CHAPTER 11 (KVUE, PRGO, HLN)
Rite Aid filed for Chapter 11 bankruptcy over the weekend. The company said it would close stores but plans to stay in business while restructuring its debt. Rite Aid said it has raised $3.45B in financing while it continues to operate its stores. Rite Aid has about 2,000 stores across 17 states. The bankruptcy process will aid the company in closing stores and exiting leases, restructuring its debt, and addressing opioid lawsuits. Merchandise suppliers are often among the largest unsecured creditors. However, Rite Aid will be a relatively small customer that needs its suppliers.
Non-dairy startup (OTLY, STKL)
Bon Vivant, a France-based precision fermentation startup, raised €15M in an oversubscribed seed fundraising round. All of the investors in the April 2022 pre-seed round of €4M participated. The company uses biotech techniques to reprogram yeast microorganisms to produce animal-free milk proteins. Bon Vivant’s milk proteins could be used to produce vegan cow milk. The company aims to be a supplier to the non-dairy industry, not a competitor. The biggest challenge in creating dairy milk-like and cheese-like textures is the whey and casein proteins that Bon Vivant is developing. The startup is seeking regulatory approval to commercialize its milk proteins in the U.S. as early as 2025. Bon Vivant’s process uses a small fraction of the water, energy, and greenhouse gas emissions of the dairy industry. Green appeal is a large segment of the non-dairy industry. Continued investment into recreating the taste of dairy milk and cheese will narrow the differences. Enzymes are generally utilized by the plant-based industry to create tailor textures and mouthfeel of the beverages. The plant-based milk industry continues to innovate in the sector while the dairy industry continues to be on its back foot as a share donor.
Halloween Candy Top Ten (HSY)
Instacart revealed its top candy choices for Halloween this year. The company based the list on the total weight of each type of candy sold last October. At the top were Reese’s Peanut Butter Cups, Peanut M&Ms, classic M&Ms, Hershey’s Milk Chocolate, Twizzlers, Kitkat, and Starburst. Chocolate candy dominates Halloween choices. The three additions to the top ten include Tootsie Pops, Sour Patch Kids, and Candy Corn. The National Retail Federation predicts consumers will spend $3.6B on Halloween candy this year, up 16% from $3.1B last year. Nearly half of Halloween candy sales occur in the last week of October. Hershey has four of the top ten Halloween candies. Hershey has more capacity for this year. Halloween is the biggest season for the confectionery companies.
