The Best One Yet - 🐄 “Wow wow no cow” — Oatly’s $10B IPO. Ralph Lauren’s

Episode Date: May 21, 2021

Oat milk pioneer Oatly popped 19% on its 1st day of trading, but it said something we’ve never heard in an IPO. Ralph Lauren is 81, but his company is connecting with Zillennials on Snapchat. And JPMorgan is making a big bank move that’s unprecedented: Giving credit cards even if you got no credit score.$OTLY$RL $JPM $WFC Got 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, May 21st. If I sound excited, it's because I'm getting grilled octopus at a lovely sidewalk cafe tonight. Is it B.YO. Tardas sauce? What kind of sauce you bring in there? I don't know.

I'm from a landlock state. I'm just eating what they give it. Honestly, Snackers, this is the best pod we've ever done. Doesn't matter if you can't even see the water right now. TBOY. For our first story, Oat Milk Pioneer Oatley, just IPOed. And the stock jumped 19%. Funny thing.

They know how annoying that Super Bowl ad was. And that's the pole. For our second story, Ralph Lauren is an American icon. With the boomers, with the Gen Xers, maybe, like, I don't know, round up some older millennials too, Jack. What do you think? But its survival depends on Zillennial. Third and final story, what do we got? J.P. Morgan, Wells Fargo, some other banks.

They're reportedly about to do something unprecedented in plastic. No precedent, baby. Give you a credit card, even if you don't have a credit score. But Snackers. Oh, yeah. Tonight's grilled octopus isn't just grilled octopus. No, it's not. And tomorrow's Saturday isn't just a sack.

Saturday. Tomorrow is pizza day, specifically Bitcoin Pizza Day. Yeah, Jack and I jumped in snacks style. This goes back 11 years to May 22nd, 2010. Jack, I remember, I think I was visiting you in Berlin that year, right? No, that was a year before. I was a senior in college. I was hungry, and so was a programmer named Laslow, apparently. Third reference to Jack's stomach on this spot. Now, this Laslo had an empty stomach, but his server was full of Bitcoin. And Blaslow accidentally engaged in the greatest transfer of wealth ever. He did the logical thing that any carb appreciating engineer would do in his situation. He was hungry.

So he cashed out on 10,000 Bitcoin to like two Papa John's pizzas. That's right. Back in 2010, you know, it was crazy. Bitcoin was worth pennies. Back then, if you said crypto, people thought funeral home. They didn't get it. Right now, though, Bitcoin, I'm checking the charts, Jack. It's worth $40,000 of Bitcoin right now as of this recording.

I think that's up a million percent, which is math I can't even handle. Even Bitcoin is, like, shocked about where Bitcoin's price is right now. So the 10,000 Bitcoin that Laslo spent to get those two pizzas, today, that 10,000 Bitcoin is worth $400 million. If so facto, that means $200 million spent on each pizza. $8.3 million per pepperoni, assuming 12 pepperonies per pie. Jack, $450,000 per a calorie. Now, actually, if anyone bought anything with Bitcoin,

before 2020, they're probably hugely regretting it. Honestly, Jack, good thing Laslo did not add guack to this situation. The takeaway here for the snackers. Please, Jack. Always keep the receipt. Let's hit 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 about to hear ain't 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. 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 LLC Member Fenra Slash SIPC For our first story

Oatley Its stock jumped 19% On its first day at trading jack Alternative milk stock So trendy This company did something though We've never seen in an IPA

It really hasn't Also it's another Swedish thing Doing things in New York City Jack Spotify stock is trading in New York City Yes it is Volvo's are driving in New York City. They're rolling. Yeah. Henrik Lungwist used to be tending goal. We miss him. We miss them. Honestly, Jack, Oatley, it's kind of like the opposite of meatballs is how you have to

think about this. That's one way to describe it. This is the original, the OG largest oat milk company we've ever seen. Yeah, they saw almond milk and they were like, you know what, we can be a little bit more alternative than this. You may have heard about oat milk for the first time when all the Williamsburg baristas were trying to find some because there was a shortage over there in Brooklyn. Jack, I was popping off the L train. People were ripping their chin hair out. All the beards were gone. Oatley is the most known brand of oat milk. They've been in the U.S. since 2017, but they were founded in 1994. Yeah, by a couple brothers name. How do you pronounce this, Jack? Oast. The last name is Oste. It's got an umlaught. I don't know how to pronounce it, but

