The Best One Yet - 🌭“My dog ate my truffle steak” — Honest Kitchen’s human dog food. Tiger Woods’ un-swooshing. Amazon’s internet rocketship.

Episode Date: April 6, 2022

Amazon’s next big product? It’s the internet… delivered from space. Honest Kitchen just hit a $500M valuation to make human-grade dog food a thing (Fido likey truffle). And for the 1st time in 25 years, Tiger Woods didn’t wear Nike shoes before the Masters — Now Nike stock is on the Injured Reserve list.$CHWY $NKE $AMZNGot 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/viewformID: 2113030Learn 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 Wednesday, April 6th. We got an update from yesterday's news. We do. Twitter added Elon to the Twitter board. Yeah, Elon is now working on a self-tweeting app.

You know what would be the ultimate zucking? What do you thinking? If Zuck bought 9% of Snapchat. Class it sucked. Oh my God. This pot is the best one yet. This is a TVOI. TVOI.

TBOI. For our first story, Amazon's next big product is the internet. The internet. Prime Wi-Fi. brought to you by Rocket Ship. For our second story, Honest Kitchen, they don't make dog food or human food. They make human food for dogs.

And they just say a $500 million valuation because ultra premium is the new premium. Our third and final story is the Masters. The golf tournament starts tomorrow. The drama began yesterday. For the first time in 25 years, Tiger Woods isn't wearing Nike shoes. And that's a hundred million dollar problem.

One hundred million dollars. But Snackers, before we hit that wonderful mix. That is a mix, Jack. I like this mix. Did you get your 10,000 steps today? The 10,000 steps today. The golden rule of your Fitbit.

It's the magic number that leads to a lifetime of health and happiness. Yeah, if you got 9,999 steps yesterday, your legs are disappointed. Quads don't round up, people. No, you don't. I'm checking my health app, Jack. All right, it looks like 3,488 steps today. That's where I'm at. I'm about the same, actually.

Okay, that's fair. Our iPhones are judging us. Yes, they are. But breaking news from the Lancet Medical Journal about steps. Snackers, it turns out that older people only need 7,000 steps a day. And younger people, they only need 9,000 steps a day. So what's going on with these 10,000 steps? We've been taken too many steps.

We've overstepped our steps. Turns out 10,000 steps was a mirage. Makes this question Malcolm Gladwell. That John Denver is full of it. Turns out the 10,000 step rule, it goes back to a marketing campaign. Yeah, it's literally. based on PR, not science. A Japanese pedometer company

created the 10,000 step goal for the 1964 Tokyo Olympics. It turns out they just like 10,000 steps because it's a nice round number. You know what else is a nice round number? A thousand. A thousand. That'd be a lot easier. I could do that in an hour. Let's in our 3,488 stores.

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. 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. Robberhood Financial LLC. Member Fenra slash SIPC.

For our first story, Amazon is working on the internet. Elon versus Bezos. That ship measuring contest has no limit. Just to be clear, as what we're saying is, Amazon is going to make an internet. Okay, here's the story. Snackers, we've talked about SpaceX. That's Elon's private rocket company. Yeah, and part of Elon's private rocket company, SpaceX, is launching, you know, a casual 2,000 satellites into space to beam the internet down to Earth. It's called Starlink, and you just have to drop 500 bucks for a small satellite dish, and you can get internet from space. It exists already. It sounds fantastic. Maybe. Maybe. too good to be true, but what about the timing? Well, guess who announced on Tuesday, they're going to

compete with Elon's alien space internet? Well, on down Mr. Jeff Faisos's Amazon. Behold, Project Kuiper. Yes, Amazon's next big thing is the World Wide Web. Project Kiper is an Amazon knockoff of SpaceX's starling. Exactly. This is just more space internet. Basically, Amazon is zucking, Elon. But Amazon is one-uping Elon with their latest intergalactic Wi-Fi news. Okay, Jack and I have been covering the markets for a while now. And if there's one thing we know about Amazon, it's that Amazon does things bigger. Not necessarily first, but bigger.

