Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

Retail Brew

Erin Cabrey

retailbrew.com

Valentine's Day chocolates in a store aisle 

Valentine's Day confection prices increase

Confection giants like Hershey and Mondelez continue to implement price hikes

Valentine’s Day indulgences are coming at a higher price this year

The Farm Bill's impact on retail 

 The multiyear landmark legislation for food and agriculture has governed programs and policies since 1933.

A new Farm Bill is coming this year, and it promises to impact the retail industry

Too Good to Go users have formed a community around getting the best haul for the lowest price

Consumers are using this food-waste app to cut down their food spending

Simply orange orange juice, milk, eggs, ice cream and paper towels in front of goPuff bag

Food & Bev

Andrew Adam Newman

Paper towels that had been shrinkflated accounted for 38.6% of total revenues in their category, according to a recent study by the US Government Accountability Office (GAO) for the period of 2021 through 2023. Boxes of cereal that had been shrinkflated, meanwhile, accounted for 8.6% of total revenue in their category during the same period, according to the study, which relied on NielsenIQ retail scanner data.

However, the number of products that are subject to 

—the term for products being downsized, often imperceptibly, without lowering the price—is significantly smaller, reflecting that the practice is more common for popular products. With paper towels, only 3% of items across the category were shrinkflated yet accounted for that 38.6% category share; for cereal, it was just 1.1% of shrinkflated items that commanded that 8.6% share.

The study—a 63-page doorstop prepared for a subcommittee of the Senate’s Committee on Health, Education, Labor and Pensions—also examined four other categories: toilet paper (where shrinkflated products accounted for 11.6% of sales in the category), coffee (about 7% of sales), laundry detergent (about 3%), and over-the-counter pain relievers (about 1%).

For consumers who’ve taken to social media to 

 when they discover instances of shrinkflation, this aspect of the report will come as bad news: The strategy seems to be working for brands like a 

Researchers reviewed six studies on how consumers respond to shrinkflation, and the common theme—even though shrinkflated items effectively are more expensive because shoppers pay more by volume—is raising prices without shrinking them has a more detrimental effect on products’ sales.

“Consumers were less likely to change their purchases in response to product downsizing than to an equivalent total price increase,” the report stated.

One study found that 93% of items that were shrinkflated saw no “statistically significant decline in the number of packages sold,” and some of them even saw more sales. Another found that raising the price of a product by just 1% resulted in a loss of sales of nearly double that: 1.95%. Conversely, shrinking the product by 1% led, inexplicably, to a slight increase of 0.76% of packages sold.

“This limited responsiveness” from consumers to products being shrinkflated, the report stated, “could stem from lack of awareness of subtle packaging changes” and from “strong consumer preference for certain products and brands.”

Befitting a report issued to a committee of lawmakers, it also reviewed laws and policies that aim to inform consumers who might not 

 that there’s less toothpaste in the tube or fewer tortillas in the package.

In 2024, the study noted, France began requiring retailers to 

 on shelves warning consumers that products had been shrinkflated. That same year, South Korea put the onus on manufacturers to post notifications on a product’s packaging or at the product’s point of sale, including e-commerce sites.

The report noted that about 16 states and Washington, DC, have enacted uniform unit pricing regulations, which require retailers to display price-per-unit cost (often cost per ounce).

While the intentions of such laws might not be to flag shrinkflation per se, the report suggested that the regulations “can help consumers compare prices and make informed decisions” and as a result be a detriment to brands that have shrinkflated their products.

A 2024 study, for example, looked at how consumers responded to tuna brands shrinkflating their cans in states that had unit pricing regulations compared to states that did not.

Compared to states that had no such regulations, consumers in states with unit pricing requirements reduced their purchases of products that had been shrinkflated by 30%–84%.

Four paper shopping bags contain progressively smaller grocery items and are progressively less full. 

Shrinkflated paper towels accounted for 38.6% of category sales revenue

For cereal, it was 8.6%, per the GAO. 

 spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click 

Lena Kwak is co-founder and VP of product at Starday Foods, an AI-powered food product innovation company.

How would you describe your job to someone who doesn’t work in retail? 

I drive product innovation at Starday Foods and help decide which CPG products we launch based on my background founding food companies and leading the R&D department at the three-Michelin star restaurant, The French Laundry. I combine my culinary experience, food science, and nutrition background to help turn Starday’s trend insights into flavorful, practical products that fill gaps in consumer demand.

