Inside Ecommerce - November 13th, 2019

Inside Ecommerce (Nov 13th, 2019)

Disney+ / Burger King in Europe / Supreme x Rimowa / Stella McCartney's Insta fail

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Hi Retail readers,

Adidas is closing its Speedfactory in the U.S. and Germany. It says it will use the tech in its factories in Asia, but all I can think about his how Kanye should move Yeezy in when adi moves out in April. He's already said he has a vision of sustainability for Yeezy. Between his natural materials grown in Atlanta and access to labor in Atlanta, he's got the easiest plan ever.

Hit reply and tell me if you think he's already negotiated the deal.


1. Anheuser-Busch InBev is going to buy out the remaining shares of Portland, Oregon-based Craft Brewer Alliance for $220 million. Craft Brewer Alliance's brands include Kona, Widmer, Omission, and Redhook. AB InBev previously owned just under a third of Craft Brewer Alliance which it bought in 2016. Kona Longboard Island Lager accounted for most of CBA's production last year. ABInBev also gets Portland’s Square Mile Cider Co. The deal values Craft Brewer Alliance at about $321 million. - WSJ

For more buzz on brews, check out Inside Beer.

2. Private equity firm KKR made a formal offer to take Walgreens Boots Alliance private. Walgreens is the largest retail drugstore in the U.S. and Europe and its retail strategy has focused on store expansion and experiences. It also operates Duane Reade and Alliance pharmacies in Europe. According to its annual report, three-quarters of Walgreens revenue comes from U.S. pharmacies. The buyout would help Walgreens adjust its retail presence to better compete with Amazon and CVS without quarterly accountability to shareholders. Bloomberg's research found Walgreens' market value is approximately $56 billion. The company has $16.8 billion in debt, making KKR's offer potentially record-breaking in size. KKR's largest take-private offer to date was a $45 billion deal for TXU Corp. utility company in 2007. - BLOOMBERG

3. Burger King launched a non-GMO plant-based burger in Europe on Tuesday called the Rebel Burger. BK couldn't launch the Impossible Whopper; the EU has not approved Impossible products for sale in Europe because they have genetically modified ingredients. The Rebel Burger is made by a Dutch company called The Vegetarian Butcher that is owned by Unilever. Euromonitor reported sales for plant-based alt-meat grew an average of 13 percent annually in Western Europe, and 22 percent in Eastern Europe over the past five years. Plant-based sales have grown an average of 12 percent annually in the U.S. over the past five years. The NYT reported that Burger King sales rose 6 percent in Q3 as a result of launching plant-based burgers, compared to 1 percent the prior year. - NYT

4. Adidas is stopping production at its U.S. and German robotic Speedfactories. The idea behind the factories was to localize production instead of relying so heavily on Asia which would shorten lead times and allow for quicker speed to market for trendy products. According to a press release, the company will close the factories in April. Adidas said it will "use its Speedfactory technologies to produce athletic footwear at two of its suppliers in Asia" which hopefully means the equipment will be repurposed and not all jobs will be lost. - TECH CRUNCH

5. Disney+ had a number of technical issues on launch day yesterday. "Not the best start," tweeted one of roughly 7,000 people unable to log on. In a statement Disney+ released on Twitter, the company said "consumer demand for Disney+ has exceeded our high expectations. We are working to quickly resolve the current user issue. We appreciate your patience." Although some people had issues in their first day of service, others were able to start streaming. As Dave Thier wrote for Forbes, "even the worst launches I’ve seen in recent years usually recover in a day or so, and this is far from one of the worst launches. So take a breath and take a moment, it will be fine." - HOLLYWOOD REPORTER

6. Stella McCartney removed an Instagram image the label had posted of Megan Markle wearing a coat at a Remembrance Day service. Remembrance Day is the U.K.'s equivalent to Veterans Day, and some on social media had called the post disrespectful. One comment said, "Not an appropriate time to be selling your clothes. This is extremely tacky. I expect better of you, Stella." Another said, "Using Remembrance Day to advertise your clothes is a little disrespectful! People died and you take pictures of people showing respect for advertising purposes. Just wrong." The post was removed and Stella McCartney has not commented. - DAILY MAIL

7. Streetwear label Supreme is doing another high-profile luggage collaboration with LVMH's Rimowa. The collection features a spider web print and will be in Supreme stores and online beginning November 14. It will hit Rimowa stores and Japan on November 16. Supreme and Rimowa first collaborated last year on a black and red collection that sold out in a minute. - HYPEBEAST

8. Destination Maternity is going to be delisted off the Nasdaq next week. The delisting, set for Monday, is part of a Chapter 11 bankruptcy filing that was made last month. Destination Maternity will close 183 stores and will lay off 642 employees at its corporate office and distribution center, both in New Jersey.  A bankruptcy auction is scheduled for December 9. Retail Dive pointed out that the company's difficulties included increased competition from both luxury and discount retailers. - BIZ JOURNALS

9. Volcom replaced Burton as the official apparel sponsor of the U.S. Olympic Snowboarding Team. Volcom's intellectual property was bought from Kering by Authentic Brands Group in April. Burton's history as a company for snowboarders helped it lay the foundation for past Olympics partnerships. Unfortunately, founder Jake Burton's health is in question which may explain part of the reason for the change from Burton to Volcom. - WWD

10. Luxury brand Dior launched its first online shop in Japan today. The label has offered e-comm sites serving Europe since 2005. It only launched an official online presence in the U.S. last year. The Japan shop launch comes with five exclusive products including an iPhone case, handbags, sneakers, and a shirt. - WWD

Written and curated by Cassidy Mantor, a brand storyteller with a decade of retail marketing experience including in-house at Nike and Oakley. Occasionally she writes a “think piece” about fashion law for the American Bar Association. She is happy to be based in coastal Virginia except when there’s a hurricane. She can be found on LinkedIn.

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