The Best One Yet - 🪣 “Your Basketball homework is due” — Coke’s sibling rivalry. Overtime’s high school league. Shanghai Disney’s 1 COVID case.

Episode Date: November 2, 2021

Coca-Cola just made its biggest acquisition ever: $8B for BodyArmor. Overtime Elite just launched the newest pro sports league… but it’s with high school players. And Shanghai Disneyland had a single Covid case that shut down its theme park — because Disney doesn’t actually own Disney Shanghai.$KO $DISGot 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 Tuesday. Tea Boy Tuesday, November 2nd. This pot! Yeah. It's the best one yet.

It's the best one yet. Even though Jack, I got a Hershey's hangover going on right now. I had three Reese's cups last night. Jack, I got a laffy-taffy tummy egg. Snackers for our first story, Coca-Cola, just made their biggest acquisition ever by acquiring body armor. Sports drinks are Coke's sibling rivalry. For our second story, you can now watch, get this, teenage professional basketball, Thanks to overtime elite

An entirely new basketball Mom, can I stay up late to get paid a million dollars to dribble and drunk, please. For our third and final story, Shanghai Disneyland just had one positive COVID case and the entire theme park went into DefConFive. This went from happiest place on Earth

to extremely alarming place with hazmat suits from one case. But before you hit that wonderful mix, did you know, Nick, we have 171,476 words in the English language? And yet language is like the universe. It never stops expanding.

And it's actually Miriam Webster that gets to choose the 171,477th word. Because Miriam Webster has been writing dictionaries for a cool 190 years. Not too shabby. Just call them the Supreme Court of Words. Yeah, this is basically the Regina George of choosing verbs and nouns. Here's the news. Miriam Webster just added 455 new words to the dictionary, class of 2021. Snackers, time to update your vocabre.

You may want to buy a valve. Yeah, you're going to want to buy two. First new word, Jack, first new word that they're adding to Merriam-Webster's dictionary is Dadbod. I can't exactly define it, but I know it when I see it and I see it every more. Sitting in for Dad-Bod, mirror. It's a mirror. That's what it is. Fohawk is another one they add.

Yeah, it's when you're too scared to actually shave for the real Mohawk. You go with the Fohawk. We've seen this. You've done this. We've all been a part. Okay, the dictionary added doorbell camera this year. Awkward. What are your thoughts on that one?

Feels like the PR team of Amazon lobbied for that one. Yeah, and let's just say they won. Amazon wins on that one. Wall Street got their foot in the door and got SPAC into the dictionary this year. Spacks are now in the dictionary because most SPACs can't even explain what they are, so the dictionary is defining them for themselves. This last one, I feel like we should consult counsel. This one's concerning.

Fluffer nutter? Fluffer nutter. You've had it. It's the marshmallow cream with the peanut butter in a sandwich. It's legitimate. Isn't that a trademarked word from like Kraft Heinz? This feels like a clean-exam. kind of a situation. On the other hand,

it's so delicious it deserves proper noun status. Now, what's still not a word according to the dictator of diction? Tea Boy is not a word. Neither is podfather. Neither is Zuckin. Neither is schmovies.

None of our fake words have become real words. We're going to try again next year. I think we meant like two new words in every episode of this podcast. It's like a whole lexicon. We're going to poke Miriam Webster. Now, Snackers, for T-Boy Tuesday,

what is not in the dictionary, but definitely should be? Who did the dictionary miss this year out of the 450 new words? What fake word deserves official real word snacks? Tweet us at Robin Hood Snacks, at Nick of New York, at Jack Kramer. Jack, let's hit our three stars. Let's hit our three dadpots.

You're tuned in the snacks daily. The snacks about to hear ain't food. It's air candy. They don't reflect the views of the Robin Hood 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.

Right. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member Finra slash SIPC. For our first story, Coca-Cola just acquired body armor, the sports drink for its biggest acquisition ever, like in the history of Coke. How do you take down the family rival? Tell us, Jack. By pitting the two siblings against each other.

