The Best One Yet - 👻 “Scariest Drink Ever” — Ghost Energy’s radical transparency. America’s economic envy. SiriusXM’s Howard Stern deadline.

Episode Date: October 25, 2024

Ghost Energy Drink was acquired by Dr. Pepper for $1B… it’s both childish and mature.America’s economy is #1 in the world… according to the rest of the world.Warren Buffett owns ⅓ of SiriusXM… because Sirius is preparing for the end of Howard Stern.Plus, Home Depot’s biggest profit center is Skelly, a 12-foot tall Halloween decoration.$SIRI $KDP $SPY—-----------------------------------------------------Subscribe to our new (2nd) show… The Best Idea Yet: Wondery.fm/TheBestIdeaYetLinksEpisodes drop weekly. It’s The Best Idea Yet.GET ON THE POD: Submit a shoutout or fact: https://tboypod.com/shoutouts FOR MORE NICK & JACK: Newsletter: https://tboypod.com/newsletter Connect with Nick: https://www.linkedin.com/in/nicolas-martell/ Connect with Jack: https://www.linkedin.com/in/jack-crivici-kramer/ SOCIALS:Instagram: https://www.instagram.com/tboypod TikTok: https://www.tiktok.com/@tboypodYouTube: https://www.youtube.com/@tboypod Anything else: https://tboypod.com/  Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. It's Friday the Real Friday, October 25th. And today's pod is the best one yet. This is a T-boy. The top three pop business news stories you need to know today. Jack, I was on the 6th train on our way down to the studio. And I started filming a T-boy video for social media for us.

I got heckled by a bunch of high schoolers. They started making fun. Or didn't you just like holding the phone with your face in frozen mode? And the kids are like, just say the thing, dude. Hey, if you're on the subway and you're shooting a video, Just go for it, Yetis. Go for it. Even you get heckled by eighth graders. By the way, you took a red eye all the way to New York just to watch a Rangers game. That is commitment. The things we do for love, Jack.

Three stories for today's team boy. What do we got on the pod, man? For our first story, Ghost Energy Drink was just required for $1 billion by Dr. Pepper. Because Ghost Energy is the most mature and the most immature brand that we have ever seen. Actually, immature and mature was you taking TikToks. on the subway for T-boy. I'll take the head. I'll take the head, Jack.

For our second story, how is America's economy doing right now? Well, the rest of the world is drooling. Druling. So we're looking at the U.S. economy,

but from the rest of the world's perspective. And our third and final story, Warren Buffett has bought up one third of Sirius XM radio

because Sirius XM is preparing for the end of Howard Stern. But yeties, before we hit that wonderful mix of stories, fantastic mix to go into a

weekend with. Love the mix, Jack. You probably got a Halloween party you're going to this weekend. Two of them. The biggest winner of that party? Who is it, Nick? Jack, that would be a 12-foot skeleton by the name of Skelly. Everyone has at least one neighbor in their neighborhood with a 12-foot skeleton terrifying passerby. I see you, Todd. Yeah, this skeleton, it's the size of two adult witches. I mean humans. And now it's a 12-foot-tall profit puppy for the Home Depot. How much is it selling for, Jack? They started selling it for $300 in July. And now it's out of stock. You can only buy them on eBay for a thousand bucks. Because this isn't a skeleton. This is a statement. Warning besties, a buddy of ours got one of these. Um, assembly required. It takes an hour to assemble this

12-foot skeleton because the bones come in separate pieces and a skeleton has a lot of bones. This ain't no IKEA table. You need a team of task rabbits to do this thing. But the best part of Skelly, the best-selling lawn ornament of the fall? What is it, Nick? Get this, Yeti. Skelly was actually invented by a longtime Home Depot employee. His name was Lance Allen. He was working at the Home Depot in the power drilling department for 10 years. But after a weekend visit to Universal Studios, he got an idea and he took it to corporate. Boom. Four years ago, Home Depot created his idea, a giant 10-foot-tall skeleton. And this year, they made it two feet taller and sold four times as many. That's Skelly