Amazon announced yesterday they signed three contracts with three different rocket companies to put 3,000 satellites taking laps around the earth. All right, Jack, in terms of internet coverage, like in terms of like the kind of Wi-Fi quality you'd get, what is 3,000 more satellites look like? Well, it's 50% more than that. the number of Starlink satellites there are today. Now, those 3,000 satellites, that is 50% more than the number of satellites Elon's kicking up into space.

As we said, classic ship measuring contest. Now, one of the rocket companies that's going to be bringing up these satellites is Blue Origin. How convenient. Yeah, that's Jeff Bezos's rocket company. He's working there like full-time-ish now that you retired from Amazon. All right. So in theory, by 2026, Bezos's space Wi-Fi will be 50% more available than E-line space wire.

Classic ship measuring contest for these two billionaires. We're saying, Jack, if I'm looking at the whiteboard here, is that in a few years, you could ask Amazon's Alexa to order astronaut ice cream through Amazon.com using Amazon space Wi-Fi and... That's right. It's all included in one annual prime subscription. Hey, Alexa, can you hear me now? So, Jack, what's the takeaway for our buddies over at Amazon?

Elon isn't scared about this. Wireless companies should be. Yeah, Snuggers. Amazon has taken over so many industries at this point. The internet could be its most ambitious target. Now, right now, Amazon's Project Kuiper, that's not in competition with your classic internet service providers or your wireless companies like Verizon. Exactly. Amazon internet, that's for like the one out of three humans who live in some remote place in the middle of a forested wood with no access to internet because there's a mountain over them.

But Amazon said they will use their experience producing low-cost devices like Echo for low-peas. priced broadband. That is key because right now you need like a suitcase-sized satellite dish if you want to receive internet beaming down from space. But Amazon could shrink that antenna from a suitcase, maybe down to something the size of one of those echoes. Or Amazon could fit that antenna, maybe into like a little phone. Picture this, Snackers. Please. Prime subscription jumps from today's 50 bucks a month to 50 bucks a month. But that would include internet and cell service brought to you by Amazon's next target could be wireless company. The Amazon Wide Web. For our second story, Honest Kitchen just raised $150 million for pet food. You are legally allowed

to eat yourself. They weren't first to pet food, but they created a first within pet food. Most adorable pandemic stat. This is hard. It is so good. Nearly one out of every five Americans adopted a pet during the pandemic. One out of every five. There were like, street fights on the Upper East Side about who's going to get that cockapoo. Well, we got River. And Gotcha Day was actually two years ago last week. Who's that good point? Who's a good boy? Who's a good boy?

Who's a good girl? But Snackers. That adorable, adorable statistic is why sales of honest kitchen jumped a whopping 40% last year. This is a 20-year-old startup still based out of San Diego. Now, they just raised $150 million. They're worth half a billion dollars. And it's now one of the largest pet food startups out there. Because, as they say in their press release, they're the first pet food that could legally claim that their food is human grade. Right. There's no like special proprietary technology algorithmic D-to-C blended platform.

They just go to the grocery store for their pet food. So to clarify, Honest Kitchen makes pet food that is edible for people. You can stick your face in this, Jack. You can just go full ham on this sandwich. Are you got it? Yeah. I'm open to it. So Snackers, Honest Kitchen.

it's really a human food company, but its user happens to be the pet. The ingredient list of Honest Kitchen's food is its marketing. So the recipes at Honest Kitchen, they sound like the menu over a three-star Noma. Jump over to Honest Kitchen.com. Please. You're going to see cage-free turkey, hormone-free sweet potatoes, hand-cut salmon. They catch this stuff with their forearm. Snackers, this is literally keto-friendly.

It is for dogs and cats, though. Get this. They also have supplements. for animals. Like, way protein. They got an instant goat milk probiotic that is actually carried at Whole Foods in Isle 6. Because dogs have microbiomes in their gut, too. Oh, yeah. They were also the first pet food company to stick kale in the dog food. This sounds like something Michael Phelps would eat 12 times a day before the Olympics.

