The Best One Yet - “1 drink to rule them all” – Boston Beer’s pure-play seltzer. Theragun’s marketing kill. Walmart don’t care.

Episode Date: February 22, 2021

While nearly every other beer stock has fallen in the last year, Boston Beer shares nearly tripled… so we jumped in SnacksStyle. Theragun just added Kevin Durant, Karlie Kloss, and 100 other celeb investors because it wants to kill its marketing budget. And Walmart got punished for upping its minimum wage — but Walmart don’t care.$SAM $STZ $WMTGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Learn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. And this is Snacks Daily. It is Monday, February 22nd. Nick, Snackers, everybody, good to be back. This happens to be the best one yet. This is TBLY. Jack, first story.

Almost every single beer stock has gone nowhere over the past 12 months. So, Jack, why has Boston beer stock tripled in the same period of time? For our second story, Therogun is one of those massage guns. I know you're thinking, that's how it goes. Therogun just snagged funding from 100 famous. musicians and athletes. Jack, I got three words for you. Kill the marketing. For our third and final story, Walmart is paying. It's two million workers, a buck an hour more on average, and Wall Street is not happy about it. We're in a new era. Walmart don't care. But Snackers, before we hit those three

stories, wonderful mix. Did you enjoy having the four-day work week last week? Jack, life feels like a little less quarantini after a good four-day work week last week. It really does. Well, we have an update on the four-day work week. Spain is testing it out in a big way. Okay, so this month, the Spanish government has agreed to a three-year pilot of a 32-hour four-day work week. For three years, they're going to have three-day weekends. That is quite a long pilot. Jack, that is teetering on the edge of forever. Now, meanwhile, over in China, Alibaba, the big tech company there, they're still pushing their brutal 996 workweek. This is brutal. 996. That is 9 a.m. to 9 p.m. Six days a week.

Peter, yeah, I'm going to need you to come in on Saturday. Yeah. On the other end of the spectrum, you got Tim Ferriss, who published a book called the Four Hour Workweek. That's 33% more than his famous three-hour work week. He rounded up on that one. But right in the middle, in the meaty part of the curve, Henry Ford standardized the five-day work week nearly 100 years ago.

Detroit, Michigan, at the time in the 1920s, the standard work week in America was actually six days a week. Snackers, you got to appreciate last week's four-day work week because we're not getting another one until April. That's why if you dine out this week, if you happen to go to a restaurant, leave an extra 25% tip for the staff. We're thinking those restaurant workers may not have enjoyed the day off that you hopefully did last week. Let's order three stories. You're tuned in the snacks daily. We spoke to the lawyers and we got to get some legal out the way. The snacks are about to hear rain food. It's air candy. They don't reflect the views of the robberhood family. informational just so you know we're not recommending any securities nope it's not a research report or

investment advice not an offer or sale of a security right snacks is digestible business news for you robber her financial LLC member fenra slash sipc for our first story this one's wild boston beer just reported earnings boston beer stock is riding the spike seltzer wave while every other beer company has gone flat okay so boston beer the craft beer that it grew up to become big beer jack. Now it's a 14 billion dollar company with a publicly traded stock that is all grown up. Nothing micro about it. Don't say micro, don't say craft. Their brewers even shaved their beards, Nick. It's the new company bossy. They started back in 1984 with Sam Adams, with like the jacked founding father as their logo. That was their main beer. And their ticker symbol is

Sam still today. Throwback. Now last week, they reported earnings. The stock fell. Yeah, honestly, you probably didn't even pay much attention to it because the stock fell. The bigger picture is what's happened in the past year. Molson Coors, which is a rival of Boston Beer, their stock has fallen by 17% in the past year. Okay, Jack and I noticed that. We jumped in further snack style. Budweiser, whose corporate name is A.B. and Bev, their stock is down 13% in the last year. Constellation, the company that owns Corona in the U.S., their stock is leading the pack. It's up 11%, which is modest compared to the S&P 500. Okay, so down 17, down 13, basically up 11. Boston Beer Company is up. Get this, 165% in the last year. Sit down and stand back up, Nick. Just did, Jack. Boston Beer

Company brought in a whopping $461 million in revenues in just the last three months, Jack, that is 50% more than the same period last year. In the same period, Molson with Coors Light, their sales fell last quarter. Okay, so all those other beer companies we mentioned, they cover actually your whole liquor cabinet. They go everything from like beer to vodka. Boston beer is a very specific focus. That isn't even beer anymore.

Jack, this feels like a takeaway. So what's the takeaway for our buddies over at Boston Beer Company? It's become the first and only pure play spiked seltzer stock. Snackers, we've said this before. We said it last year. Boston beer, you got to change your name. Change it to Boston beverage. New idea.

Be more specific. Change the name of the company to truly spiked seltzer. The spike seltzer brand that you own Boston beer and that is crushing it in sales. In the earnings call for Boston beer company, they mentioned their OG beer brand Sam Adams five times. We counted five times they said Sam Adams.

