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Paramount Sweetens Warner Bros. Bid Terms to Woo Investors · Bloomberg Intelligence

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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
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0:24
Speaker 2: Let's turn our attention to the media space. Lot's going
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Speaker 2: on out there. Spotify reported some earnings, but we want
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Speaker 2: to lead with Warner Brothers Discovery.
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Speaker 3: That MNA sag can continues to play out today.
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Speaker 2: Paramount kind of amended its bid to add some more
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Speaker 2: cash funding for a termination fee, instituting a ticking option
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Speaker 2: here for this thing. Keitha Ranganath and she file follows
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Speaker 2: this as the media analyst for Bloomberg Intelligence. Keith, let's
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Speaker 2: start with Warner Brothers Discovery here. I'm still surprised that
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Speaker 2: Powermount has not raised its bid from thirty dollars. That
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Speaker 2: are making changes and maybe some enhancement mins to the offer,
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Speaker 2: but not raising the bid in general.
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Speaker 3: What do you make of it?
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Speaker 4: Yeah, still playing the cat and mouse game here, Paul.
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Speaker 4: They did stop short of actually raising the offer, but yes,
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Speaker 4: you're right, they are offering now this almost one dollar
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Speaker 4: and eighty cents per share to cover the termination fee
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Speaker 4: with the Netflix deal, as well as some of the
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Speaker 4: financing costs, and then of course, as you just mentioned,
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Speaker 4: the ticking feed. I don't know though, if this will
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Speaker 4: necessarily fly with the Warner Brothers Discovery boat. I think
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Speaker 4: this is just Paramount exhausting all of its options before
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Speaker 4: you know, they actually raise the bid. But in my mind,
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Speaker 4: what this signals is, yes, they did stop short of
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Speaker 4: actually raising that thirty dollars bid, but I do think
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Speaker 4: that the signals that they are willing to kind of
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Speaker 4: go back to the table and probably raise that bid.
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Speaker 4: As you know, kind of this thing keeps dragging on.
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Speaker 5: Yeah, it does feel a little bit silly given that
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Speaker 5: David Ellison had said that thirty dollars a share was
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Speaker 5: not their best and final offer, So let's let's kind
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Speaker 5: of get to it. That begs the question, Keithan, this
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Speaker 5: is a dumb question. Do they have the money to
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Speaker 5: raise bid?
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Speaker 4: They do, But the question is really going to be
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Speaker 4: what happens after Scarlet. So you know, right now we're
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Speaker 4: looking at a company with the thirty dollars per share bid.
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Speaker 4: We're looking at a company that's going to be levered
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Speaker 4: about six and a half times, they raise that bid
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Speaker 4: to let's say thirty two, thirty three, thirty four, whatever
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Speaker 4: the number is. You're going to look at a company
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Speaker 4: that's value that's going to be levered at about seven
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Speaker 4: to maybe seven point three times. What happens with those
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Speaker 4: dangerous levels of debt is, you know, it just becomes
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Speaker 4: a distraction. You're not going to be able to invest
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Speaker 4: in growth, You're just going to be focused on deleveraging.
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Speaker 4: This is exactly what we've seen, you know, happen many
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Speaker 4: a time in the media world. It's happened actually to
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Speaker 4: Warner Brothers Discovery itself. You know, they had over fifty
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Speaker 4: billion dollars in debt and the only thing that they
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Speaker 4: were hyper focused on is Okay, how do we keep
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Speaker 4: you know, reducing that dead pile. And so the biggest
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Speaker 4: worry is that's what's going to happen to Paramount. So, yes,
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Speaker 4: they could get their hands on this absolutely world class asset,
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Speaker 4: but yes, leverage becomes this huge, huge headache for them.
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Speaker 2: If any sense of timing, it doesn't seem like either
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Speaker 2: side feels.
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Speaker 3: The need to, I don't know, be aggressive here.
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Speaker 4: So February twentieth. That's what that's the date that paramounts
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Speaker 4: a proxy bid actually expires. It was initially Jan twenty
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Speaker 4: at the extended to February twentieth, So that's the thirty
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Speaker 4: dollars hostile bid. That's the date of expiring. Remember, Paul
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Speaker 4: and Scarlett, only about seven percent of Warner Brothers shares
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Speaker 4: two date have been tendered at that thirty dollars bit,
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Speaker 4: so everybody's still kind of holding out for that higher
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Speaker 4: per share offer.
