DoorDash, ALDI Expand Service to Include Alcohol
DoorDash, the local commerce platform, and ALDI, the grocery price leader for six years running, have expanded their partnership, announcing that consumers can now order on-demand alcohol delivery from more than 1,200 ALDI locations across 21 states on DoorDash. With the addition of ALDI, one of America’s fastest-growing retailers, nearly 80% of DoorDash consumers can now access alcohol through safe, age-verified delivery.
“In addition to giving merchants a new way to reach customers, on-demand alcohol delivery helps partners grow their business. On DoorDash, adding alcohol may increase grocers’ average order value by up to 30%. Order values for U.S. convenience orders were on average over 50 percent higher when alcohol was added,” said Fuad Hannon, vice president of new verticals at DoorDash. “We’ve worked hard to build a trusted alcohol ordering and delivery experience. The expansion of our partnership with ALDI reinforces our commitment to provide growth opportunities for local merchants, while simultaneously providing a safe, high-quality experience for customers.”
This expansion comes just a few months after DoorDash and ALDI first announced their partnership to bring on-demand grocery delivery to nearly all ALDI locations nationwide. Now, consumers can conveniently shop the private-label selection of top-quality, award-winning wine, beer, hard seltzers and ciders, along with all their grocery needs, at the affordable prices they expect from ALDI. On-demand orders can be placed from local ALDI stores via the DoorDash Marketplace app or website.
“ALDI offers an everyday selection of private-label adult beverages and rotates in limited, seasonal flavors so there’s something for everyone,” said Scott Patton, VP of national buying, ALDI. “Earlier this month we also launched a new, premium ‘Specially Selected’ wine collection, with most bottles costing under $10. With the expansion of our DoorDash partnership, more consumers can now sip their favorite ALDI products at the prices they love, delivered straight to their door.”
Earlier this year, DoorDash released its inaugural Alcohol Online Ordering Trends Report, a deep dive into the changing landscape of consumer online ordering preferences and emerging dining and drinking trends. The report found that delivery was the preferred way for consumers to safely purchase alcohol with more than 100 percent year-over-year growth for alcohol pickup and delivery on DoorDash from 2021 to 2022. Comfort, convenience, and time-savings are the top reasons consumers say they enjoy using alcohol and delivery services.
Since launching alcohol in 2020, DoorDash has built an impressive alcohol catalog including more than 100,000 SKUs available for purchase across thousands of grocers and restaurants nationwide. U.S. customers across 32 states can access a wide selection of alcoholic beverages, whether it’s to-go drinks from a favorite local restaurant or celebratory champagne from a nearby local store.
DoorDash is deeply committed to delivering alcohol safely and in compliance with local laws and regulations, and has enacted best-in-class safety protocols, including advanced two-step ID verification, alcohol-specific safety compliance modules and a streamlined returns flow for Dashers, and a voluntary self-exclusion or opt-out register for consumers who don’t want alcohol delivered on the platform or in marketing. The company will continue to develop and launch innovative safety features so alcohol deliveries can be responsibly facilitated through the DoorDash platform.
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Craft Ice Maker Lux Ice Appoints F&B Veteran Crouse as CEO
Craft ice manufacturer Lux Ice USA has appointed food and beverage industry veteran Michael Crouse as chief executive officer. Crouse joins Lux Ice with over 30 years of commercial and general management experience in both the retail and foodservice sectors in North America. His previous roles included president of US Foodservice at Kraft Heinz and VP/GM of US Supermarkets at the Frito Lay division of PepsiCo. Most recently, he was the head of US prepared foodservice at Tyson Foods.
“We are very excited to have a leader of Michael’s caliber join Lux Ice to lead us in the next chapter of our growth story,” said Shawn Kilcoyne, founder & chairman at Lux. “As we expand our premium craft ice business from retail into restaurants and across other foodservice channels, Michael is ideally suited to rapidly build our distribution and customer partnerships.”
Lux Ice managing partner Mark Rogers adds, “Michael embraces our core values and has quickly demonstrated a passion for our vision to elevate every beverage experience, and to be a company that positively impacts our community.”
“I am thrilled to join the team at Lux Ice USA,” said Crouse. “It’s incredible how far the company has come in such a short period of time, and I’m honored to work with such a talented and diverse group of team members that we have here at Lux.”
