Welcome to The Week in Consumer Packaged Goods, a weekly round-up for marketers from Quad Insights that covers the latest must-know news surrounding the CPG space.
Walmart explores use of carbon-capture technology to create zero-carbon clothing
Walmart announced that it’s exploring the idea of creating zero-carbon clothing using emissions captured from factories and facilities in its supply chain. The multinational retail giant is working with California-based startup Rubi Laboratories, founded by sisters Neeka and Leila Mashouf, to test a new process they developed that mimics how trees “eat” carbon dioxide to create cellulose. According to a statement from Walmart, this patent-pending process, “like trees, captures and converts carbon emissions, spinning the resulting cellulose into … fabric.” Laureen Fagan of Sustainability Times notes, “Rubi then plans to develop a garment prototype with an eye toward producing an entire collection of net-zero, biodegradable Walmart clothing.” The move is part of an effort by Walmart to achieve zero emissions across its operations by 2040.
• “Carbon-capture textiles? Walmart launches pilot program” (Home Textiles Today)
• “Can science save fashion?” (Fashion Dive)
Bud Light controversy continues to impact the beer industry and its suppliers
The controversy — and resulting boycott — surrounding Bud Light over working with transgender influencer Dylan Mulvaney continues to have ripple effects across the industry. This week, glass manufacturer and AB InBev customer Ardagh Group reported a 12% drop in revenue during the second quarter due to a decrease in shipments — a result of a “controversy related to a major beer brand, to which we are a significant supplier,” Ardagh Group Chairman Paul Coulson said on the company’s second quarter earnings call.
Meanwhile, AB InBev competitor Molson Coors announced a 12% increase in revenue year-over-year. As CNN’s Jordan Valinsky notes, “Molson Coors, brewer of Miller Lite and Coors Light beers, reported Tuesday its single best quarter of revenue since its 2005 merger, as drinkers continue to shift their allegiance away from the Anheuser Busch-made beer [Bud Light].” In the wake of its rising fortunes, Molson Coors announced plans to increase its marketing spend by $100 million in the second half of 2023. “While the Bud Light controversy has no doubt bolstered Molson Coors, its recent results also indicate the business is reaping rewards from its refreshed marketing strategy,” Marketing Week’s Molly Innes reports.
• “AB InBev CEO points to Bud Light consumer survey even as U.S. sales continue to struggle” (Ad Age)
• “The price of AB InBev’s mishandling of Bud Light-Dylan Mulvaney backlash? $395m” (The Drum)
Kraft Heinz commits to cutting its use of virgin plastic
On Monday, Kraft Heinz announced plans to cut the use of virgin plastic in its packaging by 20% by 2030 — part of a larger effort to make all packaging 100% “recyclable, reusable or compostable” and to achieve net-zero emissions by 2050. In a statement, the company said it is in the process of identifying packaging solutions that use less plastic as well as exploring the use of alternative materials such as fiber-based packaging. “The US-headquartered producer of Heinz ketchup and Oscar Mayer hotdogs said the global packaging initiative is estimated to eliminate 100 million pounds of virgin plastic from its portfolio by 2030,” notes Simon Harvey of Just Food Magazine — roughly equivalent to the weight of five Eiffel Towers, according to Kraft Heinz.
• “Kraft Heinz pledges to slash use of plastic” (Food Business News)
• “Kraft Heinz looks to transform plastic packaging portfolio” (Packaging Dive)
Nike announces plans for boutique fitness studios
Capitalizing on its reputation in the athletic footwear and apparel scene, Nike announced this week that it will launch Nike Studios, a network of in-person boutique fitness studios, later this year. “The move comes after the company announced Nike Well Collective in June — an initiative that looks to expand on ideas of mind, body and life, serving as a guide for ‘wellness journeys’ for all of its consumers,” Nikara Johns of Footwear News notes. The first locations, which will include a training studio and a running studio, are set for West Hollywood and Newport Beach, Calif. On a Nike Studios FAQ page, Nike says that you can “reserve your spot as a Founding Member for only $49, which locks in your unlimited workouts membership at just $99/month.”
• “Nike plans ‘network’ of boutique fitness studios” (Retail Dive)
• “Nike Leans Into In-Person Fitness As Lululemon Cuts Back” (Front Office Sports)
• “Amazon’s grocery revamp has begun” (Retail Dive)
• “Behind the rise of Poppi — a gut health soda taking on Coke and Pepsi” (Ad Age)
• “‘Revamped’ Bed Bath & Beyond emerges from bankruptcy with online site” (New York Post)
• “Slim Jim signing WWE’s biggest-ever sponsorship” (Sports Business Journal)
• “Reebok and VeeFriends Unveil Collaboration” (License Global)
• “This beer is made from recycled wastewater and is completely safe to consume” (USA Today)
• “Shearer’s Foods ‘eyes sale of US snacks business in $3bn potential deal’” (Just Food Magazine)
• “Skechers and Snoop Dogg collaborate on sneaker line as part of multi-year partnership” (Fashion Dive)