it's so close to Oates, we had to say. Snaggers, you know, Jack and I jumped in snack style. And according to Oatley's IPO paperwork, their research shows about two-thirds of the world cannot process cow's milk due to lactose intolerance? That is a way higher proportion than I thought. It is. It is. Now, they are more focused on sustainability. They mentioned that word 48 times in their IPO paperwork. Then they are healthiness, which they only mentioned 11 times. That's because oat milk requires 80% less greenhouse gas emissions than dairy milk does. Okay, Jack, the numbers here. $10 billion evaluation at the IPO. Revenues doubled last year to $400 million. Sadly, though, the loss also doubled to $60 million for Oatley.

a profitable company. But Snackers, funny thing, Jack and I have never, ever seen this before when it comes to another company's IPO. They highlighted their own marketing as a key risk that faces the company. These are their words. We're engaged in provocative, unconventional marketing campaigns to enhance our brand. And those marketing campaigns expose us to lawsuits and heightened scrutiny from regulators. Jack, can you take me back to February? Are you thinking about the Super Bowl app? I am. It was kind of annoying. It was actually the CEO of Oatley. Wild. Sitting in an Oatfield. Sitting in an Oatfield. with a keyboard singing a song he made up,

and the lyrics are just, wow, wow, no cow. We just watched it again and honestly, it was not great. It was annoying. Yeah, it was. Twitter thought it was annoying. They did. Nick and I thought it was annoying. Full disclosure.

And it was actually illegal because the ad got banned in Sweden from a lawsuit from the dairy industry because the lyrics implied that cow milk was bad for humans. Now, Jack, for this, I got to tell you, one second. Full disclosure also, I've got some oat milk in my fridge. I've got the only in my fridge. Here it is. Turn it over.

I'm looking on the back for the nutrition side. And on the nutrition section, it says the boring side. They suggest that nutrition facts are boring. I kind of love that. Which is a bold thing to say because Oatley has been accused of not being forthright about the amount of added sugar in this beverage. All right, Jack, your dad's a lawyer. Yep.

My dad's a lawyer. True. Neither one of them would have approved this. Absolutely not. Also, Jack, neither our dads would drink Oatley. So, Jack, what's the takeaway for our buddies over at Oatley? Provocative marketing is a high risk, high potential reward business. Snackers, consistent thing about Oatley's provocative campaigns, people are talking Oatley.

And that's crucial because it's hard to stand out in the dairy aisle, the alternative dairy aisle. Yeah, it is. A little controversy can help. Yeah, Odley, we notice, they mentioned the word brand, a whopping 210 times in their IPO paperwork, about the same amount of times as they mentioned the word milk and the remote company. They're so focused on brand because they know that oat milk is a commodity. Just like dairy milk, there's not really a difference from one brand to another. And so now they've done these campaigns, people don't ask for oat milk, they ask for Oatley. That's why Starbucks has a nationwide deal, and they make sure to clarify, our beverages are made with Oatley, oat milk.

So far, the claims of like dishonesty about Oatley's products and its dairy competition, that apparently has been worth the conversation in the brand awareness. And that's proven by Oatley's $10 billion IPO this week. The bigger risk to Oatley might have been not taken a risk. For our second story, Ralph Lauren is back to growing again because it thinks it's a 20-something. The man, Ralph Lauren's 81 years old. That's true. The company is 54.

Good research. But they may just finally be connecting with 19-year-olds. In the last year, Ralph Lauren has been, Jack, it's been on a journey is what it's been on. No, not a journey. A brand elevation journey around the world. That's the CEO's words. It's intense. And honestly, this journey was surprisingly relatable to,

all of us during the pandemic. The first thing Ralph Lauren did last year was sell off their club Monaco brand. Yeah, it's like ending a long-term relationship wasn't going anywhere. Then they restructured all their real estate deals to get a lower rent. It's like calling up your landlord Frank and saying, hey, can you cut the rent? Please. And finally, they improved their e-commerce websites. It just got itself out there because you've got to do that, Ralph.