Flation right there. Besties, if you're assembling a 12-foot skeleton named Skelly this weekend, um, get a spotter. You don't want to break a bone or break his bone. You're going to need a paleontology degree to figure this thing out. And if you got a great idea, don't keep it to yourself. No. Tell your job. Because Lance Allen, his idea

is now Home Depot's profit puppy. And he got a promotion. We checked it on LinkedIn. Yes, we did. So Basties, if you see a Skelly this weekend, tag us a T-Boy and don't break a leg. Break his leg. Jack, let's in our three-stop. story. 15 years before this song, two boys from the northeast met in the dorm. They had an idea that caused a cultural storm. It's the best one yet, but the best is an norm. Jack Nick, that's it.

I don't even think they need to practice. 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. First, a quick word from our sponsor. For our first story, Dr. Pepper is dropping a billion dollars to acquire an energy drink called Ghost. Ghost energy drink is winning because it's both a child and an adult. A child and an adult. We'll explain. Yeties, the energy drink market, Jack and I have been studying it and, you know, honestly, it needs to chill out. And these guys a cup of Roybo's, yet he's monster energy, their stock is down. Celsius energy, their energy, their. Air stock is down. There's too many brands in the fragmented energy drink space. But ghost energy drink, on the other hand, ghost energy is levitating like a young Casper. Here's the news. Dr. Pepper just dropped a billion dollars to acquire Ghost, an eight-year-old Chicago-based energy company. And Jack, what is rule number one of all energy drinks in all of the world? Extremely flashy and intensely colorful cans. If you look at the can and you don't get some kind of an eye spasm, then their art department is doing something wrong, Jack. Now, Ghost differentiates. their can with their ghost logo, which is like Snapchat's ghost if it started CrossFit. Oh, it's like a Snapchat ghost with 12-pack apps. But Bestie's logo aside, Ghost Energy was founded in 2016 by a couple of personal trainers. And now they're the fastest growing energy drink in the

United States that just sold for a billion dollars. Jack, could you whip up some numbers for us over there? Sales have quadrupled in the last three years. They're selling a half a billion dollars in annual revenue, which Dr. Pepper was thrilled to get involved in. Oh, yeah, he's Red Bull, they're scared out of their vodka when they see those numbers. But the first thing we noticed about Ghost, and it's probably the first thing you noticed about Ghost. Very first thing we noticed. Is the flavors.

The wildly childish flavors. Jack, let's head back to kindergarten here. Yeties, get this. The flavors of the top-selling ghost energy drinks are Sour Patch Kids, Swedish fish, and bobble-ish strawberry splash. The most kid-like drinks we've ever seen that are targeting adults. I mean, Jack, this energy drink, it comes in the same. flavors as your kids trick or treat bucket. They even have a Welch's grape flavor. It sounds like the

ghost R&D team is run by a third grader. A third grader who hates their dentist. But the reason we found this so fascinating is that the flavors are childish. Yes, they are. But the rest of the product is adults. In fact, it's the most adult mature beverage we've ever seen. So, Jack, what's the takeaway for our body is over at Ghost Energy? Great branding needs tension. Yeti's ghost energy also happens to be the most radically transparent energy drink. Honestly, radically transparent drink that we've ever seen. Because unlike the competition, they list out the exact amount of each key ingredient. No one else does that. Like, for example, their Swedish fish flavor drink, it's got 1,000 milligrams of carnitine, 200 milligrams of caffeine, 100 milligrams of

neurofactor, and it's all on the label. No other drink does that. Every other drink just has the bare minimum nutritional facts and ingredients, but not the amounts. So add it all up, and that ingredient transparency, it is a wildly mature and adult move to make. While the flavors are wildly immature and childish moves to make. But it's that contrast. It's that tension that has made Ghost a brand that is appealing. Because great brands need tension. Great branding feeds on tension. For our second story, the economist and the IMF, two foreign or organizations just declared that the United States is the economic envy of the world. Yeties, you can't understand our economy without looking at it from the outside.

