MGR eCommerce Edge Weekly | September 2, 2020
Top News This Week
DTC Acquisitions are Heating Up as Older Brands Chase Growth
This week two eCommerce brands were acquired for 9-figure prices. The first being Care/of, a vitamin and supplements company, that was acquired by Bayer for north of $230 million.
The other was Liquid IV, a healthy alternative to Gatorade, who was acquired by Unilever for an undisclosed 9-figure amount.
Large traditional brands have been hurting as they scramble to launch digital first strategies, and with the pandemic their primary sales channel of retail has been hit hard. We fully expect more companies to look to buy more fast growing eCommerce brands as it will be a seemingly quick fix to years of failure.
There has never been a better time to double down and focus on your brand’s growth, who know a giant may come knocking looking to write a big check.
Other Notable Links:
1. Adidas & Yeezy mastermind, Jon Wexler, joins Shopify as head of creator partnerships – COMPLEX
2. Retail is slowly creeping back, but still far from what it was. Macy’s reports same-store sales down 35.1% YoY – CNBC
3. Analysis of why pharma giant Bayer bought Care/of – MODERN RETAIL