The CQ: The Cult of Erewhon and $9/mo Primary Care
The Forerunner Team's Must-Reads of the Week
The CQ is Forerunner’s weekly newsletter rounding up the most pressing consumer news and analysis, plus some bonus musings from our investment team. Subscribe now to get the latest edition in your inbox every Saturday.
By Forerunner
What We’re Talking About on Slack:
The Cut’s cover story traces the history of how Erewhon came to be. The buzzy up-scale grocer has cultivated a fiercely loyal following thanks to its expert curation of emerging CPG brands and health foods, but few know it started out in the 1960s serving miso and millet to off-the-grid hippies before it evolved into a hub for LA’s elite and influencers in search of wellness tonics, $40 jars of sea-moss gel, and Hailey Bieber’s Strawberry Glaze Skin smoothie. “It is not, and has never been, just a grocery store. It exists within, and has always occupied, a space between commerce and cult.”
Norway, the poster child for electric cars, is having second thoughts. The country’s government has started to walk back some of its electrification subsidies, says Vox. “Countries should introduce EV subsidies in a way that doesn’t widen inequality or stimulate car use at the expense of other transport modes. But that’s what ended up happening here in Norway.” And in the U.S., automakers are tapping the brakes on some ambitious EV targets, reports Axios. General Motors and Ford put their new EV factories on pause, and Tesla is slowing their EV factory plans, too. But there are bright spots: despite the high price tag and high interest rates that make affording an electric vehicle out of reach for many, EV sales are growing faster than any other segment in the U.S., and are on track to surpass 1 million annually for the first time this year.
In an effort to boost its healthcare business, Amazon will offer primary care via One Medical to Prime subscribers for $9 a month or $99 a year. Our Managing Partner Brian O’Malley joined the Venture Daily podcast to discuss the move, saying the partnership is “a very clever one,” as “there’s a large level of consumer dissatisfaction with the [healthcare] services that are available to them.” Net-net: this serves as further evidence of Big Tech prioritizing consumer healthcare, which makes up ~20% of the US GDP — spelling both more competition and M&A opportunities for healthtech startups.
Retailers face a more frugal shopper this holiday. Findings from a new Accenture poll show 60% of consumers said they “are already — or are planning to — cut back on giving gifts to close family and friends due to budget constraints,” while 52% have agreed to forgo exchanging gifts with other adults. For retail executives, 48% said they plan to increase markdowns and promotional activities to attract shoppers. “This will come as good news for the 78% of consumers saying price tops the list of most important deciding factors in how they will shop and what they will spend more on this holiday season, followed by value for money (at 60%).”
Multigenerational living is up by 1 million in US households over the last decade. In 2010, there were 5.1 million multigenerational households (consisting of three or more generations under one roof) in the U.S. In 2020, the number shot up to 6 million. Interestingly, half of the top 10 counties with the highest share are in South Dakota, while the states with the lowest share are North Dakota and Nebraska.
When you think about your credit card, does a fragrance come to mind? The New York Times looks at how some unexpected corporations are taking a cue from fashion retailers and hiring development firms to create a “multisensory brand identity” with a bespoke fragrance to scent their physical spaces—whether it’s American Express’ exclusive airport lounges, Mastercard’s experience centers, or the multipurpose showroom/restaurant/library of luxury car brand Genesis.
Millions of retired Americans aren't coming back to work as predicted. The Federal Reserve estimated that a good portion of the workers aged 65 and older who had exited the labor force during the pandemic would eventually return. “Before this summer’s rise in excess retirees, there was speculation that a whole ‘un-retirement wave was under way. But that seems to have not been the reality.” Three-and-a-half years later, the country has about 2 million more retirees than predicted.
Dream job or higher salary? For today’s workers, the answer is changing. Inflation, housing costs, student debt and rising interest rates are leading many young adults to switch priorities from seeking a highly regarded career that pays less to a high-paying job. Because of this, certain industries like education, medical research labs, and the government are struggling to recruit workers. A Teach for America executive explains what they’re up against: “Our competition for recent college grads is tech companies and consulting groups where they could be making double. We’ve lost a lot in the last few years. How do you win when finances are a big deal for folks?”