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Speaker 5: I think that tells you everything you need to know
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Speaker 5: right now. Then Februy twenty eight is the day we'll
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Speaker 5: watch for Geita. Let's also talk about Spotify here. It
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Speaker 5: added a record number of users thirty eight million users
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Speaker 5: to seven hundred and fifty one million, topping analyst estimates.
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Speaker 5: How much more room is there to raise prices because
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Speaker 5: increased price prices in the US was certainly part of
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Speaker 5: that story. And it looks like consumers continue to sign up.
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Speaker 4: Conzuomer's continue to sign up. Yes, we're seeing Spotify and
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Speaker 4: if you just look at the subscriber trajectory scuddled over
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Speaker 4: the past few years, they've added about twenty eight to
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Speaker 4: thirty million subscribers every year, and there's just no signs
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Speaker 4: of slowing down. They keep adding a record number of subscribers,
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Speaker 4: record number of active users quarter after quarter. So there's
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Speaker 4: just so much of appetite for this platform for music
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Speaker 4: in general, for audio in general, So that is definitely
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Speaker 4: good news. You talked about pricing power. I think, you know,
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Speaker 4: just with kind of the user interface that Spotify offers,
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Speaker 4: with all of the content that it offers in terms
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Speaker 4: of breadth and depth of content, and as they keep
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Speaker 4: adding more enhancements, they do have a lot more leverage
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Speaker 4: to keep raising those prices. So you know, they've made
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Speaker 4: a pretty bold move by raising their prices a little
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Speaker 4: bit earlier this year. So now now it is thirteen
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Speaker 4: dollars for an individual plan in the US. That was
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Speaker 4: a little bit above the rest of their competitors. But
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Speaker 4: then we just saw a few days ago Amazon Music
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Speaker 4: also kind of raising prices, which then I think just
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Speaker 4: speaks to the audio industry in general. I mean, everybody
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Speaker 4: there has a lot of pricing power, but I think
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Speaker 4: Spotify definitely has the most, just kind of again given
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Speaker 4: the fact that they are a best in class product.
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Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.
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Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live
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Speaker 1: you get your podcasts, or watch us live on YouTube.
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Speaker 5: We have markets in the green right now, and the
5:28
Speaker 5: NASAC is among them. We've had seen this decoupling between
5:31
Speaker 5: big tech and the rest of the stock market, but
5:34
Speaker 5: big tech is back in the green once again, and
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Speaker 5: the big news really is Alphabet and all the hyperscalars.
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Speaker 5: It's going to need about one hundred and eighty five
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Speaker 5: billion dollars in terms of capex over the this year,
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Speaker 5: and so it has to raise a lot of money
5:50
Speaker 5: in the debt market. Caroline Hyde is the co anchor
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Speaker 5: of b Tech and Caroline Alphed has had a banner
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Speaker 5: twenty four hours looking to raise almost thirty two billion
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Speaker 5: dollars or a pretty much to raise thirty two billion
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Speaker 5: dollars in less than twenty four hours.
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Speaker 6: I know we've got dollar denominated debt, you've got sterling,
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Speaker 6: you've got Swiss frank and what's extraordinary is the extent
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Speaker 6: of demand. They could have sold way more the thirty
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Speaker 6: two billion dollars. They had extraordinary, more than one hundred
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Speaker 6: billion dollars worth of orders for the upsized twenty billion
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Speaker 6: dollar US sale. We're ranging from you know, three year
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Speaker 6: to ten is out to as much as thirty year,
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Speaker 6: thirty two year. But then you're looking to the UK,
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Speaker 6: they're selling one billion pounds of my great British sterling
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Speaker 6: in one hundred year bonds, a century bond. Now you
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Speaker 6: haven't seen a tech company do that since motor rollers.
6:36
Speaker 7: It's the nineties.
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Speaker 6: And look this, it's such a vote confidence. Yes, you
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Speaker 6: can say, is Google going to be here in one
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Speaker 6: hundred years time? A lot of these companies pay off
6:44
Speaker 6: the debt well ahead of one hundred years. Disney they
6:47
Speaker 6: issued back in the nineties, they paid it off in
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Speaker 6: the in twenty twenties. But really what this is a resolute,
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Speaker 6: clear signal of is that people believe in Alphabet, they
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Speaker 6: believe in their ability to pay for the AI infrastructure,
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Speaker 6: They believe in that one hundred and eighty five billion
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Speaker 6: of spending in capex is a wise decision, and that
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Speaker 6: they are going to be an AI winner.
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Speaker 3: More across the.
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Speaker 6: Board, we're seeing a record Swiss frame issuance. You haven't
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Speaker 6: seen a market been tapped to this extent and again
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Speaker 6: a record amount of demand for it.
