The Big Bet on Wellness
CPG and Retail news from the week of 8/4/25
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Now, let’s get into the news of the week →
News From the Week
The boundaries between beauty and wellness have officially dissolved. This week, Ulta announced it's expanding its in-store Wellness Shop from a modest 4-8 feet to a whopping 30-45 feet in over 400 stores, adding brands like Therabody, Ritual, Bloom Nutrition, Vital Proteins, and Armra to tap into the $2 trillion wellness market.
Ulta's Wellness Shop started as a pandemic experiment in 2021 with just 35 products. Now, after seeing incredible success of brands like Love Wellness and Kourtney Kardashian Barker’s Lemme, the beauty retailer is going all-in on the category.
Why? Because “beauty” and “wellness” have fully converged. We're no longer talking about adding a vitamin to your routine—we're talking about a complete lifestyle overhaul where your morning skincare ritual includes sipping on a greens powder, date night prep requires a probiotic, and bedtime isn’t bedtime without a CBD + magnesium supplement. Or, according to some alarmingly persistent marketing, you could just take colostrum and cover all of the above 🙃.
So why is this convergence happening now?
Like everything… blame COVID. Post-pandemic, consumers became obsessed with their overall health and wellness like never before—willing to try anything to become their most optimal self and regain a sense of control over their health.
Social media has accelerated this shift exponentially. 50% of Gen Z gets health advice from TikTok, where, according to Spate, “wellness” is seeing 15% combined year-over-year growth with 135 million average monthly searches.
And the numbers back it up:
69% of Americans currently take dietary supplements (Vitamin Shoppe)
74% of beauty shoppers also prioritize wellness
30% of Gen Z and millennials report prioritizing wellness "a lot more" compared to one year ago, versus just 23% of older generations.
Gen Z and millennials make up just 36% of the US adult population, but drive 41% of annual wellness spending
Now, every major retailer is scrambling to catch up:
Walmart has onboarded 50 wellness brands in the past two years, including Nutrafol and Ritual. They're creating exclusive flavors with brands like BelliWelli and Wonderbelly, plus launching a "Greens Destination" section dedicated to “whole-body wellness” (ft. brands like Grüns).
In January, Target announced the addition of 2,000+ new “wellness” items to its shelves, from supplements like Bloom and Lemme to wellness tech like Oura Ring.
Greg LaVecchia, co-founder of Bloom Nutrition, captures it perfectly:
Even the top of class but mass American (in terms of accessibility) retailers like Walmart and Sam's club are taking big bets on wellness products, ranging from Bloom's colostrum + collagen or even in their beverage set, our BFY Bloom Pop.
Ulta's wellness expansion isn't about jumping on a trend—it's about recognizing that their customers' definition of beauty has fundamentally evolved, and they now expect to see collagen sitting next to mascara.
In other words: We're not just watching category expansion—we're witnessing the birth of an entirely new retail ecosystem. Retailers who still think in traditional beauty vs. wellness silos are already behind.
Smart retailers are realizing their customers don't shop in categories anymore—they shop for lifestyles. 👏
CPG & Consumer Goods
Graza goes glass. The buzzy olive oil brand that became famous for its (contentious) plastic squeeze bottles just launched its first glass bottles for the Drizzle and Sizzle duo, featuring a pop-up spot.
The brand also announced its spot as the 5th largest olive oil brand across all retail, leading the category in highest overall velocity—after only three years on the market (surprised? we’re not).
And, like anything Graza does, this move was met with lots of opinions. Some think this is an example of the brand listening to its customers and strategically pivoting, while others see it as the brand finally admitting that its beloved plastic was affecting the oil. We’ll let you decide whose team you’re on. 🤷♂️
AG1 adds some flavor. After a decade of scooping the same, singular OG flavor, AG1 has officially launched three new flavors—Citrus, Tropical, and Berry. This variety aims to “enhance daily consistency” and tap into consumer desire for personalized health solutions (turns out, people like options! Shocker!).
