The Best One Yet - 🐡 “Everyone needs a wingman” — Goldfish’s $1B cracker. Spotify’s anti-Spotify plan. Ikea vs. Wayfair.

Episode Date: April 24, 2023

The newest Billion-Dollar Brand? It will be Goldfish Crackers… because Goldfish uses “The Wingman Strategy.” We noticed Spotify hasn’t been looking like Spotify so far this year — and that��s ok. And Ikea is making its biggest investment ever, putting $2B into 17 new US locations — So we’re comparing Ikea to Wayfair.$CPB $SPOT $WWant merch, a shoutout, or got TheBestFactYet? Go to: www.tboypod.comFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on YoutubeLearn 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. Welcome back. It is Monday, April 24th, and today's pod is the best one yet. It's a special episode we have for you today. Absolutely. It's fantastic. Jack, first story, what do we got for the pot? The latest billion-dollar brand is Goldfish crackers. Because Goldfish crackers use the wingman strategy to pick up customers. For our second story, we followed everything that Spotify has done so far this year. Yes, we did. We came up with a takeaway. Here it is. It's the year Spotify stopped being Spotify. And our third and final story is IKEA. IKEA is making their biggest investment ever, not just in the United States, in the world.

Jack, we got ourselves a furniture face-off, my friend. It's IKEA versus Wayfair. Ding, ding, ding! IKEA versus Wayfair. But Yeties, before we hit that fantastic mix... I love this mix, Jack. We have a fantastic announcement. Yes, we do.

Yeties, 10 years ago, Jack, and I launched a business new startup. Five years ago, Nick and I launched this podcast. But one year ago, we rebranded and we became the best one yet. That's right. Today is the one year anniversary of the best one yet. Hey, T-Boy, just turned one year old. We've got to give ourselves a shout out at the end of the project.

Happy birthday, Slamming Sam. Happy birthday, buddy, Timmy. Not too shabby over there. And for the first time ever, we're going to use this occasion to share our business numbers publicly with you. Yeties, for the first time ever, we want to jump in T-boy style to T-boy with you.

Jack, is this like an earnings report? This feels like an earnings report. It's kind of an earnings report. Get this, Yeties. Last year, this podcast, the best one yet, and T-boy Light, our sister pod, were downloaded 50 million times.

We repeat 50 million downloads of this show in one year. 50 million is an A-T-H. It's an all-time high in the five years that this show has done daily shows. Jack, the Yetis downloaded 50 million episodes. Nick, the besties listened to 50 million shows.

Jack, that is 50 million takeaways that you whipped up, my friend. It's 50 million downturned divas, Nick. And it is 50 million double digitates. Ipso facto, T-Boy is the most downloaded daily business news pod in the United States. Now, we can't confirm that because shows rarely publicize their download numbers. But we also can't refute that because shows rarely publicize their download numbers. I don't think we're the biggest. Show us your numbers, Wall Street Journal.

We are extremely proud of this nice round, 50 million number that is going up on the fridge. No pressure, Yetis, but the next round number that we're targeting, it's 100 million. But if we can put the numbers aside for a second, it is thanks to you, the listeners, that we have this show in the very first place. It is thanks to you, the besties and the Yetis

that Nick and I get to do this every day. It's our absolute dream job. And because we got no shortage of thank you, Thank you Yetis for this special year. Thank you besties for this record year. Okay, Jack, this wasn't just a T-Boy anniversary, was it? It was literally the best one yet. The best one yet.

Let's in our three stories, baby. Fifteen years before this song, two boys from the Northeast met in the dawn. They had an idea that caused a cultural 50%. That's a fat tip. Tea Boy City on your at list. If you know, you know, because we're ready to go. We can't wait no more, so just start the show.

Start the show. For our first story, Goldfish Crackers, they are about to become the latest billion-dollar brand. Not too shabby. Because Goldfish figured out the wingman strategy for picking up customers. Hey, Eddie's. We're going to talk goldfish. We got to talk Campbell's Soup. Campbell's Soup, the $16 billion soup company.

