The Best One Yet - 🥦 “It’s my Broccoli Subscription” — Sweetgreen’s salad pass. Tesla’s milestone vacay. Beer vs Liquor.

Episode Date: January 4, 2022

Hold the cauliflower, Sweetgreen just launched the 1st salad subscription we’ve ever seen, because some Millennials are Time-Poor. While you were vacay’ing, Tesla announced it sold almost 1 million cars last year (with a side portion of 3 controversies). And we have an update on the legendary American rivalry: Beer vs Liquor… Liquor slurped up Beer’s lead last year with a sneaky little product.$SG $TSLA $BUDGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewformLearn 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 Tuesday, our first T-Boy Tuesday of 2022, January 4th. Wow. Did you see Apple today hit $3 trillion market cap? Jack, call up Dr. Grant and the paleontologist. Apple just became a tripagosaurus Rex.

For a brief moment yesterday, Apple was worth $3 trillion. Apple is now worth more than like every company, every entire industries. I don't want to hear another this, this, that, that, that combined. You know, let's just move. on. Jack, this is the best one yet. TBOY. For our first story, Sweet Green is launching the first ever salad subscription service. Jack, can I interest you in an $18 kinaw orugula Barada bowl for $15? Sweet Green targets the money rich and the time poor. That is key. Second story, Jack. Tesla stock jumped 10% yesterday because one million autos. And they announced some other stuff, too,

some controversial stuff because Tesla. For our third and final story, one of the great rivalries in American business is beer versus liquor. Legendary. Beer has always been before liquor until now. Good Snackers. Before we hit that wonderful mix, honestly, I love this mix today, Jack. You know what's the best snack?

What's the best snack? I don't know. The best snack is the snack you didn't expect. Kind of like the best kind of bonus is the bonus you didn't expect. The accidental bonus is an amazing bonus. It's the best kind of bonus. And guess what? Snackers, Santander Bank, they just sent money to 75,000 people

over the holidays, get this by accident. $175 million of free money. Yeah. Was accidentally wired to your collective bank accounts. Here's the best part, Jack. The best part of all, the accidental deposit dropped on Christmas Day of all days. No, it did. It did.

It did. It did. On 1225. On 1225. Accidental bonus on your pay stub on Christmas day. This is like getting your expected check from Nana on the holidays. Classic. Well, for $5,000.

It's not like 50. I'm going to buy, I don't know, 100 Xboxes because why not? Why not? What else are you going to do? The worst part, though, of this story, Santander is asking for the money back. Really? Are you kidding? Because it's a bank.

It's Santander, I guess. It's not Santa. Even if you already spent the money, Santander is clawing it back like Scrooge McGrinch. Brutal. It's kind of messed up, too, because if you see an erroneous deposit in your bank account, you actually probably have to return it. We think it should be a finders, keepers. Finders, losers, weepers situation going on.

Possession should be 10-9th of the law. Jack, I believe the law should be if you spendeth the money, you keepeth thy money. When it comes to the clawing back of these holiday accidental bonuses, do less, Santander. Do less. Santan, do less. Let's hit our three stars. Do me. You're tuned in the snacks daily.

We spoke to the lawyers and we got to get something legal out the way. The snacks about to hear rain food is air candy. They don't reflect the views of the robberhood family. It's all informational just so. 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. Robberhood Financial, LLC, member Fenra slash SIPC. For our first story, Sweet Green, the salad company IPOed less than two months ago and they just unveiled their first big thing of 2022. The salad subscription service. All right, snackers.

First thing, people are always. like, you know, Nick, Jack, you guys like, hang out so much. Is there anything that's like really different about you? Yes. There's a big, big difference when we walk into a sweet green. I like a clean, sweet green order on the menu. Jack goes on the menu only. Jack's like Harvest Bowl now.

No variation. No modification. I walk in, I'm going custom. I'm feeling inspired. I don't know, by the curried cauliflower. Maybe some peppercorn tahini dressing today. The only modification I'm making is two pieces of bread instead of one. Jack, how about the hybrid?