Snackers, Ralph Lauren did everything last year that your friend Jenna did except move in with their parents. Yeah. Just for a while. Now, funny thing, Jack, and I also noticed from the earnings report that came out yesterday, Ralph Lauren, pandering pretty hard to the Zellennial audience. Yes, Zelanians, Gen Z and Millennials. The first way they did it was unveiling an exclusive Bitmoji collection. Real thing.

Branded polo attire to stick on your digital avatar to dress them up. Yeah, we didn't really believe it. We checked it out. Get this. They got one billion trions of these digital avatar bit moji clothes on Snapchat in the past year. That's right. on Snapchat, a billion times somebody dressed up their avatar with this polo attire. Could be a billion people.

Could be one person who was really into clothes online. Oh, and kids these days love concerts, right? Yeah. Well, they sponsored a virtual concert with Chance the rapper during the pandemic. Yeah, Polo Ralph Lauren was always an important staple for Chicago streetwear. That's what Chance said, and that's why I signed up for the concert. Now, one big issue for Ralph Lauren, kids don't even know what Polo the sport is. Does anyone?

And they're also not snatching up the 15th. dollar polo shirts at T.J. Max like I used to. And yet, Ralph got their attention because the brand finally returned to growth last quarter after a long time, Jack. They enjoyed 1% revenue growth from last year's first quarter. They made $1.3 billion in sales. But the stock fell 6% since that growth came after five straight years of declining sales. So Jack, what's the takeaway for our buddies over at Ralph Lauren? The unspoken hope right now for all of apparel is the wardrobe refresh. Yeah, Snackers. Before you, yesterday's drop, Ralph Lauren's stock was actually up a whopping 36% this year because of one hope.

The hope is you will refresh your wardrobe right about now, and Ralph Lauren will be the center of it. I mean, Jack, you haven't seen 90% of your friends in the last year. It's basically just you and you looking at each other on this spot every day. Last wedding, I don't know, 2019. Your sweatpants have sweat stains everywhere. You need to look for a new post-vaccine, brunch, work, life attire. You do. And Ralph Lauren's gear, it's basically premium enough to look sharp, but it's not too formal to feel awkward. That's what investors are hoping for, and they hope to see Ralph Lauren

catch a nationwide wardrobe refresh. Unfortunately, we're going to have to wait until their next earnings. For our third and final story, Jack, I'm reading your eyes right now, and you've got one thing on your mind. Octopus. Big banks are reportedly changing the rules of how to get a credit card.

They're fighting off one racial inequality. That's key. And they're also replacing some lost revenue from the past year. This kicks off. With Wells Fargo, J.P. Morgan, U.S. Bank Corp, and a whole bunch of others are going to start offering credit cards to people who have no credit score, unprecedented. That means instead of relying on just someone's credit score to decide for a credit card, banks are going to look at your bank account history, too, and here's how. Okay, so, Jack, let's say I got a track record of overdrafts or bounce checks.

That's not good. You're probably not going to get a credit card. All right. Let's say my balance tends to stay above a certain minimum amount, though. I like that. Okay, you're regularly cashing checks, paycheck to paycheck. That's good. Money's coming in. Not many of these late night pizza splurges on the Saturday. You're approved.

So the idea for this was actually born out of a government program. More on that and the takeaway. And to do this, banks are agreeing to share clients' bank account data with each other. So here's how this would go down. Basically, you apply for a credit card at Capital One, then Capital One would actually have permission to look at your Bank of America statement. And 10 banks are in on this data exchange. And since 53 million Americans don't.

have a credit score, this should boost access to credit in a way that we've never seen. By the way, this is all thanks to reporting from the Wall Street Journal and according to people familiar with the matter. The PFWTM say it's going to launch this year, but convenient timing, Jack, on this new initiative. Yes, perfectly timed because the big banks credit card revenues have been shrinking. Yeah, they are. According to the Federal Reserve's latest reports, credit card balances right now are at $157 billion lower than they were pre-pandemic. Just last quarter, credit card balances in America fell by the second most ever since the Fed has been tracking this data in 1999.