This innovation comes shortly after the launch of the brand’s newest iteration, AG1 Next Gen, and entrance into brick-and-mortar retail for the first time with its Costco launch.
Huel goes for AG1’s base. Huel is about to launch its new Daily Greens ready-to-drink, packing 42 nutrients into a 12oz can in unique flavors like Apple Cucumber & Mint and Peach & Hibiscus.
As Martín Caballero of BevNET noted, it’s interesting to see Huel go all-in not on its famed meal replacement shake, but its greens line—joining a slew of new RTD greens drinks.
…and the RTD bender continues. After a decade of supplement powders (most famously, collagen), Vital Proteins is launching its first ready-to-drink beverage the Collagen & Protein Shake—featuring 30g of protein and 10g of collagen. This shake will first launch in Walmart nationwide—yet another wellness-forward brand betting on the “everyman” retailer.
Kids need protein too. Trubar's new nut-free protein bar for children delivers ~9g of protein in a compact 35g serving.
Not your average seltzer. Not Beer, a seltzer company clearly poking fun at Liquid Death, has launched a cannabis infused seltzer called Not Beer Vibed.
Not Beer is a better name for a THC seltzer than a regular seltzer company IMO - N
NOT ANOTHER (TOMATO) SAUCE. Chirssy Teigen’s Cravings brand just launched four pasta sauces, including spicy miso alfredo and creamy corn and truffle.
Seemingly out of nowhere, countless tomato sauce brands have hit the market—with multiple seeing early success (Sauz, Monte’s). Yes, home cooking is on the rise and we’re all looking for products that make it a little more flavorful + easier. But at what point are we just getting lost in the sauce? (we had to)
Youthforia says goodbye. The beauty brand founded by Fiona Co Chan announced its closure with a 50% off sale. The brand saw a wild ride of ups and downs: a viral blush hit and a "Shark Tank" investment, followed by serious controversy surrounding the darkest shade of its Date Night foundation—ultimately causing multiple retailers to drop the brand.
Goop goes mainstream. Gwyneth Paltrow's Goop Beauty is expanding into 800 Ulta stores, riding a wave of 21% sales growth while reasserting beauty as its most profitable sector.
It’s about damn time. After five years in development, Martha Stewart is launching her first skincare line, Elm Biosciences, with dermatologist Dr. Dhaval Bhanusali. The brand will feature a serum and supplement priced at $135 and $50, respectively.
Yellowstone serves up convenience. Limestone Branch has launched ready-to-serve Bourbon cocktails like Gold Rush and Old Fashioned.
The RTD cocktail boom is going premium. IWSR's new report shows "selective premiumization" driving the category, with US volumes expected to explode 400% by 2029. Yellowstone joins more premium brands like Via Carota in betting that drinkers want bar-quality cocktails they can pour at home
Speaking of bourbon and whiskey. Uncle Nearest is facing a $100 million lawsuit from Farm Credit Mid-America, which claims the Tennessee whiskey producer defaulted on loans and now owes over $108 million.
Skater brews. Erik Ellington launched "Easy Does It," a non-alcoholic beer crafted for connection and creativity, capitalizing on his 11-year sobriety journey.
Espresso on a budget. Terra Kaffe, a two-year-old espresso machine startup known for its single $2,000 SKU the TK-02, just launched Demi, a compact automatic espresso machine priced at $795.
Lewis Hamilton shakes up the spirit scene. Lewis Hamilton's Almave launches Humo, a non-alcoholic mezcal alternative made from Espadin agave.
The collab we didn’t know we needed. Actual Veggies just teamed up with Indian food brand legend, Maya Kaimal, to launch the Chickpea Masala Burger.
