Gary Cooperman

Whiskey is emerging as a popular investment class among HNW investors according to a new report by KPMG: 27% said they plan to invest in whiskey within the next 3 years, making it the most popular form of "luxury" assets. Whiskey interest is followed by art (26%), jewelry (20%), wine (15%), and classic cars (14%). While increased capital moving into whiskey investments is likely to drive down returns in the long run, we believe the wholesale bourbon niche is still small enough to capture excess returns for investors who buy barrels in 2024. #bourboninvestments #alternativeassets #familyoffice #investmentideas https://lnkd.in/dgpdGCPd.

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CAVA (~$35M/restaurant) and Chipotle Mexican Grill (~$20M/restaurant) far outperform other industry comps for valuation per location. What's their secret? A recent conversation with investor Andy Giacone from Roark Capital summed it up brilliantly: "I've done due diligence on a LOT of public and private restaurants. One of the assets that consistently leads to the highest valuations is the robustness of a brand's loyalty program. For B2C businesses, a scale and high-performing loyalty program is almost as important as recurring revenue in B2B." Why? Performant loyalty programs offers predictability and therefore downside protection while also making it far easier to achieve robust future growth. McKinsey & Company concurs: "While growth is difficult to sustain, it is generously rewarded. In examining 15 major publicly traded restaurant companies... there was a more than 80 percent correlation between annualized same-store sales growth and annualized total shareholder returns.... Successful loyalty programs translate directly into financial results, often encouraging both larger order sizes and greater order frequency from program members. These programs can funnel customers into brands’ first-party delivery businesses, which offer the brand higher margins than it receives from orders conducted through third-party delivery services."

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Businesses can be focused on cash flow, backed by private equity, growth (VC), or aimed at long-term holding. But they will all have a different "feel" Cash Flow Focused: These businesses prioritize low overhead and quick returns on investment (ROI), showing little patience for building capacity. Scaling is difficult when cash isn't reinvested. Growth-Oriented: Companies driven by growth capital invest heavily to create the future company today, with less concern for immediate profitability. All about top-line revenue. Private Equity Backed: In PE-backed firms, the emphasis is on achieving a lucrative exit. The business is managed aggressively on a quarterly basis to maximize strategic value and EBITDA for the eventual exit. The quicker the sale, the higher the IRR. Long-Term Hold: These organizations prioritize minimizing risks over pursuing high returns, favoring a conservative approach. They view business as a marathon rather than a sprint. There is no single correct approach but the capital backing a business ultimately shapes the business.

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Big news in grocery retail M&A: Albertsons Companies has officially called off its USD 25 billion merger with Kroger, more than two years after announcing the deal. The decision follows rulings from state and federal judges blocking the transaction on antitrust grounds. In response, Albertsons has reaffirmed its standalone strategy and - for good order - filed a lawsuit against Kroger alleging the company failed to use "best efforts" and take "all actions necessary" to get the deal over the antitrust line. It's not uncommon for parties to get litigious when deals fall apart, but Albertsons (and its shareholder Cerberus Capital) seems pretty peeved about this one, having spent "hundreds of millions of dollars" 😨 seeking approval for the merger. A key nuance lies in the merger agreement's language: all the antitrust-related performance obligations in the agreement are based on a "reasonable best efforts" standard *except* for the clause relating specifically to Kroger’s obligations, which are held to the stronger "best efforts" standard—a small but significant distinction. It's unlikely this situation will be resolved anytime soon, but it will be interesting to see how it develops.

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Executive Edge | Issue Two: Suite Success. Should a case study approach be used to successfully hire C-level talent? ------- If you're a #cfo currently working in private equity, venture capital (or other investor types), or, you're a business seeking to hire transformational finance talent Camino Search specialises in head-hunting & consulting for investor-backed tech businesses. Globally. #fd #saas #pe #privateequity

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The face you make when you realize that you have become pretty good at sourcing off-market opportunities and have private equity and family office investors ready to back you, but you don’t have enough talent to take advantage of those opportunities. With that said, if you know of anyone in the commercial bakery, dry cleaning, food distribution, or commercial laundry space who is looking for board and/or C-level opportunities, please let me know. #boardadvisor #clevel #executives #commercialbakery #commerciallaundry #drycleaning #fooddistribution #privateequity #investmentbanking

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Papa Johns $PZZA just released their Q2 2024 earnings report, and it's a slice of reality in a competitive market 🍕. Revenue dropped due to economic pressures, but Papa John's is implementing strategies to tackle those challenges head-on. The company is focused on international restructuring and investing heavily in digital technologies to meet evolving customer preferences. They're also emphasizing operational efficiency and customer-centric initiatives. Despite the headwinds, Papa Johns remains optimistic about their long-term growth strategy. Will they succeed in navigating the current climate? Read More ➡️ https://lnkd.in/gc9Q37bz #PapaJohns #PZZA #Q2Earnings #Pizza #RestaurantIndustry

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There's a subtle but HUGELY important trend playing out in CPG that may have ripple effects across the entire industry: Modern consumers are starting to care less about legacy brands. This article was specifically about Kraft Mac & Cheese, but I think it's indicative of a wider trend happening across the CPG landscape, and in alcohol in particular. Many multi-national, household name brands don't carry the same weight with consumers that they did even five or ten years ago. So, what does this mean & what are the implications? Well, it has lots of implications but two things I feel strongly are true: 1. This is a particularly interesting time to be launching and scaling challenger CPG brands 2. Big CPG conglomerates will need to get aggressive in shaking up their portfolios Going to be an exciting and interesting few years in the space!

