Bokksu Takes Aim at Brick and Mortar, Is Bragg up For Sale?
Plus, Counterfeit Mushrooms and Why Shoppers Would Shove Garlic Up Their Nose
Okay folks, another week another look inside of my head. Don’t worry, nothing too scary just more geeky CPG stuff.
Bokksu Seeks to Build Its Moat via Brick and Mortar
After a busy few years acquiring subscription box service Japan Crate and raising $22 million, e-commerce retailer Bokksu is taking aim at brick and mortar, most recently getting pickup in all Giant Food stores.
Until late last year, Bokksu had three lines of revenue:
Its flagship Bokksu Box, which includes higher-end Japanese snacks.
Bokksu Boutique, an ecommerce retailer selling premium Japanese products ranging from Le Creuset pans to handmade candy
Bokksu Market, a second e-commerce retailer selling largely mass-produced grocery items
But in 2023, Bokksu acquired Japan Crate (which also sells more mainstream Japanese snacks) and, through the deal, not only expanded its subscriber base but also picked up distribution in 5,000 retailers.
Now the company is putting more effort into brick and mortar, looking to not only add more distribution for Japan Crate but also by becoming a distributor for Japanese products.
“What we've been hearing from a lot of our buyers is that…[they want to sell] things like Pocky or KitKats and such, and they just have not been able to because a lot of that [distribution] has been dominated by traditional Asian food import companies in America,” founder and CEO Danny Taing told me. “[Many of those importers] don't even speak English very well and definitely do not have a modern sales process.”
What’s next? Well, expect a premium line of Bokksu-branded food items headed to retail in 2025. It won’t ever be a huge part of the business, Taing said, but it’s another way to reach shoppers and diversify revenue streams.
“We're going do it in a way that's not as over committing…it’s a step process where we got retail distribution first via the box, [and] then via being a general Asian food retail distributor,” Taing said.
BTW If this all sounds intriguing to you, reach out — Bokksu is raising a bridge round of funding, which Taing said should take the brand to profitability.
And, in the meantime, check out my full interview.
Oy Vey: This Week in “Why People Worry Me”
According to a study of 3,000 shoppers commissioned by The Ajinomoto Group, a U.S. manufacturer of monosodium glutamate (MSG), people need to stop getting their news off TikTok and Facebook. Now, normally I’d dismiss a report like this as being biased, but it appears the company put a fair amount of time and effort into creating something well-written and researched. Here’s what you need to know:
The Dangers of Social Media:
Not only did 57% of respondents report changing their eating behaviors because of something they saw on social media, 60% said they rely on their intuition and personal knowledge to assess these food claims. The overall sentiment across all respondents, The Ajinomoto Group found, was a culture of fear around what food choices were “right” or “wrong” — a concern that rang true regardless of socioeconomic backgrounds, education levels, gender, and political parties.
And lest you think this is an exaggeration, remember, there’s currently a rumor on TikTok that retailers are trying to pass off rubber blueberries, watermelon and bananas as real fruit.
The best (aka worst) stats:
30% of respondents have tried or would consider putting garlic up their nose for congestion relief (compared to the 25% of respondents who regularly check to make sure influencers are qualified before listening to their advice).
1 in 10 people in the U.S. (14%) think cheese gives you nightmares.
60% of respondents said they would avoid consuming Dihydrogen Monoxide (aka…water).
Concerns for the “Ethnic” Aisle:
Beyond the misinformation element, what worried me was how respondents viewed many global cuisines, such as ones found in the “ethnic” aisle at grocery stores.
34% of respondents said they have tried to avoid “specific diverse cuisines” in an effort to be healthier.
54% of respondents from communities of color (38% of the total pool) have seen misinformation online attacking tradition food items from their culture or heritage.
48% of respondents from communities of color reported that they have personally been, or have seen others be, insulted or ridiculed because of food from their culture or heritage
Skip this if you’ve heard my lecture already, but this is part of why I hate brands who advertise their products as the “clean” version of [insert cuisine here]. While this is likely a well-meaning claim, a lack of attention is often given to the consumers already eating this item, creating a feeling of alienation and shame. If you make the “clean” version of chili crisp, black beans, or, say, Indian sauces, does that mean the others are “dirty?”
News Bites:
Bragg Buyers? According to Reuters, apple cider vinegar brand Bragg Live Food Products has hired Bank of America to explore a sale. Sources told Reuters that the deal would value Bragg at more than $500 million, including debt, which is equivalent to at least 10 times EBITDA. Founded in 1912, Bragg was acquired by an investor group led by private equity firm Swander Pace Capital in 2019.
Kroger Sells A LOT of Sushi: In a press release this week, grocery retailer Kroger casually mentioned it’s the “largest sushi retailer in America” with one million rolls of fresh sushi sold per week. The release goes on to note that the retailer has launched a Cheetos Flaming Hot California Roll, which is coated with crushed Cheetos Flamin’ Hot snacks and topped with a spicy sauce. The fun doesn’t end there, and I’m not making this up, in the fall the retailer will sell a Doritos Flamin’ Hot Limón Shrimp Tempura Roll. Please please someone try these and report back. I can’t fly across the country just to eat Frito-Lay sushi.