When you think Campbell Soup, you think of chicken noodle soup, tomato soup, cream of mushroom soup. Hit me with a bisque, baby. What else you got, yeah? Tomato Bisque. Okay, we'll roll with that too. Also, what's cream of celery? Can I ask?

I didn't think celery had cream. Let me just tell you, Jack, you do not want to look at the label on that thing. Yeties Campbell's Soup, here's the funny thing. They're not really a soup company anymore, are they? They're a snack company. Nearly 50% of the sales and growing is coming from snacks. And soup is not a snack. You can stick a straw in a soup, but I'm sorry, it is still not a snack.

Today, if the product makes your fingers salty, Campbell Soup owns it. Because Campbell's Soup, they've acquired Cape Cod chips. They've acquired kettle chips. They've even acquired Snyder's pretzels. But the fastest growing snack in their portfolio is the oldest snack in their portfolio. Goldfish. Goldfish's sales searched 21% in the last year. In fact, goldfish has passed $900 million in annual sales.

They're about to become a billion dollar snack brand. Yes, they are. Jack and I jumped in T-boy style. We noticed the word goldfish was mentioned eight times on the Campbell Soup earnings call. That's more times than Campbell Soup was mentioned. And then Campbell's Soup said that goldfish were the largest driver. of their own growth. Now, let's back up here, Nick.

Goldfish was invented by a Swiss biscuit company 65 years ago. Ironic because there's no goldfish native to Switzerland. Also ironic because goldfish are essentially baby boomers, is what we're saying. That's why they're mostly in Florida these days. In fact, Julia Child, the famous chef, loved goldfish so much. She served goldfish at Thanksgiving along with the turkey. I serve goldfish all the time because they're great for toddlers. But it turns out they're just as popular in homes without kids as they are in homes with kids.

Now, yet he's that last part. That got Jack and me curious. We were wondering, like, all weekend long, what is driving sales of boring old goldfish? The answer? Crazy new goldfish. Because get this. Campbell's Soup now launches limited edition goldfish every two months. It's like cracker clockwork. And the flavors are crazy. Like Frank's Red Hot goldfish or Old Bay Goldfish or cookies and cream goldfish. They even launched a Dunkin' Donuts pumpkin spice special edition goldfish, didn't they, Jack? Dahlene lost her hazelnut when she saw that. Two pumps of, oh my God!

And the marketer is a Campbell soup. They're not just messing with Dahlin's hazelnut. No, they're not. Get these numbers. Yet he's, this is what actually fascinated Jack and me about this story. Campbell's discovered that you are twice as likely to purchase regular goldfish if you first see this special edition goldfish next to them. Yeah, like for example, let's say you're strolling down aisle 6 and you notice,

ooh, there's a new princess unicorn flavored goldfish that catches your eye. You pause and remember, oh, I love goldfish. I used to eat these when I was a kid. Exactly. Or another example here, let's say you find those new goldfish that they did with like Jinko jeans. This is like a new thing.

A real thing, like Jinko jeans. Another real thing. They fit in the back pocket of a pair of jeans. We're talking like jeans goldfish from 1996. You see that flavor. You're twice as likely to grab a regular flavor that's sitting next to it. We were shocked by that. So Jack, what's the takeaway for our buddies over at

Goldfish. Everyone needs a wingman, even a crack. Yeties, when you're nervous, when you're flying solo out there, you need a wingman or a wing woman for support. You need a buddy to boost you up on that double date, but not a buddy who's going to steal your thunder. Well, the way Jack and I see it, the same strategy applies to products. Like Goldfish, their sales were stagnating for years.

They needed a confidence boost. So they got a wingman, a fun, surprising product that supported the OG product. And here's the key. fun wingman limited time products, they didn't steal all the attention from the regular goldfish. The pizza flavored goldfish did not cannibalize sales of regular goldfish. In fact, those wingman products enhanced the sales of regular goldfish. They pumped them up, in fact. Like a great wingman or a great wing woman. Yet is every person could use a wingman for support. So could any product.

