Dollar General builds a rural delivery edge over Walmart and Amazon—and it’s taking their higher-income shoppers, too
John Williams
Dollar General’s Q2 earnings make one thing evident—the discounter is no longer just competitive on price. It’s quietly building a delivery and digital ecosystem that could give it an edge in the one place big-box retailers still struggle: rural America.Recommended VideoDollar Generalturned in a stronger than expected second quarter, showing it can grow both sales and profitability in a retail backdrop where incumbents like Target are flailing. Revenue rose 5.1% to $10.7 billion, fueled by continuous same-store sales growth and new store openings, and earnings per share climbed 9.4% to $1.86. Operating profit increased 8.3% as tighter inventory control and lower shrink boosted margins, highlighting how the discounter’s multiple initiatives allow it to expand margins while pulling in more shoppers across income levels.The company’s rapidly scaled delivery partnerships, with DoorDash and Uber Eats, along with its own same-day delivery offering, are key elements in the story of its expanded operating profit. These new partnerships allow Dollar General to bring convenience into towns that have traditionally been beyond the reach of one-hour delivery promises, CEO Todd Vasos told analysts on an Aug. 28 earnings call.“We saw a 60% year-over-year increase on [DoorDash’s] platform … and we just signed a deal with Uber Eats. By the end of the third quarter, we’ll have 14,000 stores up and running on that platform,” Vasos said.Even more striking, Dollar General said more than 75% of orders are delivered in one hour or less, even in rural America.“That is the fastest that we’ve seen out there across the spectrum so far, especially in rural America, where it is hard to reach many, many customers. So we believe that’s a competitive advantage for us, and will continue to be as we move forward,” Vasos added.The scale-up has been swift and thorough. Dollar General now offers same-day delivery through DoorDash at over 17,000 stores, has created and expanded its own generic DG Delivery to nearly 6,000 locations, and expects to reach 16,000 by year-end, well ahead of earlier expectations. Its Uber Eats partnership, still in its early stages, has already launched in 4,000 stores.More than convenienceRural delivery isn’t just a play for convenience; for Dollar General it’s also drawing in wealthier customers. “We’re seeing trade-in accelerating … Not only our core customer but also mid- and high-income customers—all seeking value,” Vasos said.Larger delivery baskets, often north of $20, point to incremental spending by those households, Kelly Dilts, Dollar General’s chief financial officer, said during the call.The trade-down effect that Dollar General is capitalizing on is visible across other categories. Consumables remain strong, but what’s striking is growth in discretionary spending, which is often the first casualty of inflation.“Not only a strong 2.8% comparable sales number that we posted, but … sales were very balanced, as consumables and non-consumables contributed very nicely,” Vasos said.In Q2, he added, Dollar General reported positive same-store sales across each of its three non-consumable categories, with increases of at least 2.5%, while its home products category logged its biggest quarterly same-store sales gain in more than four years.The digital expansion is also reinforced by the DG Media Network, the company’s retail media arm, Vasos said. By leveraging unique data on rural shoppers, customers whom national CPG (consumer packaged goods) brands often struggle to reach, Dollar General is creating a digital revenue stream to complement its store growth. Taken together, these initiatives suggest Dollar General is carving out a defensible position in small-town America that Walmart or even Amazon can’t easily match. “Value to me, and I believe as our consumers look at it, is multipronged here at Dollar General, and is very sustainable,” Vasos said. “Our value proposition is as strong as ever, and customers resonate with that very nicely.” Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.
