DTC’s Daily Digest brings you the latest news on the world’s fastest growing direct-to-consumer brands. In today’s edition: Well Enterprises acquires Halo Top; Shopify buys 6 River Systems; and Fiverr launches second industry store.
Well acquires Halo Top
Well Enterprises has entered into a purchase agreement with Eden Creamery to acquire the Halo Top brand. The transaction, which is expected to close this month, expands Wells’ portfolio to five ice cream brands. Financial terms of the transaction were not disclosed.
“Halo Top disrupted the ice cream category by providing a high protein, low sugar, low calorie dessert that gave consumers a reason to purchase ice cream as a treat again,” said Michael C. Wells, chief executive officer and president, Wells Enterprises. He added “Halo Top met a consumer need that no one else in the category was serving. We feel it is a good fit for the Wells portfolio as we look to broaden our offerings for consumers.”
In connection with the purchase, Wells has also agreed to license Halo Top outside of the US and Canada to a new company, run Halo Top’s president and chief operating officer, Doug Bouton.
Halo Top CEO Woolverton said: “As Halo Top continues to mature, Wells’ expertise in everything from operations, to managing brands, to making ice cream products for over a century will help Halo Top become an even better product and stronger brand”.
Shopify buys 6 River Systems
The acquisition will serve to boost efficiencies among Shopify’s Fulfilment Network service, which launched in June.
The acquisition gives Shopify access to the robotics experts who helped develop Amazon’s own robotics business when they were at Kiva Systems (before Amazon acquired that company).
“Shopify is taking on fulfilment the same way we’ve approached other commerce challenges, by bringing together the best technology to help everyone compete,” said Tobi Lütke, CEO of Shopify, in a statement. “With 6 River Systems, we will bring technology and operational efficiencies to companies of all sizes around the world.”
Shopify said in a statement that the transaction would have no material effect on the company’s revenue in 2018. It’s expected to increase the company’s expenses by USD$25m— including USD$10m in operating expenses, USD$8m in amortisation of intangible assets, and USD$7m in stock-based compensation.
Fiverr launches second industry store
Online marketplace for freelancers Fiverr has launched its second industry store, this one focused on e=commerce to help the growing number of businesses that are selling online.
Through the new industry store, businesses using platforms such as Shopify, Magneto, and Woocommerce can browse and find services such as web design and development, dropshipping services and SEO.
Business owners who have product lines available on marketplaces such as eBay, Etsy or Amazon can select from services such as product research, photography and descriptions, Photoshop editing, and channel advisors, among others. There is also a dedicated e-commerce marketing hub to help any e-commerce business with their digital marketing needs.
Micha Kaufman, Fiverr CEO says “Nearly half of U.S. small businesses still don’t even have a website, so there is a huge opportunity for many of these businesses to capitalise on the growing e-commerce trend. We have seen rising demand for e-commerce related services on our marketplace and the launch of a dedicated industry store allows us to address this growing market with a more verticalised experience and enable our buyers to bring their e-commerce businesses to the next level.”
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