ReGen Brand News:
Union Grove Farm & Vineyard is located in Chapel Hill, NC
They are also developing a Center for Regenerative Agriculture on-site to “encourage and teach others how to transition from conventional farming to regenerative practices.”
🏃♂️ Quick Hits:
🕺 AC’s Insights
Two headlines with a similar theme caught my eye this week:
Why does Walmart want to carry more organic products?
🤑 Walmart wants to steal more affluent bargain hunters from the likes of Costco and other club retailers (ever wonder why Costco does a great job on certain organic items with their Kirkland Signature label?) - both retailers know that wealthy shoppers have heightened expectations for a small set of key items then make more price-driven decisions in the rest of their “basket.”
🤰 The main target for many of these initiatives is attracting Millenial & Gen-Z mothers who are more health and eco-conscious. Plus, this group will continue to grow their income and spend more money on groceries over time.
🗯️ “The second piece is carrying more organic and natural products from newer brands that appeal to younger shoppers – including the next generation of moms. These two goals tend to overlap.”
This is an opportunity for regen brands if they can find a way to make the economics work and support the massive machine that is Walmart.
Why does Amazon want to sell Whole Foods’ private label products to more of their customer base?
📱 Like Walmart, I think this is also a play to increase assortment for and traffic from the next generation of moms making grocery purchases. I also think Amazon sees better-for-you e-commerce players like Thrive Market, Good Eggs, Imperfect Foods, etc. as a threat to their businesses. The market share of these competitors is small now, but they are still taking foot traffic and revenue from Whole Foods both online and in-person.
🤔 Not to mention, Amazon likes to do anything strategically that meets these criteria: increases assortment, reduces prices, and promotes their own brand. Private-label grocery is a huuuuuge white space for Amazon to grow their business in a GIANT category where most of their Prime members are shopping elsewhere right now.
🔥 Thrive Market does the best job for any sort of “regenerative private label program” based on what I’ve seen. I think this is a smart strategic decision for Thrive, and I believe others will follow suit.
Private label remains an opportunity for regen brands, but it’s probably most advantageous for those with vertically-integrated supply chains. It could be a nice revenue opportunity with a better cash-flow profile if it does not cannibalize their branded business.