Wendy Williams Asserts ‘I Am Fully Cognizant’ in Recent Radio Interview — Tune In 2477
Linda Miller
View pictures in App save up to 80% data. Lars Niki/Getty Images for New York Women in Film & Television Despite her 2023 diagnosis of frontotemporal demensia and aphasia, former TV talk show host Wendy Williams is now disputing claims of her ailing health and says she is being abused by her guardianship. “I am not cognitively impaired,” Williams said while calling into iHeartRadio’s The Breakfast Club Thursday, adding that she wants to be released from the New York City care facility where she’s been living. “I feel like I’m in a prison.” (Go here to listen to the broadcast.) The television star elaborated on the facility's strict security measures, revealing that her family is unable to reach her, and expressing that she feels as though she is being kept “captive.” “For the past three years, I’ve celebrated my birthday alone,” she revealed. “This is a form of emotional abuse.” Williams’ niece, Alex Finnie, who also participated in the program, supported Williams’ statements, describing the facility as “a high-end prison.” Williams previously spoke out on her dementia and aphasia diagnoses, thanking fans for “the love and kind words” in a statement to People magazine. “Your response has been overwhelming. The messages shared with me have touched me, reminding me of the power of unity and the need for compassion.” She added: “I continue to need personal space and peace to thrive. Please just know that your positivity and encouragement are deeply appreciated.” Shortly after the diagnosis was announced, Lifetime premiered Where is Wendy Williams?, a four-part documentary produced by Williams herself. The program offers “a raw, honest and unfiltered reality of Wendy’s life after she was placed under financial guardianship, shedding light on the vulnerabilities that has turned Wendy into the Hot Topic herself,” per the official synopsis. “Suffering mental and physical issues, Wendy’s delicate state of mind, erratic behavior and declining health were all captured by the cameras.” Williams’ guardian Sabrina Morrissey sought legal action against Lifetime ahead of the premiere, asking that the documentary not be aired. After appearing in court, however, Lifetime was able to air the documentary as planned. Williams’ health struggles first came to light in 2017, when a fainting spell in the middle of a live broadcast caused many to begin questioning her health. She went public with a Graves’ disease diagnosis in 2018, one year before announcing that she was also living in a sober house. She hosted her final episode of the now-defunct Wendy Williams Show in 2021, and financial troubles soon followed.
5 Star Anise Benefits for Skin You Should Check Out ⋆ BeautyNews
David Brown
Star Anise, known for its spicy flavor, has a multitude of advantages for your health as well as the skin. Know the star anise benefits for skin below!What Is Star Anise?ContentsStar Anise, known for its spicy flavor, has a multitude of advantages for your health as well as the skin. Know the star anise benefits for skin below!What Is Star Anise?Star Anise Nutritional ValueStar Anise Benefits for Skin1. Reduces Wrinkles2. Relieves Skin Inflammation3. Hydrates Dry Skin4. Possess Anti-Microbial Properties5. Prevent Wound InfectionHow to Use Star Anise for Skin?Star Anise Tea RecipeStar Anise Anti-Aging SerumStar anise is local to northeast Vietnam and southwest China. This tropical perennial tree’s fruit has eight carpels that give star anise, its star-like shape. The vernacular names of star anise are:Star Anise SeedChinese Star AniseBadianBadiane de ChineBa Jiao HuiEight-Horned AniseAnis de ChineAnís EstrelladoAnis ÉtoiléAnis Étoilé ChinoisAniseed StarsAnisi Stellati FructusBadianeBajiaoChinese AniseChinese Star AniseIllicium VerumEight HornsChinese star anise is used in culinary, baked goods, confectioneries, and liquors. Furthermore, its oil is included as an active ingredient in skin creams, toothpaste, cooking, soaps, mouthwashes, and perfumes.Star Anise