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Nespresso Warms Up to Cold Coffee; Moviegoers Set Memorial Day Record; EU Faults Fast Fashion Sales Tactics

By Nat Ives

 

Welcome back. Today, yet another marketer bends to Gen Z preferences; “Lilo & Stitch” and “Mission Impossible” rescue Hollywood’s year; and regulators demand changes to Shein’s practices.

The Weeknd sips from a glass of iced coffee

Nespresso is introducing a new coffee variety with The Weeknd, the latest piece of its marketing push to capture the younger market of iced coffee drinkers. PHOTO: NESPRESSO

Nespresso wants Gen Z coffee drinkers to know that it understands their obsession with ice, Katie Deighton reports for CMO Today.

The Nestlé unit has spent years evangelizing hot drinks to older adults with ads full of steaming cups, European sophistication and George Clooney.

But its latest U.S. marketing push revolves around millennial pop star The Weeknd, whose forthcoming coffee collection with Nespresso is shown served over ice in dreamlike commercials.

The cold-coffee trend has been led by Gen Z, according to Jessica Padula, Nespresso USA’s vice president of marketing and head of sustainability.

“The Weeknd isn’t replacing George,” Padula said, “but helping us reach new audiences that George maybe isn’t reaching today.”

More adventures in Gen Z thirst: McDonald’s has pulled the plug on CosMc’s, the beverage-centric concept it introduced in 2023 to chase younger consumers. [WSJ]

 
Content from our sponsor: Deloitte
Gen Zs and Millennials Pursue Money, Meaning, and Well-Being in Careers

Younger generations seek financial stability, a sense of purpose, and good work/life balance, according to a new survey. These values are shaping career choices and satisfaction on the job. Read More

More articles for CMOs from Deloitte
 

PG Primacy

Lilo and Stitch laugh under a table in a scene from Disney's live-action 'Lilo & Stitch'

Disney’s ‘Lilo & Stitch’ remake is on track to gross close to or even more than $1 billion. PHOTO: DISNEY/EVERETT COLLECTION

It was a blockbuster Memorial Day at the box office, led by “Lilo & Stitch” with an estimated $183 million in U.S. and Canada ticket sales from its opening Thursday night through Monday, Ben Fritz reports.

Paramount’s “Mission: Impossible—The Final Reckoning” starring Tom Cruise came in second with a solid $77.5 million domestic debut.

The releases contributed to a new Memorial Day record, letting Hollywood forget a first quarter filled with flops such as the “Snow White” remake and “Mickey 17.”

Disney’s live-action version of “Lilo & Stitch” has gotten middling reviews (or worse), but it was primed for success by people who discovered the animated original on Disney+ and years of merchandising.

The movie also continues a hot streak for PG releases that appeal to children, parents and nostalgic childless adults. “A Minecraft Movie,” this year’s No. 1 film, is also rated PG, as were four of last year’s top five movies.

 

The Magic Number

$35

Price for a checked bag on Southwest Airlines starting tomorrow as the carrier sheds a brand differentiator long promoted in its ads with the trademarked phrase “Bags Fly Free.” A second bag will cost $45. Exceptions will be made for passengers with the airline’s
credit card or elite status.

 

Shein Under Scrutiny

A pop-up store of Chinese fast-fashion retailer Shein in Paris

The EU’s executive arm is trying to tackle what it has called a glut of cheap and potentially unsafe products from countries such as China flooding the bloc. PHOTO: JOHANNA GERON/REUTERS

European Union regulators said Shein’s sales tactics fall foul of EU law and that the e-commerce giant could face fines if it doesn’t adjust its behavior, Edith Hancock reports.

A number of Shein’s practices breach rules against false discounts, deceptive product labels, misleading information and website designs that pressure customers to complete purchases, the EU’s executive arm said on Monday.

The commission added that the company’s sustainability claims are misleading, and that the company makes it difficult for customers to reach out for questions and complaints.

A Shein spokesperson said the company is working with national authorities and the commission to show its commitment to complying with EU laws.

Related: Temu’s Chinese owner reported its slowest revenue growth in three years as tariffs forced the bargain-shopping app to raise prices. [WSJ]

 

Keep Reading

Dianna Huff next to a wall-mounted wood cutout in the shape of the United States and painted with the American flag

Shoppers like Dianna Huff say they want to support American businesses. PHOTO: SOPHIE PARK FOR WSJ

Shoppers who strive to buy only “Made in America” goods say it’s really, really hard. [WSJ]

Starbucks banned customers in South Korea from using the names of candidates in the upcoming presidential election when they place their orders. [NBC News] 

Nathan’s Famous hot dogs are a hit in Ukraine. [NYT]

The New York Knicks’ dramatic comeback in Game 3 of their series against the Indiana Pacers also boosted the chances of a ratings win for the NBA playoffs. [Front Office Sports]

Consumers tend to believe that packaged foods labeled as healthy will go bad faster than other foods, a recent study found. [WSJ] 

Why the skincare brand Laneige ties new product introductions with specialty food items at partners like Dough Donuts in New York and La La Land Kind Cafe in Los Angeles. [Glossy] 

Discord, which grew to a major social network with an ad-free experience, is testing unskippable video advertising. [Search Engine Land] 

Cannes Lions will run three “safe spaces” during the festival next month for anyone who “feels uncomfortable, in need of support.” Several women have described instances of sexual harassment and assault during the 2024 festival. [Adweek]

Correction: Outgoing Tinder CEO Faye Iosotaluno was named to her post in January 2024. An article cited in Friday's newsletter incorrectly said she was appointed in January of this year.

 
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