The Best One Yet - 💄 “Lipstick by robots” — Oddity’s $1.5B makeup fairytale. Dawn’s dish soap minivation. Ford’s $100B family.

Episode Date: January 18, 2022

Il Makiage is the newest makeup unicorn, but it’s not a makeup company. Dawn’s dish soap is #1 in America again, and it’s all thanks to minnovations. And Ford’s stock jump means it’s worth $100B for the first time ever. It’s beating Tesla the past year thanks to… family.$PG $F $TSLAGot 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.

Before we kick off, you're ready, dude? Oh! Did you see what that was? It's canned water. Liquid dead. I know. I figured we covered it last week. We may as well try it on the pod.

What do you think? Murder your thirst. Okay, it tastes like Iron Maiden. And it feels like the can is drinking me. It's not aluminum. It's metallic. Here we go. It is Metallica.

Three, two. This is Nick. This is Jack. And this is Snacks Daily. It is Tuesday. Tea Boy Tuesday. Welcome back January 18th. Happy four-day work week.

We could all use a happy four-day work week, which means Wednesday is a new Thursday and, you know, Thursday is a new Friday. This pod is the best one yet. It's a TBOI. First story, Jack. What do we got today? The makeup company Audity just did a one and a half billion dollar valuation. Okay.

One of the fastest growing cosmetics companies, it's not a cosmetics company. For our second story, Don is the number one dish soap. Again. Again. They can't do anything to the products, so they're changing the bottle. Here's the thing, though. Minivations, minivations, they're a major, business. For our third and final story, everyone's talking Tesla, Tesla, Tesla. Can we give Ford Motor Company some credit?

Jack, Ford just hidden a hundred billion dollar valuation because family. But Snackers, before we hit that wonderful mix, I love this mix to come back to them the weekend. Dude, drink seven more liquidats. By the way, does it just taste like water? It tastes like water. Yes, it tastes like water. We're halfway through January, Snackers. How's that New Year's resolution going? Mid-month mess-up point? That's where we are. We're at the mid-month. mess up point. Dry January? Well, you just poured yourself half a pint, didn't you? I'm looking, Jack, and the last entry in my daily journal is from January 7th. I'm going to start that slam and salmon spider company, please. But curb your enthusiasm just dropped the new season. And the worst,

Jack, the worst. The absolute worst is the gym guilt in January. You already forgot the name of the front desk person. Right. Because you haven't been to the gym. But snackers, get this. All it takes to get back on the New Year's Resolutions horse is nine cents. Nine pennies. That's all it takes between you and fulfilling your resolution. Okay, Jack and I noticed this. It was a study done by a whole bunch of warden professors. They studied people who weren't going to the gym.

Right. Even though they said they would go to the gym. Yeah, and then they tested 52 different incentives to see which would get them squatting again. They randomly assigned one of the 52 incentives to 62,000 participants in this study. Okay. And the most successful intervention to get you back in the gym for your New Year's resolution was a nine-cent reward. If you get nine cents every time you actually go to the gym,

that's it. That tiny reward jacks up your gym visits by 16%. I mean, Jack, the reward, it could have been candy, could have been clothing, could have been a free massage. But nothing was as powerful as nine cents. So Snackers, if you've lost the will to squat thrust. If you're afraid of the elliptical. If you're ghosting the burpees.

All you need is a dime. That's it. And we'll hit our three stories. daily. We spoke to the lawyers and we got to get something legal out the way. It snacks about the hearing food. It's air candy. They don't reflect the views of the robberhood family. It's all informational just so. We're not recommending any securities.

It's not a research report or investment advice. Not an offer or sale of a security. Snacks is digestible. Business news for you. Robohood Financial, LLC, member FINRA slash SIPC. For our first story, cosmetics company Audity just hit a whopping $1.5 billion valuation thanks to its ill-machiage beauty brand. Audity has zero people from the beauty industry. None. And they're proud of that.

Okay, first of all, Jack, this is why I love our job, because you and I spent like, you know, a couple hours on Friday trying to figure out what would be the ideal lipstick. Birds bees. Yeah, we ended up with chapstick. But Snackers, Audity is the company we were researching because they're a parent company who launches makeup brands and they started with something called Il Machiaj. In just three years, Il Machiaj has gone from 25 million annual sales to 268 million last year. And they're profitable. What do you think about that every IPO from last year?

