So Poppi is worth more than Versace... 🥤

CPG and Retail news from the week of 4/7/25

Nate Rosen

and

Jenna Movsowitz

Apr 14, 2025

Hello hello!

This is about to be a chaotic two weeks. I’m moving tomorrow—which is never fun in the Big Apple—but is thrilled for a fresh start. I’ll also be heading to GROW LA and Commerce Roundtable in Miami next week. If you’re going to either, hit me up and let’s grab a coffee!

And in other news, we’re switching things up over here now that we’re cozying up in Substack. Next week, expect a second edition of Express Checkout featuring all the fun products that Jenna and I have been trying lately 👀 (Want to be featured? Shoot us a note!)

As I move, I handed it over to Jenna to take over this week’s Express Checkout!

- Nate

News From the Week

It’s 2025—and Katy Perry is going to space, ChatGPT knows you better than your significant other, and a prebiotic soda brand’s Target merch communicates the same value as Versace’s iconic baroque silk.

Why? Because last week, Prada announced it's buying fellow Italian fashion house Versace from U.S.-based Capri Holdings for €1.25 billion ($1.4 billion)—somehow less than the $1.95 billion PepsiCo paid for prebiotic soda brand Poppi just weeks ago.

Let's break this down: A 47-year-old luxury fashion house and a 7-year-old better-for-you soda brand command essentially the same market value. How could we ever explain this to our grandmas? Well…

Despite Versace ranking among the world's top 10 most recognizable brands, it's had a tough past few years. It’s faced periods of financial challenges and changes in ownership, starting with its acquisition by Capri Holdings (then Michael Kors) in 2018 for $2.15B. Prada’s acquisition at $1.4B is actually a major discount… 😳
Meanwhile, PepsiCo is betting on the future—because Poppi is dominating. It demonstrated a mind-boggling 122% YoY sales growth (through Feb 2025) and a leading position in the functional beverage space that's projected to hit $2B by 2029.

In short? Buying Versace is a play in perceived value, while buying Poppi is a play in projected value. Versace might be flexing its luxury heritage and brand clout in the high-end world, but Poppi is scaling fast in the right category at the right time—a shortcut to building massive value in a shockingly short time.

The message is clear: being accessible, high-volume, and aligned with mass-market consumer trends can be just as or even more valuable than exclusivity and heritage (or even the newest tech—Nate’s got thoughts on that here).

It’s time to stop underestimating CPG…especially in this economy. Because in 2025, that designer bag is looking pretty worthless next to one of these guys:

Erewhon Tote Bag Shopper Bag Canvas Navy

We want to know: What do you think about soda empires vs. luxury legends?

CPG & Consumer Goods

Leaning into its Millennial status. Starbucks is expanding its ready-to-drink beverage lineup with the introduction of Starbucks Iced Energy and, in true millennial fashion, Starbucks Frappuccino Lite—a (very belated) better-for-you remake of the iconic Starbucks bottled Frappuccino.
- The Iced Energy drink looks a whole lot like the others on the market, featuring 160mg of caffeine, 5 calories, and zero sugar in non-naturally-occurring flavors like Tropical Peach, Blueberry Lemonade, and Watermelon Twist.
- And after launching the OG bottled Frappuccino in 1994 (yes, you read that right), Starbucks is now going all-in on a much overdue BFY upgrade. Lite boasts 100 calories per serving (50% fewer than the OG) and zero added sugar.
  - To add to the millennial core, it’s launching in gelato-themed flavors (which are essentially the same exact flavors with the word “gelato” added to the end for that je ne sais quoi). 🤌

