🚴‍♀️ “eBikes are the new Pickleball” — Electric Bikes’ subsidy moment. Starbucks’ hacienda loyalty. Kellogg’s inflated water cereal.
00:00This is Nick.This is Jack.It is Wednesday, September 14th.And today's pot is just, it's the best one yet.It's a T-boy, Nick.But it was the worst day for markets and get this, two years.Yeah, for the Dow, it was a T-Wi, the worst one yet in two years.Yeah, the Dow dropped 1,200 points yesterday.
00:18And the S&P 500 dropped 4%.And all of that is connected to our first story.Jack, what do we got for the T-boy?Kellogg just launched a new cereal that doesn't require milk.You just add water.Kellogg just whipped up the first example we've ever seen of inflation product design.For our second story, yes, you are noticing more electric bikes whizzing by you on the street.And that is because for the first time ever, electric bike sales just beat a road bike sales.
00:47And our third and final story is Starbucks.They just unveiled their new and improved Starbucks rewards loyalty app.The new and improved reward is a paid trip to a hacienda in Costa Rica.But Nick, before we hit that wonderful man,Mix. Fantastic mix. Honestly, no one else is doing this mix. I love this mix today, man. Happy birthdayto nobody. Nobody because yesterday, uh, we told you the odds are that it is your birthdaythis week. That's right. This week is the most popular birthday week in America. Yeah, the list of dayswith the most American birthdays is dominated by mid-September. It really is. We were shocked to see it.
01:22But it did beg the question from a bunch of yetis out there. If mid-September has the mostbirthday bashes, then what week has the few?birthday bashes. Who's the joker to this Batman?Jack, who is the Janus Ian to this Gretchen Wieners?The answer to the least popular birthday week is the opposite of the most popular birthday week.Yeties, the time of year in America with the fewest birthdays is January.Specifically, the first week of January.More specifically, January 1st.
01:55Jack and I jumped in T-boy style.Turns out New Year's Day has the fewest birthdays.New Year's Day is tied with Christmas.This is a fact for the fewest birthdays in America.It's amazing.We know what you're thinking.Who are you going to blame?Don't blame the hangovers.
02:09Blame the vacations.Because apparently couples strategically don't want holiday babies.That's right.Mom and Dad would rather be in the Bahamas on the beach than in the hospital.So mom and dad crunch the love numbers and they scheduled your birth for before Christmas or after New Year.That's the dominant theory.There is another theory, though.Jack, do you want to whip up our alternative theory?
02:30Mom and dad don't want their baby to compete with Jesus for birthday cards.Parents, yeah.They're avoiding a December 25th birthday for little Johnny.So, Yeties, if you've got a mid-September birthday, congrats.You are the most popular.If you got an early January birthday, also congrats.You are the most unique.Let's hit our three-store.
02:50Happy birthday.15 years before this song, two boys from the Northeast met in the dorm.They had an idea to cause a cult kiss.50%.That's a fat tip.Boy City on your at list.If you know, you know, because we're ready to go.We can't wait no more.
03:12So just start the show.Start the show.For our first story, we just got the monthly report on inflation.And honestly, you know, it wasn't that great.But it can all be explained by Kellogg, launching the first ever water cereal.First of all, Yeties, the most inflated thing about inflation is all to talk about inflation.Because the more people talk about inflation, the more it leads to more inflation.You've got a point, Nick.
03:36But we just got the August inflation report.Because I said inflation.Because he said inflation, Jack.Prices are chilling a bit yet yet, he's, but it's still bad out there.All right.Every time Jack says inflation, you got to take a shot of overpriced orange juice.That's the game.That's a brilliant game, Nick.
03:52I'm on board.In the meantime, here's what was actually in the report.Inflation drink is down from its 9.1% high in June.That's good.But prices are still up 8.3% from last year.That is stubbornly high inflation drink.It is.Despite the big drop in gas prices.
04:09Point Jack. We should point out gas has actually fallen by $1.25 a gallon, not too shabby.But prices are still 8.3% higher on average than last year.And that means that the nation's central bank, the Federal Reserve, is going to get more involved.Yeah, Wall Street's interpretation was that the Fed is going to continue jacking up interest rates to kill this high inflation.And after all that inflation drama, investors were so bummed yesterday that they dropped the stock market for its worst day.in two years. The S&P 500 fell by over 4% yesterday.But funny thing Jack and I noticed, all these high food prices are why Kellogg's stock happensto be up this year.
