Instacart filed for an initial public offering on Friday, sharing that it notched $428 million in net income last year. The filing comes 15-months after the San Francisco-based company first made moves toward the Nasdaq. Now that its books are wide-open, some analysts believe the e-comm powerhouse’s long term gains could eventually face compromise as advertising dollars are primarily fueling the company’s growth at the moment. 

Here are some highlights from Instacart’s S-1:

• The company will be listed on the Nasdaq exchange under the ticker symbol “CART.” The number of shares to be offered and the price range for the proposed offering have not yet been determined.
• Instacart has grown to over 80,000 store partners nationwide and notched $242 million in net income during the first six months of 2023; however, nearly half of those partners are contributed by five retailers and the pending Kroger/Albertsons merger could move most of the tech company’s business into an even smaller customer set. 
• PepsiCo is set to purchase $175 million of convertible stock. None of the tech company’s major grocery customers – including Albertsons, Costco, and Publix – have bought in yet. 
• Separately, “entities affiliated” with Sequoia Capital and D1 Capital Partners (which hold greater than 5% of outstanding capital stock), director nominee Ravi Gupta and board member Daniel Sundheim have also expressed interest in buying up to approximately $400 million in common stock.

The VC-backed tech giant has stayed true to its original business model since it was founded in 2012, but retail analyst Brittain Ladd believes that will have to change if Instacart wants to keep shoppers on the platform. Ladd said the company should undergo a major pivot and begin selling their own inventory rather than fulfilling orders for others. Last year, the platform expanded into ready-to-eat meal delivery, though the move continued to utilize the resources (and rations) from partner stores. 

“The question that must be asked is this: Now what? Is going public enough for Instacart?,” said Ladd. “I don’t think it is. Instacart is facing a future of limited profits from advertising and little to no profits from their core fulfillment business.”

Pronghorn, an initiative focused on boosting Black entrepreneurship in spirits, has made another round of investments. 

• More than half of Pronghorn's portfolio now sits within the two highest-growth categories in spirits: whiskey and tequila.
• This round includes female-owned Abisola Whiskey, Baltimore-based Los Hermanos Tequila 1978 and Chicago-based Alexander James Whiskey. 
• The news comes on the heels of Pronghorn’s own $200 million raise announcement in June.
• Pronghorn aims to invest in 57 Black-owned spirits companies in the next 10 years; this round grew its portfolio to over 20 brands.

Read the full story on BevNET

With a focus on client communication and customization, TechniBlend’s experienced team goes above and beyond for clients. Schedule time with us at this year’s Pack Expo in Las Vegas to see why TechniBlend™ is the trusted partner of some of the largest beverage brands in the world. Learn more

Spirits sales are down in the past six months, according to a new report from SipSource, echoing some of the slowdowns seen in earnings reports this month. But what does that mean for hot subcategories like RTDs and high-end spirits? 

• Twelve-month rolling data places total spirits down just over one percentage point. However, data from the first six months of the year shows even greater losses, with spirits dropping -4.2%
• Pre-mixed cocktails also now represent approximately 10% of spirits sales on-premise and they're growing even faster there than in the off-premise relative to mainstream spirits. 
• On-premise is still challenged by market conditions, however, with operators having reduced their assortment across all categories as they continue to manage their inventories tightly. 
• Citing inflation-weary consumers, luxury spirits priced $100-plus that were growing at almost +14% last year through May are now declining about -15% over the last six months. 
• Higher-end tequila and whiskey drove spirits in 2022; will we see the same results at the end of this year?

Read the full story on BevNET

Are we in an era of peak at-home boba tea? The craze over bubble tea that can be made and enjoyed in the comfort of one’s home is hitting new heights. Custom beverage brand Frazy launched its shelf-stable, coffee concentrates at the beginning of the summer and expanded the line with six flavors of Frazy Boba Tea and 12 new coffee flavors last week, bringing the brands on-the-go portfolio of drinks to 31 varieties.

• The San Jose, California-based company’s platform allows consumers to customize their milk tea concentrates with caffeine level, milk variety (non-dairy options included) and sweetness level. Boba tapioca pearls are included in vacuum-sealed pouches that are heated in the microwave to be added to the beverage.
• The 2.75 oz. portable bottles start at $5.99 each and are sold in 6- or 12-packs on the company’s website with 10% of proceeds from the sale of Frazy Boba Teas going to the ASPCA in honor of National Dog Day through the end of August.
• Frazy joins brands like Boba Bam and Tea Drops in the make-it-yourself bubble tea category that has sprung up alongside RTD varieties like BUBLUV, INOTEA, Joyba, TWRL and DaoHer Beverage’s Boba Ota Milk tea.

Learn More: Brands Bring Boba Tea to RTD, Frozen Formats

Juvee, the energy drink brand created by gaming lifestyle company 100 Thieves, is making its international debut in Canada. As part of the brand’s distribution expansion, consumers can now purchase the drink in two flavors – Kiwi Strawberry and Blue Raspberry – countrywide at Amazon.ca. 

• Both varieties retail for $38.99 CAD per single-flavor 12-pack. Additionally, consumers can purchase a two-flavor variety 12-pack for $39.99 CAD. 
• Launched in October, Juvee touts itself as a “rejuvenating” energy drink intended to serve a better-for-you, anytime energy option with 128 mg of caffeine per 12 oz. can, plus B vitamins, taurine, L-theanine, panax ginseng, Vitamin C, zero sugar and 5 to 10 calories depending on the variety. 
• To launch the beverage brand, 100 Thieves founder and CEO Matthew Haag recruited Samuel Keene, a former Red Bull regional marketing director, to head the project and establish a separate company that would operate under the 100 Thieves umbrella. 

Dive deeper: 100 Thieves Taking Gamer Cred into Energy Drinks with Juvee.

How does a leader hone clarity and calm when managing a team? At what point does the approach shift from working within employee personalities to navigating inter-company politics? Chris Lansing – currently CEO of Health-Ade – and Miguel Leal have grown up their leadership styles within the CPG industry and along the way, they’ve both received plenty of advice. With decades of combined experience under their belts, these two newly minted NOSH Notables firmly believe the style that works best, is one each leader develops themselves. 

“[By] finding your place and finding what works, all the other stuff takes care of itself.” - Miguel Leal

Listen to this week’s episode of The NOSH Podcast and hear Chris and Migeul reflect on early lessons they still carry with them today, learn why they say developing an effective team is just as important as developing your leadership skills and understand how both CEOs have taken learnings from both large and small companies and applied them to various endeavors.

Listen to The NOSH Podcast here

Is it groundbreaking or headed for infamy? The hosts sample several new products made with controversial (or, perhaps, objectionable) ingredients and flavors and assess the mainstream potential for each. This episode also features an interview with Alex Conyngham, the co-founder of Slane Irish Whiskey, who discussed the duality of building a modern brand that’s rooted in tradition. Read the story.