Like a house. Now, Jack, have I told you my weekly economist routine? Because I get the physical one. I get the physical economist magazine. You know that? Nick, subscribers to the economist tell people they subscribe to the economists. It's so true. When you get the physical one, you can like smell the sarcasm.

you can taste the self-deprecation and like the British judgment with every turn of the page. It's the magazine of choice for every airport lounge. If I'm wearing sweatpants when I read The Economist, I can tell that the editor-in-chief is judging me. Yeties, the latest cover of The Economist said something that might surprise you. Here was the headline. The United States economy is bigger and better than ever. Now, that might shock you because American public opinion seems to completely disagree. The data says that the U.S. economy is doing great.

But our feelings about the U.S. economy say that we're doing less than great. That contrast, we've been talking about it for a couple years. It's called the vibe session. The data's good. The vibes are bad. The vibe session. So, instead of looking at data on the U.S. economy from within, like we usually do, Jack, we're going to look at the U.S. economy from the outside relative to our peers.

So, Jack, let's jump on in, whip out the whiteboard. Let's hit the data. What do we got, man? The IMF, which is like a global finance organization that looks after national finances. The International Monetary Fund. They just published the World Economic Report this week. And get this, yet is. America's economy grew twice as fast as any European G7 nation in 2023 and in 2024.

How about Japan and Canada, Nick? Well, Jack, Japan and Canada, our GDP is growing twice as fast as both of them also. You might be asking about China? They're growing slightly faster than us, but we're still 50%. bigger. In fact, on a per capita basis, the United States is five times wealthier than China is. Even inflation. The whole world suffered inflation due to supply chain shocks caused by the pandemic and the war in Ukraine. But America's inflation has come down, just like the rest of the G7 wealthy nations who are our peers. The top seven wealthiest countries in the world have about the same

inflation right now. Now, we know what you're thinking, Yetis. The economist and the IMF, they just compared America to the rest of the wealthy countries. But what about the past? How does America compare to past versions of America? Well, compared to the past, we're also doing better. Get this, Yetis. In 1990, America accounted for about two-fifths of the GDP of the G7 nations. But today, we account for more. We account for one half of the G7 GDP. We grew the economic pizza pie and we're taking more slices of it. The United States has more innovation, a more diverse economy and more energy independent today than any of the advanced economies of the world. According to the economist, the biggest threat to our economy? Spoiler. It's our politics.

So Jack, what's the takeaway for all our buddies who are everyone in America curious about our economy? Sometimes you need to stand outside the house to see what it actually looks like. Now, you guys, inside this house, our economy, it can feel bad for multiple, multiple reasons. You just paid $50 for a babysitter. You have a $1,000 bill at the hospital. Your grocery bill is double what it used to be. You're waiting for mortgage rates to come down. All of these financial issues can cause stress and anxiety.

But yet is if we stand outside the house, like the economist and the IMFR, you can see that we have the best house in the neighborhood by far. Now, we're not telling you how to feel. No, we're not. We're just arming you with important information. And we think that's important because the only way to actually improve our economy is to have perspective about the reality and where it stands in the world. What we're saying is, sometimes you need to stand outside the house to see what it looks like. Now a quick word from our sponsor.

For our third and final story, 20 years ago, Sirius XM signed the biggest deal in audio history, Howard Stern. But with Howard and his listeners close to retirement, it's trying to turn podcasting into radio. Now, yet he's a funny thing Jack and I do when we're trying to keep track of trends. We look at Warren Buffett's investments. Last month, his big investment was in the company that makes Squishmallow. Yeah, Warren Buffett invested in Squishmallow's those adorable cute Beanie Baby-like toys. That was a fun story.

This month, Warren Buffett is investing a billion dollars in serious X-A. That's right. Warren Buffett, the legendary investor and Berkshire Hathaway, has bought up 32% of the $9 billion satellite radio company. Sirius XM stock is down 50% this year, but Warren Buffett sees good value in that company. Correction of the pod, Jack, he actually hears good value. He hears good value. And why is Sirius XM stock down 50% this year?