The name of the lipstick, it's called Dirty Talk. The name of the concealer product is called I'm Flawless. Oh, and then, Jack, how about the foundation? Because I kind of love the foundation on them. I woke up like this. Honestly, the Ill Machiaz brand looks like it's too cool to talk to us. The differentiator, however, is the power match. brow quiz you're greeted with right on the website.

You walk up to the lunch table and El Makiage says, no, you can't sit here. Now, here's how Il Machiaj tries to win you as a customer. Instead of having you come into the store, which doesn't exist, they do it all online. Exactly. But when you go online, the website looks different because it's filled with quizzes. They're going to ask you to answer about 20 questions about both your existing look and the new look that you're going for. It feels like an SAT that's run by L'Oreal. So Jack and I jumped in Snacksdown.

We said, you know what? We're going to take these quizzes and figure out how this company works for the snackers. First, they're going to ask you, do you have full and bold eyebrows? Yes. Or are you more natural and tame? Well, we were looking for something to work on the eyebrows. So when I input in my info jacket, they said I had a... Ultimately, they said they had bold and defined darker brown eyelashes.

That's what they said. They asked what kind of eyebrows I had, and I couldn't find the answer for me, which is Neanderthal. You're selling yourself short. You're natural. And then based on Jack and I opening up about our eyebrows, which, by the way, Jack, they even ask like about like the veins that are in your face. Like are they more red or more blue or purple. Yeah. It's very, it's a detailed quiz. Then they direct you to either get the brown pencil or the brown mascara or the brown cream. You click the product that gets you the look and they ship it

to your direct to consumer. So what Audity is doing is it's choosing the makeup for you without ever seeing your face and they're doing it at an insanely high success rate. They claim that 90% is their success rate in terms of like matching the product to your face. And that is why Audity just hit a $1.5 billion valuation. Next, they're launching their second brand called spoiled child. Great name. And it's going to be more skin care, less makeup. But they're still going to ask you a whole bunch of quiz questions.

So bring a pencil. Jack, what's the takeaway for our buddies over at Audit? There's a new fairy tale. Tech in sheep's clothing. Yeah, Snackers. Ill maquayage. It looks. It smells.

It feels. like any cosmetics company that, you know, you'd see at Sephora. Except that brow quiz. That felt different. We'll get this quote we noticed from the CEO. We are complete outsiders in this industry. No one on my team came from S. Day Lauder, L'Oreal, or any of the legacy beauty companies. And then he said, we're all ex-consultants, bankers, and tech people.

And then he didn't say, but basically should have, honestly, we all had bad style. I can't believe we're doing so well in this industry. Plenty of makeup companies. Yeah, they add tech to whatever they're doing. But this, this is a tech company that happens to have focused on makeup specific. I just watched Moneyball agreement. Remember a Billy Bean and that kid from Yale? Yeah.

They use data to crack baseball. Yeah, this is it. Audit depends entirely on their data and their algorithms to crack beauty. Because Il Machiaj collected one billion with a B data points from 25 million website visitors in the last few years who were taking those quizzes. Because they immediately show you that quiz. Snackers, here's what Jack and I are thinking. Look out for more tech that's dressed in sheep's clothing. For our second story, this one we didn't see coming.

Ford, as in Ford Motor Company, is more valuable than it's ever been. They just did $100 billion because Henry Ford's great-grandson wants to make his great grandkids proud of Ford. Okay, Snackers, we should sprinkle on a little context here. Tesla's the biggest car stock in the world. By far. But one car stock is doing better lately. Jack, how has Ford's?

stock done in the last year? It's up 143% in the past 12 months, which beats Elon by quite a few dosges. It does. Quite a couple of coins. Ford stock, it's up at its highest price since 2001. Ford jumped last year to number two on America's electric car leaderboard. We checked the whiteboard. With its electric Mustang. Yeah, they sold 27,000 of those electric Mustangs last year, which beat General Motors 24,000. Now, both GM and Ford, we should say, massively trail Tesla, which sold almost a million electric cars last year. Great, great point, Jack. Oh, and we also should say that Riving and Lucid's electric vehicle 2021 figures are, you can round down to zero. I think it's like one. But Snackers, here's what interest Jack and me about Ford right now. There's one other area

where Ford is actually beating Tesla. Trucks. Trucks. For its future, it is not about the electric Mustang. It's actually about the electric F-150 pickup truck. Let's back up here. Ford invented mass production. They invented the assembly line manual. manufacturing process with the Model T. Jack, take me back to Old River Rouge factory just outside of Detroit. It's still there. Yeah, it is. And they're using that same historic factory to perfect the mass production of electric pickup trucks now.