rid of arugula. You know about that? No. Because you stick to the menu. You're never going to find out. Do you wink, wink? Pro tip, get the pesto and the hot sauce and have it mixed into one dressing. They'll do it for you. Three billion dollar sweet green. They IPOed only a couple months ago back in November. We call it the Shrumami stock. And it's fallen 40% since that IPO did. The CEO says that he's building, and you love this line. He says he's building the McDonald's of our generation. Yeah, he's a millennial, so he's like pumping out enough chaos to build a small village. There's 140 locations, each one dishing out tasty and healthy salads with farm-to-table ingredients. And these aren't just ingredients. These are like ingredients that got a graduate

degree. We're talking like potatoes that were ensconced in Mesa. Airloom tomatoes that did a couple of years teach for America. The basil at sweet green is like a rare earth metal. You're not seeing this anywhere else. They made $303 million in revenues last year, but they're not profitable yet. They're losing a lot of money because they're acting like a tech company because Sweet Green thinks it's a tech company. But they're a salad company. We jumped into the IPO paperwork. They mentioned salad and bowl 31 times. Now, bear in mind, they're a salad and bowl company.

But they mentioned the word digital, 243 times in their IPO paperwork. Here's the news. They're testing out what they're calling Sweet Pass. Yeah, it's a salad subscription service. We're talking like the Netflix for root veggies. Now, the original food subscription is the never-ending pasta bowl from Olive Gark. You used to be pitching that like 24 nights a week. I didn't actually.

It's not a good dish. Like, you don't want them ordered. Then Taco Bell started doing like the Taco Bell Taco Bell Taco Lovers pass. So things caught on. And Panera has a coffee pass where you can take as much coffee as you want. Here's how the sweet green salad sweet pass is going to work. You pay 10 bucks a month. And then you're going to get $3 off any sweet green order every day all month long.

It's confusing. It's confusing. You can only get the $3 off once a day. So you can't bring your buddy and both get $3. Like, it only works. If you do it like four days of month, you do less and it doesn't make sense, you know, it's a lot. It's a pilot, though. They're just testing this out and you must buy it before January 16th. So they're framing this as a New Year's resolution thing. Have salads all month to start the year health. So, Jack, if you walk into a sweet green in order like the chicken pesto parm, the $17 salad, if you do the sweet pass, it's a $14 salad. That's right. catch. It only works. You only get the discount if you order through the sweet green app. If you order it on Uber Eats or DoorDash or even in person, they're like, no, no, no, no, no.

We want you using the app. And don't worry about guac. They don't do guac. They just do avocados. And the avocados are extra. You're not getting a discount on that. The reason they insist on the app is they want you to be a digital user. Because they love digital users, frankly, like us. Digital diners like Nick and me, we whip out that app. We do. Because we visit 46% more often than. than regular non-app users, and we're spending 21% more per order. What the heck, it's a Tuesday?

I'll get the fresh barata for $12. So, Jack, what's the takeaway for our buddies over at Sweet Green? Sweet Green's target customer, it's the time poor. Yeah, Snackers, that's $17 salad? You're going to wash it down with a $3 spin drift because this place isn't cheap. It is not cheap. No, sweet green isn't accessible to the poor, but it's designed for the time poor. Exactly, the time poor. Working millennials trying to optimize every second because they're so busy.

Sweet Greens are located in cities, central business districts with high-income people who work long hours. They want wholesome quality healthy lunches, but it takes time to craft a peppercorn dalyne dressing every day. If you've had the organic farm-raised cauliflower curry salad at Sweet Green, delicious. Getting the groceries for that, that would take hours and then preparing. So Sweet Green's value prop is prepping the recipes and ingredients so that they can whip up. out the salad for you on the spot as fast as burger came. Time poor customers, people that don't have time, can now time afford their salad that costs a lot of time to prepare.

And here's what Jack and I are thinking. This salad subscription that they're now launching, this is targeting the time poor as well. Because it cuts decision time. If you already paid 10 bucks for the sweet green salad subscription, you're not going to waste time every day wondering where to have lunch. You're just going to do sweet green and save more time. Their target isn't just millennials. It's the time pull.

For our second story, Tesla just about reaches the million cars a year mark, critical milestone. But there's a critical word we're looking for in 2022. First of all, Jack, brutal newsday, slowest newsday of the year. It's still the New Year holiday and it's the day of rest Sunday, January 2nd. Why not extended a week? People are wrestling like the whole month. Tesla wasn't. They dropped huge news on Sunday.

Tesla, doing more. It's official. In 2021, get this Snackers. Tesla delivered 936,000 new cars, new record. Most car companies were struggling last year because of lack of chips. Tesla in the meantime, they chugged out 87% more cars in the last year. Tesla stock jumped 14% yesterday on that news. And that is actually eight times higher than in 2019.

