In today’s newsletter: John Conlin on why Target is playing up emerging food and beverage brands, food founder Mrinali Kumar bets on a move to the states, former 7-Eleven CEO Joe DePinto joins Target’s board, Christophe Beck on the need for downtown revitalization, a step forward for Nick Schneider’s sneaker line, beloved by Guy Fieri and Derek Shelton, Shelly Ibach makes a bid for Sleep Number and current CEO Linda Findley addresses the company’s future, Ben Jordan’s tech-meets-hospitality plans for Bauhaus Brew Labs.

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A salad you can drink, cauliflower ice cream and single serving cakes you make in a mug were among the food and beverage startups from around the country — 57 in all — invited to Target headquarters in Minneapolis last week for the company’s third-annual Discovery Day.

“This is one of the ways we build the pipeline,” said John Conlin, Target’s senior vice president of food and beverage merchandising. “Our role at Target is really to curate the best food assortment in the industry.”

Target is spending $1 billion this year to improve its grocery section, CEO Michael Fiddelke told investors in March. Food and beverage comprised 23% of Target’s revenue last year compared to 50% of sales for Walmart.

Emerging brands are a big part of Target’s growth strategy for grocery. Conlin said hundreds of brands have been launched in just the past few months. “They’ve been the biggest contributor to recent growth.”

Among the trends Target buyers are scouting: snacks with health benefits (like Protein Munchables), innovative flavors and cultural trends (Hotpot Queen boxed ramen was a standout). THC drinks had an entire floor of their own at Discovery Day — the race to stake out a piece of that market seems especially stressful.

To be Target ready, a brand needs to have its supply chain mapped out. It also needs to look good on the shelf. I was amazed at the sophistication of branding and design even among small, founder-led startups. But then, these are brands already on Target’s radar.

Target is not moving away from staples, Conlin said, rather, adding to discovery. “The guest is really excited to try new things. We think there’s a big opportunity for us to get them to visit us for food and make more trips for food, more often.”

Like drinking your kale and cucumber salad — a pouched drink product from Liquid+, a mother-son brand started in California. Mugsy Bakes offers convenience with single serve cake mixes that can be made in the microwave in under two minutes. EatKinda, the dairy, gluten, nut and soy free cauliflower-based ice cream, was another in-demand sample at the event. (It really is creamy with no weird aftertaste).

EatKinda co-founder and CEO Mrinali Kumar is in the process of moving the business from New Zealand to Los Angeles to be in better position to scale. “We’re really figuring out what retailers our customers already shop, and Target is one of them.”

Target announced Wednesday that former 7-Eleven CEO Joe DePinto has joined its board of directors.

DePinto previously served as president of GameStop and has held board seats at OfficeMax and Joann. Target CEO Michael Fiddelke said in a statement DePinto’s experience in food retail and digital commerce will strengthen the board.

DePinto is the third director appointed since Fiddelke became CEO, following additions of former Nike chief innovation officer John Hoke III and Stephen Bratspies, former CEO of HanesBrands. Longtime director Doug Baker, former CEO of St. Paul’s Ecolab, and Grace Puma did not seek re-election to the board, and Donald Knauss retired. — Carson Hartzog

Minnesotans rate their own downtowns’ safety more harshly than the country does, according to a survey by Morning Consult conducted for the Minnesota Business Partnership.

In Minnesota, 46% of those surveyed said the downtowns of Minneapolis and St. Paul are not safe compared to 25% of the national group surveyed. Compared to other major metros, neither group saw the Twin Cities downtowns as less safe.

It’s something CEOs like Ecolab’s Christophe Beck, who has been very vocal about the need to revitalize downtown St. Paul, are thinking a lot about. “We have a huge opportunity,” he said during a panel discussion at MBP’s annual forum last week.

“Communities will thrive if they’re surrounded by thriving companies and companies thrive if they’re surrounded by thriving communities.”

More from the survey on AI, our headquarters economy and CEO civic engagement, in the July 21 issue of North Star Insider.

Twins manager Derek Shelton wears Grail sneakers at a press conference to announce his hiring.  Anthony Soufflé/Minnesota Star Tribune

Grail, the Minneapolis-based, Portuguese-made premium sneaker brand, is on its way to national distribution. Riding the dressed-up sneakers trend with its signature Italian patent leather trim, Grail was just picked up by Nordstrom.com and founder Nick Schneider said strong online performance could lead to store presence.

Currently sold (for $399 per pair) at MartinPatrick 3, Milbern Clothing and J.H. & Sons in the Twin Cities as well as a handful of menswear boutiques nationwide, Grail already boasts some high profile fans including Guy Fieri and Twins manager Derek Shelton.

Sleep on it: A Canadian company won a bankruptcy auction to buy Sleep Number, but had to raise its bid by $300 million to do so. Sleep Country Canada’s competitors for the Minneapolis company included a group led by its former CEO, Shelly Ibach, my colleague Patrick Kennedy reports. “We started this process with the goals of addressing our financial constraints and positioning our business for a stronger future,” said Sleep Number’s current CEO, Linda Findley, in a news release. “Combining with Sleep Country Canada enables us to achieve these goals.”

Alcohol choices: ABV Technology, the St. Paul company that brought full-flavored NA beer to many Minnesota craft brew fans will reopen Bauhaus Brew Labs with beer, wine, cocktails and seltzers. Guests can control whether they want full-strength, low-alcohol or no-alcohol versions of each beverage. “It’s the right amount of blending of art and science [that] is important here,” Bauhaus’ new co-owner Ben Jordan told Strib food reporter Joy Summers.

North Star Insider is edited by Karen Lundegaard.

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