• 🤔 Pondering the Thinking Tree Deal with Justin Stiefel
• ✊🏿 BLK & Bold’s Mission Expansion
• 🥥 100 Coconuts Lands Inter Miami CF Partnership

As of yesterday, the gloves are officially off.

The U.S. Federal Trade Commission (FTC) filed a suit to block the proposed $24.6 billion Kroger/Albertsons merger in the U.S. District Court for the District of Oregon, alleging the deal is anticompetitive. 

A bipartisan group of nine attorneys general from Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming have joined the FTC’s federal court complaint. Attorneys general in Washington state and Colorado earlier this year independently filed lawsuits to block the mega merger. 

🔎According to the regulatory agency, the commission investigating the merger’s anti-competitiveness unanimously voted (3-0) in favor of filing a temporary restraining order and preliminary injunction against the deal. 

🛒In the complaint, the FTC argues that Kroger’s acquisition of Albertsons would obliterate “fierce” competition in the grocery industry, resulting in higher prices and lower quality products for consumers. Additionally, the agency claims, the deal would harm the tens of thousands of workers employed by both corporations. 

💭“This supermarket mega merger comes as American consumers have seen the cost of groceries rise steadily over the past few years. Kroger’s acquisition of Albertsons would lead to additional price hikes for everyday goods, further exacerbating the financial strain consumers face,” said Henry Liu, director of the FTC’s Bureau of Competition, in a press release. 

🤔Albertsons is holding firm in its belief the deal will “expand competition, lower prices, increase associate wages, protect union jobs and enhance customers’ shopping experience.” Kroger echoed similar sentiments. Both retailers also reemphasized that rejecting the deal would harm their ability to compete against multi-channel retailers such as Amazon, Walmart and Costco. 

🤝The FTC’s filing also challenges whether the previously announced divestiture plan with C&S Wholesale Grocers has the potential to be successful and allow the newly divested businesses to hold their own against their former parent organization. 

👍Although the general response to the merger from consumers, brands, workers unions and regulators alike has been overwhelmingly negative, some remain hopeful. Last week, one branch of the United Food and Commercial Workers Union (UFCW) Local 555 – which represents 30,000 mostly grocery workers in the Pacific Northwest – endorsed the merger despite the national UFCW rejecting the proposed deal.

⏩What comes next? If nothing else, the FTC’s federal court complaint stretches out any potential timeline for completing the merger.

🧑‍⚖️Both Kroger and Albertsons have expressed their willingness to go to court for the deal. Federal regulators are also expected to put up a fight, which means the merger’s close date could be pushed out even further. 

Learn more about the argument from both sides, the 40-year-old precedent set on competition in the grocery space and what the future holds by reading the full story on Nosh.

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Boulder Food Group (BFG) Partners has launched Fund III today and has already raised about 70% to its goal of $125 million. The investment group which has backed rising CPG food and beverage brands like Olipop, Mid-Day Squares and Caulipower is taking its “patient and methodical” approach to investing and searching for the next better-for-you and/or environmentally progressive brands to fund.

🧴 BFG is not solely focused on consumables but started providing growth capital to personal care brands in its $108 million Fund II with successful exits from hair care company Curlsmith to Helen of Troy and skincare maker ZitSticka to Heyday.

🪑Though it has taken director seats at a number of its brands (Mid-Day Squares, Barnana, MALK Organics), it does not require a board presence to invest. Managing Partner Dayton Miller told Nosh that “informal relationships” with founders can be “just as influential” as board seats.

🧠 The firm has not announced any capital deployments yet but it is continuing to eye the F&B products positioned around gut-health, high protein or mental clarity.

Read the story on BevNET

Last week Heritage Distilling announced it was buying fellow Oregon-based distillery Thinking Tree Spirit, so we checked in with CEO Justin Stiefel on what the deal means for the spirits companies and his outlook in general for the craft spirit industry. 

⛰️ We’ve covered Heritage before, particularly its collaboration with Native American tribes developing Heritage-branded distilleries across the country. But the craft distiller is also one of the larger regional distillers in the Pacific Northwest and is soon to add more distribution across the country. 

🌲 Small and medium-sized craft distillers do the majority of business inside their home states, and Heritage is no exception: 50% of its revenue come from direct-to-consumer sales. By combining Thinking Tree’s tasting room in Eugene, Oregon with its own, that gives them an even larger physical footprint. 

🍺 Breweries nabbing nearby competitors has been part of the recent shape of craft beer, but craft-on-craft spirit acquisitions have been more rare. We didn’t see much of these types of deals last year, but as the craft spirits industry matures is this a sign of what’s to come?

Read the full story on BevNET

From the NBA to Marvel Studios, black-owned coffee and tea brand BLK & Bold has racked up some major partnerships since launching in 2018. But its latest announcement promises an even bigger collaboration between its new non-profit arm, The BLK & Bold Foundation, and underserved youth communities around the country. 

👦🏿 The new foundation will be operated by BLK & Bold co-founder and Chief Values Officer Rod Johnson and a portion of all proceeds from the brand’s coffee and tea sales will go towards the project.

⛑️ Projects run by the foundation will include scholarships, workforce development initiatives, and health and wellness programs targeting Black and Brown communities across the U.S.

☕ The launch arrives as BLK & Bold, which debuted RTDs in 2022, continues to grow its presence in U.S. retail and foodservice, now counting 13,000 doors nationwide in addition to ecommerce. Johnson said the for-profit part of the business will focus on supporting existing partners this year, with new innovations slated for 2025.

Read the full story on BevNET

When Lionel Messi needs to hydrate, might he soon be popping the top of a cold can of 100 Coconuts? As the first Official Coconut Water partner of Inter Miami CF, 100 Coconuts will now be available at all home matches and will be launching a co-branded pink can in conjunction with the deal.

⚽ The multi-year deal includes a launch of the co-branded cans distributed as a fan giveaway at Chase Stadium on the March 30 home match against New York City FC. Thereafter, 100 Coconuts will have activations throughout the stadium with branded carts and concession stands.

☝️ 100 Coconuts has been steadily building its national presence, growing its distribution Publix locations and partnering recently with reggae star Buju Banton on a music video.

➕ The brand has also been steadily building out its sales team with former Biolyte marketing manager Monica Fleury as well as a series of sales team additions.