Lux Ice USA a leader in the fast-growing craft ice industry, was founded in 2020 by Kilcoyne. Elevating beverage experiences with slow-melting, crystal clear ice spheres, Lux Ice USA is available at leading retailers, restaurants and other foodservice locations nationwide. Through its core values of trust, agility and ownership, Lux Ice strives to be the “coolest” place to work and engage in its communities to support long-term self-sustaining employment.
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J.M. Smucker to Acquire Hostess for $5.6B
Hostess Brands, Inc., has entered into a definitive agreement with The J.M. Smucker Co. to acquire all of the outstanding shares of Hostess Brands in a cash and stock transaction valued at $34.25 per Hostess Brands share, representing a transaction value of approximately $5.6 billion, including the assumption of debt.
Under the terms of the agreement, Hostess Brands shareholders will receive $30 in cash and 0.03002 shares of The J.M. Smucker Co. common stock (valued at $4.25 as of Sept. 8, 2023) for each share of Hostess Brands common stock. The purchase price represents a premium of approximately 54 percent to the closing price of $22.18 on Aug. 24, the last trading day prior to press reports of a potential transaction.
Andy Callahan, president and chief executive officer of Hostess Brands commented, “I am extremely proud of the entire Hostess Brands team for the legacy they created in building a premier snacking company and driving industry leading returns for our investors. Today represents another exciting chapter for our company as we combine our iconic snacking brands with The J.M. Smucker Co.’s family of beloved brands.
“We believe this is the right partnership to accelerate growth and create meaningful value for consumers, customers and shareholders. Our companies share highly complementary go-to market strategies, and we are very similar in our core business principles and operations. Above all else, Hostess Brands and The J.M. Smucker Co. share a deep commitment to inspiring moments of joy and satisfaction through our products, and we look forward to continuing to do so as part of The J.M. Smucker Co. family.”
“We are excited to announce the acquisition of Hostess Brands, which represents a compelling expansion of our family of brands and a unique opportunity to accelerate our focus on delighting consumers with convenient solutions across different meal and snacking occasions,” said Mark Smucker, chair of the board, president and chief executive officer of The J.M. Smucker Co. “With this acquisition, we are adding an iconic sweet snacking platform; enhancing our ability to deliver brands consumers love and convenient solutions they desire; and leveraging the attributes Hostess offers, including its strong convenience store distribution and leading innovation pipeline, combined with our strong commercial organization and consistent retail execution across channels to drive continued growth.
“Our organization is well positioned to deliver on the great potential our expanded family of brands offers, as has been reflected by our history of growth through acquisition and the successful integration of new categories to our business. We look forward to this exciting new chapter for The J.M. Smucker Co.”
Under the terms of the agreement, The J.M. Smucker Co., through its wholly owned subsidiary SSF Holdings, Inc., will commence an exchange offer to acquire all outstanding shares of Hostess Brands. Stockholders will receive $30 in cash and 0.03002 shares of The J.M. Smucker Co. common stock for each share of Hostess Brands common stock.
The closing of the exchange offer will be subject to certain conditions, including the tender of at least a majority of the outstanding shares of Hostess common stock and other customary closing conditions, including receipt of required regulatory approvals. Upon the successful completion of the exchange offer, The J.M. Smucker Co. will acquire all of the remaining shares of Hostess Brands common stock that were not acquired in the exchange offer through a second-step merger for the same consideration per share as paid in the exchange offer.
The cash portion of the transaction is expected to be funded through a combination of cash on hand, a bank term loan and long-term public bonds.
Both The J.M. Smucker Co. and Hostess Brands boards of directors have unanimously approved the transaction. The transaction is anticipated to close in the third quarter of The J.M. Smucker Co.’s current fiscal year ending April 30.
Morgan Stanley & Co. LLC and Morgan, Lewis & Bockius LLP are serving as financial and legal advisors, respectively, to Hostess Brands.
Hostess Brands, Inc. is a premier snacking company with a portfolio of iconic brands; Hostess Brands makes America’s No. 1 cupcake, mini donut and zero sugar cookie brands. With annual sales of $1.4 billion and approximately 3,000 dedicated team members, Hostess Brands produces new and classic snacks, including Hostess Donettes, Twinkies, CupCakes, Ding Dongs and Zingers, as well as a variety of Voortman cookies and wafers.
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