For our second story, Jack and I have noticed that Spotify has announced half a dozen moves that undo their biggest moves of the last four years. 2023 is the year Spotify stopped being Spotify. And that's okay. And that's okay. It's not your fault. You're growing. It's not your fault.

You're growing. Spotify. Honestly, Spotify has become famous for one thing in particular lately, hasn't it? Spotify wrapped every December. So Jack and I, we decided to do a Spotify wrapped on Spotify's last three months as a company. In the last quarter, Spotify has shut down their Spotify Live app. Which it acquired in 2021 for $50 million. In the last quarter, Spotify has decided to shut down hurdle, the wordel-inspired game for guessing music songs.

Which it acquired less than a year ago for an undisclosed price. And in the last quarter, Spotify has released some of their Gimlet podcasts into the podcasting while. Which it acquired for $230 million four years ago to be exclusive only on Spotify. And that last one's huge because Spotify acquired Gimlet, the podcast studio, to force its podcast listeners to listen on Spotify. It was the gated garden strategy, but now they've like cut open the gate. They've like opened the gate. They've opened up the gate and you can listen to certain Gimlet podcasts on any podcast platform, including Spotify's arch rivals. Because Spotify's new focus is to maximize ad revenue.

Even if those ads are heard on Apple Podcasts. Let's back up for a second here. Those are the things that Spotify has quit, ditched, or is trying to undo from everything we knew Spotify cared about. Yes, but we did find something they're doing fresh. They're doing new instead. For example, Spotify is now doing, you know, a robot DJ. They're doing a robot DJ. In March, Spotify announced an artificial intelligence DJ to let artificial intelligence create custom radio stations just for you. It's like diplo but run by gateway computers. That's what this is. basically. So the thing Spotify is ending, those were key to Spotify strategy. Exclusive podcast,

live audio, fun music games. And now the thing Spotify is doing more of, those aren't key to Spotify strategy. An AI DJ? We're looking at this and we're like, um, that wasn't on the Spotify roadmap a year ago, was it, Jack? Definitely not. Not on the whiteboard. So Jack, what's the takeaway for our buddies over at Spotify? 2023 is the year Spotify stopped being Spotify. And that's over. That's okay. Yeties last year, we told you that 2022 was the year Netflix just stopped being Netflix. Netflix started doing anti-netflix stuff. Last year, Netflix added ads for the first time. It put movies and movie theaters for the first time and it lost subscribers for the first time. Well, the way we see it now, 2023 is the year Spotify stopped being Spotify. But for Netflix and

Spotify, we think that's okay. Neither of these two tech platforms are young, companies anymore. Yeah, so Wall Street expects profits ASAP. And neither of these two companies can rely on unlimited subscriber growth anymore. It's time to make money in different ways, isn't it? So both Netflix and Spotify stopped being their old selves, which were focused on growth, and started focusing on profit instead. Honestly, we humans, we all kind of do the same thing when we hit our 20s, don't we, Jack? We kind of make a pivot. Yeah, less parties, more networking. Besties, 2023 is the year Spotify stopped being Spotify. And that's okay. That's okay. And now a word from our sponsor, Robin Hood. Want to invest in stocks, but you'll want to save time too. Robin Hood's cash card helps you add to your

investments with every purchase you make. They'll round up your change with every tap and invest it into the stock or crypto of your choice. Your future self will thank you. And these roundups they can really add up. If you're not investing with Robin Hood yet, to get started, go to robin hood.com spending account offered through Robin Hood Money, NMLS-190968. The cash card is issued by Sutton Bank member FDIC pursuant to a license by MasterC. Certain limitations apply. Roundup services are provided by RHY. You must have a brokerage account with RHF or a cryptocurrency account with RHC in order to

fully utilize investment features. All investments involve risk. Robin Hood Financial LLC, member SIPC. For our third and final story, IKEA just announced their biggest investment ever. get this, $2.2 billion to build 17 new American IKEA's. So we took the opportunity to compare IKEA to Wayfair. Yes, we did. The tortoise versus the hair.

