Issue #11 | January 12, 2026
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🥄 FIRST BITE
The appetizer before we dive in
Welcome to The Deeter Digest. This week, cottage cheese became a half-billion dollar category, THC drinks went mainstream at Sprouts, and someone hid vegetables in frozen waffles and raised $15 million for it.
Plus: Zero-proof martinis arrive, clear protein invades Target, and the Poppi founder’s breakfast brand officially launched. Let’s feast on the future.
🍊 THE MAIN COURSE
This week’s biggest CPG moves
Good Culture’s $500M+ Cottage Cheese Empire
L Catterton is taking a majority stake in Good Culture at a valuation north of $500 million. Founded in 2015 by Jesse Merrill and Anders Eisner, sales have increased nearly 4x over the past three years as cottage cheese became cool again.
This isn’t just about protein trends – it’s about timing perfect category reinvention. Good Culture didn’t invent cottage cheese; they made it Instagram-worthy. Clean label, single-serve cups, actual flavor innovation. They turned your grandma’s diet food into Gen Z’s protein obsession. When Manna Tree reinvests alongside L Catterton, you know the velocity is real. Watch for national expansion and probably a billion-dollar exit within 3 years.
Sprouts Mainstreams THC: 120 Stores Say Yes
Sprouts just launched THC drinks across 120 stores, marking the biggest mainstream grocery embrace of cannabis beverages yet. Not in California. Not in Colorado. Across their footprint.
This changes everything. When a national natural retailer treats THC drinks like kombucha, the category just graduated. Jeng, Cann, and others are about to see hockey stick growth. The regulatory patchwork remains messy, but Sprouts just gave the entire category permission to exist in normal grocery. Your local Whole Foods is probably 6 months behind.
Bronco Gallops Into Target
DropOut Companies’ Bronco breakfast sandwiches launched nationwide at Target. High protein, no seed oils, and Stephen Ellsworth’s operational excellence. The Poppi playbook applied to frozen breakfast.
Here’s why it matters: Jimmy Dean owns a billion-dollar category with basically one product. Bronco’s offering 15-21g protein on bagels (not English muffins), targeting the Whole30 crowd who still wants convenience. When you launch with Target endcaps and Poppi’s founder as your operator, you’re not testing – you’re taking market share. Tyson’s probably already modeling the acquisition.
💰 THE FUNDING FRENZY
Big checks being written
Vegetables Hide, Valuations Rise
Evergreen raised $15 million for frozen waffles with hidden vegetables. Founded by Emily Cole Groden in 2020, they hit the Inc. 5000 as the 16th fastest-growing F&B brand. No seed oils, no preservatives, vegetables your kids won’t detect. The “hide the healthy” strategy keeps working.
Vieve scored £9 million from Piper for creator-led cosmetics. Jamie Genevieve’s brand grew from £6.5M to £10M revenue in one year. Piper’s now invested £65M in female-led brands across two funds. Pattern recognition: authentic creators with actual business fundamentals get funded.
Honey Mama’s closed $4 million from Bochi Investments. From Portland farmers market in 2013 to Albertsons and Costco in 2026. The refrigerated truffle bar that shouldn’t work but does. Bochi betting clean indulgence scales nationally.
Beverage Bets & Beauty Moves
Lemon Perfect grabbed $9.7 million amid leadership changes and -4.5% YoY sales decline. Turnaround money or good money after bad? The lemon water category might be saturated.
Sauz partnered with Bulletpitch to add 21 creators (40M followers) as investors. Smart: turning influencers into cap table evangelists. The pasta sauce brand now has built-in distribution amplification.
Topicals added Angel Reese and Rema as investors. Celebrity beauty investors are table stakes now. The real question: can they move product or just make headlines?
🏪 DISTRIBUTION DOMINATION
Everyone’s everywhere
Mass Market Moves
Ritual hits select Costco clubs – the vitamin brand graduating to bulk buying. Nara Organics launched nationwide at Target. Oddball dropped at 1,100+ Target doors. When three wellness brands hit mass retail simultaneously, the better-for-you migration is complete.
MUD\WTR at Southeast Costcos marks mushroom coffee’s mainstream moment. RYZE adding 1,900 Target doors confirms it. The fungi gold rush has officially begun.
Specialty & Regional Wins
Sprouts welcomed MIILS nationwide and became THC drink headquarters. The Vitamin Shoppe exclusively launched Momentous and Salud (three flavors). Specialty retail betting on differentiation through exclusive partnerships.
Better Sour candy added six Costco states. Honey Mama’s launched at Costco. 4th & Heart hit Aldi U.S. Premium treats and ghee at warehouse clubs signal changing palates.
Velocity Alert
Hiyo going nationwide at Costco after regional success. NO CAP! soda launching at California Walmarts. Khloud rolling out at Starbucks. When new brands skip the indie-to-mass journey and go straight to chains, velocity requirements just got brutal.