Uh-huh. The electric F-150 truck, it'll be born in the same place where parts of the Model T were born. They have 200,000 reservations already. They do. Including one from my father-in-law, who I took a whole road trip to convince him that he should reserve one of these things. The selling point was that. If his house loses power, he can charge it with the truck.

That's interesting. So you went with the like extreme end of the world kind of scenario. And that's all. Okay. This is good to know. I went with the like extreme extreme scenario. Snackers, 200,000 reservations for the Ford F-150 electric truck. They already got those 200,000.

And they just announced their doubling production to meet that to me. Yeah. So expect to see the first Ford electric trucks hidden the streets as soon as the spring. Tesla just announced kind of the opposite. They removed any mention of the word. 2022 from the reservation page for their cyber truck. Yeah, now, Jack and I don't have a crystal ball, but that kind of suggests that Tesla's truck is being delayed again.

Probably not coming until 2020. So, Jack, what's the takeaway for our buddies over at Ford who are living their best life and beat in a Tesla like a couple of things? Ford doesn't want quarterly earnings. They want generational earnings. Yeah, Snackers, unlike any other major public car company in the U.S., Ford is still basically a family business. Henry Ford's great grandson is the chairman and largest show.

shareholder of Ford today. Bill Ford, he's the first member of the Ford family to see the company worth $100 billion. And this is truly unique about Ford. 40% of the voting stock of the company is controlled by the family. Yeah. The descendants of Henry Ford. Jack, you know the CFO of Ford is? No. Dom from Fast and the Furious. It's all about the family. It's all about the family. Snackers, Ford, they got an 100 year legacy going on and they're trying to invest in the next 100. Ford's best shot in surviving the electric car transformation. Maybe their motivation. Right, because Ford, they're not just a. defending profits. They're defending a legacy.

For the family. Family. For our third and final story to kick off the week, Dawn. Dawn dish soap is dominating sinks nationwide right now. And the new Don bottle reveals the entire corporate strategy. Okay, Snackers, you got to do us a favor here. Can you go over to your sink? And tell us what dish soap product you have.

You got Mrs. Myers, maybe seven generations, some like millennialy stuff, maybe some growth. Maybe that's what you got. Maybe you wanted to save a couple bucks and you got that. Ajax, even though it's really orange. Ajax is like too orange. But funny thing, one out of three of you, you're going to pick up Don's soap. Don's soap is the Heinz ketchup or the Kleenex tissues.

It is, it is. And they are thriving right now because for five years in a row, Don soap is the best selling dish soap in the United States. 29% of you wash your dishes with Don. 46% of you wash your hands with Don hand soap. Don is a jewel in the corporate. portfolio of Procter and Gamble, the $400 billion publicly traded consumer goods giant. But before Jack and I went away for the three-day weekend, we noticed that Don is making its first

change to Don's soap in years. This is pretty exciting. This is thrilling. They've got a new easy squeeze bottle. All right, stick with us, Snackers. Okay, soap, it now comes out of the bottom, not the top of the bottle. That's the change here. The top is now the bottom, and the bottom is now the top. Is the bottom that's not the top or is the top now the bottom? I don't know, but all you got to do is open the lid and it's flowing out. You don't need to like, get it to the top, you know, when it's running out. It's inverted. It's like those ketchup bottles they started doing a few years ago. It's like the ketchup bottles. Snackers, Don didn't just whip this up like over the last few months. According to the Wall Street Journal, it took down fine years of diligent research and planning.

This isn't just soap. This is like Michelangelo's David. Yeah. Apparently, they carved this new bottle out of marble. He's the 16 chapel of soap bottles. Hundreds of hours of Consumer research went into this. They basically looked for any home eating lasagna that. Yeah, they're walking like, you do lasagna? Guess what? We're staying for after dinner. I want to see how you break this stuff down.

After dinner when Jesse took like 30 minutes to clean that one lasagna pan. Because, you know, honestly, with lasagna, it's like, you got to put your back into that kind of thing, you know? The crust is the best part of the lasagna. I call them the grungies. But they're the toughest to clean out of that pan. You need a brillo pat. It's the ricotta.

The ricotta gets you every time. So P&G spies were basically like, I noticed their hand. keeps on slipping on the bottle when they reach for it the third time. Flipping it up, flipping it back. Why can't you just keep it the same one? So they came up with the new bottle. That's got the bottom on the top. Five years of watching that sink friction led to this bottle.

