Breadcrumbs Volume 3.

An acquisition, a bankruptcy, and the world is finally catching on!

Andddd we’re back! Maybe you missed me? Anyway, shoutout to anyone who is able to create when they are feeling down. Breadcrumbs is a series of weekly newsletters, but last week I had a bad week, and just didn’t have it in me to write. I took a week to pout, and now I’m back.

One thing though that did come out of last week was that it inspired me to share more about tough times, and I plan on doing that. Not in breadcrumbs, but there will be a more personal series coming soon.

Okay, so what did you miss?! Well, kind of a lot!! Let’s get into it!!

Chobani Acquires Daily Harvest

On Friday, dairy giant Chobani announced it’s acquisition of plant-based Daily Harvest. I love this deal. Here’s why:

1. A complimentary relationship that will be oh, so complimentary.
   Chobani is a food and beverage company famous for their greek and better-for-yogurt. Back in 2021 it was reported they were seeking a 10B valuation and owned about 20% of the total yogurt market! What better way to get into the dairy-free market than acquire one of the best and well known plant-based companies, Daily Harvest. This move will bolster their position as the biggest dairy and dairy alternative player in the space. And for Daily Harvest? Distribution, reputation, and scale.

2. Chobani is proof that you don’t have to sell or IPO.

Chobani filed for an IPO in 2021, but ultimately withdrew and is still privately held. They are proof that you don’t have to sell your business to achieve greatness. Category disrupters have the ability to become category leaders, and I love that Chobani is making this known. Chobani acquired La Colombe for $900 million in 2023, and now with dairy, coffee, and plant-based under their belts, I wonder which complimentary category they’ll target next.

3. At one time, Daily Harvest was a ~1 Billion dollar company, and then lentil-gate happened.

The now recalled product resulted in way too many sick customers, and legal action ensued. Although the damage was from a now-removed product, the reputation of Daily Harvest never fully recovered. Having Chobani’s seal of approval will drastically approve their reputation, and I bet Chobani acquired Daily Harvest well below their once ~1Billion valuation. A price win for Chobani, and a reputation win for Daily Harvest.

Weight Watchers files for Bankruptcy

I never thought I’d see the day! That was until Ozempic and GLP-1s came into play. Weight Watchers, now WW international, was once the leader in the weight-loss movement with their famous point system for foods and drinks. Then in 2023, GLP-1 weight loss drugs like Ozempic stormed the market and became the preferred, quicker, way of losing weight.

I was skeptical if GLP-1s would be a trend or here to stay, but two years later the answer was made clear. The GLP-1 movement is massive, and although Chapter 11 was the chosen way to restructure the company, I’m negative on it having the comeback they seek to have.

*Note, they are not going out of business. They are using the bankruptcy to wipe out their debt and will become a publicly traded company for public funding.

In-N-Out is Removing Artificial Food Dyes from the Menu

I’ve said it for over a year now, the next big movement in food will be removing food dyes and artificial colorings and flavorings from our food system. Last week California’s beloved hamburger chain, In-N-Out, announced they will be removing synthetic food dyes such as Yellow 5 and Red 40, as well as artificial flavors, from all of their foods. And they’re not stopping there.

"We're also in the process of transitioning to ketchup made with real sugar instead of high fructose corn syrup and researching an even better-quality oil for our fries," In-N-Out Owner and President Lynsi Snyder said.

Artificial sugar will be replaced with natural sugar, artificial colorings replaced with vegetable juice, they will be removing cottonseed oil, and offering non-dairy creamers.

These changes may seem small, but they are massive. I predict many more chains and restaurant groups will follow this lead. Thank you, In-N-Out, for leading the charge.

As always, I love hearing from all of you! Which companies are on your mind? Any trends you want to know more about? Who do you think is the next big exit? Let’s keep the conversation going together!