They mentioned the hot new profit puppy eight times more than that. A total of 40 truly mentions from the company executive. And that's because truly enjoyed triple digit sales growth again last year. Now it makes up nearly 30% of the entire spike sales. Seltzer market. In fact, Truly is the only Spike Seltzer brand in America that somehow managed to gain market share in the spiked seltzer market last year. The rest of the market is splintering as dozens of White Claw knockoffs just jump on in. That's why the CEO said we will continue to invest heavily in the broader Truly brand. Case in point just a few weeks ago, they launched Truly

iced tea. Nice new thing. Next, Boston Beer Company should rename to Truly. For our second story, Walmart just announced honestly awesome earnings. and it's giving 425,000 workers a raise. That all sounds amazing, but Wall Street hated the news. And Walmart CEO, he don't care. He don't care. Now, here's how Wall Street reacted. Walmart announced that in the fourth quarter, the holiday quarter,

comparable sales of their U.S. stores rose by 9%. E-commerce over Walmart.com includes grocery jumped by 69% big number. Those are both great numbers, but the bigger news, Walmart is sharing those gains by offering raises to 425,000 Walmart, workers bringing the corporate average wage to 15 bucks an hour. We're talking to your average Walmart worker who was fulfilling online orders, boxing up that Sam Slamming Sam and Sam and sweater, that kind of stuff. Yeah, the pay wages were focused on people fulfilling online orders. And the stock dropped 6% on the news. Now, this reminds us of 2015. It totally does. That's

when Walmart raised their minimum wage. Remember, well, Jack. And the stock fell 10%. This sounds like the same story. Jack also kind of reminds us of that Sam Walton quote, founder of Walmart, that famous quote, it was aggressive. They did name the company after him because he said, we are going to be successful, but the basis of Walmart success is very low wage, low benefit model of employment. Wow. It's a rough quote. That's a brutal quote. Now, Wall Street is so angry at Walmart because Walmart doesn't just have costs. Walmart has a cost problem. Walmart sells 26% of a America's groceries as a country, but groceries are an extremely low profit business. Yeah, look at Walmart's net profit margin. So the amount of profit they're making off each dollar

of sales, it's just 1.3 cents in 2019. That's how small their little profit margin was. Apple makes 21 cents of profit for each dollar of sales, which is over 16 times more profitable than Walmart. So basically, Walmart's costs are already a super high number relative to their revenues. Now, Walmart does have the most revenue of any company in the country. So even its really skinny profit margin can yield a big gross profit. But paying workers more makes extremely slim net profit margin's even slimmer. And Wall Street is not a fan. So Jack, what's the takeaway for our buddies down in Arkansas over at Walmart? We are in a new era where it's okay to disappoint your investors. Yeah, basically Walmart CEO probably believes that offering raises to $400,000.

225,000 people is good for profits long term. He knows when workers leave Walmart for higher pay elsewhere, that disrupts Walmart's business and it takes Walmart time and money to replace those workers. Also, happier workers are probably going to perform better if they're getting paid more. Look good, play good, feel good. Yeah. But even if higher pay doesn't boost profits in the long term, CEO of Walmart, don't care. Doug McMillan is the chairman of the Business Roundtable, a club of over 200 major American CEOs. And Doug is a little bit, different shades than his Walmart founder, Sam Walton.

He's got a gentler philosophy. That's well put, Jack. Now, the Business Roundtable, they just announced with a whole lot of support that the days of ruthless profit-only capitalism are over. Instead of just worrying about shareholders, like Sam Walton did, a modern CEO focuses on all the stakeholders of the company,

including the employees. And if Walmart's pay raise only helps Walmart's half a million workers, it's a good thing, too. For our third and final story, Therobody just added a whopping 100 athletic and musical investors to try to become a unicorn. The Theragun is going to bust up the knots on your back. It's aggressive. And kill marketing budgets. Okay, Therabody, you've seen the ads on TV. The company's Therabody, they make the Theragun.

A whole lot of ads. I've seen the ads on my Instagram. It's a Bluetooth percussion massager. Nicely put. that will optimize your body's performance. It's a handheld jackhammer, basically. It really is. It'll cause ripples to, like, flow across your leg.

Picture a shake weight, but a shake weight that went to med school. This thing is a great gift, but it's like $300 to $600, so you should probably be married to the person you're gifting it to. This is a post-commitment kind of a gift. Now, it's all part of the FitTech trend because Apple, Apple, Apple has the Apple watch. Google just acquired Fitbit. Yeah, but Nick, those are the average Joe's $1. Dodgeball team. Therbodies the Globo gem. I don't bleed my own blood.