One thing we can’t guess about your job from your LinkedIn profile?

 In the tech world, “product” often feels dehumanized and overly data-driven. A big part of my role is to reintroduce the human element and advocate for the complexities of real behavior behind the numbers. When I analyze these numbers, I’m not just looking at trends; I’m forming hypotheses on what is driving this human behavior—often through the lenses of identity. At Starday, we like to understand all these trends together to know the full network of problems we need to address. Instead of responding to each trend that comes up, we see how the trends interact with each other, match the patterns and create the product that matches those patterns the best.

What’s your favorite project you’ve worked on?

 Our chickpea protein toppers, All Day, is my favorite product to date—and it pretty perfectly shows the power of what we can develop by understanding the complexity of human decision-making. Our data was starting to show a rising desire for more vegan protein options, while also a matching interest in cleaner vegan alternatives at the same time. Because of that, we chose to use a chickpea base for our toppers to satisfy both intersecting trends. People want convenience and nutrition, but they also crave variety and excitement. That insight led us to develop All Day—it’s an easy, seamless way to add flavor, protein, and novelty to meals.

Which emerging retail trend are you most excited about right now, and why? 

While it is certainly not the sexy macronutrient on the market, fiber is a tried and true supplement that most Americans need more of. With growing awareness of the importance of blood sugar control and digestive system diseases, more products are on the market with increased fiber. Though these are less popular than products that promise silver-bullet solutions, fiber offers a wide range of proven health benefits and should not be overlooked.

Worst piece of advice you’ve received? 

“Never give up.” I think it’s important to understand where to let go and pivot sometimes.

What was your favorite retail product when you were 15, and what’s your favorite retail product now? 

Tortilla chips—it stands the test of time, and I’ll always love a good tortilla chip.

A portrait of Lena Kwak,  co-founder and VP of product at Starday Food against a pink graphic backgrond.

Coworking with Lena Kwak	

She’s co-founder and VP of product at Starday Foods.

Jeena Sharma

For Eric Shin, the path to becoming a restaurateur didn’t start in a kitchen, it started with a pair of drumsticks.

While most people only know him as the founder and CEO of SeoulSpice Korean Kitchen—with 10 locations across the country and counting—he also moonlights as the principal percussionist for the National Symphony Orchestra in Washington, DC.

As the child of Korean immigrants who also ran a Korean eatery, Shin’s ascent into the food business may seem natural but it wasn’t always that straightforward. In fact, growing up, he aspired to emulate the aspirations of his dad, who wanted to be a software engineer. 

“I was obsessed with computers, video games, and oddly enough, sports; my dad really wanted me to fit into Western culture,” he told Retail Brew. “He had me playing baseball, football. I was into skateboarding—just a little potpourri of everything Americana.”

Fast forward to high school, and he said he was already running a web design business while also “getting into classical music and jazz.”

“I figured, since I already had my company in high school, I didn’t need to go to college to study computer science,” he said. Instead, he went to Juilliard.

But somewhere between music school and his tenure at the National Symphony Orchestra, Shin’s entrepreneurial streak resurfaced—this time in the form of SeoulSpice Korean Kitchen, which opened its first location in 2016.

While there are some similarities between his career as a musician and a restaurant owner, Shin believes there are many parallels between the two industries: “[The restaurant industry is] one of the most honest things in the world. We all love food. We can have different beliefs, we can have different color skin, but something about food can always bring us together. Music is kind of the same thing, too. We all love music. These are necessities.”

With SeoulSpice, Shin hopes to bring the same level of honesty into the food he serves.

“Growing up as a Korean American, with the goal of introducing Korean flavors in a fast casual format, to a very mainstream audience, a lot of it was about balancing authenticity of my culture with accessibility,” he said, adding that while initially he sought a balance, he realized the only way forward was to “own your culture” which he believes is a “superpower.”

“You can’t run away from your story,” he told us. “Stories of our parents coming to America—they’re unbelievable stories. You have to lead with those, and you have to find your power within it—the soul, spice, our flavors, the music, the design, the language, everything.”

That authenticity has resonated, so much so that 

, an investor in fast casual giant Cava, recently backed SeoulSpice. With further growth on the horizon for his own business, Shin hopes that the new crop of PoC food entrepreneurs will feel confident about taking a chance on themselves, saying the “timing is really great.”

Thinking back to his time as a kid showing up to school with the “craziest things in the lunchbox,” Shin recalls how he would feel embarrassed. “One day, it’s kimchi and everyone’s flying for the doors, and another day, it’s Spam and rice. It was just like opening Pandora’s box every day at lunch, and it’s traumatizing.”