Partly because their profit puppy is rumored to be retiring. And that would be Howard Stern, the Long Island born and raised radio host who signed the biggest deal in audio history back in 2004. In 2004, he signed a five-year, $500 million deal. Oh, huge. He had to move his show from the radio to satellite radio. Unheard of still today. But, Jack, could you adjust that number for inflation? $500 million bucks? Inflation adjusted, that's nearly a billion dollar deal for one radio host. Howard, Stern, and his curly-haired, cursing locks are financially a unicorn. And his deal has been extended and extended and extended through to today. Now, Sirius signed that deal. Beliefing. that listeners would move from FM radio to SiriusXM. And did they, Jack? Yes, they did. But Howard's biggest threat isn't another radio host trying to compete for his listeners. It's his age. Howard Stern is 70 and his contract ends at the end of next year. So honestly, he might be retiring. He might be. And his listeners, they're retiring right now too. So what is Sirius XM doing?

They're pivoting to podcasts. That's right. Sirius XM is solving their Howard Stern retirement problem by signing a lot of podcasts. They've signed Call Her Daddy, Pod Save America, Smartless, and Conan O'Brien's podcast network. Jack, can you share that shocking stat about Series XM's podcast this year? Four of the top six podcasts in America right now are Sirius XM podcasts. In fact, this brings us full circle, because Sirius XM has now spent $500 million on podcast 20 years after they spent $500 million on Howard Stern. The goal is basically to replenish the user base.

Exactly. For each Howard Stern listener, they lose. They want to replace them with an Alex Cooper listener. As everyone who spends money says, you've got to spend more money to make money. And Series XM just keep spending money. So, Jack, what's the takeaway for our buddies over in the media industry? Warren Buffett appreciates a paywall. Yeties, Warren Buffett is a long time, stable, value-focused, dividend-loving investor.

That's his focus. And in the media industry, ads aren't as reliable as subscriptions are. So it would be music to Warren Buffett's ears if his new investment, Sirius XM, put their podcast behind a paywall. Perfect timing. Nick, the Hollywood reporter, just interviewed the president of SiriusXM. They're testing out paywalled podcasts right now. So, Bessies, most of the big podcast deals you've seen with Sirius, they're going to remain free to listen to anywhere without ads. But the next bonus episode from Call Her Daddy, or the next extra content, that smartless drops, you might have to pay for it.

As Sirius' president has said, they hope to recreate the podcast model like the satellite radio model. That means you may have to be a subscriber to Sirius XM because it's behind a paywall. And while we don't appreciate them, Warren Buffett appreciates a paywall. Jack, could you whip up the takeaways for us

before the weekend? Ghost, the energy drink startup, just got acquired for $1 billion by Dr. Pepper. Childish flavors adult transparency. Great branding. It feeds on tension. For our second story, it's the IMF and The Economist. They both declared that the U.S. economy has never looked better. Sometimes you need to stand outside the house to see what it looks like.

And our third and final story is Sirius XM. They're preparing for a post-Howard Stern future by signing podcast with young listeners. And they're experimenting with paywalled pods. And Warren Buffett, he loves a paywall. But Yeties, this pod's not over yet. Here's what else you need to know today. First, Gucci just had another quarter that was so bad. Even Lady Gaga's getting angry at them.

For the third straight quarter, Gucci announced another profit warning. Luxury sales overall have slowed, but Gucci's struggles, they've been Fuji. They haven't been Gucci. One theory why Gucci is underperforming, they stopped being Gucci. They tried to be less loud with their branding and more subtle, and that's just not working. If you're Gucci, you got to lean into the Gucci. And second, Boeing has managed to have a... another week of brutal news. Remember how Boeing's factory workers went on strike? Well, Boeing actually

increased their offer to pay them not just 30% more, but 35% more. But the union just voted against that offer. And Boeing has lost $6 billion in just the last three months. And finally, are you curious how Apple's headset sales are gone? The Apple Vision Pro? How's that looking, Nick? We were curious and Jack, how does it look, man? Not good. Apple hasn't released official numbers, but the information reports that they've started to stop producing. Suppliers in China say they may stop making new Apple Vision Pro headsets by the end of this year. Which implies nobody's buying them. Apple Vision Pro, Apple's biggest launch of the year may not even make it to next year.

