Weekly Round Off With HTE ✨

September 04, 2023 • Estimated Reading Time: 10 minutes

To Commemorate Labor Day: Honoring the Dedication of the Global Workforce!✊⚒️🧰

🌟 Hey there, dear readers! As we gear up for another thrilling week in the world of Direct-to-Consumer (DTC) innovation, there's a special day on the horizon that deserves our enthusiastic recognition. 🚀

"Happy Labor Day to all HTE’s members! On this special day, we salute the hardworking spirit that powers our nation's progress. Enjoy a well-deserved break and celebrate the contributions of workers everywhere. Cheers to your dedication and achievements! 🎉 #LaborDay"

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🌟Thorne HealthTech, Inc. Enters into Definitive Agreement to be Acquired by L Catterton for $10.20 Per Share in Cash 🌟

🔍 Google Limits Serving For Advertisers With Unproven Track Records 🚫

💼 Lululemon ups guidance after ‘strong’ growth in China boosts quarterly sales 📈

🏦 Accolade sells House of Arras to Handpicked Wines💰

📉 Phishing scams targeting small businesses on social media including Meta are a ‘gold mine’ for criminals 🛠️

Thorne HealthTech, Inc. Enters into Definitive Agreement to be Acquired by L Catterton for $10.20 Per Share in Cash

Source: 28th August, 2023, PR Newswire

  • Thorne HealthTech, Inc. (NASDAQ: THRN), a prominent player in the field of innovative health and wellness solutions, has entered into a definitive agreement with L Catterton, a leading global consumer-focused investment firm. Under this agreement, L Catterton will initiate a tender offer to acquire all outstanding shares of Thorne for a cash sum of $10.20 per share. This strategic move places the total transaction value at an impressive $680 million.

  • Significantly, this offer represents a substantial premium for Thorne shareholders, with a 94% premium compared to the closing share price on July 20, 2023. Furthermore, it reflects a remarkable 113% premium over the 30-day volume-weighted average price as of the unaffected date on July 20, 2023.

  • The decision to enter into this agreement has been a carefully considered one, with Thorne's independent Special Committee and Board of Directors unanimously endorsing the transaction. These key stakeholders firmly recommend that all Thorne stockholders participate in the upcoming tender offer.

  • After completion, Thorne will become a privately held company with no public listing.

  • Financial advisors include CG Sawaya Partners, Wilson Sonsini Goodrich & Rosati for Thorne, and BofA Securities, Kirkland & Ellis LLP for L Catterton.

Google Limits Serving For Advertisers With Unproven Track Records

Source: 31st August, 2023, Media Post

Google unveiled a fresh strategy to enhance ad transparency, introducing a "get-to-know-you" initiative that impacts advertisers with whom Google has limited familiarity. This initiative, called Limited Ads Serving, is designed to mitigate the risk of scams and prevent perplexing and misleading advertisements.

Alejandro Borgia, Director of Product Management for Ads Safety at Google, articulated the intention behind this policy in a blog post, stating, "While we aim to provide users with the opportunity to engage with relevant and informative ads, this policy will reduce the likelihood of encountering a misleading or baffling ad from an advertiser without a proven track record."

  • Advertisers with an unproven track record of good behavior may face limitations on their ad impressions as they build credibility on the platform.

  • Google provides advertisers with practical tips for creating clear ads, including prominently featuring their domain in the ad title, which is particularly useful for lesser-known brands.

  • The policy aims to keep Google's platform open to new advertisers while ensuring users have a clear understanding of the entities behind the ads they encounter.

  • Importantly, this policy will not block or remove ads from the platform; limitations will only be applied in situations where an advertiser's brand identity could potentially confuse users.

Lululemon ups guidance after ‘strong’ growth in China boosts quarterly sales

Source: 31st August, 2023, CNBC

  • Lululemon has reported a strong fiscal second quarter, marked by an 18% increase in both sales and profit. This impressive performance has led the athletic apparel retailer to revise its full-year guidance upwards. It now anticipates fiscal year sales between $9.51 billion and $9.57 billion, compared to its earlier estimate of $9.44 billion to $9.51 billion. Likewise, Lululemon has adjusted its profit forecast for the year to be in the range of $12.02 to $12.17 per share, up from the previous projection of $11.74 to $11.94 per share.