Nutritional ValueEight Horns has antiviral, antifungal, and antibacterial characteristics, making it a significant spice not only in dishes but also in different therapeutic practices.One ounce of star anise spice powder containsCalories 94Carbohydrate 13 gFat 4 gCholesterol 0 gProtein 5 gPotassium 404 mgVitamin C 1 %Iron 53 %.u24180364e8477493b7277fe0ccfb2a84 { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#eaeaea; border:0!important; border-left:4px solid #34495E!important; text-decoration:none; } .u24180364e8477493b7277fe0ccfb2a84:active, .u24180364e8477493b7277fe0ccfb2a84:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u24180364e8477493b7277fe0ccfb2a84 { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u24180364e8477493b7277fe0ccfb2a84 .ctaText { font-weight:bold; color:#464646; text-decoration:none; font-size: 16px; } .u24180364e8477493b7277fe0ccfb2a84 .postTitle { color:#9B59B6; text-decoration: underline!important; font-size: 16px; } .u24180364e8477493b7277fe0ccfb2a84:hover .postTitle { text-decoration: underline!important; } See alsoSee the Best Liquid Foundations for Mature Skin{The above percentages are based on a diet of 2000 calories a day.}Star Anise Benefits for SkinHere are some benefits of star anise for skin, that’s going to be an eye-opener for you!1. Reduces WrinklesThe dried star anise fruit is a natural skin toner and a detoxifying agent that reduces the appearance of wrinkles in no time. So, ditch your anti-wrinkle products, by making the badian face pack and serum at your home without any harmful additives.2. Relieves Skin InflammationThe extracts of star anise fruit have anti-inflammatory properties that give you relief from skin inflammation. Furthermore, it is used as a traditional medicine for the prevention of bronchitis, rheumatism, and asthma.3. Hydrates Dry SkinStar anise is a natural skin moisturizer that hydrates and restores your skin’s youthful look by eliminating the harmful toxins from the body, thanks to its antioxidant properties. Furthermore, it gives you smooth and toned skin as well.4. Possess Anti-Microbial PropertiesStar anise has anti-microbial components that prevent the development of bacteria, fungi, and yeast strains on the skin, as it’s rich in ‘Anethole.’ Use its essential oil to eliminate them.5. Prevent Wound InfectionAccording to this research, the ethereal oil of star anise works as a disinfectant by inducing antibacterial activity towards Acinetobacter baumannii, responsible for the wound infection.How to Use Star Anise for Skin?To give your skin a new lease of life, you can use badian dried fruit in many homemade remedies like skin tightening toner, face pack, anti-aging serum, facial moisturizer, and tea. Below you’ll find some recipes that give your skin a new life in a short period of time!.u270c8079a0d2d0a03fc78712441efddb { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#eaeaea; border:0!important; border-left:4px solid #34495E!important; text-decoration:none; } .u270c8079a0d2d0a03fc78712441efddb:active, .u270c8079a0d2d0a03fc78712441efddb:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u270c8079a0d2d0a03fc78712441efddb { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u270c8079a0d2d0a03fc78712441efddb .ctaText { font-weight:bold; color:#464646; text-decoration:none; font-size: 16px; } .u270c8079a0d2d0a03fc78712441efddb .postTitle { color:#9B59B6; text-decoration: underline!important; font-size: 16px; } .u270c8079a0d2d0a03fc78712441efddb:hover .postTitle { text-decoration: underline!important; } See alsoIrish Moss Skin Care Recipes ⋆ BeautyNewsStar Anise Tea RecipeSuppliesTwo Green Tea BagsOne Cinnamon Stick (Crushed Into Pieces)Three Whole Star AniseTwo Cups of Boiling WaterA TeapotOne Tea StrainerA CupDirectionsAdd two cups of boiling water and crushed cinnamon stick along with three whole star anise and two green tea bags into a teapot. Leave the mixture for 3-4 minutes to infuse them properly.Once it’s done, mix the resultant liquid well and strain it with the help of a strainer into a cup. Drink it regularly to utilize its benefits.Star