04:52Funnier thing we noticed, Kellogg seems to have created a product literally inspired bythis price report.That's our interpretation. Behold, the brand new Kellogg product, Kellogg Water, Serial.That's what we're calling it. They call it Instaballs.Honestly, that is a better name. They do have a better name.named us on that one, Jack.Insta bowls is cereal, which Kellogg's been making for 100 years, but you add water to it,not milk.
05:16Yeah, it's like ramen cup of soup, but it's for your fruit loops and your apple jacks.Right.And instead of the pack of, like, beef or chicken sauce and your ramen, this contains milk powder.Yeah, so like you pour in a pint of H2O into your frosted flakes, you stir it up,and then boom, what happens?The powder transforms into milk, and you have what is resembling an old-fashioned normal bowl of cereal.Jack, can I get a cookie crisp?What do I got to do to get a cookie crisp?
05:42Gohoo!I feel like a court jester over here.The big question, of course,Jack, do you still get the cereal milk at the end of the cereal?Because that's the best part of the cereal.I think you do.And you got to eat it before it gets soggy.Yeties, what's really interesting here, though,
05:57isn't the fantastic water-to-milk technology that Kellogg created?Although that is impressive.What Jack and I think is the most fascinating part about this storyis the philosophy behind Cielagie.cereal water milk. Because milk is one of the top five hardest hit inflation items in the report.Get this. Milk prices have surged a whopping 17% in last year. And with this product, you don't have tobuy milk. So to us, water cereal isn't about convenience. No, to us, this new water cereal is thefirst ever inflation designed product. Drink. So Jack, what's the takeaway for our buddies over at
06:34Kellogg's? When prices rise, two things can change. First people,and then products. Okay, Yetis, people have already changed their behaviors. Like, get this,Americans earning over $100,000 a year are shopping at dollar stores more than ever. Yeah, if you look atthe parking lot at Walmart, you're going to see more BMWs than you've ever seen before because peopleare adjusting their spending. But what Kellogg just created is the first sign of a product that hasfundamentally changed for inflation too. Now, we're not talking about adjusting the size of the product.That's shrinkflation. That's not a fundamental change. That's a sneaky change.What Jack and I are talking about is Kellogg designing a brand new product specifically for inflation wallets.
07:15Kellogg's water cereal captures a new era in this era of high prices.Inflation product design.Drink, drink, drink.For our second story, electric bikes just hit a very special milestone.And now governments are getting on electric bikes.With electric bikes, first came fun and then came the commute.If you're talking to your parents right now, two words are going to get brought up.One is pickleball.
07:46Two is electric bikes.Parents did it the last couple years.And they told us that they did it.Yeah.They're like, oh yeah, Janice and I haven't lost the pickleball match in three weeks.How often are you playing?Once every three weeks.Yet he's both pickleball and electric bikes took off during the pandemic.
08:02Janus got a custom paddle.You got to believe it.These things got you outdoors.They were socially distance activities.And it was like a fun way to exercise.They're like tennis and regular biking, but neither one requires you to be physically fit.No, they don't. That's what's so great.Well, let's focus on the e-bikes, Jack. What's going on with the electric bikes?
08:19E-bikes in particular hit a shocking milestone in 2021.We sat down, stood up, and sat back down on the seat again.Get this. Electric bikes just beat road bikes in sales last year.According to NPD, which is a research group, Americans spent $770 million on e-bikes in 2021.I have sprinkling on a little context here.That is more than three times the amount that was spent on electric bikes in 2019.Companies like Van Moof, Rad bikes, and Cowboy, they are e-bike leaders.They're all private, and they all have raised hundreds of million dollars in venture funding.
08:54Now, the way Jack and I see it is like electric bikes are basically a third glute.Electric bikes are like having a third hammy.These are regular bicycles, but with a battery pack and a motor, so they are heavier.That is one negative to them.You can remove the battery.pack them. True. But you're going to pedal this thing just like the Huffy you grew up on,but for the hills, you can boost up them with an electric bike. Yes, right there next to yourbrakes and your gear changers, a little button that is like having a third glute. It's going to
09:23power you up the hill. I mean, this thing is amazing. The key use for this is really when you're onvacation. Like we were going through Central Italy on this thing. Like you want an electric bike forthe hills. Right. With an electric bike, you can tour the Riviera on a bike, you know, soak in thescenes without soaking the linen shirt you're wearing in sweat. Right. So the consumer use case isbasically any sweat-free scenario is more conducive to an electric bike. Right. You can ride one to adate or to work and not have to take a shower immediately after arriving. Right. Like Jack,remember, I tested an electric bike to get to our pod studio because we can't be sweating forthe hair these days with the video pod. Both San Francisco and New York City have electric bikes
10:01within their bike share programs. There are a lot of hills. Now, Besties, Jack and I have noticed therehave been two waves to the electric bike industry. The first wave was pure raw consumer demand.Pure and raw, because the early adopters of a new technology, they tend to be the fanatics.These are our parents. Electric bike costs over $2,000, which is another reason why they're so oftenbragged about. But electric bikes are now experiencing a second wave of sales surging.Exactly, because exiting the pandemic, sales of electric bikes just keep on growing.And this second wave for e-bikes, it got us curious, because it's a government.funded second wave of e-bikes.