What is this? This is like episode six of Squid Games or every episode of Game of Thrones? I can't decide if this is Godfather or Game of Thrones. Either way. This feels mean. It feels dirty. And Coca-Cola, they already owned. 15% of body armor. So they already kind of knew what they were getting into. But now they like it so

much, they're spending $5.6 billion for the other 85%. If so facto, this is the biggest brand ever acquired in Coca-Cola's like century old history. And it values body armor. How much money, Jack? $8 billion. There we go. That's like half a left body armor. Now Kobe Bryant famously invested in body armor way back in 2013. Yeah. And now, you know, good for his family. They're now getting a payout of $400 million because of this biggest acquisition in Coca-Cola history. Great news. But Body armor is Gatorade? If Gatorade went to a wellness retreat in Malibu. Body armor is like a drink that juice cleansed itself. Body armor has potassium, electrolytes, and antioxidants. There you have the stuff you sweat out. It doesn't have any

artificial colors or sweeteners they like to breath. But there are lots of natural sweetener sugars that manage to just sneak their way in there. Can I interest you in the Barry Blitz or would you like the alkaline censored flavor. I just prefer labeling them by colors. Does it come in orange? If you're referring to organic mango, then it comes in organic mango. Sales of body armor, the sports drink, have taken off. Back in 2018, when Coke first invested, they were selling 250 million of product per year.

Guess what? They're now doing six times that amounts. 1.4 billion. And that's why Coca-Cola stock rose 2% on news of this acquisition. But here's what Jack and I find fascinating about the sports drink market. It's pretty unique. This isn't like a monopoly or a doopoly situation. It's the rare threeopoly because three brands own 95% of the whole sports drink market.

I mean, I don't want to call it Merriam-Webster Jack, but are we going with three-oply or triopoly? I'm going with three-apply. Let's go with three-opoly. Now, if you're sweating snackers and you grab a drink from like the cooler, there's a 95% chance. It's a Gatorade, a powerade, or a body armor. That's because Gatorade, Powerade, and Body Armor control 95%. Get this. 95% of the sports drink market.

But among those three, it's very clear who the king is. There is one king among the kings. It's Gatorade. Gatorade. Owned by Pepsi, and they own 64% of the sports string market, must be nice. When you win a championship, you're not dumping a jug of filtered water on coach. Todd, grab the LaCroix. Three seconds left in the game.

We're going to win this thing. That's why they call it Gatorade. You're going to dunk the yellow Gatorade all over coach. Gatorade has earned that brand positioning. But last year, within this sports drink market, Body Armor beat out Powerade for the number two spot for the first time. It came out of nowhere. Now, Body Armor has 18% of the remaining market.

And PowerAid only has 13% of the remaining market. And get this, Coca-Cola owns both Body Armor and it already owned Powering. So what we're trying to say is Coca-Cola owns Body Armor's biggest competitor, which is Powerade, and now it owns Body Armor too. If you're working at PowerAid, this is awkward news. This is very weird. When Coke said in its PR announcement that Body Armor is the number two sports drink, it did so with disappointment.

It did so with judgment. So, Jack, what's the takeaway for our judging buddies over at Coca-Cola? Coke is using a sibling rivalry to beat out the family arch rival. Snackers, here's how we're seeing this. Coca-Cola invested in body armor three years ago. But since then, we think Coke's basically been doing a family experiment, a freaky one. It pitted the 10-year-old body armor against their 30. 33-year-old power aid in a classic sibling battle.

Yeah, because old school power aid is the perennial backup. It's what you get post-workout if the Gatorade is unavailable. And frankly, the water fountain isn't working. Meanwhile, hot shot body armor, they're the freshmen that made varsity and linked eternally to the mythical Kobe Bryant. One's more naturally stuff and one is neon flavored power aid stuff. Under Coca-Cola's parenting, body armor is now beating out the sibling power aid. Coke pitted the siblings against each other for three years to test.

who would be stronger, which brand? Now it seems it's going to invest in the stronger one, body armor, to take on the real rival, Gatorade. Sibling rivalries to beat family rivals. For our second story, this one's wild. A new men's basketball league just launched to rival the NCAA and NBA. Boys basketball league, Nick. These are high school teens.

And they're getting paid six or seven digits by a new league called overtime elite. Okay, Jack, we should put out like an announcement for all the snacks. out there. If you're 6'9, you can dunk, you can dribble, you can pass and you've broken someone's ankle like the old-fashioned way on the hardwood. The NBA is how you get rich and famous. Sadly, though, today, you got to wait until you're 19 to get rich and famous because it's not really possible to make money playing basketball until you're 19. Jack, you got the one and done rule. The one and done rule. Every stud basketball player goes to Kentucky or goes to Duke for one year and then goes pro in the NBA draft. But now, Snackers, there's a new option here. You can now go

pro three years earlier with a startup called Overtime Elite. This is a pro basketball league for kids. Yeah. 16 to 18. These kids can dunk them. One day they're hanging out of Chuckie Cheese. The next day they're literally an overtime elite's league. You do not want to post up against these kids.