Anise Anti-Aging SerumSuppliesFour Tablespoons of Jojoba OilFour Teaspoons of Vitamin EThree Tablespoons of Rosehip Seed Essential OilFive Whole Star Anise PodsFour Drops of Frankincense Essential OilFour Drops Lavender Essential OilA 4 Oz Dropper BottleA Cooking PotOne BowlOne StrainerA Small FunnelDirectionsAdd four tablespoons of jojoba oil, four teaspoons of Vitamin E, three tablespoons of rosehip seed essential oil, four drops of each frankincense and lavender essential oil into a bowl and put them into a pot filled with hot water. Leave them for 2-3 hours to infuse the star anise.Now strain the liquid using a strainer and pour them into the dropper bottle with the help of a small funnel.Take some drops of this serum and massage it gently all over the desired area, after washing the skin properly.The above star anise benefits for skin are definitely going to allure you to add this healthy and miracle spice in your daily diet! Besides this, you can also try the beetroot juice to get a naturally glowing skin..u6680ff39e63e95e11fa963a39b96d365 { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#eaeaea; border:0!important; border-left:4px solid #34495E!important; text-decoration:none; } .u6680ff39e63e95e11fa963a39b96d365:active, .u6680ff39e63e95e11fa963a39b96d365:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u6680ff39e63e95e11fa963a39b96d365 { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u6680ff39e63e95e11fa963a39b96d365 .ctaText { font-weight:bold; color:#464646; text-decoration:none; font-size: 16px; } .u6680ff39e63e95e11fa963a39b96d365 .postTitle { color:#9B59B6; text-decoration: underline!important; font-size: 16px; } .u6680ff39e63e95e11fa963a39b96d365:hover .postTitle { text-decoration: underline!important; } See alsoHow To Get Rid Of Ringworm With Bleach ⋆ BeautyNews
Aktingnya Fenomenal, Ini 5 Drakor yang Dibintangi IU yang Wajib Ditonton!
Jennifer Williams
Masih belum bisa move on sejak nonton konser IU bulan lalu? Nonton beberapa drama yang pernah dibintanginya yuk!Nggak hanya punya suara emas, IU juga piawai dalam berakting, lho! Penyanyi asal Korea Selatan yang baru konser di Indonesia pada bulan lalu ini sudah membintangi sejumlah drama dan beberapa di antaranya pun sukses besar. Bahkan, ia juga sudah memenangkan sejumlah penghargaan dalam kariernya sebagai seorang aktris di berbagai acara penghargaan ternama, seperti Baeksang Arts Awards dan Blue Dragon Film Awards.Penasaran, drama apa saja yang pernah dibintangi oleh IU? Baca terus untuk tahu drama apa saja yang dibintangi oleh IU yang patut ditonton!Baca juga:Yoo Yeon Seok dan Chae Soo Bin Bakal Jadi Pasutri di Drama Korea Terbarunya!Dream HighPenggemar K-Pop sejak generasi dua pasti nggak asing dengan drama ‘Dream High’. Yup,drama legendaris ini pun adalah drama bagi IU debut sebagai aktris. Drama ini bercerita tentang enam murid SMA yang ingin menjadi idola K-Pop. Sejumlah idola K-Pop ternama selain IU pun turut beradu akting di drama ini, seperti Suzy dari Miss A, Taecyeon dan Wooyoung dari 2PM, dan Eunjung dari T-ara.Moon Lovers: Scarlet Heart RyeoBuat yang suka dengansageukatau serial drama dengan genre sejarah fiksi, kamu wajib menonton ‘Moon Lovers: Scarlet Heart Ryeo’.IU berperan sebagai tokoh cewek utama yang awalnya berasal dari abad ke-21 namun terlempar ke jaman dinasti Goryeo pada tahun 941. Ia pun menjalani kehidupan di tengah-tengah delapan orang dan terjebak di politik istana kerajaan saat itu. Dijamin bakal susahmove ondari drama ini setelah menontonnya!Bel AmiSerial drama dengan genre komedi romantis pun pernah dibintangi oleh IU, yaitu ‘Bel Ami‘atau dikenal juga sebagai ‘Pretty Boy’. Drama ini seorang perempuan dari keluarga dengan ekonomi kurang berada yang diperankan oleh IU, membantu tokoh utama pria kaya raya yang disukainya untuk bisa bertemu dengan ayahnya. Siap-siap tertawa terbahak-bahak dengan berbagai kekonyolan yang ada di dalam drama ini!Baca juga:Banyak Tayang di Netflix, Ini 5 Drakor Bulan Mei yang Menarik untuk Ditonton!Hotel Del LunaAyo uji nyalimu dengan menonton ‘Hotel Del Luna’ karena drama ini