10:38So Jack, what's the takeaway for all our buddies buying up electric bikes?For the first time, your wallet is getting training wheels.Okay, Yetis, apparently cities, companies, and states are now incentivizing electric bikes.And Axios just listed all the cities, companies, and states that are incentivizing electric bikes.If you live in Hawaii, if you live in Oakland, if you work at Amazon, any of those threescenarios, you have subsidized electric bikes available to you.And the reason is because these eco-friendly two-wheelerers are offering benefits that are way beyond just the biker.Just like regular bicycles, e-bikes are more environmental and less dangerous than cars are.
11:17But here's the key.Unlike regular bikes, electric bikes are a viable option for the masses to commute distances.So little electric bikes are getting similar government incentives as a huge Ford electric F-150 does.Which means your wallet doesn't have to pay the entire two and a half thousand.thousand bucks for a single electric bike.Increasingly, governments are giving your wallet training wheels.Now, a word about our sponsor, Robin Hood.You can do just about anything from your phone, but some industries, they've just been slow
11:49to move.The finance industry was slow to move from phone to computer and then from computer to app.Robin Hood wasn't.It's the Silicon Valley-based brokerage that's been updating app since it was born in 2015.Using the Robin Hood app for your stocks and crypto is almost as easy as downloading it.So you can invest to your pace on your terms by downloading the Robin Hood app.If you're not investing on Robin Hood yet, to get started, go to robin hood.com slash t-boyand choose your free stock.
12:14That's Robinhood.com slash T-B-O-Y limitation supply.Stocks are offered by Robin Hood Financial LLC, member SIPC.Crypto offered through Robin Hood.All investments involve risk.By the way, this podcast is not owned by or part of Robin Hood, and we are not employees of Robin Hood.For our third and final story, Starbucks just revealed it's given a makeoverto its two most powerful assets, the loyalty app and the third place.Because good companies build, great companies evolve.
12:44Preach Jack.All right, Yeties, if you have read the founder of Starbucks's book, you'll know that hisgreatest innovation wasn't coffee.Howard Saltz's greatest innovation was the third place.Exactly.Not home, not work, like somewhere that was like in between.That's the third place.That is Starbucks.
13:03Picture Central Park.the show Friends. Exactly. Or the coffee shop in Seinfeld. Right, because coffee is an inherently socialproduct and there wasn't a place in between home and work for it. Well, yesterday, Starbucks justacknowledged that the entire third place concept they were built on. That key concept. It needs a makeover.It does. Yeah, because people don't want slow-paced coffee sipping with friends these days.It just doesn't happen. It doesn't happen that much. You're doing it differently. People aren't likegrabbing a latte mug to sit down at a coffee shop and write the next great American novel. No, you're doing agrab and go take out cup, you're heading home. You are not hanging out in the third place.
13:37It's kind of a sad state of affairs, but like we're on the go constantly. So Starbucks just announcedthat it's evolving at stores by spending, I get this, $450 million in the United States,and they're adding 2,000 more Starbucks. They announced all these updates yesterday at theirannual Investor Day conference. Which means Starbucks has an entirely new pivot after all these decades. And whatis that pivot, Jack? It's not the third place. All these investors,are going to be in drive-through, pickup-only locations, delivery-only locations, and just speed.Basically, ways to get you to your first place and your second place and completely avoid the third place.Yeah, because like every coach says, speed kills in a good way.
14:17And yeties, remember what Jack and I told you, 75% of Starbucks orders these days are iced beverages.And a majority of those iced beverages, as you know, they are to go.That's why Starbucks also announced a new machine that brews cold or hot coffee in just 30,seconds. It kind of sounds like Blank Street coffee. Also, you'll be able to order while you're stuckwaiting in line wishing you had ordered ahead. That's thanks to these new QR codes that are going to beposted in the lines that you can take a picture of. Yeah, you take a picture of the QR code. Boom,they're going to make that Machiatto ASAP. Even though you're back of the line, they're working onyour product. So what Jack and I are trying to say here is like college football and grocery
14:55deliveries, coffee has become a game of speed. A third place? Yeah. Well, absolutely, actually.So, Jack, what's the takeaway for our buddies over at Starbucks?Good companies built.Great companies evolved.All right, besties, not only is Starbucks evolving its third place.This is what Jack and I found fascinating.They are also modernizing their famous loyalty app.When Starbucks launched the Starbucks Rewards Loyalty app, it was a pioneer.
