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BFD Expert Voices - Retail Deals

BFD Expert Voices

Welcome back, Retail readers. We have a lot for you today, let's dig in.

Seed, a maker of probiotics, is launching three of its products at Target, co-CEO Ara Katz tells Axios exclusively.

Why it matters: It is the DTC gut health company's first significant foray into mass retail, she says.

Catch up fast: Seed retained financial adviser Centerview Partners to explore a sale that could value it at more than $1 billion, Reuters first reported and Axios confirmed.

Seed previously raised a $40 million Series A in 2021 led by The Craftery. ARTIS Ventures and GISEV also participated in the round alongside existing investors Founders Fund and 8VC.

A source close to the company confirmed to Axios that revenue is about $200 million.

Zoom in: Seed will sell probiotic products DS-01 Daily Synbiotic and PDS-08 Pediatric Daily Synbiotic in Target.

It is also launching a new rapid gut recovery product, exclusive to the big box retailer, called DS-01 14 Day Gut Reset, for consumers who are recovering from travel, stress, or taking an antibiotic, for example.

The news follows the company's launch on Amazon earlier this year.

Context: Seed, which also has done business as Seed Health, conducted a case study with California-based grocer Erewhon Market to better understand physical retail, Katz explains.

The microbiome science company wanted to make sure that it didn't cannibalize its core DTC business, she says.

Seed learned that being on the shelf generated measurable brand awareness, which laid the foundation for Target, Katz says.

What they're saying: "Given the global interest in the microbiome and biotics, we're always entertaining strategic opportunities that could fuel growth and help us realize our vision to bring leading microbiome science to everyday health," Katz says.

The company launched the first vaginal probiotic suppository in May, which Katz says has been clinically validated as establishing a healthier vaginal microbiome.

It's one example of how it is thinking about applying its science to the microbiome outside of gut health.

By the numbers: Seed's revenue has grown 500% over the past 36 months and the startup is profitable, the co-CEO says. 

What's next: Seed will look at expansion into other retailers and internationally in 2026, Katz says.

It's also launching nutrition, personal care and skin care products, she says.

Probiotic startup Seed hits Target

Illustration of a golden trophy shaped like a gastrointestinal tract 

Meatable, a Netherlands-based cultivated meat startup, will kick off Series C fundraising with an invite-only open house in January, CEO Jeff Tripician tells Axios exclusively.

Why it's the BFD: The company is making the pitch that its asset-light model will attract investment despite a difficult fundraising environment.

Catch up quick: Tripician, a veteran meat industry executive who previously served as CEO of Grass Fed Foods and president of meat producer Purdue, was named CEO of Meatable in May.

Zoom in: While the size of the round is yet to be determined, Tripician says that for Meatable to achieve its goals, it would likely need to be at least $50 million, but no larger than $100 million.

The open house will include "a cross-section of current and potential investors," including strategics, impact investors, and concerned governments.

The meeting will explore the status of the science, including cost, scale and taste, as well as consumer demand, Tripician says.

It will also tackle how the industry can "embrace the future of meat while solving some of the biggest issues we face on the planet," such as climate change, food insecurity and animal care.

How it works: Meatable is largely made up of about 68 scientists who are attempting to "crack the code" on how to produce cultivated at a large scale and at a reasonable price, he explains.

Rather than own its own infrastructure, the cultivated meat startup will help meat producers build it by licensing the technology to them.

"We're a tech vendor to meat companies," Tripician says.

Reality check: Where cultivated meat startups have erred in the past is plowing most of their resources into building and figuring out how to operate plants.

The bottom line: Meatable's goal is to help larger meat producers supplement their supply with cultivated meat to meet the growing demand for meat globally without damaging the planet, Tripician says.

Meatable's fundraising pitch

an illustration of a test tube stand  that contains three test tubes, a fork, a knife and a spoon 

🏬 Nexus Capital agreed to buy Big Lots (NYSE: BIG) as the discount chain begins Chapter 11 bankruptcy proceedings.

The discount home goods retailer said it has secured $707.5 million from the deal, which will also go toward supporting its operations.

Nexus will be a stalking horse bidder in a court-supervised auction process, the company said.

👋 Alimentation Couche-Tard still wants to work with 7-Eleven parent Seven & i toward a "friendly" takeover.

Despite the Japanese convenience store chain rejecting its initial offer, the Circle K parent said that it is "highly focused on consummating a transaction with 7&i that is in the best interests of all constituencies."

Couche-Tard said it was willing to negotiate on price.