menceritakan tentang hotel yang dimiliki oleh karakter yang diperankan oleh IU dan para tamunya adalah hantu. Sebenarnya, sebagian besar hantu yang ditampilkan di sini nggak seram. Tapi, ada beberapa yang cukup bikin merinding dan adegan menegangkan. Jadi, sebaiknya kamu menonton drama ini pada siang hari jika nggak terbiasa menonton horor.The ProducersPenasaran dengan kehidupan pekerjaan para PD (producer-director) televisi di Korea Selatan? Drama dengan genre komedi ini menceritakan tentang keseharian mereka bekerja dengan jadwal yang selalu padat. IU sendiri bukan berperan sebagai PD di drama ini, melainkan seorang penyanyi terkenal. Berbeda denganimageIU yang sesungguhnya, karakter yang diperankannya justru dikenal sebagai seorangice princesskarenapoker face-nya dan seringkali menyembunyikan emosinya.Baca juga:Penuh Momen Spesial, Konser IU di Jakarta Day 2 Akan Melekat di Memori UAENAItulah lima dari sejumlah drama yang pernah dibintangi IU. Apakah ada yang sudah pernah kamu tonton? Atau baru berencana untuk menontonnya? Tuliskan dicomment,ya!Images:Dok. IMDB, Dok. Instagram/@dlwlrma
Dollar General builds a rural delivery edge over Walmart and Amazon—and it’s taking their higher-income shoppers, too
John Williams
Wendy Williams Asserts ‘I Am Fully Cognizant’ in Recent Radio Interview — Tune In 2477
Linda Miller
5 Star Anise Benefits for Skin You Should Check Out ⋆ BeautyNews
David Brown
Aktingnya Fenomenal, Ini 5 Drakor yang Dibintangi IU yang Wajib Ditonton!
Jennifer Williams
Sudah Tamat, Ini 3 Keunikan Drama ‘Secret Ingredient’ yang Menarik Ditonton!
Robert Williams
Nike’s ‘Why do it?’ campaign has a Gen Z twist—but branding experts are skeptical, saying it messes with one of the most iconic taglines in history
Emily Jones
Americans are the most optimistic about the economy since just after Trump’s inauguration
Michael Jones
Krispy Kreme, McDonald’s call off partnership, citing ‘unsustainable operating costs’ of $28.9 million
Emily Johnson
Is Vicks VapoRub Good For Wrinkles? ⋆ Bright things
Sarah Jones
How to Make Your Own Face Wash (7 Steps)
Michael Johnson
Hermès CEO says the booming Birkin resale market prevents the luxury brand from serving its ‘real customers’: ‘It doesn’t make me feel in a good mood’
David Johnson
There should be only one true place to buy a Birkin bag,according to Hermès CEO Axel Dumas. The chief executive told investors this week the luxury handbag’s secondhand marketplace was a “real cause for concern,” as many customers were purchasing the item just to resell it for exponentially higher than its retail price.Hermès CEO Axel Dumas wants to make one thing clear: There’s only one Birkin bag and one place to get it.Recommended VideoThe luxury brand boss expressed his frustration with the resale market that has emerged for the collectible handbag, telling investors during a second-quarter earnings call on Wednesday buyers purchasing the arm candy just to hike up its price for a secondhand sale are diluting Hermès’ true consumer base.“Sometimes we have false customers come to our stores to buy them, to resell them, and they prevent us from serving our real customers, and that is a real cause for concern for us,” Dumas said.“So, I’m not at all happy to see this development of new bags that are sold in the secondhand market,” he added. “I pull a face, and I’m not happy, and it doesn’t make me feel in a good mood.”The Birkin bag, which can run buyers at least $12,000 and up to six figures, has been worn by a litany of celebrities like Cardi B and Victoria Beckham, with its exclusivity making the accessory a status symbol. In Q2 2025, Hermès reported a 9% sales bump, largely due to the continued popularity of its Birkin, Kelly, and Constance bags, which have helped it weather the luxury slowdown.While the bag’s coveted status has buoyed Hermès’ sales, it’s also encouraged an active secondhand market for the bag. Because of the bag’s limited production and Hermès’ elusive criteria to even be allowed to purchase the item, resellers have jumped at the opportunity to auction off the bags. The Birkin’s resale cost can exponentially appreciate beyond its sticker price, comfortably doubling in cost and, by some measures, outpacing the S&P 500 and the price of gold.The original Birkin bag, once owned by late British actress and singer Jane Birkin, sold earlier this month at Sotheby’s Paris for a cool $10 million.Hermès did not immediately respond toFortune’s request for comment.Imitation is the sincerest form of flatteryThe behavior of buying to sell may be viewed by Dumas as taking “opportunistic advantage” of the brand, according to Marie Driscoll, an equity analyst focused on luxury retail.