Getting sleepy with it

CPG and Retail news from the week of 5/19/25

Nate Rosen

and

Jenna Movsowitz

May 26, 2025

Hello hello!

Express Checkout is partnering on an event tomorrow, May 27th in NYC: The Catalyst Series: Brand Breakouts & Buyouts, an evening for consumer brand leaders, operators, and investors who are actively shaping what's next in CPG!

🔗 RSVP → https://lu.ma/uu5e4df1
Let’s get into the news →

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News From the Week

AG1 (formerly Athletic Greens) just did something for the first time in 15 years: launched a new product. The company that built an over $1B valuation on a single SKU of green powder is entering the sleep supplement space with AGZ.

The TL;DR on AGZ: Made with adaptogens like ashwagandha and L-theanine, as well as different forms of magnesium (a very trendy supplement right now), AGZ is sold in single-serve stick packets in three flavors: chocolate, chocolate mint, and an unrevealed third 👀

So why now? Sleep aid products have seen significant growth and are expected to grow more, fueled by a cultural obsession with “biohacking” better rest (thanks, Bryan Johnson).

The sleep aisle is seeing tons of new-school challengers like Nokt, Som Sleep, Beam, Taste Salud, and Cuddle Sleep.

And while AG1 is there market leader in greens powder, their success has bred countless competitors:

Bloom Nutrition conquered TikTok with flavored options and influencer collabs
Gruns proved people prefer gummies to powder…having recently raised $35 million at a $500 million valuation 🤯 (I am actually a monthly subscriber - Nate)
Sakara Life went more luxury with it
Huel targeted the meal-replacement crowd
Groove is going in on lower cost + immunity and digestion support

For 15 YEARS, AG1 has been the ultimate one-trick pony. While competitors proliferated product lines, AG1 refined the same foundational greens powder, tweaking the formula here, updating the branding there, but essentially selling the exact same thing since Obama's first term.

The 2021 rebrand from Athletic Greens to AG1, executed by the agency Creech, helped it leap from niche to mainstream, with hundreds of thousands of subscribers and a $1.2 billion valuation after raising $115 million in 2022.

So, can AG1 win sleep? It’s certainly got a shot. This is a well-timed, natural extension, supported by a category full of consumers looking for the next big thing to up their Sleep Score (shoutout Oura) and over a decade of brand credibility.

The single-SKU era of AG1 is officially over. Sleep is just the beginning.

CPG & Consumer Goods

Protein isn't just for startups. Pasta Rummo—the 177-year-old family-owned company that’s seen 555% growth in the US over the past six years—is becoming the first premium brand to enter the high-protein category. Its new pasta contains just two ingredients and provides 21 grams of protein per serving.
The unofficial collab cracker. Firehook is launching limited-edition Parmesan truffle crackers in partnership with Truff.
- This launch follows Firehook's recent rebrand and collaborations with Fly By Jing and Graza—it’s clear that they’re trying to cozy up with the cool kids.
Remember when kombucha alone was considered a gut health legend? Now, June Shine and BelliWelli partnered to create a non-alcoholic beverage that combines kombucha with added dietary fiber—the ultimate gut-health bev.

eCommerce

Everyone gets a 3rd-party marketplace! Lowe's joins a growing wave of major retailers expanding third-party marketplaces (AKA sites that allow brands to have their own stores, like Amazon or eBay). Mirakl is emerging as the platform of choice.
- Several major retailers have recently made similar moves like Best Buy and Ulta Beauty (who are both using Mirakl). Other major players like Walmart, Target, and Sephora have also expanded their marketplace presence!
- But why now? This trend reflects retailers' evolving strategy to:
  - Expand product assortment without holding inventory
  - Better compete with Amazon's vast selection
  - Create new revenue streams through marketplace fees

Retail

All roads lead to retail. FreshDirect opened its first retail location in Southampton, New York, after 25 years of online service. The new store, designed to resemble a farmers market, offers local produce, specialty foods, and a dedicated coffee counter.
- There’s something that feels kinda dystopian about an online grocer mimicking a farmers market…

Funding news

It’s not just CPG brands that rebrand. Emil Capital Partners has rebranded to ECP Growth and closed its $100 million Fund IV. The firm has invested in brands such as Aloha, A Dozen Cousins (recently acquired!), Bare Snacks, Renewal Mill, TCHO, Thesis, and more!
Sweets are on a tear right now! Final Boss Sour, a gaming-themed snack brand, raised $4 million in Seed 2 funding backed by GFR Fund, Uncommon Denominator, and new investors including Melitas Ventures and Air Ventures.