Someone get this Model X a P test. Now, a million cars sold in 2021. That sounds like a lot. But how does that compare to other car companies? We got to sprinkle a little context on here. Toyota and VW, they are the biggest car makers in the world. How many cars are they pumping out in the last year? About 10 million.

So they're about 10 times bigger in terms of cars sold than Tesla. So facto, Tesla is smaller than the biggest car companies, but it is growing way faster than everyone else. That's why it's sky high stock price makes it worth more than the next 11 car companies combined. Combined. Because investors, they're looking at Tesla stock and they're thinking one thing, growth over size. They want potential over profits. Now, Snackers, over the last couple weeks, like Jack and I were vacationing. Actually, Jack and I brought microphones to a beach and Jack

pulled a microphone out of a saran wrap bag because we have to bring microphones wherever we go. Tesla in the meantime, Tesla was doing things. This is a Ziploc bag. Protect the mic. Tesla beamed a software update to all their cars, which included a video game that you could play while driving your car on that little tablet. Yeah, so like, picture yourself on I-95 cruising at 65 miles per hour while playing like Donkey Kong essentially in your Tesla. So regulators were like, you're kidding, right? Tesla.

So Tesla agreed to disable it. Open the break. But that's not all. Tesla also had to recall nearly 500,000 Model 3 and Model S Tesla cars. There's rearview camera issues and there's a frunk issue where it might open while you're driving. But that's not the only awkward news for Tesla. According to the U.S. government, China is committing genocide in the Xinjiang region of China. Most U.S. corporations are trying to avoid that region.

They are. Well, Tesla just opened a brand new showroom over the new year in that region. Okay, so let's check out our whiteboard over here. Tesla just announced that they set a record number for their car deliveries last year. But they also launched a video game that you could play while driving. They announced a major recall and they opened a new showroom in a controversial foreign terrorist. Sounds like a very Tesla Christmas. Very Tesla Christmas. So, Jack, what's the takeaway for our buddies over Tesla? The number one word we're looking for this year, launch. Launch. Snackers, Tesla, they sell four amazing cars. They sell a bunch of solar panels and they sell a whole bunch of home battery packs.

It's a solidly profitable business. They haul in a billion dollars in profits per quarter at this ring. But to keep ridiculously bullish investors satisfied, it's time for Tesla to launch more this year. Cyber Truck was unveiled in 2019, and it was supposed to be delivered last year to customer. About a million people have joined the cyber truck wait list, but haven't gotten it yet. The first delivery is hopefully launching later this year. Oh, and Jack, you got the semi-truck and the Tesla Roadster. They were unveiled in 2017, but they're still not available to actually buy. And this Tesla 18-wheeler truck, that could help with the supply crisis if it actually launches this year.

Tesla has been fantastic at unveiling stuff the last few years. But this year is all about launching stuff. Anyone can take the reservation, but you have to hold the reservation. You really have to hold the reservation. For our third and final story, one of the greatest rivalries in American business history is beer versus liquor. And liquor's one new product during the pandemic has chipped away at beer's lead. Okay, wild deep dive, Jack and I noticed from the Wall Street Journal. The rivalry between beer and liquor, it is as old as the United States of America.

In 1791, this young nation put a tax on distilled spirits. Alexander Hamilton, he wasn't just dancing around doing musicals. He was sticking taxes on liquor, not beer. Liquor got taxed back then because, according to Hamilton, it was a luxury product and the wealthy could afford to pay another tax. He was more of a yingling guy from what I understand. Yeah. Beer wasn't taxed. And since way back then, states continued to treat beer and liquor differently in

regulations. For example, Jack, there are restrictions on hard alcohol sales that you don't get with beer. Budweiser is plentiful. You can find it at gas stations at Walmart. Jack Daniels only at state condoned liquor stores. You can't get that at a boutique. Also, you got higher taxes on hard alcohol that you don't see with beer. According to the Wall Street Journal's analysis, the federal tax on liquor,

it's 20 times more than the federal tax on beer. And you know what? Totally separately. Turns out America is just more of a beer country. Been that way since George Washington. It's just a beer country. Over half of the alcohol sold in this country historically has been beer. Until now.

Beer's market share in 2021 fell below 50% for the first time since we've been keeping track. Get this snackers. Beer sales, they dropped last year. Licker had its best sales year in 2013. In the last four decades. Back in 1999, liquor was 28% of the U.S. alcohol market. Last year, it was 39%. Not too shabby.