Okay, Jack, if we're going to talk IKEA, can we talk about IKEA's greatest invention for mankind? IKEA invented a universal language, the only universal language, the IKEA furniture assembly instructions. Yeah, there's like no words. It's just arrows, stick figures, and Alan Wrenchers. It is a universal language. And here's the strategy. That meant that IKEA could spend less money assembling products because you do the assembly for them. You're going to need to block off your whole Saturday afternoon for that dresser.

When you buy an IKEA smorgish board, you are working for IKEA to put that together. And now, IKEA, the Swedish icon, is making its biggest investment ever. Spending $2.2 billion for 17 new stores here in these United States. Now, 17 new stores might not. sound like that many stores. Jack, can we sprinkle on a little context here, please? Walmart has over 4,000 stores in the United States. But here's the thing, besties. People

will drive far and wide to find an IKEA, won't there. When I lived in Manhattan, I took a ferry to get to the IKEA in Brooklyn. Jack and I had to book tickets on major forms of transportation to get to an IKEA. Nick the IKEA in Connecticut, in New Haven,

off I-95? Someone is there right now, probably a Yeti. You can see that from miles away. That thing is Connecticut's Coliseum. But yet these IKEA is not just building those mega stores you can see from Tennessee. And it's not just building those mega parking lots with mega shopping carts either, are they, Jack? The new IKEA is focused on Omni Channel retail. The whole focus of these new stores is that you can shop in person or online or both all the time. IKEA is building showrooms where you can sit down on that sofa and browse in person, but then deliver it to your home.

And IKEA is building 900 pickup spots so you can order online and then pick up in person. Omnichannel. Do it however you want to do it. But here's what Jack and I noticed. That happened to be a very different strategy from Wayfair's strategy. Wayfair, Boston's finest furniture company, which is 100% online. 100% online. Yet he's Wayfair. It thrived during the pandemic because it was 100% online. You were stuck at home. You needed new furniture to operate from home, but you couldn't leave your home. Wayfair was perfect.

So if you were going to Pimp that bedroom, you were going to Wayfair. That's where you were going. all got a standing desk every single American from Wayfair during the pandemic. Now, Wayfair stock surged from $30 to $300 in just six months during the pandemic. Because of all those standing desks. But the problem, it's fallen 90% since then. Okay, now, we don't know where IKEA stock price is because they're Swedish and we don't speak Swedish. Jack, it says their revenues last quarter were Gazuntite.

No, Kroner. No, no, no. We actually don't know IKEA stock. stock price because they're a private company. They don't share the numbers publicly. Right. But the fact that they're making their biggest investment ever, $2 billion, I think IKEA is probably crushing. Yeah. So, Jack, what is, you know, the bark and brouffe and steak away for our buddies over at IKEA? Brick and mortar is beating up digital right now. Yates, IKEA is as brick and mortar as bricks and mortar get. They got a physical store on every continent except Antarctica. Yes.

Wayfair, on the other hand, they have zero physical stores. No bricks, no mortars. They're 100% online. So IKEA stock is probably at an all-time high, and yet Wayfair stock is at an all-time low. And we're seeing this all over the market. Well-run brick-and-mortar companies are crushing their digital competition. Yeah, for example, Peloton, Wayfair, PayPal. These digital icons are down 75% each. On the other hand, Planet Fitness, IKEA, JP Morgan. Brick and mortar equivalents are at or close to all-time high stock prices. Honestly, it's one of the biggest reversals in business history that Jack and I have ever seen. Brick and mortar is beating up digital.

Jack, can you please assemble the takeaways for us over there? I need an instruction manual. Yes, we all do. Campbell Soup's top growth driver is goldfish. It's their next billion dollar brand. Because every person needs a wingman and every product needs a wing woman, even a cracker. For our second story, Spotify spent the last three months undoing key parts of the Spotify strategy we know. 2023, it's the year Spotify stopped being Spotify. But that's okay. That's okay. And our third and final story,

IKEA just announced its biggest growth investment ever. Two point two billion dollars for 17 new U.S. stores. Because brick and mortar, it is beating up digital. It really is. Yes, it really is, Jack. Now time for the best fact yet. This one sent in by Jason Irvine from lovely Baltimore, Maryland. One million dogs in the United States have been named beneficiaries on people's wills. If someone passes away, their money is going to their mutt. That's what's happening here. So if a million people die, their money doesn't just go to the kids, the friends, and their buddy Timmy.

