The Goods (U.S. Edition) – The Fast and the Flavorful
Welcome back to The Goods! This week we’re discussing booze-free brews, the snacking slowdown, and SoulCycle’s focus on retail.
Craving some chicken tikka masala ice cream or Dr. Pepper Tic Tacs? Well too bad, because these were the just latest April Fools’ Day clickbait creations from our favorite brands. While consumers will not get to book a vacation at the “Nutella BnB” or taste “Crunch Lite,” Crunch’s quietest candy bar, corporate April Fools pranks focus on strengthening customer relationships by incorporating humor into marketing campaigns.
What’s In: This Week’s Trends
- Tapped and Trending: Alongside liquor companies, the beer industry’s expansion is bubbling into the nonalcoholic beverage market, with booze-free brews projected to reach $5.5 billion by 2034. The exclusively non-alcoholic brand, Athletic Brewing, was initially valued at $800 million last year and in its most recent funding round raised $50 million from investors. Big-name brewers are also investing in energy drinks and cocktail mixers to broaden their consumer base while taking advantage of brand loyalty.
- Buy Bye America: Major American brands are facing order reductions and distribution delays as the “Buy Canadian” movement encourages Canadian shoppers and retailers to reject U.S. products. This response to tariffs and heightened political tension signals a consumer-driven shift in cross-border trade dynamics. As a result, Irving Personal Care, one of the only manufacturers of baby diapers and training pants in Canada, has seen weekly shipments “quadruple.”
- Money Talks Loudest: Consumer boycotts have emerged as a major trend, driven by dissatisfaction with corporate rollbacks on DEI initiatives, impacting Fortune 500 companies like Amazon and Tesla. These boycotts, which some are calling “The Great Rejection,” highlight a shift in spending habits as consumers redirect purchases to small businesses. In addition to this shift, consumer confidence dropped seven points last month to its lowest level since 2021, according to The Conference Board, a nonpartisan think tank.
Cash or Card: Consumer Behavior
What’s going on with the consumer these days? This week we talk about the downturn of convenience store spending and consumer confidence.
- Snack That (Slowly) Smiles Back: Packaged food companies are seeing a snacking slowdown, with Frito Lay citing an annual drop in sales and Campbell’s cutting annual guidance given decreased confidence in its snack business. With consumer demand skyrocketing for protein-packed options like Greek yogurt and meat sticks, analysts attribute the snacking decline to health shifts prompted by the Make America Healthy Again (MAHA) movement and GLP-1 usage. Interestingly, in 2023, for the first time in more than a decade, the country’s obesity rate declined from 44.1% to 43.96%, according to a study published in the JAMA Health Forum.
- Driven to Buy: President Trump’s looming 25% tariffs on foreign vehicles and auto parts are steering American consumers straight to the dealerships. Prices may rise over $10,000 depending on a vehicle’s model, and even used-car prices may be impacted, driving many consumers to purchase a vehicle now in fear of higher prices. Some dealerships are increasing their inventory of car brands that are not impacted by the tariffs and are encouraging consumers to peruse showrooms imminently, but not all have seen surging consumer traffic.
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:
- Strike a (Digital) Pose: H&M is the latest fashion giant to experiment with AI-generated images, rolling out a “digital twin” campaign featuring virtual replicas of real models. The lifelike nature of these avatars – some virtually indistinguishable from their human counterparts – has drawn attention and concern. H&M asserts that it’s taking a “human-centric approach,” but the move has sparked debate around consent and compensation. Some states and European countries have proposed legislation ensuring models maintain control over their digital likeness and receive fair compensation.
- Glam in the Gears: SoulCycle is pedaling into fashion, aiming for retail to make up 15 – 20% of its business, with possible standalone stores. The company’s new retail chief, formerly at LVMH, is steering the brand away from logo-stamped leggings and into exclusive collabs and beauty products. While 10% of SoulCycle riders already purchase its products, less than 5% of apparel sales are to people who buy from the company but don’t take its classes. SoulCycle says it won’t be opening larger retail locations this year, but does plan to expand some existing studios where retail is doing well.
- The Fast and the Flavorful: Uber and OpenTable announced the launch of a new global partnership that aims to blend dining reservations with seamless ride access. The collaboration is kicking off with users being able to book a table and a ride simultaneously, enhancing Uber One’s appeal, now with 30 million members worldwide. By integrating across apps and tapping into OpenTable’s network of over 60,000 restaurants, the companies aim to deepen customer engagement and drive new revenue opportunities within the hospitality industry.
Capital Markets Corner
ICYMI, even industry icons need to reinvigorate their brand presence through unique and creative ways. Our investor relations experts break down this week’s trends and headlines.
- Honey, I Shrunk the Deals: The long-awaited M&A boom has finally materialized—just not in the way Wall Street expected. Following Trump’s win in November, many hoped that falling inflation and a less stringent regulatory environment could generate a surge of M&A activity. While deals valued above $10 billion were down 1% by value through Q1, relatively smaller deals, ranging from $1 billion to $10 billion, were up 42% year-over-year.
- New Boss, Same Sauce: Between Yum Brands’ CEO announcing retirement and Macy’s implementing broad leadership changes, the Consumer and Retail sector has been riddled with executive shakeups recently. On Monday, David Gibbs said that he plans to step down from his role as Yum Brands CEO in Q1 2026 after leading the Company through the pandemic and the bumpy years that followed. On Tuesday, Macy’s advanced its “Bold New Chapter” Strategy with a slew of new executive appointments, which included changes to the Chief Operating Officer and Chief Financial Officer roles. News of these leadership changes comes as CEO turnover reached a new high in January, according to research cited by Fortune.
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