• 🧑‍⚖️ Kroger/Albertsons Updates
• 🚚 Distribution Roundup
• 🤑 One Rock Invests in Lewis Brothers
• 📰 What We’re Reading

The rumor mill is swirling again, and this time it's revolving around low-carb bread maker BetterBrand. The company behind Better Bagel, Better Bun and Better Hawaiian Roll has taken in about $10 million since it launched in early 2021; most recently it announced a $6 million raise on the back of a $170 million pre-money valuation.

Founder Aimee Yang was touted by Forbes as one of only about 150 female founders to have ever raised a Series A over $5 million.

Now, the business is taking fire online as its website appears to have been disabled and customers have taken to social platforms to express complaints over unfulfilled orders and a lack of communication.

As recently as Sept. 29, the company’s website was working, but now a Shopify alert comes up on the homepage saying “the store has been disabled.” Yet, despite this wrinkle, BetterBrand’s Instagram page has continued to post marketing videos as recently as this weekend.

Replies on many of the company’s most recent posts as well as a slew on Reddit tell a story of frustrated customers.

“Thanks for stealing my money, never shipping my order and shutting down your website but continuing to post like nothing happened… a little accountability would be nice,” wrote one person in the comment section of a post this past week. 

Along with the enticing promise of a low-carb bagel, the company’s profile rose with the addition of its high-profile investors.

BetterBrand has taken investment from restaurant entrepreneur Sean Thomas, actress Emmy Rossum, Venture for America’s CEO Dorie Smith, Alexis Ohanian’s VC firm Seven Seven Six, Cruise founder Kyle Vogt, actor Patrick Schwarzenegger and Soma Capital. Late last year, the company also announced investment from electronic music DJ Zedd, who collaborated on a LTO Jalapeño Cheddar bagel.

The brand originally launched direct-to-consumer and quickly moved into retail in the U.S., announcing it was in over 2,000 doors late last year. Yang moved from Los Angeles to London last October as she oversaw the company’s expansion into the U.K. market, where it was locked into a deal with Whole Foods (its products are currently unavailable on the grocer’s online store). The products are still available to order via Thrive Market in the U.S., but are out-of-stock at Target.

This isn’t the first time consumers have complained over BetterBrand’s lack of transparency. The company also experienced pushback in its early days when it struggled with shipping issues that impacted the freshness of its products.

Yang and the company did not respond to requests for comment on this story.

Catch Up: Better Brand Works to Make Its Growth Goals a Reality

Yet another trial is weighing the impact of the Kroger/Albertsons deal, this time in Denver, and it is bringing a bigger focus on the potential impact on prices.

• A pricing director for Kroger testified last week that the company raised prices at eight stores in Colorado to offset higher labor and operational costs. 
• Colorado, in its bid to block the grocer’s mega-merger with Albertsons, claimed Kroger raised prices at those stores because they face little or no competition from other supermarkets and argued the company will do the same thing following its proposed combination, Law360 reported. 

🛒 Also last week in Denver, C&S Wholesale Grocers CEO Eric Winn said the company is committed to operating the 579 stores it would receive in a divestment deal if the merger is approved. Colorado contends C&S would eventually sell off or close the stores.

☁️ Meanwhile, Albertsons COO Susan Morris appeared before a Washington state court stating Albertsons and C&S have had a productive and successful relationship, despite expressing in an email that “they have never been good partners.” She is set to join C&S as head of retail operations following the merger.

Catch Up Quick: Kroger/Albertsons: Parties Agree In Colo. To Put Mega-Merger on Hold

Snack brands are on the move this month. Here are some of the latest food industry distribution updates to start the week.

🏋️ Better-for-you cracker and pretzel maker FitJoy Foods is launching in Whole Foods Market this month, with several of its flavored pretzel Twists ($4.49 each) and cheese-flavored crackers ($5.99 each) hitting shelves at stores throughout the month.

🍓 Produce company Oishii is launching its “always-in-season” strawberries in Chicago with 25 Whole Foods stores in the city and its suburbs. The company’s Koyo strawberries will be sold for $9.99 per tray.

🌻 SMACKIN’ is stocking its sunflower seeds in Walmart stores in the U.S. and Canada, the startup brand announced last week, as co-founder Brian Waddick called the launch “a true testament to the hard work and dedication of our team in creating a brand that resonates with so many.”

🥩 Grass-fed, pasture-raised beef producer Verde Farms announced it will expand its partnership with Target, bringing its Ribeye, Strip, and Sirloin cuts to 220 Super Target stores nationwide. The Midwest division will also add Filet Mignon to its stores. 

🍨 Whipped cream brand Whipnotic is sending its flavor-infused creams to the Midwest where its Vanilla Salted Caramel, Strawberry Swirl and Brownie Batter SKUs will roll out to all 70 Fresh Thyme stores spanning 10 states. 

An affiliate of One Rock Capital Partners has completed a strategic investment in Lewis Brothers Bakeries, a nearly century-old bread and baked goods manufacturer. Financial terms were not disclosed.

🍞 Based in Evansville, Ind., family-owned Lewis Bakeries produces such brands as Lewis Bake Shop, Bunny Bread, Butternut and Healthy Life and employs 2,000 people at its five bakeries in Indiana and Tennessee.

💬 President H. Dean Short will continue in his role leading the business following the investment from One Rock, noting in a statement: “The Lewis family remains invested in the company, and we look forward to working with One Rock to ensure the business will thrive for generations to come."

🐖 The Wall Street Journal examines a decades-long family feud at Boar’s Head that has surfaced amid a deadly listeria outbreak linked to one of its deli meat processing plants. Quarrels dating back to the early 1970s – and a series of lawsuits since 2005 – relate to the size of ownership stakes in the business.

💉 Bloomberg details how big food companies have responded to the rise of Ozempic and similar weight management drugs. Executives are breathing a sigh of relief after initially viewing GLP-1s as a major threat nearly a year ago, while some manufacturers are cashing in on the trend.

💰 The Guardian shares a cautionary tale for sustainability-minded entrepreneurs in the rise and fall of specialty mushroom startup Smallhold, which this year filed for bankruptcy shortly after its founders stepped down.