Thought crispy was kinda their thing? Tate’s Bake Shop (owned by Mondelez) is launching Soft Baked cookies—a large pivot away from its famed thin + crispy association—available in chocolate chip and dark chocolate chunk varieties.
A tequila family is on the rocks. 21 Seeds, a flavored tequila brand, filed a lawsuit against its parent company Diageo, alleging that Diageo misled them about plans to develop a competing product, Casamigas Jalapeño Tequila.
- The complaint claims that Diageo's acquisition of 21 Seeds was fraudulent—and that the competitor seriously harmed 21 Seeds' ability to meet sales goals.
A literal behemoth in personal care. Harry’s Inc. rebranded as “Mammoth Brands,” reflecting its growth as a leading CPG company owning household personal care brands like Harry’s, Flamingo, Lume, and Mando.
- The company also plans to establish an impact fund, Mammoth Good, to support mental and physical well-being initiatives.

eCommerce

Even grandma’s ecomm is going AI. Etsy is introducing a new AI-powered discovery experience, offering curated collections based on trends and aesthetics. The platform claims that this "algotorial" curation (what in the AI-speak?!) combines human expertise with AI to expand collections while ensuring quality.
SNAPping back to tariffs. As tariffs drive up the prices of Asian goods, online Asian grocer Weee! launched a new payment option that allows customers to use Supplemental Nutrition Assistance Program (SNAP) benefits, partnering with EBT payments processor Forage.
- This initiative comes amid proposed budget cuts to SNAP and Medicaid benefits.
A cart full of shampoo, seasonal candles, and…raw meat? Target partnered with ButcherBox to offer themed meat and seafood packages on its digital marketplace, Target Plus, with prices ranging from $99 to $189.
- And it benefits both parties: This collaboration supports Target's strategy to enhance its food offerings, which generated $24 billion in sales last year, while ButcherBox aims to expand its consumer reach through strong eComm partnerships.

Retail

The new Brandy Melville? Princess Polly, an Australian fashion brand that stole the hearts of Gen Zers online, just opened its flagship store in SoHo—with seven more US stores on their way in 2025. The store is designed with “Instagrammable spaces” to engage Gen Z customers (lol).
Regenerative enters its fashion era. Under Armour launched its first cobranded sportswear collection with Unless, a plant-based, plastic-free fashion brand, during Milan Design Week. Prices for the collection range from $30 to $160 and will debut exclusively at the Under Armour Brand House in Baltimore at the end of April.
Big Box on the up-and-up. Sam’s Club plans to open 15 new locations annually and remodel all existing stores to double its membership, sales, and profits over the next eight to ten years.

Supply Chain

It’s not just imports that are getting pricey… because ground delivery costs are projected to increase by 2.6% year over year in Q2, despite discounting efforts by UPS and FedEx. The average discount on ground parcel delivery rates rose by 1.9% from Q4 2024 to Q1 2025, but ongoing rate hikes and surcharges are putting pressure on shipping costs. Shippers are expected to negotiate lower rates as they react to recent increases.
- …and ecomm may be partly to blame: FedEx and UPS are losing parcel market share to big retailers like Amazon and Walmart, as well as smaller couriers, due to the rise in ecomm demand for last-mile delivery. While overall parcel volumes are increasing, most growth will be handled by private networks, resulting in flat or negative growth for traditional carriers.
Amazon Freight for everyone. Amazon launched a new inbound-only less-than-truckload (LTL) service through its Amazon Freight platform, aimed at vendors with smaller shipments who do not require a full trailer.

Funding news

The down round 2021 never saw coming. Glossier, the millennial beauty darling once valued at nearly $2 billion, is seeking to raise $100 million at a valuation below $1 billion…oof. After experiencing layoffs and shifts in leadership, the brand aims to attract new investors to navigate its current challenges while ensuring profitability.
A W for CPG tech: Crisp acquired Atheon Analytics and ClearBox Analytics to enhance its retail data platform and optimize supply chains in the retail and food service sectors. These acquisitions aim to improve data visibility and collaboration for CPG brands, ultimately reducing waste and enhancing operational performance.
And another L for high-end fashion. Lyst, a high-end fashion marketplace once valued at $700 million, was acquired by Japan's Zozo for $154 million. The acquisition comes as Lyst faces challenges from U.S. tariffs, increased competition from major ecomm players, and a shift in investor focus towards artificial intelligence.