Comparing that to his kids’ experience today, he says it’s simply “no big deal.”

“People now are more adventurous and open to new ideas and culture,” he said. “Our previous generations paved the way.”

He recommends the younger cohort see it as an opportunity to “share our culture with the world’ and “lead the story.”

“Everything it takes to be successful feels uncomfortable at first,” he said. “It’s always going to be different. It’s all about pushing through adversity, and it’s that passion that gets you started.”

He also advises young entrepreneurs to master the business things like managing a P&L, understanding labor percentages, and negotiating leases.

Ultimately, however, Shin said it all ties back to leaning into your culture while also staying connected with a community of other entrepreneurs.

“Find other founders at your level and grow together; trade contacts, share tips, celebrate everyone’s openings,” he said. “Solidarity will take you further than competition ever will.”

SeoulSpice’s CEO on turning culture into a business superpower

With 10 locations across the country and counting, Eric Shin is bringing authentic Korean flavors to the mainstream. 

Voices of Tomorrow: SeoulSpice’s CEO on turning culture into a business superpower

American Eagle’s campaign featuring Sydney Sweeney has faced 

 for what some critics have said are eugenics undertones and being hypersexualized, but 

 of the campaign have been vocal on social media, including the current US president and vice president.

Will the new American Eagle campaign featuring Sydney Sweeney help or hurt American Eagle’s revenues in the coming months? 

 version of Coke the company will introduce soon will increase the company’s cola sales overall, or will it be a wash because fans who drink the corn-syrup version will just switch? The majority of you (58.6%) thought it would be a wash, and that Coca-Cola will sell the same amount of cola, while 41.4% predicted the introduction of the cane-sugar version will increase unit sales overall.

Most think new cane-sugar version won’t boost Coke’s sales

Plus: Will the Sydney Sweeney campaign help American Eagle’s bottom line?

, a flavor created by 50 Cent, and a label mocking Paris Hilton, Vitaminwater had the early aughts on lock.

But now, it’s facing a quarter-life crisis.

Twenty-five years since Vitaminwater’s debut, and nearing two decades since the Coca-Cola Company 

 its parent Glaceau, it’s at a crossroads as the beverage industry is flooded with new innovations, consumers seek low-sugar options, and kitschy labels don’t catch eyes like they once did.

“We took a step back for Vitaminwater, and thought, ‘We are iconic. We were relevant, but the landscape has changed,’” Vitaminwater Brand Director Amanda Harkins told Retail Brew. “We still look like what we did in 2000, and maybe that’s not where we should be when we think about the next 25 years ahead.”

The company aimed to revitalize the brand by conducting an audit on what makes a brand cool—and found some ways it could change from the inside out.

 One pillar of the refresh was a packaging facelift.

Looking at the cool bevs of today across energy, sports drinks, and sodas, bold colors on the packaging were key, Harkins said, with black colorways for its full-sugar products and white for its zero-sugar options helping to better differentiate between the two lines.

The OG Vitaminwater packaging looked “medicinal” to emphasize its vitamin content, Harkins noted, leading some consumers to assume the product tastes like medicine, too. Now, the new packaging puts more emphasis on the brand name and flavors than vitamin content, spreading out the vertical logo from one word to two to be more visible for consumers.

“Irreverence” remains core to the brand’s marketing, Harkins said, so the packaging still contains that “cheeky” romance copy it’s known for, albeit much more brief than the paragraph-long copy that once adorned its packaging to account for the shorter attention spans of the social media age.

Maintaining that irreverent tone is trickier now—when “everything gets scrutinized at every angle”—than it was in the early days, Harkins said. But it aims to continue evolving that copy to stay relevant, so what’s there now will be different in one or two years, she said. Examples now include “Time for a full review of your ex’s profile. That’s some spy work,” on its Focus SKU and “Immune support when adulting gets hard. So, like, every day,” on Power-C. Some timeless copy still remains, i.e., “Get your mind outta the gutter,” on its XXX flavor’s label.

Vitaminwater found it needed to update the product itself, too, learning a lot from the fallen flavors that’ve been discontinued over the years (RIP, B-Relaxed Jackfruit-Guava). The long-gone Revive fruit punch went out of style and wasn’t unique enough, per Harkins, while, on the other end, Forever You, a coconut lime flavor which featured white curcumin, was axed this year because consumers didn’t know what white curcumin is. The brand was “overthinking functionality,” and found products with niche ingredients are tough sells at top retail partners since they don’t appeal to a wide audience, Harkins said.

