Stop bullying the sparkling waterboy
Hey Snackers,
Towel off. You just got through the wettest 12 months on record.
Markets rebounded a tad more Wednesday on word US tariffs on European cars (yes, other tariffs) have been delayed another six months.
Got this Snacks from a friend? Sign up for the daily newsletter here.
Pamplemousse problems... Flavored sparkling water LaCroix has become the spirit drink of youthfulness — Millennial-powered anti-soda consumption pushed parent National Beverage Corp's stock to an all-time high in 2017 (FYI, great stock ticker: “FIZZ”). It has lost half its value since then, summed up by this stat:
Sales of sparkling water rose 16% in the US from Nov-Jan — but LaCroix’s sales fell 2%.
Pour some Pepsi on the wounds... Some banks decided to weigh in on issues the icon of calorie-free refreshment is facing. It's mainly competition. Lots more competition:
LaCroix's gone flat on the big stage... Before sparkling water became the avo toast of drinks, National Beverage shares grew 7-times larger from 2014 to 2018. Now LaCroix is struggling to distribute itself. Its Coke/Pepsi competitors are filling up convenience stores where LaCroixs aren't. If you're not on the shelf, you can't be bought.
"I'll have the Resy"... American Express ordered itself the largest privately-held reservation platform in the US, acquiring Resy (4K restaurants across 200 cities). Backed by Airbnb and Shake Shack co-founder Danny Meyer, Resy serves the dining industry two ways:
Experiences > Points... That's Amex's strategy here. Instead of points for old school lounge access or TSA Pre✓, Amex wants to make its benefits more intimate, more personal, and (shocker) more Millennial. With Resy's network, it can now access special tables, restaurant openings, and fancy ticket-based reservations for its top swipers.
Follow the food that follows the money... Americans 22-37 years of age (Disclosure: Us) are spending a huge chunk of their paycheck on dining out. Amex's latest acquisition spree shows it's focused on being everywhere its customers want to be: food. Here's who else in the fintech/foodtech space it recently bought:
"I refuse to let you date him"... On concern that foreign governments could spy on, manipulate, or crank call Americans, President Trump just banned American phone/internet companies from using foreign-made telecom equipment. The obvious target is China's Huawei, and it's another escalation in the trade war.
Scandinavia is into it... Ericsson (🇸🇪Sweden) and Nokia (🇫🇮Finland) are the two other big competitors of Huawei, and their stocks jumped on the US move. The ban only applies to American telecom companies and only to future purchases:
Stop China from dominating 5G... That's the goal here. China's epic "Made in China 2025" plan gives American foreign policy hawks night terrors. So does its ambition to lead in 5G, which will wirelessly connect phones, computers, appliances, and probably robo-pets to the web really, really and fast. But it could be too little, too late:
Disclosure: An author of this Snacks owns Beyond Meat and Amazon.