  • Lululemon's second-quarter performance exceeded Wall Street estimates, with earnings per share reaching $2.68, surpassing the expected $2.54, and revenue hitting $2.21 billion, outpacing the anticipated $2.17 billion. This strong showing was fueled by significant international growth, particularly in China, where sales surged by an impressive 61%, up from 30% growth in the region during the same quarter the previous year.

  • Despite global same-store sales slightly falling short of expectations, rising by 11% compared to an estimated 12.1%, Lululemon's North American sales saw an 11% increase.

  • Lululemon's ambitious growth strategy, known as the "Power of Three x2," seeks to double its sales to $12.5 billion by 2026, compared to its 2021 revenue of $6.25 billion. This strategy includes expanding its physical store footprint and doubling its men's and direct-to-consumer revenue.

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Accolade sells House of Arras to Handpicked Wines

Source: 4 September, 2023, Insider FMGC

Accolade Wines is divesting its subsidiary brand, House of Arras, to Australian company Handpicked Wines, as part of its strategy to concentrate on key markets. The transaction encompasses the House of Arras brand, 24 hectares of vineyards, inventory, the Bay of Fires winery, and a cellar door in Pipers River, Tasmania, and is set to conclude by the end of November. House of Arras, being a luxury brand, doesn't align with Accolade Wines' current portfolio priorities. Additionally, Accolade has established a long-term agreement with Handpicked Wines to continue producing and bottling all House of Arras labels, utilizing Accolade network facilities and sourcing grapes from Tasmania.

Handpicked Wines, a family-owned Australian wine producer renowned for its wines from premier Australian wine regions like the Mornington Peninsula, Tasmania, the Yarra Valley, and the Barossa Valley, will carry forward the production of House of Arras wines under this agreement. Accolade's other premium Tasmanian brands, Eddystone Point and Bay of Fires, will also be produced at the same location as part of the arrangement with Handpicked Wines.

Phishing scams targeting small businesses on social media including Meta are a ‘gold mine’ for criminals

Source: 31st August, 2023, CNBC

Small Businesses Vulnerable to Social Media Cyberattacks

  • Small businesses are increasingly turning to platforms like Instagram and Facebook for marketing and sales, but they face a growing cybersecurity threat. Instances of cyberattacks targeting small businesses on these platforms have surged.

  • One notable case involves Pat Bennett, an entrepreneur who lost control of her Instagram and Facebook accounts after a seemingly harmless attack via Instagram Messenger. What appeared to be a legitimate contest request from a contact led to a $10,000 ransom demand.

  • Similar incidents have hit small businesses, with hackers exploiting the popularity of social media for marketing. These attacks often involve phishing schemes that trick users into revealing login credentials.

  • While social media giants like Meta (formerly Facebook) are aware of the issue, small businesses receive limited support, as they are seen as having less financial incentive to address these problems than larger corporations. Experts advise implementing basic security measures like two-factor authentication and strong password policies to safeguard against these threats.

  • The federal government's cyber agency, the Cybersecurity and Infrastructure Security Agency (CISA), has called for technology companies to prioritize secure-by-design practices. However, the regulatory landscape for small businesses in the digital realm remains underdeveloped, making them susceptible to cyberattacks.

As small businesses increasingly rely on social media for marketing and sales, the need for enhanced cybersecurity measures and support is evident.

Stay Ahead of the Curve with HTC!

As we wrap up this edition of our newsletter, we hope you found the blend of news and insights as invigorating as we did. The world of DTC and beyond continues to evolve, and staying informed is the key to success. Keep those entrepreneurial spirits high, and remember, we're here to keep you ahead of the game. 

Until next time, stay sharp, stay savvy, and keep conquering the DTC frontier! 🚀🌟📰