• 🔐 Keychain Aims To Solve Malfunctions in CPG Manufacturing
• ⛔ Instacart Eliminates COO Role and Lays Off 250 Workers
• 🧇 Yishi Looks to Grow With New Format
• 🔄 Leadership Change At Outfox Hospitality

The FTC sent some pre-Valentine’s Day love to Campbell’s and Sovos Brands (the maker of Rao’s, Michael Angelo’s and Noosa). 

Yesterday, the soup company announced it received a certification of substantial compliance from the U.S. Federal Trade Commission (FTC) for its proposed $2.7 billion acquisition of Sovos Brands. That approval triggers the start of a 30-day waiting period, meaning the deal is now expected to close “within days” of March 11, the end of that window.

⏪ Campbell’s originally anticipated that the deal would close by the end of 2023 following its announcement in August. That timeline was delayed by October when the FTC requested additional information for its review process. 

💭 “We’re excited to be one step closer to completing the acquisition…The Sovos Brands portfolio strengthens our Meals & Beverages division and paired with our fast-growing snacks division, will create one of the best portfolios in the industry,” said Mark Clouse, Campbell’s president and CEO, in a statement. 

🤔 The news comes at a time when the FTC, under the direction of chairwoman Lina Khan, has adopted a hardline stance toward M&A and begun taking a microscopic look to assess potential monopolistic outcomes. Under Khan’s direction, the agency has broadened merger guidelines to evaluate not only whether consumers will face higher prices, but also whether it hinders entrepreneurial endeavors and whether workers will receive adequate wages and benefits. 

🛒 This attitude has fueled plenty of speculation around the FTC’s inquiry into the proposed $24.6 billion mega-merger between Kroger and Albertsons. The deal’s deadline has already been pushed out and despite a $1.9 billion store divestiture plan to appease antitrust regulators – the grocery merger’s fate remains uncertain. 

Khan has stated her priority is to ensure that antitrust policies are pursued “in a way that’s benefiting everybody.” That same sentiment has been shared in the numerous lawsuits filed against the grocery chains by state AGs, lawmakers, labor unions and even consumers. They’ve aimed to block various aspects of the deal, including a special dividend payment to shareholders, and most recently, the merger itself.

While Campbell’s recent regulatory win is a small feat compared to the pushback that Kroger/Albertsons faces, both will no doubt have lasting impacts on the future of M&A in the grocery space. 

It’s Valentine’s Day so let's talk about finding a compatible partner…CPG manufacturing partner that is. New tech company Keychain is hoping to bridge the gap between brands, retailers and potential co-manufacturing partners with its new AI-powered platform.

💰 Keychain was founded by former executives of home service website Angie’s List, Oisin Hanrahan and Umang Dua, alongside former Monogram Capital investor Jordan Weitz. The company raised a $18 million seed round in November, led by Lightspeed Venture Partners. 

🏭 The database not only lists possible food and beverage producers but also aims to serve as a middleman between those in need of a co-manufacturing partner and brand manufacturers who have the right capabilities and unused line time.

🧐 Keychain is just one of a handful of companies trying to bring transparency to the manufacturer and brand ecosystem. PartnerSlate, another AI-fueled tech platform, raised $4 million last year as it also tries to solve for co-man inefficiencies.

Read the full story for more details about how Keychain works on Nosh.

Nearly six months in as a public company, Instacart is making some big moves. The grocery delivery tech platform announced yesterday that it is laying off 7% of its global workforce – about 250 employees – and “flattening” the organization to focus on higher-margin opportunities. 

🧑‍💻 The announcement also included the departure of three c-suite executives – chief technology officer Varouj Chitilian, chief operating officer Asha Sharma and chief architect JJ Zhuang. Only the CTO role will be backfilled.

📈 The company now aims to focus on high growth areas like advertising and enterprise products. In its Q4 results, Instacart saw advertising revenue increase 18% y/y to $871 million.

💭 “While other players work on problems we solved 5 years ago, we are busy inventing the technologies that will transform the grocery industry over the next 5 years,” said CEO Fidji Simo in a letter to shareholders. 

Yishi is hoping to capture a larger piece of the $202 billion global breakfast food market while advancing its mission to bring Asian flavors to mainstream audiences with the launch of its new line of pancake and waffle mixes.

🥞 Available in the brand’s three most popular oatmeal flavors – Ube Mochi, Matcha Coconut and Classic Coconut – the plant-based, gluten-free mixes are made with gluten-free oat flour and can be purchased online for $7 per 6 serving pouch; the mixes are set to hit retail shelves in April. 

🆕 Last year Yishi expanded beyond oatmeal for the first time with the launch of Oat Spreads in four flavors. 

💭 According to co-founder and CEO Lin Jiang, “having a new product will help expose [the brand] to a new audience” while also offering a wider range of product options to existing customers. 

Check out the full story on Nosh. 

The chicken doesn’t often beat the fox, but this time it did. Outfox Hospitality’s former CEO Liz Williams is heading to fast-casual Mexican food chain El Pollo Loco as its new chief executive. Outfox Hospitality (the holding company of Foxtrot and Dom’s Kitchen & Market) will replace Williams with grocery executive Rob Twyman.

🛒 Twyman joins Outfox with over 27 years of experience in various leadership positions at Whole Foods Market and, most recently, CEO of Boston-based nonprofit grocery chain Daily Table.

🦊 Williams joined Foxtrot in June 2022 as president and CFO and took over the CEO role in April 2023. The news of her departure comes less than four months after news broke of the merger between next-Gen Chicago retail chains Foxtrot and Dom’s.