The Best One Yet - Beyonce signs with Adidas, Corona’s owner pops 7% for quitting wine, and why Tesla fell 9%

Episode Date: April 5, 2019

Adidas’ new creative partnership with Beyonce signals a major change in athleisurewear. Corona-owner Constellation Brands just sold its cheap wine biz for $1.7B to pivot to beer. And Tesla dropped 9% on e-car sales worries (FYI, Elon Musk was busy in court over his tweets).Learn 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 Friday the 5th, which rolls off the tongue, and we have whipped up the best snacks daily ever. Stocks rose for their sixth day in a row. Very nice. It's for the same reason as the last couple days. It doesn't stop.

Progress between the United States and China and the trade docs. Great catering. That's what gets that done. Now, we have three wonderful stories we whipped up. What we got? The American parent company of Corona, which is called Constellation Brands. It's ditching its cheap wine in favor of expensive beer. The stock rose, and it's basically thanks to three trends you are probably causing.

And then Tesla, surprise, surprise. The stock has no chill. None. It dropped on a critical quarterly report. And Elon Musk showed up physically in person to court for his tweets. Third and final story, Adidas. Stop what you're doing. Sit down. It just signed Beyonce as a creative partner.

Call the beehive. By the way, this means big things for the future of fashion marketing. Snackers, we have some breaking-ish news. share before the pod. This is something to listen to. Bloomberg is reporting that Amazon is making a rival to Apple's AirPods. It's going to be equipped with Alexa. And that got Nick and me thinking. It's so lame that all these virtual assistants only have female voices. It makes no sense. We jumped in snack style. Classic snack style. Turns out that Siri actually comes in a bunch of, like, what would you call it, Anglo-English voices? Different English accents. And in men's voices.

If the Queen or the Commonwealth was involved in the country, there is a series. voice accent for it. Now, this is a gem. I can't believe all iPhone owners need to know this. I had no idea. We're going to play a couple of the options that you have of that. Please, with these. We'll start off with British male. I'm Siri, your virtual assistant. I had no idea that was happening. Sounds like a movie character. Let's switch it up to Australian female. I'm Siri, your virtual assistant. Ah, you catch the gist. Incredible. There's also Irish and South Africa. How did we not know about this? Again, the whole Commonwealth represent. Memorial. Now, before we hit the rest of snacks daily, listen up to this key.

announcement. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something legal out the way. It's snacks about the hair ain't food. It's air candy. They don't reflect the views of the robberhood family. It's all 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. Robahood Financial, LLC, member FINRA slash SIPC For our first story, Corona owner Constellation Brands jumped 7% yesterday.

And the company was highlighting beer sales. Not wine sales. No. Beer sales jumped for Constellation brands by 9% last quarter. Not too bad. Not too bad. But we like one particular thing they were celebrating. Incredible.

We jumped into the earnings report and we found this gem. The company highlighted their 150 million beer case milestone. At so many they like shipped out. This is Kappa Sig. style beer celebration. Pledgemaster CEO announced that one. Now, wine, on the other hand, they were mourning their wine situation. It wasn't pretty.

Wine sales dropped by 8%. Now, the third leg of the stool, of the bar stool at Constellation, is liquor. Liquor's doing fine. We're going to focus right now on wine and beer. Yeah. And when we're talking about wine, we got to talk about the wine sale of the century. This was like clearance style. Happened Wednesday night, Constellation sold off its entire vineyard wine seller

portfolio of cheap wine. We're talking if you're a label under $11, even if you've got a great designed label, you were sold off. Yeah, all that Trader Joe stuff is gone. Done. Two bucks The cheap wine at Constellation is gone because that's actually a tough market right now. So it sold those wines for much less than it was hoping for. It sold them for $1.7 billion. It was hoping to sell them for $3 billion. But Constellation is keeping high-end, you know, aged, very nice, waftable wine. Stuff that you need like obscure adjectives for. So three key trends here that are basically driven by our generation that caused all this. It's dictating Constellations business model.

