Hey Snackers,
Great news in case you need a breather from this Earth: NASA has discovered water on the sunlit surface of the moon. Now it's just a matter of getting there... Elon?
Markets took a serious plunge yesterday, with all three major stock indexes falling more than 3%. France and Germany are calling their citizens back into lockdown as COVID-19 cases continue to surge.
Tupperware heats up on its first growth in 3 years (leftovers are having a moment)
Heat up the eggplant casserole... Leftover legend Tupperware just saw its first quarterly sales growth since 2017. Tupperware became the plastic empire it is today thanks to the sales prowess of Brownie Wise (perfect name), the entrepreneurial single mom who started "Tupperware Parties" in the 40s.
- Sales were up 14% last quarter. North America sales popped 42% thanks to XL-sized spaghetti nights and way too much meal prep.
- Profit quadrupled compared to the same quarter last year. Tup cut costs by $120M to boost its bottom line.
Tastes better two days later... Tupperware stock jumped 35% on the news, and is up over 2,000% since hitting an all-time low in March. Last quarter's earnings are the most exciting thing to happen to Tup since Cheesecake Factory delivery.
- More cooking at home = more leftovers. Sunday's family chicken roast is Monday and Tuesday's mid-Zoom lunch (hide it from the sibs in a fridge drawer).
- Tupperwareâs sales people nimbly adopted digital tools to seize the remote opportunity. Think: online Tupperware party with 12K participants.
Timeâs change, but brand staples last... Since Brownie was slinging Tupperware at parties 70 years ago, the core product hasn't changed much (still a plastic container). We have iPhones and self-driving cars now, but we're still packing rice in Tupperware. Other genericized trademarks that have stood the test of time: Vaseline, Kleenex, Band-Aid, and Clorox. Brand trust keeps them going.
Old-school Callaway buys Topgolf to attract Gen-TikTok
A Happy Gilmore wedding... Golf classic Callaway, known for making fancy clubs and golf balls, is buying the rest of "open-air entertainment" company Topgolf, known for Vegas bachelor parties and gram-able pics. Callaway already owns 14% of the party favorite. Now it's doubling down with an all-stock merger that values Topgolf at ~$2B â more than Callawayâs even worth. A Haiku on Topgolf stats:
- $1.1B sales in 2019
- 23M customers around the globe
- 63 Topgolf-run entertainment centers
The Lazertag of golf... could be key to helping old-school Callaway (and golf in general) attract younger players â especially now that golf is having a mini-renaissance as one of the few socially distant sports. According to Callaway CEO Chip Brewer, âTopgolf is the best thing that happened to golf since Tiger Woods." That's because...
- 50% of Topgolfâs customers don't identify as golfers. Chip thinks it'll be the biggest breeder of newbies for the industry.
- But Callaway stock fell 19% on the deal. Callaway shareholders will own ~51.5% of the married company, but some don't think the debt and dilution involved is worth it. Also...
Conversion isn't a sure-thing... Callaway is hoping that the people who show up in basketball shorts to pound seltzers at Topgolf will become the people who spend $700 on a golf set for a five-hour round. Topgolf could be the "gateway" for youngsters to develop a life-long love of golf â but investors aren't so sure.
What else weâre Snackinâ
- Pinning: Pinterest stock soars on expectation-beating sales â monthly users jumped 46% to 343M (living vicariously through pins).
- Craft: Etsy more than doubled its quarterly sales from last year, as you stocked up on embroidered masks and knitted koozies.
- Woof: Pet supplies company Chewy launches virtual vet visits as the pandemic puppy boom stays strong.
- Driven: Fiat Chrysler posts record third-quarter profits while we avoid public transportation and leave big cities.
- Treat: The US government agrees to pay Eli Lilly $375M for 300K doses of its coronavirus antibody drug (following FDA-approval).
- Tappy: Mobile game maker Scopely (Scrabble Go, Temple Run) raised $340M at a $3.3B valuation as the pandemic gaming surge continues.
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