We were just as shocked and disappointed as anyone after learning the news of Foxtrot/Dom's closing yesterday. Foxtrot was important to not only heywell, but the broader entrepreneurial community. Kerry Diamond asked the provocative question: "What does this say about modern CPG. Have we hit peak CPG? Has the bubble burst?" Our strong point of view is NO. Innovation is fundamental to commerce, for the simple reason that consumer needs evolve and the market will always look to solve them. And while innovation has seen a sharp decline across CPG since 2020 (influenced by a number of factors including supply chain issues, high interest rates, lack of funding etc) the truth is "the categories with innovation are the categories that are growing (SPINS)" This abrupt closure is a huge failure because there is a strong market need for this type of platform. Foxtrot was heywell's first retail account, and while we have grown well beyond those first few stores, it was an important launching pad for heywell and remained a notable destination for consumers, influencers, retailers and investors to find innovative emerging brands. The merchandising and marketing teams we worked with are exceptionally talented, hard working and creative people who have become close friends over the years. They worked tirelessly to put a spotlight on innovative brands. (who by the way, were not all launched flush with VC funding). We find how the Foxtrot/Dom's employees were treated and how this closure was executed quite appalling. In our opinion, this is not a conversation only about ‘market need’ or ‘consumer price sensitivity’. The Foxtrot brand was appealing and consumers flocked to the stores. More importantly, senior leadership must be accountable to basic business fundamentals like profitable growth, margin, and issues like over expansion, or cash runway. You don't raise 160 million dollars and run full speed into a brick wall. We're sad the community has lost a key path to market for emerging brands and a beloved brand providing consumers a source of discovery. We hope investors, brands and retailers are paying attention to the right things here and lean in, not out, to innovation and founders with experience building their brands the right way. Crain's Chicago Business BevNET.com, Inc. SPINS Audarshia Townsend Andrea Hernández Ashley Selman Britt Dougherty
Foxtrot Market and Dom's Kitchen & Market are abruptly closing all stores, less than six months after the brands merged.
Walter Greenberg
11mo
Well said, Ash and Britt— touché!
Stephanie Klaers
11mo
Loved working with Heywell. Always looked forward to our tasting and brainstorming sessions. Seasoned marketing & CPG pros that were hella fun too.
Jen Naye Herrmann
11mo
So well said 👏🏽 and I hope more springboards emerge for new brands. They’re pivotal to everyone’s growth!
Jackie Woodward
11mo
Yes. Great points. Innovation for the win! Well said Ashley Selman and Britt Dougherty
Supply Chain Manager || Inventory Management ||
10moHeywell was ALWAYS my first G+G selection!