The brand has also launched new flavors with the refresh, including its first full-sugar flavor in several years, Blue Raspberry Limeade with multivitamins, along with a new Zero Sugar Pineapple Passionfruit with electrolytes. While its full-sugar line is its biggest, it's also working to grow distribution for the zero-sugar line, Harkins said, as it believes offering both options to consumers helps set it apart from the ever-expanding beverage set. Its top-selling flavor, Power-C, has a Zero Sugar counterpart previously sold in only a few markets, so the company is growing its distribution nationally this year.

With all the changes, Vitaminwater doesn’t want to stray 

far from what millennial and Gen X fans who have been around since the 

 Vitaminwater White Party (IYKYK) are familiar with, as those remain its core demographics, Harkins noted. It’s been seeing growth from younger consumers since its Gen Z-focused 

 featuring Lil Nas X in 2022, but it’s recently been underscoring the beverage’s wider appeal since last year’s 

 in collaboration with Spike Lee called “Vitaminwater from New York.”

“Our biggest objective is to make sure that we are a brand for the masses, but we’re always going to have a youthful, playful, and timely point of view,” Harkins said.

While the goal isn’t to create a Vitaminwater for every type of consumer, she believes this range could help push it forward into the next 25 years.

“We do want this to be a brand that can withstand the test of time,” she said.

Vitaminwater is still iconic—but it wants to be relevant, too

Its brand director breaks down how Vitaminwater’s latest refresh could help it become cool again.

After 25 years, Vitaminwater is still iconic—but it wants to be relevant, too

With the buzz around healthy sodas far from fizzling, Pepsi is doubling down on the emerging segment just months after 

 one of its pioneers, Poppi, by launching a new innovation: Pepsi Prebiotic Cola.

The product is “one of the largest new innovations in the cola category,” Mark Kirkham, CMO of PepsiCo Beverages US, told Retail Brew. Containing 5 grams of cane sugar, 30 calories, and 3 grams of prebiotic fiber, the new soda is aimed at giving consumers more soda choices, he said, as Pepsi tries to meet demand for more 

. It’ll be sold first online in Original Cola and Cherry Vanilla flavors for Black Friday and Cyber Monday, followed by a retail debut in February, priced at a premium to traditional Pepsi, Kirkham said.

Poppi, whose acquisition was completed in May, also offers Classic Cola and Cherry Cola flavors with a nearly identical nutritional profile, but Kirkham sees the two as complementary, selling in two separate soda segments that reach different consumer sets.

Kirkham broke down the new product, and how it fits into its portfolio alongside Poppi and aligns with Pepsi’s larger beverage innovation strategy.

This interview has been lightly edited for length and clarity.

Why did Pepsi decide to develop this product?

One of the things we wanted to do is address two opportunities. One is the 

. Particularly, we’ve seen occasions drop over time in the core, but especially in diet [soda], and also to look for new ways to deliver more, better-for-you functional ingredients into our core. And obviously this was early days in what has become the modern soda business, and we started working on this well over a year ago.

We found…we could get to an amazing-tasting product that is no artificial sweeteners, that’s 5 grams of cane sugar, that’s got the taste of Pepsi…But also it’s got prebiotic fiber…And it’s the kind of ingredient that we’ve seen bringing new consumers into the category. The reality is, no one has that in cola, and obviously super complimentary to Poppi, who do have two cola SKUs, but that’s only 8% of their mix. We feel this is a great opportunity to: one; bring innovation to the traditional cola category; two, compliment this amazing new family member in Poppi—they are the leader in developing the modern soda category; and then three, offer choice. Offering choice to our consumers is the ultimate goal of these innovations…It’s a win-win for the consumer, and it’s a win-win for us.

What are your thoughts about how similar those products are?

A lot of what makes Poppi so special is it’s been built from the ground up. It always was clean label, natural ingredients. One of the biggest drivers there was always the apple cider vinegar. When you taste their cola, particularly their cherry and their regular cola, it’s a very different flavor profile than, let’s say, traditional cola, like we offer with Pepsi. We felt there are a lot of cola lovers out there that have this certain expectation of a cola flavor, particularly of Pepsi, but they also want alternatives in terms of different sweetener systems, or added benefits, or having lower sugar. Being able to address that part of the market that may not be being addressed through the cola segment within modern soda—that’s where the real opportunity is for us.