Yeah, because Overtime Elite will pay teenage Tommy to quit his high school and play in their brand new professional league again for teens. This is a pay to play league, which means Tommy will lose his NCAA eligible. ability, but overtime elite only picks players that are definitely going pro anyway, like LeBron. Now, 16-year-old Tommy with the 36-inch vertical jump is thinking, you know what? Should I go to Duke? Should I go to Kentucky? Or should I go to overtime elite?

Okay. Opening weekend just happened. It did, Jackie. You got the scoreboard over there? No. But I do know that overtime elite has already persuaded 27 elite elite elite teenage basketball players to ditch their high school and kick off this 37 game inaugural season. They even got some like absurdly large stadium in Atlanta, Georgia, where they're all based and they're

playing all these games. That's right. It's kind of like boarding school because the kids live there too. And when they're not playing basketball, this is the wild thing. They're doing homework. Yeah, three certainties in life snackers. Death, taxes and take home exams. The classes, though, they're not like science and Britlet. Yeah, my $5,000 cockapoo I bought with my signing bonus, ate my homework. It's the stuff that you need as a young basketball player. Financial literacy and mental health classes. And social media and the business of basketball. At the end of it, they're going to get a high school diploma.

Because guess what? One set check, I'll do the Aleup 101 and maybe, I don't know, a semester of the art of the crossover. But key here is they're also getting paid at least 100 grand per year. Yeah, they are. Up to a million per year if they're really good. All before hopefully hitting the NBA stage at the age of 19. So OTE, overtime elite, it's basically like an. early stage venture capital firm, but for sports talent. This is the Andrescent of the court.

Basically, they find promising point guards. They invest in their growth. And then the NBA draft is basically the IPO. That's the exit. And the investors in OTE. Yeah. They know talent. They know business. They know basketball. We got Jeff Bezos invested in an overtime elite. So to Kevin Durant. And so did Drake. So Jack, what's the takeaway for our buddies over at overtime elite? If you got an audience, you don't need anything else. Snackers, that is why audience companies are breaking big media institutions these days. The SPN and the NBA, they control what sports we watch because they've always had the audience. Forever. It's the big money power brokers of sports that show us who we root for.

Overtime, though, doesn't need them to build their audience because they already built their own audience. Yes. Overtime social media accounts, they show highlights and they've already built up 50 million followers and one billion views a month. Half of overtime's employees are there just to film epic videos for Instagram and TikTok of the players themselves. This is just like YouTuber Logan Paul leveraging his huge audience to get a boxing match with boxer Floyd Mayweather. Or how phase clans, esports teams, which we talked about last week, use their audience to go public on stock markets at a billion dollar valuation.

Because overtime elite built an audience, it doesn't need anybody else. For our third and final story, Shanghai Disneyland has a COVID crisis because of one single COVID case over the weekend. China has a zero tolerance policy, which is different than the rest of the world. First of all, Jack, when you show up at Disney World, what's the first ride you go to? What's it called Rocky Mountain Thunder Railroad? Yeah, because it's a little bit nostalgic. Yeah, Thunder Mountain.

The one with the line. So on Saturday Snackers, a woman walks into Shanghai Disneyland. Does the Pirates of the Caribbean ride? Does the Fantasia carousel and probably ate a giant turkey leg? The next day, she tested positive. for COVID-19. And then what happened that day, Jack? Disney Shanghai's staff took off their Mickey Mouse gloves and put on Ursula tentacles.

Yeah, the happiest place on Earth became an extremely alarming place with hazmat suits. They locked that place down with all 34,000 visitors inside. They locked the doors and made each and every one of them get tested before they could leave. The staff was like trying to keep people entertained like, oh, it's a small world after all. There were flocks of workers in hazmat suits right next to like Cinderella. sing it one more time together, everybody? Now, they finally got all 34,000 people tested and let them leave. And all 34,000 people there tested negative, which is impressive.

Okay, Snackers, let this sink in. 34,000 human beings in one theme park, all tested negative on the same day. And this was triggered because one person tested positive the day after being a at Shanghai Disneyland. Yet all were ordered to self-isolate for another 24 hours before a second test would happen. And that wasn't it. Shanghai Disneyland is keeping their park shut until Wednesday. Again, because of that one positive case on Saturday. So we know what you're thinking, Snackers.