Actual Veggies is my favorite veggie burger brand! I love when veggie burgers taste like actual vegetables (not imitation meat) and this brand absolutely nails it—with robust, culinary flavor profiles to boot. I’m so excited about this collab and can’t wait to hit Sprouts to try! - J
eCommerce
Yotpo trims the fat. The eCommerce unicorn is laying off 200 employees, about 34% of its workforce, to refocus on AI-driven core products like Reviews and Loyalty, ultimately sunsetted its email and SMS products.
Retail
Allbirds finds its footing. Despite a 23.1% drop in Q2 revenue to $39.7 million, Allbirds reduced its net loss to $15.5 million, signaling a potential turnaround with a new financing package and plans for growth in the fall.
Wakefern acquires Morton Williams. Wakefern Food Corp. is set to acquire Morton Williams, adding 17 stores in the NYC area to its portfolio.
Warby Parker goes all-in on retail. The eyewear brand is ending its signature home try-on program after finding most users now live near its stores, pivoting to in-person and digital experiences as Q2 revenues grew 14% to $214.5 million.
We asked MacKenzie Seale, former Retail Strategy Director at Warby, about this move:
“HTO (home try-on) was the ultimate on-ramp for Warby’s retail—lowering the risk for first-time customers, building trust, and turning a digital brand into a physical habit. HTO was a brilliant bridge from clicks to bricks. Warby Parker killing HTO signals the end of a DTC era and a flex that best experiences are in their 300+ stores, where you can try on 100 pairs, not just 5.”
7-Eleven expands its empire. The convenience giant is set to open 1,300 new larger-format stores (with a focus on food) in North America by 2030, aiming for over 50% U.S. population coverage.
Huckberry goes IRL. The online menswear and outdoor gear retailer opened its first brick-and-mortar store in D.C. and plans to launch a second location in Chicago.
Where else will the girlies go to get ear infections? :/ The retailer filed for Chapter 11 bankruptcy and is closing 700 stores, with liquidation likely if a buyer isn’t found for its remaining 800 stores.
Bath & Body Works goes to college. The retailer is launching its best-selling beauty products in 600 college campus stores, offering a convenient way to shop for its products directly on campuses.
This is an example of a “mall brand” strategically pivoting… before landing a similar fate to Claire’s. For brands that rely on their brick-and-mortar (like B&BW), finding more convenient channels to “pop-up” in may become a necessity—the only way to reach a younger consumer who’s opting for TikTok shop over a mall trip .- J
Funding news
The next big CPG exit?! Japanese BBQ sauce brand Bachan's has enlisted Centerview Partners to explore a potential sale 👀
Last year, Forbes estimated that Bachan’s value at $350MM, a “conservative” 5x its estimated annual revenue. We’d expect the sale to top that—especially considering the fate of other cultural condiment brands like Cholula, which sold to McCormick for $800MM in 2020.
v2food takes a daring leap into the US. The Australian plant-based meat leader v2food is entering the US market by acquiring Daring Foods, which boasts a growing presence with 16,000 distribution points.
According to the v2food CEO, Daring is “one of the few brands that’s growing” in plant-based, which he attributes in part to its frozen—as opposed to chilled meat case—placement.
Kustomer raises $30M Series B. The AI-powered customer service platform closed a massive Series B, solidifying its position in the competitive landscape of customer experience solutions.
Frozen scores big. Doughlicious, a frozen treat brand, just secured $5 million in funding from Rich Products Ventures and The Angel Group.
Constellation brands says goodbye to Copper & Kings. Constellation Brands has divested its Copper & Kings distillery to refocus on core brands, emphasizing the shift in spirits investment priorities.
OneSkin raises the bar with $20M investment. The scientist-founded skin longevity brand just secured $20M from Prelude Growth Partners, aiming to redefine aging with clinically-backed products featuring their proprietary peptide, OS-01.
Weekly Pickups
Last week we chatted with freelance writer Kaleigh Moore, who's been featured in publications like Forbes and Vogue about what product she’s been trying! →
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