So much easier to squeeze out a little more soap into the sink. And according to Don, it's also better for people with disabilities. Right. But Snackers, here's the reason Jack and I wanted to focus on this new Don bottle. Yeah, we're not trying to sell your product. No, we're not. We actually think it's part of a huger corporate strategy from Procter and Campbell. So Jack, what's the takeaway for our buddies changing things up over a

Don. Add up a bunch of minivations and you get a competitive advantage. Yeah, Snackers, this new bottle shape for dish soap, it isn't exactly like the next Bitcoin Tesla blockchain rocket show. This isn't a moon shop project that's going to save the world from hunger. No, it's not. This is a mini innovation. It's a minivation. But it is part of Procter & Gamble's quiet internal strategy of super packaging and that strategy is working. Instead of improving the actual product, Procter & Gamble focuses on improving elements of the product like the packaging. Yeah, because Don, the brand, it's 49 years old.

They think the actual soap is like as good as it's going to get. If they change the recipe to the soap, it's probably going to hurt the product. There's nothing they can do to the product over at Don. So they're making the bottle marginally better. These minivations to things like the bottle, it keeps the existing customers happy. It wins over some new customers and it justifies a tiny bit higher price. Don's new dish soap. It is a minivation.

Take a few minivations and you got yourself a competitive. of advantage. Jack, can you whip up the takeaways for us to kick off the four-day week? Audity has scored a one-and-a-half billion dollar valuation without any beauty experience whatsoever. Oddity, it's not a wolf. It's a tech company dressed as a sheet. For our second story, Ford Motor Company is worth $100 billion. Because the Ford family, they don't plan quarterly.

They plan generationally. For our third and final story, Don's bottle faces a new Don. Yeah, easy squeeze. It's a minivation. And if you add up a whole bunch of innovations, Jack, you get yourself. a competitive advantage. We forgot to mention easy squeeze, but easy. It's just the letter is E and Z.

That's it. What does Justin Timberlake say? Drop the duck. Snackers, now time for our snack fact of the day. This one sent in by Patrick Meehan from lovely Bradenton, Florida. According to last week's Hortar's Almanac. Yeah, great one. America is running low in chocolate milk.

Okay, we're not running low in chocolate milk because of chocolate or like a shortage of milk. Those aren't the issue. The shortage is the chemical powder, the emulsifier that binds the two things. together into a bubbly little cocktail. But snackers, we come bearing good news. Scientists over at Penn State, they have a solution to this chocolate milk problem. Instead of using that chemical powder, which is called Kerrigian, brutal, I think.

Penn State researchers suggest we use high-pressure jet technology to attach the chocolate to the milk. Like H connects to the two-ohs. Jet technology can stabilize the cocoa particles and enhance the viscosity of your chocolate milk. And there's nothing that we like more than viscous. Choccal chocolate though. Extra viscasy, please. Snackers, you look fantastic to start the week. Jack and I have to go work on our dark, bold, undefined,

vainy, brown unnatural eyebrows. Thanks to all the snackers who left us great ratings on Spotify, we love seeing those numbers go up. We do. Love those numbers. Nick and I'll see you tomorrow. Can't wait. And before we go,

welcome back to Taylor Jones, who just got back to work after maternity leave down in Fort Smith, Arkansas. And good luck to Matt, who's got case-study job interviews for his consulting gig over in Minneapolis. And Ray and Jan, congrats on making your first stock investments over in Boston. Actually, they should tell us what they got. Curse what they got. Happy birthday to Crystal Colleen in Shawnee, Kansas. And Leanne Houser over in Honolulu, Hawaii.

And Elaine Schiaw in Sunnyvale, California. And Veronica Simpson, happy birthday during that first semester for your Duke MBA. Happy birthday to Mike Duane in Bay City, Michigan. And Loveni, Chowla, happy birthday in Peoria, Illinois. Cletus Rogers, happy birthday in Baytown, Texas. And Sally of Esther over in Oakland, California. And Christian Escobar in Dallas, Texas. And happy birthday, Mia Ritalt down in Austin.

And to anyone else celebrating today, make it a T-Bull. Celebrate the Wins. This is Jack. Nick and I 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, Inc, 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 on the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robin Hood Markets, Inc., Robin Hood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk, including loss of principal and past performance, does not guarantee future results. Robin Hood Financial LLC, member FINRA, SIPC.