Now, time for the best fact yet. This one sent in by Erica Warner down the street in New York City. The New York Liberty just won their first WNBA championship, making them the last of the original WMBA teams to win the title. Wild numbers here, the Liberty were worth $19 million when they were founded 27 years ago. They're now worth over $200 million. They also have the best mascot in sports, the Statue of Liberty.

But that's not actually their mascot, Erica points out, is it, Jack? It's actually Ellie the Elephant, who is an incredible dancer based on what I saw on TikTok. Now, Jack, I know as someone who's read this book about the Brooklyn Bridge 30 times, you want to sprinkle

on some context about the elephant. Why is the New York Liberty have a mascot called the Elephant? Jack knows. You know. What's the answer, man? Because in 1884, P.T. Barnum of the circus sent a parade of elephants across the Brooklyn Bridge to convince New Yorkers that the bridge could stand. That's right. The first thing to walk across the Brooklyn Bridge, an elephant, is now the mascot of the WNBA team. The WNBA champs. The $200 million champs. Yeties, you looked fantastic all week. And if you're preparing and setting up and constructing a piece 12-foot skeleton this weekend.

Good luck. We'll see you in four weeks. And after you've set up all your Halloween gear, listen to the best idea yet. Our latest episode is incredible. The best idea yet. Our new show, check it out. Our latest episode is on the untold origin story of Nintendo's Super Mario Brothers. We got a link in the episode description. A wonderful 45-minute listen.

Get this, Nintendo. They used to be in the ramen business and the hotel business. And then Super Mario saved him. It's a me. A mine. Celebrate the wins this weekend, and Jack and I, we'll see you Monday. Where we go, oh, congratulations to Shane and Alessandra down the street in New York City who just had their first brand new baby,

and he's a beauty. Caspian looks incredible, and the self-proclaimed Dilf has always looked incredible. Shane looks great, Alessandra is glowing. And happy birthday to Trenton Cycle in Bocirton, Florida. And a bon compliano to Giunciano in Catania, Sicily, a fabulous wife and a fabulous mom celebrating with her family. And happy birthday to a two-year-old footballer, Benjamin Hayes in Nottingham United Kingdom.

Future man you, and Devin Torres in Kansas City is playing rugby at 46 years old for the Kansas City Jazz. Congratulations, Devin. Happy birthday to Alicia Leone in Melrose, Mass. Your cockapoo and Brandon both love you. And a congratulations to legendary Yeti, Amanda Witham, in Newton, Massachusetts, just outside Boston, who just set a personal record,

in the marathon. She's also the returning champion of last year's T-boy Halloween costume contest. Stay tuned for Monday, Amanda. And Anna Villarreal in Napa, California is the most stylish auntie and sister celebrating the birthday. Happy 29th birthday to Billy Yago in Kinalan, New Jersey, who's celebrated with a pizza. And Alice Jagg in Belmont, California, is celebrating the birthday with a swim meet in all state honors. Happy birthday to Stacy Lippert in Park City, Utah. And Steve Ropeppy and Leah Cordy have got an anniversary together in Cleveland, Ohio, the Paris on the lake. Happy birthday to Stella Chen in Arlington, who's got a birthday trip coming up to Miami.

And congratulations to Mika in Peoria, Illinois, two-year business anniversary of the Lavender Logistics Corporation, doing logistics. Just outside Chicago. Because Chicago does logistics. This is Jack. I own stock of Berkshire Hathaway, and Nick and I both own stock of Apple.