That money, that is going to their doggies. If a million Americans pass away, the pooch is basically getting the condo. Jack, the first of the first. frequent flyer miles. That's going to the Frenchie, isn't it? We've said it before, Yetis. We'll say it many more times. Yeah, Jack, what's the takeaway here? P-U-P-P-P-Y. Puppie. People ultimately prioritize puppies. Yeah. Yeties, you look fantastic today. And once again, we got to thank you. Thank you for 50 million downloads last year.

Thank you for making the first year of T-Boy the best one yet. Thank you for making T-boy a T-boy a T-boy. Nick and I, we'll see you tomorrow. Jack, one second. Before we go, that is a win to celebrate, my friend. That is a win. to celebrate. That is a win to celebrate, Nicholas. That is a win to celebrate. H-Y-H-T-V-O-I. Jack and I will see you tomorrow. My man. If you know, you know. And before we go, congratulations to Yeti's Annabelle Lippincott Paxoy and Moose Paxoy on their second baby boy over in San Francisco. His name Aiden. Iden. Iden. Congratulations. And Winston Wells, congratulations on being promoted to master sergeant

in the United States Army. Winston. having our back. And congratulations to Manny Hernandez, who just got a new job as a behavioral therapist. And Miranda and Spatch, congrats on the new job over in Cordellan, Idaho. Congratulations to Tomlin Morgan from Kansas, who's becoming a marine pilot over in Australia. And congratulations on the fourth anniversary and again, the new baby to Mayor and Neha over in Westfield, Indiana. And big shout out to KK, who's moving to Austin. Do your thing down there. And happy birthday to Margarita Romano. over in Santo Amador, Portugal.

And happy 36th birthday to Brandon Love. Over in Seattle, live in the cat life. And Brooke Clark, happy birthday from right down the street in Pacific Heights, San Francisco. Happy birthday to Abdul Hasib in Chicago. And Matt Gold is an Aussie celebrating that birthday over in Brooklyn. Happy 18th birthday to Stephen Ebersole, who's on his way to Arizona State University. And Ariel Johnson has a birthday and is getting married this week down in Houston. Happy 18th birthday, always 18 years old, to Penny Who in Belmont, California.

And a happy birthday to Masa! Turn in 30 in Tokyo, Japan. Massa! Massa! Jamie! This is Jack. I own stock of Netflix, and Nick and I both own stock of Apple, Spotify, Peloton, and Robin Hood. And now, a word from our sponsor, Robin Hood. Not sure what to order? Make sure to ask about the specials. Seared tuna on a bed of rice with ginger and...

only. Yes to that. Robin Hood's cash card has a lot of specials too and they come with some perks. This time it's your favorite sneaker brand. Next time it's your favorite sushi spot. It's the special this week and if you buy it you get cash back with no activation required. So buy these sneakers with Robin Hood with Robin Hood yet and get rewarded for it. If you're not investing with Robin Hood yet to get started, go to robin hood.com slash T-boy. Spending account offered through Robin Hood money NMLS-190968. The cash card issued by Sudden Bank member FDIC pursuant to a license. license by MasterCard, certain limitations apply. All investments involve risk.

Robin Hood Financial LLC, member SIPC. The 26th is an interesting number. It's... Actually, no, 52 is the interesting number. It's all the number of lowercase and uppercase numbers. It's the number of weeks in a year. It's a number of cards and a deck of cards. And I think it's like just randomly, that's the case.

I think it's coincidence that it has a lot of meeting in those three categories. I wonder if for all of them they were aiming for 25. and then they realized they made a mistake.