15:22There were no others like it.Now it's got 25 million users.Honestly, that coffee app is one of the largest financial apps in the entire country.But now every chain has a loyalty app.So Starbucks unveiled a new thing.Yes.Odyssey.Odyssey.
15:36Now, you can join the wait list for Odyssey because basically what this will be is a loyalty app at anentirely new level.If you order enough coffees, you're not just going to get a free coffee.No, you're not.You will win digital collectibles and experiences from Starbucks.Yeah, like that experience could be an espresso martini making class at a Starbucksbecause you bought so many frappuccinos.Or that experience, Starbucks will actually send some winners on a trip to coast.
16:01to see the beans at the source that eventually become there for Appuccina.Jack, six more ventis and I'm heading to a hacienda in Central America, baby.Yeties, Starbucks already built great things.But to stay great, it's evolving those great things.Jack, can you whip up the takeaways for us over there?Kellogg just launched Insta balls, aka water cereal.It's the first thing we've ever seen that's an inflation designed product.For our second store, e-bikes are experiencing their second wave.
16:34sales boom. Thanks to new subsidies, your wallet is about to get training wheels. And our third and finalstory is Starbucks. They just updated their third place and their loyalty app. Good companies build. Greatcompanies evolve. We actually think it's the same thing for human beings. That's a great point.It is the same thing for human beings. Evolve. Drink. And yet we're still telling each other to drink.Now time for the best fact yet. This one sent in byJesse Kerr from lovely Portland Oregon.The Toronto Raptors basketball team has always said,they owned the North.
17:11And you know what?We bought it because they're the only NBA team in Canada.So honestly, for this North team, it makes sense.Except let me call on the fact checkers over here.They are not the most North NBA team, actually.Get this yet.He's Portland, Oregon in the United States,is actually further north than Toronto up in Canada.
17:29They're south of the border, but they're north of Toronto.Check your maps Magellan.Jack.What kind of numbers these guys put?Good enough.All right, Portland scored a 45.52 degrees on latitude scale, Nick.What about Toronto, Jack?Toronto's 43.7.
17:42So the Portland Trailblazers basketball team, yeah, they own the North, not the Raptors.And yeah, we check the Timberwolves.They're south of Portland.44 degrees, don't even touch us.Yeties, you look fantastic today.And remember, if you've got a mid-January birthday, look, we're not different.We're just unique.I noticed the first person pronoun there, Nick.
18:04felt lonely, but I feel special too.Jack and I, we'll see you tomorrow.Yeah, we'll go.And before we go, happy birthday to Sarah,who right now is driving on her way to work in Ridgecrest, California.And happy birthday to Oli Cuts in London, England.And Octavia as Peru, a happy birthday in Caracas,Fennas, but celebrating over in Disney World.
18:29Happy birthday to In Young Joe, not out old Jess in Raleigh, North Carolina.Good luck on that tunnel light marathon this weekend, by the way, in Young.And congrats to Jamie Chen, who just got a new.job in a new city.Austin, Texas.And to anyone else celebrating something today, make it a T-boy.Celebrate the wins.This is Jack. I own stock of Disney, and Nick and I both own stock of Robin Hood and
18:53ETFs of the S&P 500.Now a word about our sponsor, Robin Hood.Jack, rule number one about a kitchen renovation, tell your friends about your kitchenrenovation.We know the cabinets are expensive.Well, in the pandemic, a lot of companies renovated their businesses focusing on appsand digital.It didn't have to. It was built digital from the start. Robin Hood's mobile first and intuitive design makes investing a little easier for every stage of your investing journey. Whether you want to trade options, ETFs, or stocks through Robintoff Financial, or buy some Bitcoin on Robin Hood Crypto. You can do all that right on the Robin Hood app. If you're not investing on Robin Hood yet to get started, go to robin hood.com slash T-Boy and choose your free stock. That's robinood.com slash TBOI. Limitations apply.
19:36Robin Hood Financial LLC, member SIPC, all investments involved risk. By the way, this podcast.podcast is not owned by or part of Robin Hood, and we are not employees of Robin Hood.
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