And liquor stocks, they mostly jumped last year. Beer stocks mostly dropped. Why are we seeing this trend? Because of the pandemic. Pandemic trends were craving liquor over beer. First, you were stuck at home and bored Americans wanted to try something new. Yeah, you watched James Bond. So you said, hey, I'm actually going to try a shake and not stirred.

Then you got stimulus checks. And with your extra savings, you wanted to treat yourself. You skip the usual Modelo six-pack. You opted for the imported mezcal instead. But the most important boost to liquor industry was liquor's new product. Which feels like a takeaway drink. So, Jack, what's the takeaway for our buddies over in the U.S. alcohol industry?

The canned cocktail. It neutralizes beer's portability advantage. This was the shocker. According to the Wall Street Journal, the liquor industry actually banded together last year. teamed up to push ready to drink cocktails, which boomed in 2021. Vodka and soda in a can. Paloma in a pop top. Pre-made pina colatas.

Yes, please. To take wherever you want to go. Diageo, yeah, you know, like the Diageo, the legendary liquor company. Think they're British. Ground Royal Bailey is smearing off. They spent $80 million in the last year on canning lines for a canned cocktail beverage. Canning is important because a core strength of beer is its portability. It's served in a bottle or a can.

You can. bring it anywhere. That was big during the pandemic because the outdoors was a safe space to imbi. But canned cocktails make Stanley Tucci's mixologies portable too. The liquor industry, according to the Wall Street Journal, actually work together to market canned cocktails and even to lobby the states to allow these new drinks like a Nogroni to go. So liquor competitors work together to drink up some of the beer's market share during the pandemic. Canned cocktail neutralizes beer's portability advantage. And it's work. Jack, can you whip up the T-Boy Tuesday takeaways for us over there?

Sweet Green Salad subscription. It's a little confusing. But it highlights who Sweet Green is going for. Not just millennials, time-poor millennials. Tesla is now a million cars a year company. And this year, Jack and I are looking at one word from Tesla. Launch, just one word. Beer dipped below half of U.S. alcohol sales last year. Because the canned cocktail, it neutralizes beer's portability advantage. Now time for our snack, fact of the day. This one from legendary snacker, Jane Horvitz, from lovely Cleveland, Ohio, the Paris on the lake. Rigley's gum. Chicago does logistics, and it does Rigley's. It does. But Rigley's, it actually started out as a soap company. Rigley's was originally a soap company

that also made baking powder. But then baking powder was like the hot product. So they switched to just baking powder. But then as they sold baking powder, they added gum as a little surprise with each order. And then the gum was the hot products. So they pivoted from baking powder to gum. So Wrigley started out of soap, then became baking powder. Now it's just gum. It started with imports, then focused on the exports, and then just decided to make a product domestic.

If you know, you know. But Snackers, if you want a shout-out on this pot, we got some links right in the episode description so we can get you a shout-out on this pod. It's a Google form. It is. Fill it out. It takes a second.

We'll make your day. Cheaper than a curry cauliflower. On Medin. You know, Jack knows. We'll see you tomorrow. Can't wait. And before we go, happy birthday to Bitcoin. Bitcoin just turned 13 years old.

There you go. Ben. Very volatile teenager. And happy birthday to Lucilla Villa from Guatemala. And Forest Tuck over in Boston. Just outside Boston. And happy 35th to Navy Pilot Fletcher in Newburyport, Massachusetts. And Tavon over in the Bugiedown Bronx.

Happy birthday, Zixie Chang in Budapest. And Raymond's Long in Manhatt, Long Island. My dad grew up in Port Washington. A little rivalry. And happy birthday to cash over in Oklahoma City. And Naman in Boston. And Jackie Chen in Ontario, Canada. Happy birthday, Angel Yao in Vancouver, Canada.

And Kenny and Maddie, Jack, they just got married down in Atlanta. Send us some picks. Congrats to Charles Aeney, who just got promoted in New York City. And Alex Beltrami, on behalf of both of us, thank you for all those Naples restaurant recommendations. Much appreciate you. Same to Luke Beating. This is Jack. I own stock of Netflix and Bolton.

Volkswagen, Nick on stock of Apple, and we both own some Bitcoin. Robin Hood Snacks, newsletters, and podcasts reflect the opinions of only the authors who are associated persons of Robin Hood Financial LLC and do not reflect the views of Robin Hood Markets, or any of its subsidiaries or affiliates. They are meant for informational purposes only and are not a recommendation to buy or sell any security, cryptocurrency, or investment strategy in any account. This is not an offer or sale of a security, not a research report, and is not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robintoa Markets Inc, Robinto Financial LLC,

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