The Best One Yet - 🍸 “The 4th alcohol” — Boston Beer’s cocktail-ification. Big Banks’ silver bullet. Your new doctor date.

Episode Date: July 16, 2021

Two major liquor legends are teaming up to pursue a new category of alcohol: The Canned Cocktail. All 6 big US banks just reported earnings and they’re loving the most entrepreneurial year in US history. And you’re about to rekindle a new relationship after the pandemic… the doctor’s visit (health insurance companies aren’t thrilled).$SAM $STBFY $GS $MS $JPM $UNHGot 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 Friday, the real Friday, July 16th. To all of our snackers who had a birthday yesterday, July 15th, fantastic birthday. Happy freaking birthday. Belated. Still the best birthday yet.

Also, happy birthday to tuck. July 16th, great day. If you know, you know, by the way, this pod's like our best one yet, Jack, T-B-O-I. For our first story, Boston beer, just discovered a new category of alcohol. The fourth category of alcohol. didn't exist before the pandemic. For our second story, the six biggest U.S. banks just reported earnings all in the same week. Also awkward, and they found a silver bullet to solve all their banking problems.

Our third and final story is about the break that you took from a relationship last year. Yeah. But it's about a relationship you're about to rekindle. Snackers, we won't tell if you won't tell. We know you're seeing your doctor again. United Healthcare? Yeah. Wishes you wouldn't.

Awkward. But Snackers, before we hit those three. Wonderful story. It's a really good mix before the weekend, Jack. Happy National Ice Cream Day, Eve Eve. Yeah, Sunday is the day when you celebrate the swirls. We're giving you a heads up. You cherry the Garcia.

You throw some mazzle on the milkshake, Jack. You double hot fudge Sunday, the double baked. I love what you did there. By the way, all of July, like the whole month is ice cream month. Let's just say that. I didn't know this, but legally, July is national ice cream month. Jack and I jumped in snack style. President Ronald Reagan decreed it so.

back in 1984, so you have to obey. That was a popular policy. I can guarantee you that. That one, that's a bipartisan thing. But the first known American ice cream recipe goes all the way back to the 1700s because it was written by President Thomas Jefferson. Fun fact. First American ice cream recipe, third American president.

And ever since, presidential creamy photo ops have become standard. Now, 2020 was a record year for ice cream consumption in this country. We should point it out. Americans needed a sweet tree in between schmovies. But the old IDFA, the International Dairy Foods Association, has an update for us. You don't want to mess with the IDFA. They just informed us that 2021 so far, we are on pace to break 2020's record. Because you're revenge spending on your Reese's toppings.

Stimulus check? Sprinkles check. Jack, extra hot fudge after an extra hard year. And of course, Nick, the Olive Garden didn't sell ice cream when I was an 18-year-old serve it. Do things a little differently there, like Apple. But my manager really wanted to push gelato. So do you know what I told my diners? How did you break this down? I like the strategy.

I told them gelato was ice cream, but instead of cream, they use milk so it's healthy. Jack, I won't tell the IDFA if you won't tell the IDF. I didn't fact check that, but it led to more sales. I'll tell you that much. Gelato, the only ice cream that you actually want to wear. Let's in our three stories. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something legal out the way.

The snacks are about to hear rain food. their 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. 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, Boston Beer just discovered a fourth category of alcohol. Canned. Ready to drink cocktail. are the fastest growing drink in the United States. Like the Indiana Jones of liquor here,

just discovering things, just finding them. The story, though, actually, this begins 15 years ago in a hidden temple. You know, he got me that. In Westchester, New York, where a couple of guys were working at Pepsi. Yeah, today, one of those guys has become the CEO of Boston Beer Company. Yeah, America's biggest publicly traded craft beer company. They own Sam Adams. They own truly hard seltzer.

And the other has become the CEO of a company called, Beam Suntary. Interesting, Earth's third biggest spirits company. They make Jim Beam and Maker's Mark. Here's the news. Yeah. Those two CEOs noticed a trend. So they called each other and now they're teaming up to create a whole bunch of new drinks together. Boom. Snackers, there are three pillars of alcohol historically. That's it. Wine, beer, and hard alcohol. Well, during the pandemic, a fourth category of alcohol magically emerged. And the fourth category blurs the lines between the the three categories. Behold, the fourth category of alcohol is ready to drink concoctions. This is the era of the portable mixology ready to go. So with this fourth new category of alcohol,

Jack and I noticed there's a fascinating way in which it's blurred the lines. Well, first of all, it's served in a can. Like a beer. But it includes hard alcohol. Like spirits. And it's great to be consumed with a meal of food. Like wine. Canned cocktails boomed in 2020. From a a Nogroni to go. Why not? You get the raspberry margarita. We're going to take that for the road, Joe. Okay?

Or a four pack of Paloma for the pool. Remember when I made up that cocktail for you? The jacktail? How could I forget? One part German brandy, two part seltzer, one part extra organic maple syrup. You take that with you anywhere. In 2020, these ready to drink canned cocktails were extremely popular.

