Morning Brew - ☕ Meet the new boss

Catching up with the Consumer Brands Association’s new CEO.
April 21, 2023

Retail Brew

Listrak

Hello there. Last day of the work week; you’ve almost made it! To celebrate, might we suggest Krispy Kreme’s chocolate chip cookie-stuffed donut, or if you’re feeling real fancy, King Charles’s Coronation Quiche recipe, chosen “personally” by Their Majesties, the King and the Queen Consort. Either way, we’ll need to hear details.

In today’s edition:

—Erin Cabrey, Katishi Maake, Maeve Allsup

CPG

Brand new

A colorful, bright supermarket aisle. Tom Werner/Getty Images

The CPG industry is, uh, pretty big. It accounts for 20.4 million jobs in the US (did you know the cheese manufacturing industry alone accounts for 50,000 jobs?), plus $1.1 trillion in salaries, wages, and benefits, and contributes $2 trillion to the national GDP.

Even more staggering: Consumers use an estimated 42 CPG products every day. If you don’t believe it, try counting. We (Erin here, hi!) have already used at least 18 before noon.

All those stats are according to the Consumer Brands Association (CBA), a trade association uniting nearly 70 CPG companies across categories like food and beverage and personal care from The Coca-Cola Company, Kellogg Company, and General Mills to The Honest Company, The Clorox Company, and The Procter & Gamble Company.

The group has new leadership and a refreshed focus this year. David Chavern joined the CBA as president and CEO in January after leading the News/Media Alliance for seven years. However, he’s no stranger to manufacturing, holding executive positions at the US Chamber of Commerce for nine years, including EVP and COO of the US Chamber Manufacturing Initiative for over seven years. Due to his experience, the role was a “natural fit,” Chavern told Retail Brew.

“The companies I represent provide products that people consume, not only every day, but like, every hour of every day,” he said. “There’s that sense of just real impact on the American consumer that I found intriguing, and wanting to represent companies that have that kind of impact and consequence…It’s an industry that really matters. And I like to do things that matter.”

Keep reading here.—EC

     

TOGETHER WITH LISTRAK

Put a face to your name—correctly

Listrak

Personalized marketing is the name of the game these days. How to do it? Call in the influencers. Seriously, because 75% of consumers are more likely to make a purchase if it comes with a personalized recommendation.

But influencing is harder than it looks. You’re gonna need some help.

Luckily for you, Listrak can show you how to ace it. Their Identity Resolution Marketing solution, GXP, identifies the anonymous traffic that comes to your site from your influencer(s), then collects the essential zero- and first-party data so you can personalize the shopping experience and future shopping experiences to drive more conversions.

Want the deets? GXP is a white-glove, full-service model run by a team of experts who guarantee its revenue. Brands like Tula Skincare, Le Creuset, and 7 For All Mankind love it.

Capitalize on the traffic influencers send to your site. Try Listrak’s GXP 120-day risk-free pilot.

APPAREL

Off the top rope

Fanatics WWE partnership Fanatics

The WWE might be fake, but the dollars behind it are very real.

Fanatics and the WWE have expanded their partnership. Starting in May, Fanatics will operate physical merchandise stands at 300+ WWE events annually.

In March 2022, the two inked a long-term deal that would utilize Fanatics’s e-commerce platform to introduce new offerings for WWE fans, such as licensed merch, physical and digital trading cards, and collectibles.

Fanatics will work with the WWE teams that previously operated its event retail business to bolster in-venue product offerings with localized merch collections.

  • “Expanding our partnership will allow WWE to further expand our offering to fans and grow merchandise revenue in 2023 and beyond,” Alex Varga, WWE SVP and head of corporate development, said in a statement.

Money in the bank: Last year was big for the WWE, which earned a record $1.3 billion in revenue, an 18% increase YoY. In its annual report, WWE lauded its Fanatics partnership, which had already yielded year over year increases in its e-commerce and merchandise businesses.

  • The expanded partnership comes right after WWE agreed to a merger with the UFC, a deal which valued the company at $9.3 billion.

Keep reading here.—KM

     

TECH

Shopping spree

A shopper uses a Snap Mirror to try on a suit. Snap

Snapchat is arming retail brands with new shopping capabilities—powered by augmented reality and AI—for both online and brick-and-mortar experiences.

Snap first announced its new software as a service business for retailers in late March, unveiling a “Shopping Suite” that includes features like a 3D viewer, augmented-reality try-on, and an AI fit finder. (Early clients included Goodr, Princess Polly, and Gobi Cashmere.)

AR Enterprise Services (ARES) enables retailers to bring Snap’s technologies in-house to their own websites, apps, and stores.

At the annual Snap Partner Summit on April 19, head of AR enterprise solutions Jill Popelka announced a hardware addition to the offerings: Snap AR Mirrors for virtual try-ons in store.

“AR Mirrors showcase our technology, designed specifically for physical screens,” Popelka said. “With our Mirrors, customers can virtually try on products without having to haul a pile of clothes to wait in line.”

Dream teams: Snap, which isn’t new to high-profile retail partners, has already enlisted Nike and Men’s Wearhouse to test out the Mirror in select stores, and Popelka said Nike will be testing out footwear-specific Mirrors later this year to allow shoppers to “try on” custom designs.

Meanwhile, Coca-Cola is using Snap’s Mirror technology for an AR vending machine prototype, which is operated using hand gestures.

Keep reading here.—MA

     

SWAPPING SKUS

Today’s top retail reads.

Woof woof: Move over “dog friendly” restaurants. Canines now have their own eateries, food trucks, and even tasting menus. (the New York Times)

All around the world: Startups and established sneaker brands in parts of Africa are now taking their designs to Europe and the US as their influence grows. (Business of Fashion)

Too little, too late: As fashion retailers across the globe ramp up their resale initiatives, touting environmental benefits and waste reduction, some are concerned it is too little, too late. (Retail Dive)

WHAT ELSE IS BREWING

  • Procter & Gamble beat earnings estimates in spite of its price hikes.
  • Amazon debuted an anti-counterfeiting exchange program to help retailers identify fakes.
  • Whole Foods will cut hundreds of corporate jobs as part of a restructuring effort.
  • Ferragamo’s sales dipped 6.5% in Q1 with a slowdown in the US.
  • Prada will invest 60 million euros in the supply chain to boost production.

FRIEND OR FAUX?

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

  1. Belgian customs destroyed several bottles of Miller High Life for using the phrase “Champagne of Beers.”
  2. Gillette has introduced an edible shaving cream that tastes like actual whipped cream.
  3. Tamworth Distillery has debuted a perfume made from gin that can be both worn and drunk.
  4. Russell Stover Chocolates created a 5,000-pound box of chocolates to celebrate its centennial while simultaneously setting a new world record for the largest box of chocolates.

Keep reading for the answer.

FRIEND OR FAUX? ANSWER

Hmm, shaving cream that tastes like whipped cream would be nice…but maybe a little confusing, don’t you think?

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Written by Erin Cabrey, Katishi Maake, and Maeve Allsup

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