Distribution Wins: Chip brand Jackson’s can now be found in 800 Walmart stores; Arya Rotis are available at select Whole Foods Market in the Mid-Atlantic Region (trust me, run don’t walk to try these); African Dream Foods’ African Ghost Pepper Sauce can now be found in Albertsons; Clevr Blends has been picked up by several regions of Whole Foods including the Sopac, Norcal and Pacific Northwest; Grillo’s pickles has locked in another food service deal and will now top Plant Power Fast Food’s The Ribby sandwich.
Cheers to SoulCycle: Fitness studio SoulCycle is hosting a Wellness Weekend at The Barn, its seasonal Bridgehampton location. While the event features (and is sponsored by) more traditional fitness offerings like IV drips, facials, and B12 shots, instead of a a sea moss or adaptogenic beverage, riders will be able to partake in a non-alc Athletic Brewing beer post ride.
Kombucha Slingers: The fermented food fam at GT’s is adding an experienced exec to the team as Brandjectory co-founder Michael Movitz joins as VP of Sales Operations. The kombucha company also added Kelly Behr as its new Sr Director of Sales. Behr has spent roughly the last six years of her career in sales roles at Nuts For Cheese and Kite Hill. I wonder, could the hiring of an alt-dairy sales slinger indicate a renewed emphasis on GT’s Coyo coconut yogurt?
Copycat Mushroom Movers: You know the grey/black market is getting bad when you have to issue a press release about it. This week Fungi Perfecti, the makers of Host Defense® Mushrooms issued a press release warning consumers that multiple unauthorized accounts on eBay.com and Walmart.com were selling counterfeit products using their brand name. Reportedly Walmart has taken down the fake profiles, but I give Host Defense credit for providing shoppers clear instructions on how to spot a fake. Tell me, how would you handle this situation?
Get Hired:
Omsom’s putting that DayDayCook $$ to use already, posting for several contract digital marketing positions. One interesting tactic: hiring a “creator crew” to develop content for the brand. Now, normally, this would mean influencers posting to their own accounts, but in this case Omsom seems to just be hiring freelancers for their own account.
As it looks to grow in retail, FS Drinks, makers of the newly launched RTD Simple Boba, is hiring a Director of Customer Experience to head up field marketing and sampling. Note, the role is for equity compensation only.
The PepsiCo Life Sciences Engagement Team is still searching for a scientist for its Gatorade Sports Science Institute. With a goal of “translating the science of sports nutrition for academic and practitioner audiences,” the new hire with be tasked with everything from helping with communication plans aimed at athletes, to social media content development, to coordinating science conferences.
New Products:
I’m fascinated by this one: Nestlé is releasing Kickin' Jalapeño Carnation Evaporated milk, a limited edition flavor designed to be used in mac and cheese. I’m curious to see if this can educate shoppers that there’s a use case for evaporated milk beyond baking. Keep in mind, in 2022 Eagle Foods (the owners of both the Eagle Brand and Magnolia brands of condensed milk) announced its own growth plans — but this time via acquisition of Hamburger Helper and Suddenly Salad
Brooklyn Delhi is moving into meals. I’ll be watching to see how the sauce and condiment brand grows now that it’s in a faster-turn category. I do, however, wonder where these will be stocked: in the ethnic set or alongside A Dozen Cousins, which often has a more prominent slot in canned beans. Whole Foods Market has the exclusive for now.
Speaking of meals, canned bean company Heyday is moving into a new category with the debut of a six-SKU line of soups, chilis and stews. I think the later two work well with the existing portfolio, as many shoppers already use the canned beans as the base for dishes/stews. I’m curious to see how the more traditional SKUs do, like Tomato, Lentil and noodle, given the sheer amount of other options in the set. Granted Heyday is putting a twist on each flavor (think Lemon Parmesan Noodle Soup) but that could also alienate some shoppers just as much as it differentiates the brand.
GoodPop is launching new (shelf stable) Hydration Pops. Keep an eye out on the brand evolution here as the company goes from frozen novelties to beverage and now more functional offerings. Reportedly fellow tube-pop brand DeeBee’s was up for sale last year. Clearly other brands have paid attention to the brand’s growth with Good Pop not the only new entrant. So, will a rising tide lift all boats or cannibalize sales? Shoot me a note if you know how the category is looking.
In one of the better cobranded subscription box partnerships I’ve seen, Reynolds Wrap and ButcherBox have teamed up on a limited-edition BBQterie Kit ($119). While I think this feels pretty organic, I refuse to use the term “BBQterie” for what appears to be just… barbecue arranged nicely?
In yet another attempt to reinvent the Lunchable, Olli Salumeria, has teamed up with That's It. to launch a new snack pack containing a cured meat, sliced cheese and a That’s It. bar.
I’ve seen lots of Pixar and Illumination Entertainment tie ins, but often they just involve a minion stuck somewhere on the front of pack. So I’ve gotta give King’s Hawaiian credit for this packaging. The minion taking a bite / lineup on the product window is just perfect!
