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QuickWit Weekly (8/30) – Hip-hop, CPG, and the Top Retail News of the Week

A few days ago, this article entered the RetailWit database. You should know: the RetailWit team are hip-hop fans. From Beastie Boys to Yeezy or Food & Liquor and Good Kid, M.A.A.D City, rap is a staple in our rotation.

After digging a bit further, we found there’s an interesting intersection of retail and rap—artists who have “made it” tend to invest, and they (sometimes) invest in CPG or Retail companies. So, here are some of the wealthiest rappers and their investments*:

Two rappers have set the stage for CPG investment and partnership: Puff Daddy and 50 Cent. Puff Daddy, in partnership with Diageo, has overseen the Ciroc’s brand, marketing, and promotions since 2007. Sean Combs and the Brand split the profits. At the same time, 50 Cent, who owned a (minority) stake in Vitamin Water, laughed his way to the bank when it was acquired by Coca-cola for $4.1B.

This was followed in 2014 when Dre sold Beats Electronics (AKA, Beats by Dre) to Apple for $3B. It opened the doors for rappers, from Nas to Jay Z to Drake, to not only invest in, but also create, CPG and Retail opportunities. Here’s a few:

  • Jay Z
    • Armand de Brignac (AKA Ace of Spades; Champagne) – Sold 50% to LVMH.
    • Julep – ecommerce beauty brand
    • STIMULATE – plant-based chicken (nuggets and patties)
    • OATLY – IPO’d at $22/Share
Financial Freedom my only hope,
---- livin' rich and dyin' broke
I bought some artwork for one million,
Two years later, that ---- worth two million,
Few years later, that ---- worth eight million,
I can't wait to give this ---- to my children.
- Jay Z, Story of OJ
  • Kanye West
    • Adidas / Yeezy’s – in 2019, did $1.3B in revenue
    • Gap – 10 year deal, expected $1B in annual sales
Let's go back, back to the Gap
- Kanye West, Spaceship
  • Drake
    • Daring Foods – Faux Chicken
    • COVETEUR – luxury brand for fashion, beauty, health / wellness, and travel
    • NTWRK – entertainment-focused shopping platform
  • Snoop Dog
    • Outstanding Food – plant-based snacks business in CA
    • Klarna – ecommerce payments firm
    • And, of course, several cannabis companies
  • Ludacris
    • $10MM in Roadie (on-demand package delivery service)
Move -----, get out the way,
Get out the way -----, get out the way -----
- Ludacris, Move
  • Nas
    • At 119 company investments, 5 exits, Nas might be the most prolific investor on the list. A few include:
      • Luxola – Singapore cosmetics ecomm, acquired by LVMH
      • SHIFT – social ads platform for brands and agencies, acquired by Brand Networks
      • Pillpack
I'm not a business; I'm a business, man!
Let me handle my business, damn.
Jay Z, Diamonds from Sierra Leone (Remix)

And, here’s the top news from last week:

Dollar General is looking at healthcare as a financial growth engine, turning many of their locations (especially in rural areas) into health destinations for their shoppers. With an incredible number of locations across the country (16,000+), Dollar General could provide a key service in areas where the options are limited and the growth potential here could be immense for the organization.

The new CEO of Walgreens, Roz Brewer, is installing some new faces on the executive team. The retooling continues for Walgreens as they work to stay relevant in a world where many shoppers are moving to online prescription fulfillment.

Target Takes Aim At Holiday Toy Sales With Disney Shops Expansion, Exclusive Deals. Target plans on roughly tripling the number of Disney shops within its stores, helping to drive foot traffic as the holiday season approaches. Along with Disney, Target said it will team up with well-known toy retailer FAO Schwarz for the second year in a row. Target is positioning themselves well to be a destination this holiday season.

This follows a growing trend of ‘store-within-a-store’ partnerships which seems to be a big strategy for Target. Between this partnership with Disney, Ulta (who is ‘thrilled’ with Target partnership as first 58 stores open), Apple, they are becoming quite the ‘mini mall’ of fantastic brands. 

Shipt’s new feature pairs members with their favorite, 5-star shoppers. Target’s same-day delivery service Shipt is launching a new feature that will pair customers with their favorite shoppers on future orders. This “Preferred Shoppers” feature will be available as a membership-only perk at no extra charge, offering customers a more reliable shopping experience, where more of their orders are directed towards people they already known and trust to do a good job.

Walmart launches white label GoLocal delivery service, which they are making available to other businesses of all sizes. Walmart is commercializing its own capabilities to increase their revenue streams, and it is given businesses another option for the “last mile delivery” problem.

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