customers where they are will likely drive a lot of the digital shift.

But even if everyone can’t be as quick out of the gate as Nike, others are sure to follow in its footsteps.

Read the full story at CFO Brew.AAN

        

TOGETHER WITH PLACER.AI

Placer.ai

The stores they are a-closin’. But closed doors don’t always spell doom for retail—sometimes, “rightsizing” is the smartest way to boost other locations’ sales and keep a company afloat during tough times. Check out more surprising insights in Placer.ai’s latest white paper, Brands That Are Rightsizing Right, available right here.

SWAPPING SKUS

Today’s top retail reads.

Recession incoming? After the US economy shrank for a second consecutive quarter, fears of a recession are hitting a fever pitch. (the Washington Post)

Beating expectations: Canadian supermarket Loblaw saw a Q2 sales bump thanks, in part, to its diverse set of store formats. (Supermarket News)

Cloth talk: The Fabric Act, which made its way to the US House of Representatives earlier this week, could change how garment workers are protected and bolster nearshoring. (Glossy)

Retailer refresh: As new retail trends and challenges (constantly) arise, Bazaarvoice is highlighting the latest ins and outs so brands know where to lean next. Check out all the pivotal insights in the 2022 Shopper Experience Index.*

*This is sponsored advertising content.

WHAT DOES IT MEAN TO BE ‘MADE IN AMERICA’?

An illustration in which dozens of cargo containers are stacked in such a way that they resemble the American flag. Francis Scialabba

We’ve all seen “Made in USA” stamps on products from footballs to coolers, but it takes a lot to be able to make that kind of claim. It’s not easy (or cheap) to manufacture products in America, yet while US companies face supply-chain tumult, many are evaluating how to bring their manufacturing home. Read more here on Retail Brew’s exploration of what it really means to be “Made in America.”

This editorial content is supported by AT&T Business.

WHAT ELSE IS BREWING

  • Procter & Gamble reported a strong quarter but warned of slow sales growth as costs rise.
  • FedEx Ground said it wouldn’t work with third-party negotiators who are pushing for changes on behalf of delivery contractors.
  • L’Oréal Q2 earnings reached 9.31 billion euros (~$9.4 billion), surpassing analyst expectations.
  • Janet Yellen, the US Treasury Secretary, said the economy is not in recession despite the GDP slump.

FRIEND OR FAUX?

Three of the stories below are real...and one is most definitely not. Can you spot the fake?

  1. A farmer in Belgium who claims music pleases his pigs, and ultimately increases the quality of his pork, is having those claims investigated by a team of scientists.
  2. Even more hog wild, perhaps, a diner owner in Maryland began making soap out of bacon grease after the price of a case of bacon doubled in the last year (thanks, inflation).
  3. On a happier note for the cloven-hoofed, a Walmart in Rhode Island is using a pot-bellied pig named Björky Pig as a greeter.
  4. The founder of the fast-food chain Raising Cane’s purchased lottery tickets for all 50,000 of the chain’s employees.

Keep reading for the answer.

FRIEND OF FAUX: ANSWER

Someone please hire a pot-bellied pig named after an Icelandic pop star as a greeter for your store, because a Walmart in Rhode Island has not done so.

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Written by Erin Cabrey and Jeena Sharma

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