"What do you mean, 'it's kombucha'?"
Hey Snackers,
Spring break for central banks is over.
The Federal Reserve's 2-day policy retreat ended with one big (but expected) decision: It won't be changing interest rates. Markets dipped Wednesday as investors were hoping for a surprise rate cut.
Call a cab... Molson Coors' night is over after shares fell 7% following its earnings report. The volume of alcohol it sold dropped 4.7% worldwide — That's its 6th-straight quarterly decline. One small piece of dignity salvaged: Coors light showed "improvement."
Innovation cravings... Molson's feeling them. A highlight in the report was the brewer's goal to introduce non/low-alcohol drinks to 100% of its markets by 2025. Here's who's making moves:
Beer is a shrinking market... Alcohol sales are slipping nationwide, but beer demand dropped the most (down 1.5% last year). Since the size of the liquid pie is shrinking, Molson's task of getting someone to drink their beer requires converting drinkers of the competition. Unfortunately, Bud spends a ton on beer advertising, and Corona has (almost) caught Coors in sales.
Extra shrimp cocktail... Royal Caribbean's profits popped 14% from last year to $250M during "wave season" (official industry jargon for Americans flocking south for winter). Tickets rose, on-board spending increased, and the share price closed in on a record high.
Man down... For the rest of the year, Royal's facing currents in both directions:
Pricing power is a rare muscle... Royal is swole with it. It raised prices 7.2% last quarter, but passengers kept coming. That vacation splurging signals a strong economy, consumer confidence, and demand for the Royal treatment. Competitors like Carnival Cruises also rose Wednesday as Royal captains capitalize on price hikes.
Square. A really sexy cash register... It looked more like a wad of street cash Wednesday. Shares fell 6% after Square reported a big loss and slowing revenue growth. Tough combo.
It's all over your money... Square launched with dongles to let farmers markets accept credit cards for beets. Then it evolved into sleek iPad-connected credit card swipers for your morning latte routine. But it's blown up into a whole financial services beast for small business. Now it's even curious about consumer finance:
Square suddenly decided to do everything... Its stock rose from $12 at its 2015 IPO to $100 last fall, as it shockingly reached a profit (fast for a fast-growing tech company). But the stock has fallen as losses return. Those bets above show Square's big consumer and crypto ambitions. Reaching them costs $$$.
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