Sales surged by 50%. But there's still only 3% of the total alcohol market, so it's small. But it's the fastest growing part of the alcohol market. So that's important. And that is why Boston beer is going to spin off a version of its hard seltzer into this fourth category, the new category. And Suntory is going to take Sosa, their tequila brand, and do the exact same thing. Congratulations, Snackers. You're getting truly hard seltzer with a ready to drink canned cocktail version in 2022. We guess it's going to be like truly, but with tequila with a marasano cherry. So Jack, what's the takeaway for our buddies

over in the alcohol industry? Research and development doesn't just happen in a lab. It can happen in the streets too. Snackers, this fourth category of alcohol wasn't thought up by some marketing and engineering department in a corporate workshop. It was created by consumers, you and me, and then the companies merely observed that. That's right. With bars closed, restaurants closed, the pandemic taught us how to plan for cocktails on the go. And this product is that concept. It's perfect for your outdoor tailgating gear that you just bought last year because they know you miss barmaid concoctions. Boston beer didn't create this concept in a lab. It observed it on the street.

For our second story, all six big U.S. banks just announced, frankly, I think the word check is awesome profits. Because IPOs are hot. Yeah, they are. The pandemic is not. I like what you did there. Economic growth is everything. Okay. First, if you're going to do like a big bank story, you got to begin with some trivia, right, Jack?

I love trivia. All right, here it is. New York City, San Francisco, and what American city are home to America's top six banks? Okay, JP Morgan, Goldman Sachs, Morgan Stanley, and Citibank. They're all based in New York City. Okay, Wells Fargo down the street here in San Francisco. Bank of America is based in Charlotte, North Carolina. Pull out the pulled pork, baby.

No one sees that coming, except for the North Carolinians. Yeah, they see it coming. And they're all fist pumping this week because all six announced booming profits, most of them more than double as much as last. Yeah, and most of their stocks are enjoying multi-year highs must be nice. Enjoy bonus season. Nick, I got to say, these six banks have been popping champagne with clients on IPO. And Snackers, that is the one huge thing.

These banks are loving most of all right now. Two weeks ago, Snackers, we told you on this pod that 2020 was surprisingly the most entrepreneurial year in U.S. history. We are quitting their jobs, starting things, calling up lawyers, beginning LLCs. It wasn't just a record number of new corporations, new businesses being started. No, it was. It was also last year, a record. year for companies going public through an IPO. Jack, well, we got a funny thing going on with 2021.

It's even better than last year. Wild. We're on pace to beat last year's record of IPO volume this year in 2021. And here's the thing about IPOs. They make the banks a lot of money. Oh, yeah. I mean, whatever the size of the IPO, the banks are taking a 3% to 7% advisory fee to help the company go public.

Okay, $80 billion. That was the IPO volume in the first half of this year. And let's say the banks split the difference. They take 5% advisory. Yeah, they're like, hey, you're going to have to sign here. You're going to have to wear these kind of shoes on IPO day. And we're going to need an order of the champagne that we're going to enjoy. Snackers, 80 billion times 0.05, aka 5%.

That's $4 billion in fees. The banks have taken just in IPOs so far this year. And guess what? There's a whole bunch more of this IPO. action apparently to come. Citibank's new CEO just said, we have a fabulous pipeline of companies going public soon. Oh, also on the lending side, banks have some interesting stuff going on too these days. Yeah, remember, banks also, you know, they issue loans.

It's not just the champagne. And the amount that they have outstanding in loans is actually down since the beginning of the pandemic. Yeah, for the four biggest U.S. banks. Yeah, it's good for consumers because apparently we were all paying down our debts over the last year. But it's bad for banks because they're making less money on interest on the loans they have outstanding. So, Jack, what's the takeaway for our buddies over at the six big banks? A growing economy is the silver bullet for banks. Last year, banks were diving into fallout shelters.

It was brutal. I mean, they were sweating through the suits. It was not fun to be at a bank. Expectations were that the pandemic would lead to a ton of bankruptcies, both personal and corporate. You got bankruptcies plus economic hardship. That's going to equal clients defaulting on all the loans from the banks. That would have been bad for the banks. But those. Those days are over. The losses weren't nearly as bad as the bank's fear. And the key reason is one reason, the economy is growing fast. This year, Snackers, the United States GDP is expected to grow by 6.4%. The fastest economic growth since 1984. Jack, do you know what 1984 is? The year Reagan announced National Ice Cream Day. Yes, it is. It all comes full circle. Back to gelato, baby. Actually, the silver bullet is ice cream. That's the real takeaway here. But Snackers, when the economy is growing, then banks clients are making money and able to pay back their loans. And a growing economy is a silver bullet for the banks.

And we've got a growing economy. An ice cream driven growing economy. For our third and final story, there is a relationship that's getting rekindled right now. The doctor date is back and insurance companies aren't thrilled about it. No, they're not. Jack, the relationship you rekindle when you have just need like a little TLC. I cannot wait to sit on that crinkly paper at the doctor's office. The doctor's visits.

There's nothing like. They bang on your knee? Nope, still didn't move. They bang on your knee? The thing still didn't move. Pro tip, Nick, do not look at the paper after you get up off it. Something you don't want to sit. The most loudest sound is that paper.