🆕 PRODUCT LAUNCHES & PIVOTS
This week’s innovation (or lack thereof)
The Clear Protein Invasion
Bloom Nutrition launched clear protein at Target exclusively. Raspberry Lemon and Strawberry Watermelon with 20g protein, 90 calories, zero sugar. Clear protein is having its moment – less chalky, more refreshing, Instagram-worthy colors. Bloom betting their young female audience wants protein that doesn’t taste like protein.
Functional Everything
Dry & Dirty: Zero-proof functional martinis from Kyle Koss and L.A. Libations. Lemon Drop, Espresso, and Dirty varieties with L-Theanine, Lion’s Mane, and GABA. When martinis become wellness drinks, we’ve optimized everything.
Sleep or Die launched Sleep Strips with L-Theanine, GABA, 5-HTP, and melatonin. Clever delivery for people who forget to take sleep aids until they’re already in bed.
GORGIE added Protein Energy drinks: 8g protein + 150mg caffeine + biotin. Energy drinks adding protein, protein drinks adding energy. Categories continue to merge.
Innovation That Makes Sense
MALK dropped coconut creamers in three flavors. No seed oils, no gums, beautiful packaging. Applying their milk philosophy to coffee additives.
The Coconut Cult launched $3.99 cups with resealable lids. Making $8 probiotic yogurt accessible to normal humans. Sometimes innovation is just solving the price problem.
Mid-Day Squares created No Bread PB&J – their first non-chocolate product. Smart hedge against cocoa prices while keeping their familiar form factor. When commodity costs force innovation, good things happen.
📊 THE DATA DIGEST
Numbers that matter
The Winners Circle
AB InBev’s RTD cocktail dominance continues: Cutwater sales up $209M, BeatBox up $83M. Their pending BeatBox acquisition makes more sense daily. When beer giants successfully buy their way into spirits, the beverage wars get interesting.
Outlaw Light hit 1 million case equivalent run rate, expanded to 48 states, expects to 3x in 2026. Alongside Garage Beer and EIGHT Brewing, the craft light beer renaissance is real. Someone’s getting acquired by summer.
Good Culture’s 4x growth in three years validates the entire cottage cheese revival. From diet food to fitness fuel in one generation. The $500M valuation might be conservative.
The Trend Truths
THC drinks at 120 Sprouts stores = category legitimacy
Clear protein at Target = new format dominance
Hidden veggie waffles raising $15M = parents will pay anything
Zero-proof martinis launching = sober curious has staying power
🔥 THE HOT TAKE
My unfiltered opinion on this week’s madness
Good Culture’s $500 million valuation for cottage cheese tells you everything about CPG in 2026: Find a forgotten category, make it Instagram-worthy, add protein, charge 3x more. L Catterton isn’t buying innovation – they’re buying the ability to convince millennials that cottage cheese is cool.
But the real story? Sprouts mainstreaming THC drinks. When a national grocer puts cannabis beverages next to kombucha, we’ve crossed the rubicon. Every CPG brand should be watching this. The regulatory moat that kept big players out just got drained. Coca-Cola and AB InBev are probably forming THC task forces as we speak.
Meanwhile, everyone’s adding vegetables to everything (waffles?), protein to everything else (energy drinks?), and making zero-proof versions of alcohol that shouldn’t need wellness benefits but somehow do. We’ve optimized food to the point where a martini needs Lion’s Mane and a breakfast sandwich needs a manifesto.
The winners this week aren’t the innovators – they’re the executors. Bronco taking on Jimmy Dean with better ingredients. Good Culture making cottage cheese craveable. Honey Mama’s scaling from farmers market to Costco. Boring excellence beats clever mediocrity.
Your reminder for 2026: The next billion-dollar brand isn’t hiding in a lab. It’s probably something your grandma ate, reimagined for people who count macros.
Build accordingly.
🎙️ COMING TUESDAY
Unpackaged Goods Episode 12
Breaking down Good Culture’s cottage cheese empire, why Sprouts just changed the THC game forever, and whether hiding vegetables in waffles is genius or desperate. Plus: The zero-proof cocktail gold rush.
Last week’s episode. Listen and rate us 5 stars wherever you get your podcasts!
🥫 ONE MORE THING...
Before you close this tab
This week proved that 2026’s biggest opportunities aren’t in creating new categories – they’re in fixing broken ones. Cottage cheese was dying until Good Culture made it cool. Breakfast sandwiches were frozen in time until Bronco added protein and removed seed oils. THC drinks were stuck in dispensaries until Sprouts set them free.
The playbook is clear: Find the outdated. Make it better. Charge more. Scale fast.
Until next week, Jonathan Deeter Your CPG-Obsessed Friend
P.S.
Instacart’s fastest-growing brands list dropped: Oats Overnight, Built, IQBAR, Cymbiotika, Dose, Goodles, Fruit Riot. Notice what they share? Better versions of basics. The renovation economy continues.
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