IPO pipeline (ZVIA)
We are hosting a pre-IPO Black Book of Zevia today at 2 PM ET. The IPO pipeline continues to be robust, with more companies waiting in the wings. As a result, the Renaissance IPO index has underperformed the S&P 500 by a wide margin this year, as seen in the chart below. In our consumables coverage universe, aggressive valuations have played a large part in the underperformance while the quality of the companies has been attractive. In addition, many of the companies, including Zevia, have demonstrated strong organic growth in large addressable markets.
Zevia makes zero-calorie soft drinks sweetened with Stevia (plant-based) and has plans to disrupt the $770B global non-alcoholic beverage market. Zevia is the largest Stevia beverage brand, driving share gains through its natural and better-for-you attributes. Zevia plans to raise $200 million by offering 14.3M shares between $13-$15. At the midpoint, it would have a fully diluted market value of $907 million.
CLICK HERE for webcast and materials at the time of the event.
Uber delivers Albertsons (ACI)
Uber announced that its on-demand and scheduled grocery delivery is now available to Uber and Uber Eats customers in over 400 cities across the U.S. Uber is doubling the availability this week. In addition, Albertsons added Uber’s grocery delivery service to 1,200 of its stores across several of its banners. The Albertsons agreement expands Uber’s grocery service from 100 cities and towns to more than 400. In addition, Albertsons recently began offering delivery from nearly 2,000 stores through DoorDash. For grocery orders over $30, Uber Pass and Eats pass customers do not have to pay for delivery. Uber said three million consumers order groceries and other essentials each month through Uber.
The line between restaurant delivery and grocery delivery providers is disappearing. The competition for drivers, the large market, improved utilization, and the fight for winning the last mile made offering both services inevitably. The grocery chains are fine with the dual offerings as many of them quickly realized that delivery has the lowest margins in online grocery. More grocery delivery announcements are likely as Instacart looks to go public later this year.
On-premise recovery decelerates (BUD)
According to CGA, on-premise velocity is up 73% compared to the prior year in the week ended July 10 (week 28). All the key states are ahead of comparable to 2019. The average velocity was up 23% compared to the comparable week in 2019. Over the past 12 weeks, velocity was up 118% vs. 2020 and up 23% vs. 2019. Compared to the previous week, average outlet dollar sales (velocity) trends decreased 1%, following declines of 8% across the 4th of July weekend. Compared to the same week in 2019, Texas had the strongest increase in velocity at +31%, California at +29%, and Florida at +27%.