🍔 Nelson Peltz is stepping down as board chair at Wendy's (Nasdaq: WEN) after holding the role since 2008. 

Peltz said he would focus on his hedge fund, Trian Partners, and other board commitments.

His hedge fund waged a costly and unsuccessful proxy fight with Walt Disney, attempting to gain two board seats and putting up a challenge to CEO Bob Iger's business strategy.

In the meantime, Trian's assets under management have been on the decline in the past few years, due to bets that haven't paid off, the Wall Street Journal reports.

Arthur Winkleblack, Wendy's lead independent director, will step in as chair and the board's size will shrink to 11 directors from 12.

Retail therapy

an illustration of a hand in a meditative pose holding four orange shopping bags

Want more retail deals? Go deeper into our full database in the Axios Pro Deals Tracker.

• Warehow, a U.K.-based e-commerce fulfillment company, raised a £2.1m Series A led by Midlands Engine Investment Fund II. Go deeper

• Theater, an Indian fashion brand, raised $1.5m in a pre-Series A led by Prath Ventures. Go deeper

• Powder Beauty, a UAE-based beauty and wellness e-commerce platform, raised a pre-Series A led by Sophia Collective and NKEHL, Nithin and Nikhil Kamath. Go deeper 

• MNC Capital Partners increased its takeover offer for Vista Outdoors (NYSE: VSTO) to $43 per share. The Vista board replied that the announcement continued "a frustrating pattern and is not constructive." Go deeper

• 7NXT, a German online fitness platform owned by Oakley Capital, has acquired Buddyfit, an online fitness platform in Italy and Spain. Go deeper

• MyCarrier, a venture-backed freight shipping startup, acquired Curant, a Hermosa Beach, Calif.-based freight forwarding payments startup that had raised $2m from Better Tomorrow Ventures, Bam Ventures and Defy Partners Management. Go deeper

• Asos agreed to sell its majority stake in Topshop and Topman retail brands for £135m in cash to Danish tycoon Anders Holch Povlsen. Go deeper

• Shearer's Foods, the Ohio snack maker, is working on a $400m dividend recap for owner Clayton Dubilier & Rice, per Bloomberg. The notes would come with a 10% yield. Go deeper

Retail transactions

• Keren Sharir, current CMO at Nayax (Nasdaq: NYAX), a commerce enablement payments and loyalty platform, will also serve as president. Go deeper

• Jonathan Kiman and Laura Dubin-Wander joined Burberry as chief marketing officer and president of the Americas, respectively. Go deeper

• Rob Conti, former SVP of information technology, was promoted at restaurant chain First Watch to CIO. Go deeper

• Taranjit Singh Dhillon, formerly with One Stop, joined convenience store chain Nisa as head of retail. Go deeper

• Clare Waight Keller, former creative director at LVMH's Givenchy and Richemont's Chloé, joined Uniqlo as creative director. Go deeper

• Lyle D. Tick, former brand president of Buffalo Wild Wings, was named president and chief concept officer at BJ's Restaurants (Nasdaq: BJRI). Go deeper

• Natasha Chen, former leader of the global health care division at Ecolab, was named president of North America of chocolate maker Barry Callebaut Group. Go deeper

• Stephen Smy was promoted to the India managing director at Marks & Spencer. Go deeper 

• Ding Jiang Ning and Wei Ting were named executive directors at GOME Retail Holdings. Go deeper

• Dominic Neary, formerly with Mind Gym, joined Naked Wines as CFO. Go deeper

• Damola Adamolekun, former CEO of P.F. Chang's, will join RL Investor Holdings as CEO upon court approval of the Red Lobster Chapter 11 plan. Go deeper

• Matilda Ashley, daughter of Mike Ashley, was appointed a director at Mash Holdings. Go deeper

• Erin Storm, former VP of commercial strategy at Kellanova was named SVP and CMO at SpartanNash. Go deeper

• Art Kilmer, former COO at P.F. Chang's, joined Black Bear Diner as COO, succeeding Jeff Guido, who retired. Go deeper

• Ammy Harrison was named SVP of non-traditional development and Maiyo Hood was named VP of international development at Fat Brands. Go deeper

It's Personnel

📺 What we're doing: Richard began watching the spy thriller "Slow Horses" starring Gary Oldman on Apple TV+.

✏️ Many thanks to newsletter editor George Moriarty and copy editor Mickey Meece for today's edits.

🙏 Thank you for reading Retail Deals. Please ask your colleagues, friends and family to sign up.

September 09, 2024

1 big thing: Probiotic startup Seed hits Target