The first, consumers are drinking less. Nick, there will always be social pressure to drink, but there's a lot of sober, curious people out there. Exactly. And then trend number two, when people are opting to drink, they're drinking the fancier stuff. So they're drinking less, but they're spending more. Exactly. And then third and final, there is a fast-growing category of non-alcoholic and low-cal. beverage. That's what people are interested in when they're out socially. So Jack, what's the

takeaway for our corona crushing constellation? Constellation is a pivot master. When trends change, it pivots fast. And constellations quickly refocused from wine to beer. This company is as nimble as a cat. Okay. We just mentioned a drinking less and lower calorie trend. Next year, Corona is unveiling Corona Refresca, which is the first non-beer-seltzeri Corona option. That's like if you mix together all those three trends, let it ferment, sit, and just turn into a new drink. Now, I got to share another gem with the snack community. Which Jack loves doing this. I know where he's going.

Corona is pretty much, if not completely gluten-free. You wouldn't expect it. Jack loves to tell you that. Best kept secret. Now, this means that Constellation is pivoting away from wine and really focusing on beer because it's going to spend more on Corona and Modello. And another pivot. Cannabis is a big thing.

Corona's parent company Constellation now owns 38% of canopy growth cannabis. For our second story, Tesla just had a really bad day, and the stock fell 8%. But it's also classic Tesla. Classic Tesla. So Tesla. First, automotive 101. Please. Car companies have like two quarterly reports.

Enlighten us. First is a few days after the quarter, which was yesterday, is the production report and the profit report, the earnings report, only comes in like a few weeks. Which one's more fun? Do you like a whip out on a Sunday? I go production all the way. Trick question. It's both.

So we just learned late Wednesday that Tesla, The Tesla produced 77,000 cars, but only sold 63,000 cars last corner. If you do a little bit of math there, and we whipped out like a Ti-83 and did it, that means 14,000 extra cars exist that weren't sold. Like, where are they? It's actually interesting where they are. We'll get to that in a second. And we can't wait.

Now, when we looked at the numbers a little more, here's the other interesting thing. There were fewer Model 3s sold than the previous quarter. Fewer Model S's sold. And fewer Model X's. That's like all of Tesla's cars had fewer sales. Which means there's probably some concerns here about demand and interest in Tesla cars. And that's why stock fell by 8%, which is really bad. But it's like kind of just another Thursday for Tesla.

Just Tesla being Tesla over here. Now, when we jumped into this report, here's the interesting thing. The first 60 words were about results. It wasn't until Word 61 that they started with the excuses. So here's excuse number one. The first quarter of 2019 was the first time they were selling, the affordable Model 3 to Europe and China. So it takes a lot of time to ship a car there.

Cars can't drive there. And that's actually where those 14,000 cars are. They're on ships on the way across the ocean. Now, the second key excuse here is that the government subsidy for electric cars, so making it easier and cheaper for buying electric car, just got cut in half. Yeah, so it's tougher for Tesla. The third excuse, Tesla didn't say this at all. No, but this is a snacks original.

This is a snacks original. There's cannibalization. Model 3 is the new cheaper car, and it's easy. into sales of the more expensive cars. So buyers are basically saying, why am I going to buy an S or an X when I can buy this one instead? And this one, the Model 3, is like just as good. So Jack, what's the takeaway for our buddy Elon and the team at Tesla? Tesla stock has zero chill. Every quarter feels like the biggest, you know, quarter of Tesla's life and the most crucial thing ever. And that's because investors either hate or are completely obsessed with Tesla. So fans, they think it'll be like

the only car company of the future to ever exist. And Elon Musk should run a religion and is a genius. Yes. And haters think Tesla is about to run out of money. It's about to go bankrupt and that Musk is insane. Just as an example, simultaneously yesterday when this report came out, Musk was literally in court dealing with issues around his tweets. Yeah, his like ego-packed tweets. So each time a quarterly report like this comes out, there's a vote. Is Musk a genius or is he insane? And the stock reflects it. Oh, in full disclosure, this is Jack and I own some Tesla shares. It's true. Our third and final story, it's irreplaceable. Adidas just signed Beyonce as its creative partner. Yeah, this is a big sign for the future of athletic apparel. It's huge. It's big deal.