Jack, did you see that one of the supplements has a turmeric infusion? No. That is like $12 a teaspoon. And now Honest Kitchen has $150 million of fresh funding. not for the farm raised turkey, but for their pricing power. Snackers, get this. The average pet food price, they rose by 6% last year. Classic inflation.

But Honest Kitchen raised their pet food prices by 10% last year. That's pricing power, baby. That is power you can't buy. And according to the CEO, everybody knows that good food costs more than bad food. A translation for that, Jack? People will pay. Yeah, people are going to pay. Now, Farmer's Dog does the same thing.

River eats Farmer's Dog. It does look like a chicken salad that's like tempting. If you cross that line, Jack, I'm not going to judge it. You can never go back. The only question is, will you use utensils? So, Jack, can you whip up the human grade takeaway right? Miam. It's never too late to create a category.

Snaggers, pet food, it's been around for like a long time, like a century. I'd say more than a century. Snaggers, pet food has been around for a long time. You'd think the big players have just done it all. Big players in pet food. Nestle owns Purina. Mars owns Ioms and General Mills owns Blue Buffalo. And yet, despite those huge big old players, Honest Kitchen has created a new category in this big old industry. Not high grade pet food, human grade pet food. Not premium. This is ultra premium. Honest Kitchen realized that millennials treat their pooch like it was a person. So Honest Kitchen,

they weren't defined by the existing market. They carved out a new category within it. For our third and final story, just tap, tap, tap, taparoo. Tiger Woods is playing in the Masters, capping a miraculous comeback from a broken leg. His bags are packed. He's got his tickets. Bring him to the airport. Send him home.

But everyone is looking at one thing on Tiger Woods. It's his feet. He's not wearing Nike. Tiger isn't wearing Nike. Snackers, just finished this book. Jack and I've been talking about a lot. Shoe Dog. It's the memoir by Nike's co-founder, Phil Knight.

Fantastic book. I got to read this book. I haven't read it, but I feel like I have because Nick's told me so much about it. Well, Jack, in Chapter 12, page 146, Phil Knight says he will never say anything bad about Tiger Woods because Tiger Woods was the first person who called him when his son died. Tiger will do anything for his sponsor. And his sponsors will do anything for Tiger, like paying Tiger more money and endorsement deals than Tiger makes from golf.

Get this, Tiger makes 97% of his income from endorsements. Just 3% comes from golf tournaments. Yeah, that's it from golf. So he's bringing in $42 million in 2019 from Bridgestone Balls, Monster Energy drinks, Tag Hoyer watches, and Nike. The Nike Tiger relationship goes back to 1996. When Tiger signed his first $40 million deal with Nike. Okay, get this.

Since then, Tiger's been paid half a billion dollars just from Nike. That makes him half a billionaire because of one endorsement deal. For Tiger, it's a pretty good deal because all he has, has to do is wear stuff. He has to wear Nike dry fit gear while he plays golf, which he would have done anyway. He wears a swoosh on a ball, a swoosh on a bag, a swoosh on a red shirt, and boom, he makes half of his income just from Nike. Nick, you know, Tiger wears the red shirt on Sundays, right? It's been estimated that that red Nike shirt that he wears in the final round of the Masters, on that one day alone, is worth $23 million in brand value for Nike.

One round of golf is worth over $20 million in ad value for Nike. But Snackers, the longest running relationship in golf, it's not over? It's awkward. It's awkward now. It's basically awkward. Tiger is trying out a new brand. He is. And Nike doesn't seem to know about it.

No, it's, it's awkward. Masters, the Masters begin tomorrow. So the Masters golf tournament begins tomorrow in Augusta, Georgia. But Tiger was practicing yesterday, and he didn't wear Nike's. Tiger wore foot joys. Tiger wore those traditional dark footjoy shoes that looked like a Brooks Brothers loaf. You'll wear these if you're walking into like an interview over at KPMG. Now, Footjoy is owned by publicly traded Akushnet, which had like its most buzzy day ever because of this news.

