Hey Snackers,
It’s so wrong it just might be right: Taco Bell is testing a new tostada — on a huge Cheez-It. The Doritos taco shell is feeling jelly…
Stocks barely budged yesterday after news that the US economy shrank 1.6% in the first quarter. Recession worries were already high, and that headline wasn’t inspiring. Bitcoin briefly dipped below $20K again as the crypto selloff continued.
“What can I do to get you in this F-150?”… Ship it to me. Car dealers fear their biz model may disappear as auto giants like Ford sell more cars directly to buyers — and cut out the dealerships who make money as go-betweens. This week Ford CEO Jim Farley met with 300 dealers to cool their concerns.
Separation of car and dealer… the auto industry’s equivalent of separation of church and state. For decades, “franchise laws” have forced automakers to sell cars through third-party dealers for antitrust reasons. But since 2013, Tesla has gotten several states to pass special laws that allow direct EV sales, sidestepping intermediaries.
It takes time to ditch old models… and dealers may not go down quietly. By 2030, auto execs expect that half of cars sold in the US will be EVs — and they’re betting direct sales will be an important channel. But unlike Tesla, legacy automakers like Ford and GM have to manage disgruntled dealers as they transition to direct sales. Pricey lawsuits could pile up, especially if big retailers like AutoNation and Penske, which own thousands of dealerships, get involved.
Ketchup in aisle three… or not. Yesterday, Kraft Heinz said it would temporarily stop supplying Tesco — the UK’s largest grocery chain — with its signature Heinz pantry products (think: ketchup, baked beans). There’s beef: Heinz wants to hike its prices to cover rising costs, but Tesco wants to keep prices attractive for its customers. Long story short: they couldn’t agree.
Don’t spill the tea… It costs a small fortune. Across Europe, consumer prices are hitting records as households struggle to afford everything from energy bills to cereal. Last month, nearly half of adults in the UK cut back on supermarket shopping, and it’s starting to happen in the US too. But grocery chains across the pond are taking different approaches:
Inflation has “checks and balances”… Price hikes allow food companies like Heinz to offset rising costs while keeping staples on the shelves. But by not accepting higher prices, grocery stores can keep shoppers spending and prevent them from turning to rivals. These checks and balances could help lower inflation — but a lot more checking will be required.
Authors of this Snacks own: bitcoin and shares of Apple, Tesla, Google, Snap, GM, and Ford
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