Labor shortages and remote work fuel job gains for workers with disabilities. Since right before the pandemic, almost 1.8 million Americans with a disability have joined the labor force — a 28% increase. By August of this year, 25% of people with a disability were working or looking for a job, the highest ever in 15 years. “Employers are going to have success if you can have flexibility and offer accommodations, especially to people on the sidelines of the labor market,” says one economist. On the flip side, return-to-office mandates have brought a rise in disability discrimination disputes as more companies are denying requests for exemptions. An increasing share of the charges are based on mental health conditions, such as anxiety, depression, and PTSD. Charges alleging discrimination rose 16% for each of those conditions from 2021 to 2022.
Perhaps unsurprisingly, data shows that Gen Z and millennials have a much harder time ‘adulting’ than their parents did. According to a survey from CNBC and Generation Lab, 55% of young adults find it “much harder” to purchase a home, 44% said it is harder to find a job, and 55% said it is harder to get promoted. Also, half believe that inflation will affect their future financial well-being “very negatively.” An encouraging stat is that 40% say it’s easier for them to find economic opportunities outside of traditional employment.
Portfolio Highlights:
Wonder received a $100 million investment from Nestle, with plans to sell high-end kitchen equipment and prepared ingredients to hotels, hospitals, and sports arenas, reports CNBC and PYMNTS.
Fortune reports on how women are emerging as leading in the predominantly-male longevity game, with quotes from Melanie Goldey, CEO of Tally Health.
ModernRetail covers how KiwiCo uses Instagram Reels to attract new customers.
Hims and Hers shares rose 6.7% following better-than-expected revenue in the latest quarter, reports MarketWatch — while Barrons notes that Hims and Hers will see long-term tailwind from their weight management business launching in January, congruent with resolutions for the new year.
Chief brand officer Brad Hiranaga speaks with AdWeek about how Cotopaxi’s mission informs its branding and announces the company’s collaboration with Headspace.
Ariela Safira, founder of Real, is quoted in a Forbes article on why impact-driven tech companies are receiving more funding.
Prose’s Custom Cleanser, Glossier’s Stretch Face Brush, and Necessaire’s Body Peel Serum make GQ’s 2023 Grooming Awards.
Humane debuts its AI Pin in NY Times ahead of opening pre-orders next week.
Forerunner Highlights:
Our Managing Partner Brian O’Malley joined the Venture Daily podcast to discuss Amazon rolling One Medical into Prime.
Our Founder and Managing Partner Kirsten Green opened the All Raise Summit with the panel “Advice from women VCs who have built enduring funds and taken companies public,” while our Partner Nicole Johnson led a breakout session on brand building.
Jason Bornstein’s new role as Partner and Head of Research was included in Fortune Term Sheet and Axios Pro Rata.
Work at a Portfolio Company:
Customer Experience Group Lead | The Farmer’s Dog: The Farmer’s Dog is the fastest growing pet health service company in the US, born from a mission to change the landscape of pet health by providing dogs and their owners with honest, smart, and simple care. This role will play a crucial role in leading and developing a group of 10-15 associates to become ambassadors for the valued customers of The Farmer’s Dog.
VP of Technology | Glosser: Glossier is a people-first beauty company on a mission to inspire everyone to find joy and confidence in their personal beauty style. This role creates and manages omnichannel digital experiences that delight customers and drive sustained business value. The Technology team spans several disciplines, including Product Management, Engineering, Digital Design, UX Research, Security, and Tech Operations (IT). This role will report into the Chief Commercial Officer. This role can be performed remotely within the U.S.
Category Director | Hims&Hers: Hims&Hers is a multi-specialty telehealth platform building a virtual front door to the healthcare system for numerous conditions related to sexual health, hair care, mental health, skincare, primary care, and more. This role will have a track record of success in growing companies by building and optimizing through data and customer insights.
There are ~553 other openings on our jobs site. Check ‘em out.