Willie’s Remedy+: Regulatory Arbitrage as a Growth Engine
Willie’s Remedy+ just raised $15M Series A led by Left Lane Capital.
On the surface: celebrity THC drinks.
Underneath: regulatory arbitrage.
The 2018 Farm Bill created a federal loophole for hemp-derived Delta-9 THC under 0.3%.
That means:
No dispensary system
Mainstream liquor store access (Total Wine, Binny’s)
National three-tier alcohol distribution (via JuneShine JV)
The numbers:
~$80M revenue run rate in <12 months
400,000+ bottles sold online pre-retail
Expanding toward 10,000 doors
This isn’t cannabis 1.0. It’s alcohol replacement infrastructure.
Signal: The biggest growth categories are often built by navigating regulation, not marketing harder.
Bachan’s: The “Ethnic Aisle” Is Now Core Grocery
Bachan’s sold to The Marzetti Company for $400M.
Revenue: $87M
Growth: 48% CAGR
Multiple: ~4.6x revenue
This wasn’t a condiment deal.
It was infrastructure.
The broader stack:
Momofuku Goods (~$60M+ revenue)
MìLà ($55M+ raised)
Fly By Jing ($20M+ raised)
Sanzo ($16M+ raised)
Immi ($10M+ raised)
Strategics are bidding because:
Millennials + Gen Z over-index on these brands
Shelf-stable, higher ASP, better working capital
“Clean label” bridges global flavor + health
This isn’t niche scaling. It’s generational indexing into the core aisle.
Signal: Once a flavor becomes infrastructure, consolidation follows quickly.
Eucalyptus: Telehealth as Global Healthcare Infrastructure
Eucalyptus just sold to Hims & Hers for ~$1.15B.
Founded 2019.
$450M ARR at exit.
~$150M raised.
Why it matters:
Eucalyptus didn’t build brands.
They built rails.
Juniper (weight management)
Pilot (men’s health)
Software (skincare)
They built:
Clinical infrastructure
Regulatory credibility
Cross-border operating muscle (Australia → UK → Japan → Germany → Canada)
The GLP-1 wave didn’t create them.
It validated them.
Signal: Healthcare exits are going to the companies that manage chronic conditions — not just ship product.
🎙 The Podcast: Distribution Beats Commodity
In my conversation with Rick Reichmuth of Weatherman, one thing stood out:
Umbrellas are “commodity.”
Unless you control authority.
Rick:
Leveraged national weather credibility
Landed PGA + U.S. Open partnerships via relationships, not ad spend
Built durability moat (wind-tested product)
Improved margins through iteration, not hype
Low-frequency categories don’t scale on subscriptions.
They scale on:
Brand authority
Gifting occasions
Performance differentiation
Creative distribution
Signal: Even commodity categories can become premium, if distribution isn’t rented.
🎧 Watch on YouTube, listen on Spotify.
Thanks to sponsors:
⚙️ Visit Richpanel - AI powered customer service for eCommerce
🧾 Check out Numeral - stay compliant and automate away sales tax
✈️ Go to ShipBob - empowers eCommerce fulfilment across all channels
Deal Alert: Sponsor-backed premium baby care brand exploring soft landing options. Category-leading diaper and wipes platform with a differentiated sustainability and skin-health positioning, ~$25m revenue, and a highly recurring subscription base.
Highlights:
- Non-discretionary, high-frequency category with strong repeat behavior and predictable demand
- ~80% of DTC revenue from subscriptions; Amazon and DTC both stable-to-growing
- Gross margins expanded into the 60%+ range following a 2025 reset; business nearing breakeven
- Clear premium differentiation (“plastic-free where it matters most”) supported by dermatologists and pediatric experts
The business has recently exited unprofitable channels, materially reduced marketing spend, and rebuilt unit economics creating a strong foundation for profitable re-acceleration or strategic integration.
Email: fan [at] thehedgehogcompany.com
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.
In the Money – following the flow of capital in consumer
P.S. We love talking to brands interested in exiting in the next 3-18 months. If you know of any brands interested in exiting, or any firms trying to help port cos manage turnarounds, we'd love to share a POV.
fan [at] thehedgehogcompany.com