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VC Market Update: Riding Out the Post-Boom Bumps. 2021's high-flying valuations and growth have given way to a more complex reality. With longer private timelines, tough exit markets, and capital tightness, startups face unique challenges—but also fresh opportunities. For those navigating today’s VC landscape, strategic planning is key. Whether it's balancing growth with capital efficiency or exploring secondaries smartly, there’s a path forward. And with boosts from AI and future rate cuts, brighter days could be ahead!

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Traditional fast food stocks had a promising performance in Q1, with several companies exceeding expectations and demonstrating resilience in the market. Despite challenges regarding perceptions of healthiness, these chains showcased their strengths in delivering convenience and quality offerings to consumers. Restaurant Brands International reported impressive revenue growth, outperforming analysts' expectations and showcasing its strong market position. El Pollo Loco, Inc. had an exceptional quarter, surpassing expectations across multiple metrics and experiencing a significant increase in its stock price. These positive results underscore the robustness of these fast food brands and their ability to adapt to evolving consumer preferences. Read More Here: https://lnkd.in/eGxVFsEC Branded Hospitality Ventures #innovation #venturecapital #hospitality #marketing #startup Jourdan Daleo José Cil Chris Brigleb Duncan Fulton Nick Boyle Josh Kobza Maria Hollandsworth Liz Williams Brian Carmichall Samuel Nicholas Borgese Ira Fils

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Are #VC exits in standstill and what does it mean for the #CPG companies? Just a handful of large VC-backed companies have gone public since Q1 2022, exiting at only $70bn cumulative worth. i) less than the value recorded in any quarter in the record-breaking 2021 ii) staggering 90.5% decline from 2021’s record highs of $750bn iii) and more importantly the first time the figure has dipped below $100bn since 2016 What does it mean for CPGs? 1. Strategic Acquisitions: As VC-backed companies struggle to justify their high valuations or demonstrate the necessary fundamentals for IPOs, they may get forced to sell at lower price point to a strategic acquirer, and #FMCG players are well-positioned to capitalize on this lack trend 2. Investment opportunities for CVCs: smaller rounds and less competition may enable CPG companies to get stake in the most promising start-ups that would otherwise be quickly scooped by Sequoias and Tigers of this world ;) 3. Less 'well-funded' competition for incumbents: less exits and lower valuations means the large upstarts challenging leading FMCGs will need to be more frugal with resources potentially stifling investments As the saying goes, “In every crisis lies an opportunity.” CPG leaders who will navigate the best this environment may end up winning disproportionally (as we were writing on the topic) FMCG CEOs: 2023 M&A Report – Seven Key Learnings & Seven Predictions For 2024 https://lnkd.in/dT5A-jGZ To receive the corresponding deck, pl. leave your name in comment To get all our insights, follow us/ subscribe to our CEOs newsletter: https://lnkd.in/eR8vDpvE #strategy #zerobasedgrowth #mergersandacquisitions Frederic Fernandez & Associates

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If you were to go back in time, what is the biggest decision you would have changed OR the most important thing you have learned? For CPG brand founders, consultants or whomever. SHARE! #learning #cpgindustry #growth Stephen Gaither Forbes Fisher Jonathan Becker Eric Skae Paul Baudier Keith Kohler

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When launching a CPG brand, don’t try and create a product that is hard to manufacture unless you have a ton of capital. Too many times I see founders wanting to bring something to market that may be really cool and unique, but often times will have a complex manufacturing process. And when you have a complex manufacturing process, you often have to go to large copackers that will have high MOQs Focus on delivering a solid product that your brand represents. Once you lock in the consumer and build your brand at scale with your first product offering, then may venture into a more unique product type that is harder to make. Thoughts?

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Corporations will need to find the right balance between increasing prices and generating internal efficiencies to meet the margin goals. Cross-functional teams need to co-own the topic of creating internal efficiencies to support profit margin. Continuous high inflation is making it hard (in some cases unsustainable) to resort to further price increases.

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KNOW YOUR REAL BUSINESS ECONOMICS • GAAP Revenue • Cash Flow • Cash • Contribution Margin • CAC • CAC Payback FUNDRAISING: PRESENT & SUBSTANTIATE FINANCIALS • Investor needs to know what your forecasts are • They need to believe them David Weiden, Khosla Ventures

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Actual usage = Open inventory + Reciving + Transfer In - Transfer Out - End Inventory Theoretical Usage = Product mix Quality * Recipe The most 2 importat equation In Restaurants Food & Packing Cost

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Great article on Fast Co covering Oishii. This gets a little deeper into our strategy and shares some of my views on where we’re going if you are interested! https://lnkd.in/emWTWeCd

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BIG news in CPG: Keurig Doctor Pepper is acquiring Ghost Energy for over $1 BILLION. This is one of the larger deals we've seen in non-alc CPG in a while (we saw a $2B deal in the booze business just a few weeks ago). I think this is a great move by KDP and a good sign for CPG M&A markets overall. Many of the large, nationwide brands owned by the conglomerates have reached points of saturation. They're still incredible brands (and always will be), but in order to find new pockets of customers, these conglomerates will NEED to acquire new companies. I'm a firm believer that the best R&D strategy for any large CPG brand is in fact just a very effective and aggressive M&A strategy. Startups can be incredibly effective at testing, iterating, and fighting to build new, loyal customer bases. Large CPG companies are incredibly effective at scaling brands that are ALREADY working. This marriage between Ghost and KDP makes a ton of sense and likely won't be the last big CPG deal we see in the next few months. Excited to see which one comes next!

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