Why is it so easy to take control of Disney's theme park in China? Because it's actually not Disney's theme park in China. It's not Disney's theme park after all. Snackers, China has the biggest consumer market on Earth. 1.4 billion people who spend money on stuff. And it gives U.S. companies access to it on one. One big condition. You must partner with a Chinese company, which gets to own at least half of the business here.

So this is wild. But Disney, Disney as in the Disney and Disney World, is the minority owner of Shanghai Disneyland. They own less than half. Shanghai Shendi is the name of the company that owns 57% of Shanghai Disneyland. That's a state back company of China that owns a majority of Disney's Disneyland in Shanghai. So here's the deal. If you want to ride Space Mountain in Orlando, Florida, you need to be this. tall. And if you want to open an American theme park in China, you must give up this much of your

company in order to do so. A lot of the company. We're making a big sign with their hands. So, Jack, what's the takeaway for our buddies in all of the world's economies? China is the last country with a zero tolerance policy when it comes to COVID, and it is costing them their economy. Snackers, China is one of the most vaccinated populations on earth. We're talking one and a half billion people, 80% of them. 80% are vaccinated. And it's working really well. Yeah, you want the numbers, Jack? On Saturday, they had 48 positive tests.

Not 48,000, 48,000. How many do we have in the United States, Jack, on Saturday? 30,000. Yeah, that's a lot different. And our population is way smaller. But here's the thing, Snackers. China has a zero tolerance policy when it comes to COVID. That's why one positive case caused a total freak out at Shanghai Disneyland.

It's why you get neighborhood lockdowns, location tracking, week-long quarantines when there's just one or two cases. The stuff you remember from the beginning, China's still doing it to. New Zealand was the other major zero-COVID country, just like China, similar policy. But last month, New Zealand reversed. They said they have to tolerate this persistent virus and not let it destroy them. And the rest of the world is coming around to this uncomfortable reality, too, that COVID probably won't totally go away. Like the flu, we'll have it every year. The pandemic will become endemic. Yeah, not as intense, but not totally disappeared either.

China's zero-tolerance policy, though, that's an outlier. And it seems to be hurting their economy. China just reported some of their weakest GDP growth in decades. Zero COVID, also zero some parts of the economy. Jack Kenyo, whip up the takeaways for us over there. Coca-Cola now owns both Power Aid and Body Army. Yeah, it's bidding two siblings against each other to take down the family arch rival. Overtime Elite is the NBA but for teens. The league has their own audience, so they don't need anybody else.

For our third and final story, Shanghai Disney went into DefCon 5 because one, woman tested positive. That's China's zero tolerance policy. And it's hurting parts of their economy too. Now, time for our snack fact of the day. This one tweeted in by Snack Factor. And that's the name of this person because we don't know their real name. Snack Factor only sends us snack facts on Twitter from St. Petersburg, Florida. We love Snack Factor. The National Animal of Scotland. Yeah. It's not a deer. It's not a bird. It's not a plane. It's not a plate of haggis either. It is the national animal of Scotland is the unicorns. According to Scotland's website, Unicorns are proud, untamable creatures that are fiercely independent and famously difficult to capture or conquer.

Skollin. They do Tarden. They do whiskey and they do unicorns. Once a Scott. Always a Scott. Snackers, you look fantastic. If you got a word that we should be adding to the dictionary, we kind of want to give Marion Webster a heads up. At Robin Hood Snacks.

At Nick of New York, at Jack Kramer. Hit us up. And yes, mattress, mattress, mattress counts as one word. Nick and I'll see you tomorrow. If you know, you know. Also one word. But before we go, congratulations to snackers Sarah and Josh from lovely Vancouver who just got engaged. And congratulations to Pablo and Sammy from Quito, Ecuador, who also just got engaged in New York City.

And Preeti just passed the civil engineering exam down in New Jersey. Jen Tung just got her keys to her first apartment in British Columbia. Big congrats. And happy birthday, Samhika, down in Atlanta. And Khalifa in Abu Dhabi. And Mohammed John Gere in Petaluma, California. Happy belated birthday to Mia Lee Blappen and Cohasset by the sea. Mia, the original Middlebury Panther.

Excuse me, do you have a booth? Oh, stupid. This is Jack. I'm on stock of Amazon. 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.

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