But it's a mysterious company, Therobody. They claim to have 126 patents, but they won't disclose how much money they've raised, what their valuation is, or how much revenue they make. Jack and I jumped in Snacksdow. You can't get any of the financials. It's just that the revenues tripled from last year, but you don't know from what. They won't share the info. They did tell us that. They also told us that in the past 18 months, they went from being present in 40 stores, to being present across 10,000 retail locations. So Jack and I jumped in further snack style. We turned to their cap table,

the list of their private investors, to figure out what their ambitions are. If you want to buy stock of Therobody, you're straight up missing out, but these body-sensitive celebrities did buy stock. Yeah, this is who got in on the last round. Justin Timberlake, Carly-Claus, Daniel Craig,

celebrities who care how they look. A couple of hard bodies, then you got professional performance athletes, Albert Poo-Holes, Russell Wilson, and Powell Gasol, all of whom have huge hands, by the way. But then you got a wild mix of in-their-prime athlete venture capital firms. Venture capital firms headlined by athletes. For instance, RX3 Ventures, which is headed by quarterback Aaron Rogers. You also got Marcy Ventures, which is actually Jay-Z's Venture Capital Fund. And then you got 35 ventures by Kevin Durant. Nick, I'm serious.

All of these guys have huge hands. It seems to be like a requirement to get into these rounds, Jack. Now, we don't know how many millions in sales figures this company Therabody is doing. But we do know its investors have hundreds of millions of social media followers. And big hands. So, Jack, what's the takeaway for our buddies over at Theragun? They are killing the marketing budget. Yeah, these aren't just celebrity investor-snackers. These are strategic ambassadors.

Unlike traditional venture capitalists, Theragun gets an unprecedented army of advertisers who have financial skin in the game. Cindy Crawford, she'll post a pick with the Theragun from her living room on Instagram to 5.1 million followers for free. Real Madrid uses the Theragun, and they'll promote it at their football games in Spain to 81,000 fans for free. And with all this free marketing, Theragun's marketing spend essentially could be just zero. The alternative is what Pelton has to do. They spent $177 million on marketing just last quarter. That is big. Which makes up nearly a fifth of their total revenue.

Yeah, you got Peloton TV ad, Peloton podcast, Peloton Google Search, Peloton Facebook post, mattress, mattress, mattress. Therbodies Sumo investors want a return on the sumo stock they own. Posting on social is going to drive sales, help their sumo stock grow, and help Therobody get to IPO. Jack, can you whip up the takeaways for us to start the five-day week? Boston beer company is soaring thanks to truly hard salsa. Your name is false, Boston. Call yourself truly. For our second story, Walmart is giving pay raises to. of 425,000 American workers.

New era were in. CEOs don't just think about profits in the stock. For our third and final story, Therobody's massage gun helps muscles recover quicker. And 100 new investors killed its marketing budget. By the way, Darlene is going to love that for a story, Jack. Does Duncan's have his Sam Adams version? They should. So, Jack, time for our snack fact of the day. This one from Tasha in lovely Brooklyn.

Hey, Nick, hey, Jack. It's Tasha C. And here's my Black History snack fact of the day. Lucille Elizabeth Bishop Smith was known as the first black black businesswoman in Houston, Texas. She was a chef, an entrepreneur, and an innovator. She created the first hot biscuit mix, which paved the way for convenience cooking that we know and love today.

Think box mixes. Her famous hot chili biscuits were served on American Airlines and also in Lyndon B. Johnson's White House. Today, her famous recipes live on and a restaurant created by her great grandsons in Houston, Texas, known as no other than Lucille's. Boxed pancakes, you just add a little oil, a little water, a little egg. It is the best. Also another example of a tough Texan.

Texas Snackers, we're thinking about you right now. Snackers make this week a T-Boy. Can't wait to see tomorrow. And before we go, happy birthday to Hot Troy in Manhattan Beach, California. And Cody Isam in Manhattan, Kansas. And Albert Tweed in Manhattan, New York City. And Jasmine Garcia, who just moved to Manhattan, New York City. And happy birthday to Pedro Luis Mora in Caracas, Venezuela.

And Brandon Stoller in Speedway, Indiana, which is, I think, where the Indy 500 is. Also a great name. Chandana, Hosamy, Hirameth, happy birthday in San Francisco, down the street. And Andrew Jensen in Bloomfield, Colorado. And Chip Rank in Chicago. And Rachel Hurst in Atlanta, too. And Audi Odell, happy 50th in Kansas City.

And Tiff Mao. Happy birthday in Los Angeles. Congrats to Catherine Winnecker and Sarah Butler, who just launched Haley Hare, a startup in New York City. And Caleb, congrats on the first job in finance down at Fort Myers. Happy anniversary to Sean and Kay in Amsterdam, the Netherlands. Yeah, the Netherlands.

And to anyone else who is celebrating something today, make it T-boy. Celebrate the winner. This is Jack. I own stock of Pelton, Nick on stock of Apple. The Robin Hood Snacks podcast you just heard reflects the opinions of only the hosts who are associated persons of Robin Hood Financial LLC and does not reflect the views of Robin Hood Markets, Inc. Or any of its subsidiaries or affiliates.

The podcast is for informational purposes only and is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment decision. Robin Hood Financial LLC, member FINRA, SIPC.