There was a halo cast on Adidas shares because Beyonce. Up 1.3% yesterday. And this is perfect timing because just so good. Just last month, Adidas warned investors. They weren't thrilled to hear it. But that 2,000, 1919 sales will be lower than 2018. Now, we got to back up for a second to talk about the First Lady of Everything. Beyonce launched Ivy Park, her own activewear brand with Top Shop, a British-based company in 2016. Now, if you haven't Warner seen it, we're talking like $25 tanks or like $300 body suits.

This isn't your typical athleisure. If you wear this at the gym, you will get looks. They're more like walking billboards. The words Ivy and Park were blasted on these things. We're talking like triple large, extra-sized mesh jerseys. It was more about looks than performance. Exactly. And now, Beyonce, as part of Adidas, will design a little more athletically in mind with Ivy Park's future.

Now, what we thought was interesting was Beyonce's quote here on the partnership. Yes. This is posted right on Beyonce.com slash Ivy Park. This is the partnership of a lifetime, Beyonce says. It puts creativity, growth, and social responsibility at the forefront of the business. And Beyonce still owns Ivy Park completely. She's not selling to Adidas. It's just a partnership.

Now, it's time for the takeaway, but this is like a big takeaway. Yeah. So we would suggest, no, I don't know, sitting down, pulling up something nice to eat. There is a transformation from athletic to athleisure in these companies, and it's shown in the endorsement. Athletic retailers aren't signing athletes at the same pace they used to be. No, instead, they're signing celebrities. This all goes back to Rihanna. In 2014, she signed a creative partner.

partnership with Puma, and it's just blown up since then. And then who did Puma sign recently? Beyonce's hubby, J.Z, which is kind of awkward because Puma and Adidas are arch rivals, based in the same small town in Germany. Started by brothers who hated each other in the 40s. Yes. Now, Ferell, Carly Clause, Kanye, Beyonce, they've all signed with Adidas. Yeah.

Under Armour. They've got a bunch of non-athletes too. You got Giselle, A.S.ap Rocky, and Dwayne Johnson, aka The Rock. Nike has got to pick up its game in this area. Nike is still pretty much athlete only. Nike has like a requirement that your blood pressure be a certain model. But look, all of these athletic apparel's clothes, it's not about performance and competition as much as it's about just looking good and brunchy.

It's a little less a little more leisure, just no longer technical apparel. Jack, why don't you whip up the takeaways for us? Constellation is a pivot master chasing your drinking habits. And I'm going to officially keep track every time Jack reminds. minds us that corona's gluten-free. Every day. Tesla stock just tipped negative because the latest earnings report. And it's just another day for Tesla.

And finally, Adidas is transforming and we see it in the celebrity indoors. Less ath, more leisure. All right. Time for our snack fact of the day. Jack, drop some numbers on. Okay, Netflix, the Silicon Valley-based tech company has 100,000 movies and TV shows available if you're willing to wait for the DVD. that's way more than the 6,000 available for streaming.

And you're probably wondering who's waiting for the DVD, like a lot of people. 2.7 million Americans still subscribe to DVD service through the mail at Netflix. And we're not talking like the middle of nowhere with no internet access. Netflix claims these are people living in the Bay Area and the East Coast. That's a bold claim. It's aggressive. Not sure. Now, a couple other great stories we're covering in our Snacks newsletter you got to check it.

Snap just announced something new, which it badly needs. It's a bitmoji-based game you can play on Snapchat. And the Amazon story everyone was waiting on. Jeff Bezos and his wife have finalized their divorce, and he is keeping 75% of their stock and voting control of her shares. You have 100% love of our shares. We love you guys. Thank you for listening.

Have a great weekend. We can't wait to talk to you Monday. 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, 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.