The $3 billion golf equipment company over in Massachusetts, tickersumber golf, by the way. Very nice ticker symbol. Akushnet owns Titleist irons, Tommy Cameron putters, Vokey Wedges, and Pinnacle Golf Ball. So get this, Snackers, this single shoe choice by Tiger Woods when he was just practicing on Monday, pushed up a cushion at stock and dropped Nike shares. Now, there's speculation that he's wearing foot joys because he injured his leg badly last year in a car accident. So maybe he's just wearing them for a short-term medical reason. It could be the case or it could be our takeaway.

So, Jack, because Grizzly Adams did have a beard, what's the takeaway for our buddies over at Tiger Woods and Nike? We are entering the post-endorsement era. Snackers, Michael Jordan pioneered the player brand. The Air Jordan brand is like 38 years old now. But Air Jordan was and still is owned by Nike. Yeah. It's a Nike company. But today, we're seeing players launch their own apparel brands,

and they're pretty big apparel brands. Social media gives famous basketball and football and golf players a built-in customer base. And tech gives them e-commerce tools to sell a product. You got Tom Brady's Brady brand. They're selling his own technical apparel. That's Tom's technical apparel. not Under Armour's Technical Apparel.

Tiger's following and Tiger's Reach, that's big enough for his own independent brand too. Yeah, not just like a Tiger Collection of Nike. We're talking the Tiger Collection from Tiger Woods. Endorsements are so valuable. It's hard for any athlete to turn one down. But a deal with Nike isn't inevitable anymore for the top players. Because we are in the post-endorsement era. Jack, can you whip up the takeaways for us over there?

By the way, have you ever tried Rivers Dogfoot? Does it come with truffles? What does it come with? I plead the fifth. Have you ever been tempted? I'm always tempted. Jack, wing twice if you took a sip. Mark twice if you're in Milwaukee.

First takeaway, what do we got? Amazon is expanding to space internet. Elon's probably not afraid. Wireless companies should be. For a second story, honest kitchen is honestly human-grade food for pets. Yeah, they created a new category in an old business. Our third and final story is Nike. They're usually pumped for the master's tournament, but this year it's awkward.

Because we're entering the post-endorsement era. Now, time for our snack fact of the day. one served up by Savannah Westwood from lovely Orlando, Florida. You know the 16th president of the United States. The United States is still a thing because of him. Thanks to Abraham Lincoln, but you may not have known that Lincoln's side hustled when he was younger as a licensed bartender. Lincoln's liquor license was discovered in 1930 and displayed in a Springfield, Illinois liquor store. And get this, Congress wanted to fire General Grant from leading the Union Army during the Civil War because they thought the general drank too much.

Ulysses S. Grant, who became a president one day. But Lincoln didn't fire him. Instead, Lincoln said this. Tell me what brand of whiskey that Grant drinks. I'd like to send a barrel to my other generals. A tea boy quote. We'll leave it at that. Snackers, you look fantastic today.

Even if you only got 3,448 steps, you can round that out. Snackers, round numbers don't matter. Except five stars. We'll take a five-star review on Spotify or Apple. See you tomorrow. Nick and I'll see him out. And before we go, congratulations to a couple that snacks together. Dominic and Megan just got engaged literally in the Grand Canyon, like in it.

Kodak moment. Beautiful. And happy birthday to Colleen from Ivory Tower Capitol. Yeah, that's her hedge fund name, but it's a great hedge fund. And happy birthday to Patrick T. Peele, Tannis, founder of Tiesta T. And Molly, the Siamese cat, happy birthday down in Dallas. Happy nine years together to Annie and Keat in Broken Arrow, Oklahoma. And Joseph Mendoza, congrats on moving from Staten Island over to Chicago to handle some logistics.

Congrats to Taylor Samuelson, who's starting a new job as an analyst. And Odin Kramer, congrats on the new job also as an analyst. Congratulations to Tony, who's retiring from the Air Force after 22 honorable years. Tony, thank you for your service. And to anyone else who's celebrating something today, make it a team. Celebrate the wins. This is Jack, Island Stock of Amazon. Robin Hood Snacks, newsletters, and podcasts reflect the opinions of only the authors who are a

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. This is Nick.

This is... And this is Snack. I just punched my arm badly. Oh, my God. Where's that Debbie D. 40? I'm sorry, dude. Let's start off.