“He looks at the product and the brand as something more than a commodity,” Driscoll toldFortune. “Intrinsically, he thinks these are artistic pieces that are a product of someone’s imagination and someone’s hard work and labor and some of the best that Hermès can do. I think some of it has taken on a life of its own.”Dumas has long been an advocate for the sustained exclusivity of the Birkin. Last year, Walmartlaunched a lookalike—or “dupe” of the bag for $78, which quickly emptied off the discount retailer’s shelves. The Hermès CEO told investors in February he was “irritated” by the copy-cat’s popularity, though he said he understood consumers weren’t buying the “Wirkin” believing it was the real deal.“Making a copy like this is quite detestable—it’s stealing the creative ideas of others,” Dumas said.Still, the luxury brand’s exclusivity has drawn the ire of some shoppers, including two California customers who sued Hermès in 2024, claiming the company engaged in “anti-competitive” practices by requiring prospective Birkin buyers to establish themselves as “worthy” customers by purchasing ancillary Hermès products.While some luxury brands like Gucci and Balenciaga have engaged more with the certified resale market to attract new customers, Hermès likely won’t, Driscoll said. There’s still sustained demand for the bag and, therefore, little reason for Hermès to disturb the mystique it has worked so hard to create.“You’re going to have to have a longer engagement, which is kind of, in a very romantic sense, like being engaged to someone before the culmination of the wedding night,” she said. “You’re just going to have to postpone gratification.”Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
A popular TikTok influencer has successfully raised more than $550,000 to support a woman in need, and she was taken aback when he revealed the total amount. 2478
John Williams
WICHITA, Kansas (KAKE) — Spencer, the man behind SB Mowing, has become a viral sensation after helping a Wichita woman avoid city fines by cleaning up her overgrown yard. His generosity didn’t stop there. After months of struggling to find assistance, Beth found herself facing a $240 fine from the city. Fortunately, Spencer stepped in, offering to tidy up her yard at no cost after being informed by a city worker who wanted to help prevent a citation from being issued. His video resonated deeply on TikTok, racking up more than 100 million views across various platforms. Viewers flooded the comments section, expressing their desire to help Beth, which inspired Spencer to launch a GoFundMe campaign. Within just one day, over 21,000 generous individuals contributed, raising upwards of $550,000 to construct an accessibility ramp, create a new driveway, and address additional necessities. “I mentioned to her that I had a bit more information to share,” Spencer recounted. “I asked her to hold my hand and breathe deeply, as I was worried she might faint when I revealed the total amount we had raised.” When he finally disclosed the figure, Spencer noted that she was so taken aback that she couldn't even shed a tear. Spencer characterized Beth as “incredibly humble,” and she found herself deeply moved by the generosity of those around her. “She repeatedly asked me, ‘Why me? Why would anyone go out of their way for me?’” Spencer remembered. According to Spencer, the funds will be utilized judiciously, and he intends to keep the GoFundMe campaign active for the remainder of the week.