The prebiotic soda space has been popping off for several years. What instigated the development of this product now?

We were just listening to the consumer, and we were seeing the emergence of different segments in the category.

This is about Pepsi, and Pepsi delivering a new product to address the consumers of cola, or, in the case of maybe some of the younger consumers who maybe didn’t grow up with cola like I did, right?...We’re bringing them in through the fact that this is only 5 grams of sugar, no artificial sweeteners, that it’s only 30 calories, and the prebiotic fiber gives it a new way to bring in a different audience and a new consumer.

We actually think it’s a great opportunity for, let’s say, Gen X female diet cola drinkers. There’s an opportunity to really source from a broader range of consumers. This is not just a pure Gen Z play, which is very much what’s built modern soda. This is a broader play for cola lovers.

How are you balancing innovating on the core versus bringing on acquisitions like Poppi?

The reality is you have to do both…I like to say “core and more.” The only way you’re really going to drive growth in some of our categories is to really ensure that your core is healthy and that you’re continuing to innovate your core, but at the same time, you cannot miss out on these new and emerging categories, like what we saw in modern soda and Poppi. It’s a balanced approach that you need to take with innovation, but you must make sure that you’re doing both core and more, because we built this amazing brand for over 125 years. We'’ve helped create amazing products through our Diets, through our Zeros, but this next generation of consumer and as the category evolves, there’s opportunities to offer new innovation within the core, and that’s what we're doing.

PepsiCo CMO talks Pepsi Prebiotic Cola and possible Poppi competition 

The new product is “one of the largest new innovations in the cola category,” Mark Kirkham, CMO of PepsiCo Beverages US, told Retail Brew. 

Morning Brew Creative Studio

Picture this: You run the neighborhood’s favorite coffee shop. Disaster strikes: Your espresso machine breaks before the Monday rush. No cappuccinos = no sales.

Not the ideal start to your week, but don’t panic. You book a repair—paid for using today’s sales, pre-espresso machine meltdown.

, you get instant access to your earnings the moment you make a sale. No waiting. No cashflow gaps. Just real-time business agility.

, so you can spend on repairs, inventory, or vendor payments without skipping a beat.

You read that right. Since 2019, Square and Mastercard have partnered to bring sellers the Square Debit Mastercard—a free business debit card designed specifically for small businesses. And now, new account holders can sign up for checking and payments in one convenient step, speeding up access to the tools they need.

The numbers speak for themselves. Square reports having over 250,000 active debit card sellers per month. And in 2024, sellers using Square Checking spent more than $3.6 billion using their debit cards—a 29% increase compared to 2023.

We teamed up with Mastercard and Square to learn how the Square Debit Mastercard empowers quick-service restaurants and small businesses to adapt quickly as they grow.

With the Square Debit Mastercard, merchants gain access to funds the moment they make a sale. Let’s go back to your hypothetical coffee shop. As soon as you sell the day’s first latte and breakfast sandwich, you can access that revenue immediately.

As the morning slows down, your staff is busy prepping for lunch hour and the mid-afternoon rush. If the shop runs out of cream, sugar, or even fresh fruit, one of your team members can take the Square Debit Mastercard to a local grocery store to grab the ingredients needed for the busy afternoon ahead—all paid for by the morning’s sales.

The same goes for equipment malfunctions and repairs. If an oven goes out, the shop can pay for repairs the same day. With funds instantly available, merchants can keep their shops running, the coffee strong, and customers happy.

In restaurants, things move fast: Vendors drop off fresh ingredients daily, menus need last-minute adjustments, and equipment needs regular tune-ups. Merchants must be able to manage and pay for what they need as quickly as possible.

Because the Square Debit Mastercard makes funds available immediately after a sale, merchants can eliminate worries about how long it’ll take to pay vendors. No more cashflow gaps or delays: You can pay instantly using your vendor’s preferred method, from debit card and ACH

The restaurant business is ever changing, but the need for agility and flexibility is constant. The Square Debit Mastercard empowers restaurants and small businesses to adapt to whatever the day (or night) brings.

Now, merchants can opt in to checking and payments in one streamlined process—making it faster than ever to get your free business debit card and start spending your funds on what matters most. Cover business expenses, pay for supplies, access funds, and move money whenever you need to.

Small businesses need speed to succeed. Square Debit Mastercard can help. 

person putting food together in restaurant kitchen