Snackers, before the pandemic, Americans made on average 3.9 visits every year to the doctor's office. Yeah, and it was an open relationship. It was everyone understood. you saw other doctors too wasn't a big deal. But during the pandemic, things changed. You took a break from your relationship. You ghosted your primary care provider. You needed some time away from your medical practice.

And it was understandable. You were avoiding COVID contamination, so all of us put off like the non-essential care kind of a stuff. Oh, and since we weren't seeing people generally, we were less likely to get a cold, so we didn't even need to go to the doctor as much. I mean, I don't know, honey. I think I can stitch this up at home.

I should be fine. So not getting health care, that led actually to record profits for the health insurance companies last year. Well, here is what Jack and I found fascinating about that. All of it just changed. United Healthcare is the largest health insurance company in the U.S. And they're the first one that reports their quarterly earnings. And they just did. So we jumped in snacks out to their earnings and we learned a few interesting things.

People are revenge spending on medical care right now. Yes, you are. Snackers. United Healthcare's profits sank last quarter because its insured patients had ppped up questions about that thing on their thigh they had to ask a doctor about. Doc, it's red. Yeah, there's a bubble. I think it's about to pop.

And again, this is a thing on my thought. Snackers, remember, if you have health insurance and you visit the doctor, it's your health insurance company that's going to pay for most of that doctor visit. Well, in 2020, United Healthcare spent just 70 cents. That was it on health care for every $1 that it collected. from your health insurance premiums. It's counterintuitive, but the pandemic was one of their best years ever because you weren't going to the doctor. No, so now, though, that's changed. They're spending 83 cents for every one dollar they're getting from you because you've got some revenge visits.

So, Jack, what's the takeaway for our buddies in all of health care? Health insurance just showed us again that it's truly a do less industry. Snackers, gyms love it when you pay for the membership, but then you don't show up at the gym after New Year's. Credit card's love it when you've got a big balance on your statement that you don't fully pay off. And health insurance loves it when your boss pays for you to be a member and have health insurance, but then you never get sick. In 2020, it seemed like we never got sick to the health insurance companies because we visited the doctor less. Well, in 2021, we're getting back to normal. We're doing a bit more health care. We're calling up our doc. We're rekindling the doctor visit

relationship. And the health insurance companies, they wish we would. They wish we'd do less. They hate it. Jack, can you whip up the cookies and cream takeaways for us? Boston beers truly is partnering with a tequila brand for canned cocktails. Chocolate sauce. We demanded cocktails to go. Alcohol brands merely observed. For our second story, big banks are enjoying record profits and stock prices.

Caramel, because the economy is growing, that's the silver bullet. For our third and final story, we're going back to the doctors again. Cookie dough. United Healthcare hates your annual doctors. dates, Jack. They don't. Who's tracks. By the way, if you know, you know. Now, time for our snack fact of the day.

This one tweeted in by Caroline Husham from lovely Calabasas, California. Hippopotamai. Great work there, Jack. Which are known by ancient civilizations as water horses. Don't actually swim. No. Get this. Hippos are so dense that they actually sink to the bottom of the rivers. And then they walk along the riverbed holding their breath.

And it's like they're carrying weights. Like they're walking along the bottom. bottom of a pool. Until they can finally get out of the water, they're never actually swimming. Also, we wanted to give a quick correction to yesterday's best podcast yet prior to today. We said yesterday that Oatley rejected the accusations from that hedge fund. But Oatley also called those reports false and misleading. So we wanted to give their full side of this story. They fully denied it. Snackers, remember Sunday is national ice cream day, but the whole month kind of is due. I'm actually having salt and straw tonight, Jack. I schedule this a

week in advance. I haven't been in San Francisco in a while. I miss salt and straw. It's really good. You know what? It's a meal. It's not a dessert. What about soup for bendings? That's gold, Jack. Gold. And before we go, happy belated birthday to Olivia Kelts, who had a fantastic birthday. And happy birthday to Josh from Wichita, Kansas. And Charlotte Ray, turn in one over in New Hampshire. And Tom May in Philadelphia, P.A. And Andrew Scott McGone in Babylon, New York. Happy birthday to Dominic Pauzee in Champ. Happy birthday to Dominic Plizi in Champ. Payne, Illinois. And Andy Go in Los Angeles. And Jake Cohen in Chicago. Yes, full disclosure, Jake doesn't do logistics. And congratulations to quartermaster's second class, Alex Baker, with the honorable discharge from the U.S. Navy. Congrats to Kyle and Michelle, who have a new baby in

Virginia. And Kate and Yadden just gotten married at San Francisco City Hall, beautiful building. And to anyone else celebrating something today, make it a T-boy. Celebrate the wins this weekend. The Robin Hood Snacks podcast you just heard reflects the opinions of only the hosts who are associated persons of Robin Hood Financial LLC and does not reflect the views of Robin Hood Markets, Inc. or any of its subsidiaries or affiliates. The podcast is for informational purposes only and is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any

investment decision. Robin Hood Financial LLC, member FINRA, SIPC. Alex might bring me up a glass of wine. Nice. I deserve it. You deserve. You deserve the fourth category of alcohol.