Kraft Heinz to split in 2 after 10 years as one of the largest food companies in history
Jennifer Davis
Kraft Heinz is splitting into two a decade after a merger of the brands created one of the biggest food companies on the planet.Recommended VideoOne of the companies, currently called Global Taste Elevation Co., will include shelf stable meals and include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese, Kraft Heinz said Tuesday. The other, currently called North American Grocery Co., will include brands such as Oscar Mayer, Kraft Singles and Lunchables. The official names of the two companies will be released later.Kraft Heinz said in May that it was conducting a strategic review of the company, signaling a potential split.The company in 2015 wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz and other food producers have shifted offerings to follow that trend.“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” Executive Chair Miguel Patricio said in a statement.The path to the merger of Kraft and Heinz began in 2013, when billionaire investor Warren Buffett teamed up with Brazilian investment firm 3G Capital to buy H.J. Heinz Co. At the time, the $23 billion deal was the most expensive ever in the food industry.3G was also behind the formation of Restaurant Brands International — a merger of Burger King, Tim Hortons and Popeyes — and Anheuser-Busch InBev. It’s known for strict cost controls and so-called zero-based budgeting, which requires all expenses to be justified each quarter.The deal was intended to help Heinz, which was founded in 1869 in Pittsburgh, expand sales of its condiments and sauces on grocery store shelves. Heinz’s new owners also set about cutting costs, laying off hundreds of workers within months.At the same time Kraft, based in Chicago, sought for a partner after a 2011 split from its snack division, which became Mondelez International.In 2015, Buffett and 3G decided to merge Heinz with Kraft. The merger created the 5th largest food and beverage company in the world, with annual revenue of $28 billion. Buffett and 3G each contributed $5 billion for a special dividend for Kraft shareholders.But the combined company struggled, despite layoffs of thousands of employees and other cost-cutting measures. Even at the time of the merger, many consumers were shifting away from the kinds of highly processed packaged foods that Kraft sells, like Velveeta cheese and Kool-Aid.Kraft Heinz also had trouble distinguishing its products from cheaper store brands. At Walmart, a 14-ounce bottle of Heinz ketchup costs $2.98; the same size bottle of Walmart’s Great Value brand is 98 cents.In 2019, Kraft Heinz slashed the value of its Oscar Meyer and Kraft brands by $15.4 billion, citing operational costs and supply chain problems. But many investors blamed the company’s leadership, saying its zeal for cost-cutting was hurting brand innovation.In 2021, Kraft Heinz sold both its Planters nut business and its natural cheese business, vowing to reinvest the money into higher-growth brands like P3 protein snacks and Lunchables.But the company’s net revenue has fallen every year since 2020, when it saw a pandemic-related bump in sales. In April, Kraft Heinz lowered its full-year sales and earnings guidance, citing weaker customer spending in the U.S. and the impact of President Donald Trump’s tariffs.Carlos Abrams-Rivera will continue to serve as CEO of Kraft Heinz and will become CEO of North American Grocery Co. once the separation is complete. Kraft Heinz said that its board is working with an executive search firm to identify potential CEO candidates for Global Taste Elevation Co.Kraft Heinz has no plans to change its current headquarter locations in Chicago and Pittsburgh. It currently expects the transaction to close in the second half of 2026.Shares of the company rose slightly before the market open.Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.
