Billion-dollar exits, franchise rockets, and the shifting ground under Target’s feet.

What do skincare, hot chicken, and big-box retail have in common? They're all flashing signals about where the consumer brand landscape is heading. L’Oréal’s $1B buyout of Medik8 marks another huge win for beauty—and for private equity. Dave’s Hot Chicken shows how speed, story, and franchising can turn a parking lot hustle into a billion-dollar empire. And Target’s slowing sales? A wake-up call for CPG founders banking on retail distribution.Plus: on the pod, Matt Jung (Goodonya) shares hard-won wisdom from building and buying brands—with a playbook that drove 125% YOY growth without paid media.Let’s dig in 👇

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Fan Bi
June 24, 2025

1. Medik8's $1B Acquisition by L'Oréal: A Major Win for Inflexion Private Equity

Cheers to the investors at UK-based private equity firm Inflexion. They are celebrating a major exit after L'Oréal announced its acquisition of beauty brand Medik8. Inflexion invested in Medik8 in 2021 for $150–200M, and L'Oréal's majority stake acquisition values the brand at $1.08B.

Back in 2021, Medik8 reported ~$40M in revenue and $10M in profit, and projections for 2025 forecast $115M in revenue with similar profitability. This acquisition highlights the enduring strength of beauty brands in the market and the appeal of scalable brands in the growing skincare category.

2. Dave's Hot Chicken: From Parking Lot to $1B Valuation

From humble beginnings in an East Hollywood parking lot in 2017, Dave’s Hot Chicken has grown into a powerhouse in the restaurant industry. After partnering with the co-founder of Wetzel’s Pretzels in 2019 to franchise, the brand has exploded—projecting $1.2B in systemwide sales by 2025.

Recently, they sold a 75% stake to Roark Capital, valuing the company at $1B. Dave’s Hot Chicken is proof that a fresh concept, strong partnership, and strategic growth can turn a simple food truck idea into a billion-dollar brand.

3. Target's Sales Dip: What Does This Mean for Emerging CPG Brands?

Target recently reported a 2.8% decline in Q1 2025 sales, signaling a shift from years of steady growth. The company now anticipates a low-single-digit sales decrease for the full year—down from earlier projections of a 1% increase.

This new reality means emerging CPG brands might face a more selective retail landscape. Target is likely to be more discerning about which brands it partners with, focusing on those that align closely with its evolving strategic goals. However, this environment presents opportunities for brands that can leverage their digital audiences and demonstrate strong operational efficiency. The key takeaway? Brands need to meet Target’s standards in areas like logistics, pricing, and promotional management to thrive in this new era.

🎙 Podcast Highlight: Building a Career in CPG with Matt Jung

In this week’s In the Money podcast, we chat with Matt Jung, CEO of Goodonya, about his multifaceted career in the CPG world—from his early days as a founder to his role as an investor, executive, and now acquirer. 🛠️💼

💡 Highlights:

  • From Founder to Executive: Matt shares what it was like founding multiple brands before taking on leadership roles at CPG startups.

  • The Power of Investment & Acquisition: What Matt looks for in a brand to buy, and how he’s successfully navigated brand acquisitions.

  • Rebranding Success: Goodonya grew 125% YOY without paid ads—Matt breaks down the organic growth strategy that’s working for the brand.

That’s it for this week.
If you liked this issue, forward to a friend who obsesses over brand strategy, capital flows, or exit timing.

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