Hey Snackers,
SpongeBob and Mr. Krabs are fictional, but this newly spotted sea critter isn’t: scientists have discovered a fluffy crab that wears a sponge as a hat. Call it a Bikini Bottom mashup.
Stocks dipped slightly after Jerome Powell told Congress that the Fed’s rate-hiking crusade against inflation could cause a recession. J. Pow doesn’t think the central bank will need to provoke a downturn, but said taming inflation is “absolutely essential.”
Empty pod… Juul’s empire could be disappearing in a cloud of mango-flavored vapor. Yesterday WSJ reported that the FDA plans to ban Juul in the US. Refresher: In 2020 the FDA asked smoke juggernauts to apply to sell e-cigs (even un-flavored ones). Fast-forward to now: British American Tobacco’s Vuse — which just unseated Juul as the top US vape — got approved to stay on the market. But it sounds like Juul’s 125K-page application hasn’t.
Burned on both ends… Last week the FDA announced separate plans to limit addictive nicotine in traditional cigs. The rule isn’t expected to go into effect for years, if at all. But regulatory heat could hurt cig sales, which are already forecast to fall to $95B this year from $99B last year. For Altria it’s a double whammy.
Regulators don’t like getting burned… neither do investors. The FDA says Juul ignored its warnings on marketing. Altria’s stock has fallen 13% this year while it’s tried to save Juul. But shares of rivals BAT and Philip Morris International are up as they’ve shifted focus to “smokeless” tobacco products, like IQOS, and avoided regulatory drama with vapes.
New CBD candle launch… #retweet. Shopify and Twitter have joined forces to help tweeters shop while scrolling. Shopify powers online sales for merchants like Allbirds, Heinz, and your local succulent shop. It already controls over a 10th of the global ecommerce market, and now it could get more:
Viral Tok ad > TV spot… As ad revenue slows, social giants are expanding shopping features to drive more $$. Creatively named launches include “Insta Shop,” “Twitter Shops,” and “TikTok Shopping.” While social commerce still makes up less than 5% of online shopping, it’s growing fast:
Big biz is moving from D2C to C2C… from direct to consumer to connect to consumer. It’s not enough for companies to have a website, one-click checkout, and shipping. To really connect, brands have to be where consumers are most connected (i.e.: social). That’s why US social sales could hit $168B by 2027 — nearly five times bigger than last year.
Authors of this Snacks own: shares of Shopify, Snap, Twitter, and Netflix
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