Starbucks hops on the health craze with protein coffee weight-loss influencers had been concocting in its drive thru for months
Michael Miller
Starbucks is rolling out a protein-richproduct line starting Sept. 29. Its new protein cold foam and protein lattes aim to capitalize on the growing cohort of health-conscious consumers, from Gen Z TikTokers to GLP1 users, experts tellFortune. The products also may substitute a viral trend that had customers act as their own mixologists in the coffee chain’s drive thru.Everything is being protein-ified. Now it’s Starbucks’ turn.Recommended VideoConsumer and retail brands have ventured beyond powder in an attempt to capture health-conscious customers who might search for their protein fix in every day bites like cereal or popcorn. Now the coffee chain, known for its sugary speciality drinks, wants in.Starbucks announced a new product line of protein-packed lattes and protein cold foam, saying a grande 16-ounce order could have as much as 36 grams of protein. The new product lines will roll out in U.S. and Canada stores on Sept. 29.Experts tellFortunethe move follows a wave of health-conscious consumers craving high-protein, low-calorie food options—but it’s also an opportunity to capitalize on a viral DIY protein coffee trend first created by TikTok health influencers.Starbucks will offer sugar-free and unsweetened iterations of its protein cold foams and lattes, per the company’s Tuesday announcement. The new product line is a push to modernize its menu with “hype-worthy products,” said Tressie Lieberman, Starbucks global chief brand officer.“Our new protein beverages tap into the growing consumer demand for protein in an innovative, premium and delicious way that only Starbucks can deliver,” Lieberman added.Starbucks declined to provide additional comment toFortune.The demand for protein coffeeStarbucks protein coffee isn’t anything new—at least not to creators who have been acting as in-car baristas, ordering a double shot of espresso over ice in a venti cup and mixing in Koia vanilla bean protein shakes, which are also sold at the coffee chain. Some customers take it even further, bringing their protein shakes of choice from home. The trend has even pushed protein powder companies to market their product as a perfect mix-in for the viral trend. Now Starbucks is trying to reclaim its business and boost a healthier image to increasingly protein-obsessed customers.“Historically, many of the Starbucks specialty drinks have had connotations of being more sugary or higher-calorie,” Michael Della Penna, chief strategy officer at InMarket, toldFortune. “This introduction of protein cold foams marks a shift towards re-engaging those health-conscious consumers who might’ve switched to another shop or started making protein coffees at home.”The global chain is the first major coffeehouse to introduce protein-packed espresso drinks to its menu, but the trend is industry-wide.“Protein is certainly having a macronutrient moment,” Matt Bachmann, CEO of Wandering Bear Coffee, a New York-based cold brew company, toldFortune. Bachmann’s company is releasing a protein-based cold brew coffee later this month, using nutrition as a “north star.” Internal research showed that among iced coffee drinkers, “high protein” is the most common general diet guideline followed, Bachmann said.“I believe for many credible reasons protein has staying power,” Bachmann said. “But the bigger trend here is about general wellness and nourishment from the foods we eat.”Functional drink crazeHalf of Gen Z adults said they consider “high protein” an important part of a healthy eating regimen, according to a recent report by Morning Consult. The same report found social media is 72% of the age group’s primary source for wellness information. For all U.S. adults, 59% reported explicitly following a high-protein diet.Food scientist Bryan Quoc Le toldFortunethe strong trend for consumers seeking to increase their protein intake is a part of a wide movement as consumers are realizing that high protein consumption is correlated to losing weight and gaining muscle. “Additionally, many consumers… hope to gain functional benefits from their coffee consumption,” said Quoc, who has a Ph.D. in food science from the University of Wisconsin.The functional beverage market (beverages that are manufactured and marketed to highlight a specific ingredient, connoting wellness) have grown in popularity over recent years. The global functional beverages market size reached $175.5 billion in 2022 and is expected to hit $339.6 billion by 2030, according to a report by Zion Market Research.Linda Orr, marketing and sales consultant at Orr Consulting, toldFortuneStarbucks’ new drinks will cater to two important consumer bases: Gen Zers and the GLP-1 cohort by introducing a health-marketed product into a product many people can’t go without for a day. “Starbucks is transforming a treat-based ritual into a functional habit,” Orr said. “Framed well, it lets customers feel virtuous about a daily coffee while simplifying morning decisions. It adds options beyond the 390-calorie pumpkin spiced latte.”Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.
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