And here's what's so funny about credit card balances. Those bring in huge revenues for the big banks out there. But in the past year, Americans have been paying down their credit card balances with stimulus checks and they just have saved money. And that is bad for the bank's revenue. So just as that lucrative business is shrinking, banks are finding a way to expand again. So Jack, what's the take? for our buddies over at the big banks and all those with credit cards. Institutional racism,

access to credit is one example of that. So Snackers, those 53 million Americans we mentioned before without a credit score, they're more likely to be black or Hispanic than they are white or Asian. And if they pay with cash and debit cards only, or if they're recent immigrants or recent adults, then they're more likely to have no credit history at all. Now, this cooperation among the 10 financial institutions could reduce unequal access to credit. And guess what? Catalyzed it. a government program in response to George Floyd's murder last man. That's right.

It's called Project Reach, Roundtable for Economic Access and Change. Trump started it. Biden's finishing it. Access to credit is huge because it can transform your life by giving you a home now, for example, instead of in 30 years when you finally saved up to buy one. All right. So here's what Jack and I are thinking. The next step to inclusiveness would be considering other factors for credit scores too.

Yes. Other factors that prove creditworthiness like consistent rent payments, consistent phone payments or even just consistently paying off your Netflix account. Jack, I love it. Including those in the credit scores could include a lot of the currently excluded. Jack, can you whip up the takeaways for us before the weekend? Oatley's provocative marketing comes with legal and PR risk. It does, but it's paid off in brand awareness and a $10 billion IP. Ralph Lauren Stock got some traction last year with Bitmoji collections and Chance the Rapper concerts.

Yeah, the rebound depends, though, on the wardrobe refresh. kind of need it. The big banks are bumming about lower interest charges on Americans' lower credit card balances. So good time to expand credit access to the 53 million Americans that are excluded. Now, time for our snack fact of the day. This one sent in by Avello Inev from Council Bluffs, Iowa. According to the U.S. Federal Reserve Bank, millennials are the poorest generation in generations. Yeah, currently, the youngest of the millennials are about 25. And millennials hold about 5% of all U.S. household wealth. All right. Let's do an apples to apples comparison by looking at 1989. That's the year that the youngest of the baby boomers were 25, like right now for millennials.

By 1989, boomers had already amassed over 21% of all U.S. household wealth. Not complaining. No. Not thrilled about it. No, not. But just noting it. Snackers, you look fantastic today. It's Friday, so celebrate the wins. Jack, what win should we celebrate by the way? Actually, one of the snackers said we described lipstick very well. Last year was by the dip. This year's gloss. slip. Tweet us what you're celebrating Snackers. Jack's at Jack Kramer. I'm Nick of New York. Get at us at Robin Hood Snacks. We'll see you Monday. And before we go, Snackers, congrats to Kim Chon, who won the should have been a Ben and Jerry's flavor competition earlier this week.

And it's her birthday. Unreal. When does that happen? When does Ross and Rachel get engaged? Not on friends. No. In real life in Memphis, Tennessee. True story. A real Ross and a real Rachel. Congratulations, guys. Gabby and the West Village of New York just got into Columbia's MBA program. And Ricardo Pomerola is taking the urology or not. exam this weekend in Miami. Sinil Sharma, congrats on graduating from UT. And Tony and Lauren,

five-year anniversary down in Redwood City. Happy birthday to George and Cajal Patil, both turned 25 in San Francisco. Jack, happy birthday to James Kim and A.J. Rollinitis, both in Los Angeles. And Alberto Cabian in Orlando, Florida. And Stephen Climann in Livingston, New Jersey. And Darius Carter, Charlottesville, Virginia.

And Steve Donovan, that in Miami. And Sophia Lucchese in St. Louis, Missouri. And Eddie Kim Choi over down the street in San Francisco. And Mason Stokes in Atoka, Tennessee. And happy birthday, Kelsey, celebrating her 30th on Music Row down in Nashville. 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. Wow, wow. No cow.