Robinhood Snacks - 🌳 Grove goes "tree-positive"

Stitch Fixers gone wrong

 

 

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10-Yr US Treasury

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Hey Snackers,

Kirkland peanut butter and 36-packs of toilet paper aren't the only hot commodities at Costco: one value-savvy shopper just dropped over $600K on a diamond engagement ring.

The Dow rebounded up 1.1K points Tuesday after Monday's dramatic drop — hints of possible economic stimulus sent tech, travel, and financial stocks higher.

Strut

Stitch Fix falls 25% because we may have hit peak Fix

THE TAKEAWAY

It's struggling to move past early adopters... And that's why the stock is down 67% from its peak. Early adopters drive initial sales and growth for innovative new companies — then it's time to go mainstream. The true test of success is expanding beyond its early demographic. But 2 stats show that's not exactly happening for Stitch Fix:

• To find new customers, Stitch Fix had to up its spending on ads — by 49% last quarter.
• But customers spent less per "Fix" on average.

Sustain

Grove Collaborative is going plastic-free by 2025 — it's a "tree-positive" story

THE TAKEAWAY

Being "sustainable" is no longer enough for a brand... Supermarkets and drugstores already boast eco-friendly options like Seventh Generation or Method. Grove's brand stands for approachable sustainability — but its new aggressive commitment to tree-free-ness is what sets it apart. We're in an era of sustainable products right now (think plant-based meat) — Grove's focused on the next era: sustainable packaging. They're even working on shampoo concentrate to reduce plastic bottles.

What else we're Snackin'

• Inmate: The state of New York engages prisoners to produce hand sanitizer as the shortage continues — Governor Cuomo thinks it smells like a "floral bouquet"
• Zero: Trump pitches a 0% payroll tax rate for the rest of 2020 on coronavirus worries (less taxes paid usually means more spending)
• Descend: United Airlines' US bookings plunge 70% as travelers avoid traveling
• Sugar: Hostess launches Twinkie and Ding Dong-flavored iced lattes — TBD on when it'll launch ice-latte flavored Twinkies
• Stay: Zumper raises $60M to double down on its apartment rentals platform
• Ghosted: Some European airlines are flying near-empty 'ghost flights' — an EU law requires them to fly 80% of slotted trips to remain at major hubs

The Snacks Daily Podcast

The Dick’s Sporting Goods gun ban is getting extended — 440 more stores will drop their hunting sections.

Our 15-minute podcast is looking at how Dick's CEO used the "Experiment and Exploit" playbook to do it.

Snack Fact Of the Day

Purell — made by a 100% family-owned company called Gojo Industries — has about 25% of the US hand sanitizer market (the 74-year-old Ohio-based business is estimated to be worth at least $1B)

Wednesday

• Earnings expected from LG

ID: 1115749

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