The Goods (U.S. Edition) – Spaghett About It
Welcome back to The Goods! This week we’re discussing a packaging snafu that (may have) caused a buzz, the hottest economical drink of the summer, and a decade of cage-free egg growth.
These boots are made for walkin’…to Chili’s. Western boot brand Tecovas has teamed up with Chili’s to launch limited-edition Booth Boots, which are made from Chili’s red booth material and finished with chili pepper stitching. A nod to the two brands’ Texas roots, the boots retail for $345, and if you want to finish the look you can pair them with a matching Booth Belt for $75.
What’s In: This Week’s Trends
- A Total Shell Out: We previously covered the viral rise of Dubai chocolate, a pistachio and Kataifi dough confection that took TikTok by storm. Now, the flavor is going mainstream. Cookie-maker Crumbl is rolling out a Dubai Chocolate Brownie in the coming months, while Shake Shack’s limited-run Dubai Chocolate Pistachio Shake sold out within hours of release. But it isn’t all sweet dreams for companies, as the craze has also brought supply chain and financial nightmares. Kataifi dough can be hard to procure, and prices for both cocoa and pistachios are rising worldwide. Does this nutty flavor have the staying power of pumpkin spice? Only time (and sweet tooths) will tell.
- Hen-fold Increase: Despite their higher cost, cage-free eggs now account for 46% of the country’s egg-laying hens – a major leap from less than 10% in 2012. This momentum took off in 2015, when food and restaurant brands like General Mills, Nestlé, Starbucks, and McDonald’s agreed to transition to 100% cage-free eggs within the decade. While the Trump administration has raised concerns that rogue “cage-free” labels are allowing producers to charge their dozens at a premium, industry experts believe that price hikes are the result of bird flu. Nonetheless, consumers are still flocking to the shelves, as retail sales for eggs labeled “cage-free” rose 16% just this past year. .
- Buff or Blitzed? High Noon opened up a can of trouble this week when a supplier error led to its spiked seltzer ending up in Celsius packaging, potentially resulting in consumers inadvertently drinking alcohol instead of an energy drink. According to the issued recall, cases of High Noon’s Beach Variety shipped between July 21 to 23 contained cans of its vodka-based seltzer labeled as Celsius’ Astro Vibe Sparkling Blue Razz flavored beverages. Curious minds want to know if any gymgoers expecting a pre-workout boost ended up with a pre-game buzz.
Cash or Card: Consumer Behavior
What’s going on with the consumer these days? This week, we explore the subscription economy, the hottest economical drink of the summer and tariff-ically early back-to-school shopping.
- I Have a Sneaking Subscription… The subscription industry has grown 400% over the past decade and is expected to reach $1.5 trillion this year. For subscription services, one of the biggest methods of customer acquisition is offering free trials, and experts have found that adding some level of friction to the subscription cancellation process raised revenues for companies by 14% to 200%. However, consumers have some tricks of their own. Many avoid subscription fees by creating new emails, opening temporary cards, setting charge limits, or strategically switching services. In an online survey conducted by The Harris Poll, 36% of Americans reported canceling and resubscribing to a service within the same year, while 57% only subscribed to a service for specific media then canceled after watching.
- Spaghett About It: The rise of the Spaghett – a budget-friendly cocktail made from Miller High Life and a splash of Aperol – could be the summer’s cultural symbol of economic stress. Dubbed the “recession Aperol spritz,” the Spaghett’s rise in popularity reflects consumers’ desire for a fun drink without the price tag of a traditional spritz. Its simplicity, affordability, and lower alcohol content have made it a favorite among bartenders and younger drinkers alike. Data from the payments platform Square shows that orders for Spaghetts in the first half of 2025 are up by 65% from last year, and 1000% since 2022.
- School’s Back In Recession: Tariff uncertainty is pushing consumers to begin back-to-school (BTS) shopping earlier than ever…and buy less. According to a survey from the National Retail Federation, about two out of three Americans with school-aged kids are shopping for school essentials in July, and BTS spending is expected to decrease by 2% this year. The survey also found that 50% of these back-to-school consumers are starting early in fear of tariffs driving up prices on imported goods like backpacks. With shoppers spending less, retailers are competing for every dollar, and some stores are promising to hold prices on popular school supplies or offer them at lower prices than last year.
Making Moves: Industry Transformations & Innovation
ICYMI, even industry icons need to reinvigorate their brand presence through unique and creative ways. Here are some new brand moves that you should know about:
- Doing Some Shelf Reflection:S. grocery stores are rapidly adopting electronic shelf labels that allow product prices to change dozens of time throughout the day. Walmart plans to expand digital labels to at least 50% of their stores, eliminating the need for manual replacement. Other retailers like Kroger and Whole Foods are also implementing digital labels to save on labor and paper waste. While consumers and lawmakers worry this trend will drive surge pricing in high-demand moments, industry experts suggest that dynamic pricing is mostly being used to lower prices – particularly to match competitors.
- Meet Your Match: After over a decade, Target has ended its retail price-matching policy that allowed customers to request a lower price if they found an identical item sold for less at Amazon or Walmart. Starting July 28, Target will only honor lower prices if they differ between its own stores and online. As retailers continue to navigate evolving consumer spending patterns, experts suggest that Target must closely monitor competitors to ensure its pricing is right. The company said it has found that shoppers “overwhelmingly price match Target and not other retailers.”
- Better Choco-late Than Never: Hershey and Mondelēz are partnering up for to release two new combinations of fan-favorite snacks: the Reese’s Oreo Cup and the Oreo Reese’s Cookie. After collaborating on a similar cookie in 2014, Hershey and Mondelēz took inspiration from consumers’ social media posts on other potential – and permanent – product crossovers. Although Hershey is looking to add “better-for-you” products to its portfolio, it is also embracing balanced indulgence and believes the new Reese’s Oreo Cup will allure Gen Z consumers who desire foods that blend exciting flavors and textures.
Capital Markets Corner
What consumer news is moving the market this week? Our investor relations experts break down this week’s trends and headlines.
- Haute Mess: It is being reported that LVMH – owner of iconic brands like Louis Vuitton, Fendi, and Dior – is in talks to sell Marc Jacobs for roughly $1 billion. The deal rumors come as the luxury sector is hitting a rough patch. LVMH’s fashion and leather goods sales were down 9% in Q2, and overall sector growth is expected to be flat for 2025. Even though there wasn’t a recession, 2024 was the sector’s worst performance since the 2008 global financial crisis. While billionaire LVMH’s CEO Bernard Arnault insists it’s just a blip, investors are starting to worry this slowdown may be structural. Gen Z spending dropped $5.7 billion last year, and online engagement with luxury brands has plummeted to just 40% of 2022 levels.
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