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Speaker 2: Rob Schiffman covers the tech from the credit size for
7:18
Speaker 2: Bloomberg Intelligence.
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Speaker 8: T says, the windows wide open for these companies. They
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Speaker 8: can keep coming to the market, which is amazing for
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Speaker 8: them and they are. We also got a piece of
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Speaker 8: news Thaiwan Semiconductor Manufacturing said their January sales worth their
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Speaker 8: fastest clip in months. So if you needed, I guess
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Speaker 8: another data point supporting this continuing AI spending, there you go.
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Speaker 6: Yeah, thirty seven percent increase year on year. In terms
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Speaker 6: of yes, it was probably a bit of a slower year.
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Speaker 6: It's a slower January previous year because of the way
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Speaker 6: that the vacations and holidays fell in China. But TSMC
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Speaker 6: is the chip manufacturer to the world in Nvidia Apple.
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Speaker 6: If you think about a consumer electronics, if you're thinking
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Speaker 6: about the AI data center story, this is the company
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Speaker 6: that has been dining out on it. The shares are
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Speaker 6: at a record when you're looking at them entire one
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Speaker 6: or indeed on their ADRs trading abroad, and it just
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Speaker 6: signals that the AI bubble that we're so concerned about
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Speaker 6: the idea that everyone's just passing money amongst themselves. There
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Speaker 6: is real orders going in from on a fundamental basis
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Speaker 6: for this particular chip maker.
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Speaker 5: Yeah, and it's the hardware maker TSMC. Let's talk about
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Speaker 5: other hardware companies because they are paying up for memory chips,
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Speaker 5: and those memory chip makers, some are winning, some maybe
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Speaker 5: are under more pressure, and investors are trying to discern
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Speaker 5: whose best place. How are you thinking about this?
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Speaker 6: I think a lot of people are trying to understand
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Speaker 6: where is the cost pressure. The cost pressure is for
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Speaker 6: those electronics companies. Apple has more control over its supply chain,
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Speaker 6: its own own chips, but still, more broadly, if you're
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Speaker 6: looking at an index of electronics makers, like thinking of
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Speaker 6: the Nintendos of this world, they've sold off about ten
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Speaker 6: percent in the beginning of this year. Meanwhile, the memory
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Speaker 6: makers are up about one hundred and sixty percent or so.
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Speaker 6: We're seeing Samsung being the winner here, you're seeing the
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Speaker 6: likes of Micron. You're seeing Yes, there is turbenance day
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Speaker 6: in day out, but more broadly it has been up
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Speaker 6: and to the right for these memory makers because not
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Speaker 6: only is there necessary to put them into your hardware
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Speaker 6: and your electronics but really the ferocious demand to put
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Speaker 6: them in AI data centers. Remember this is high bandwidth
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Speaker 6: memory that everyone's been going on about. The hk Heinex
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Speaker 6: has been winning in for Skhinex, for example, over in Korea. Well,
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Speaker 6: because there's so much demand there and it's so much
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Speaker 6: more profitable for them, they're having to sort of put
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Speaker 6: their boring, bog standard memory chips that you want in
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Speaker 6: your devices to the back burner, and it's really hurting
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Speaker 6: these companies.
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Speaker 3: Stay with us. More from Bloomberg Intelligence coming up. Care
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Speaker 3: for this.
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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
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Speaker 1: weekdays at ten am.
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Speaker 1: Apple, Coarplay and Android Auto with the Bloomberg Business app.
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Speaker 1: Listen on demand wherever you get your podcasts, or watch
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Speaker 1: us live on YouTube.
9:49
Speaker 5: Let's get to some more corporate earnings, because we are
9:52
Speaker 5: knee deep in earning season. We're past the big tech
9:55
Speaker 5: companies and now we're really focused on the companies that
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Speaker 5: make up this US economy. Companies like Has, the toymaker.
10:01
Speaker 5: The shares are up more than seven percent right now.
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Speaker 5: Lindsay Dutch is joining us. She is the consumer Hardline
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Speaker 5: Senior analyst at Bloomberg Intelligence and Lindsay. This earnings report
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Speaker 5: shows it had a decent fourth quarter revenue and earnings
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Speaker 5: for share beat, but the guidance the outlook was seen
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Speaker 5: as fairly conservative, yet investors seem to be rewarding the
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Speaker 5: Stock's the what's the story here for Hasbro?
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Speaker 9: Hice Garlet, thanks for having me. So the story for
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Speaker 9: Hasbro is, you know, the result in twenty five, including
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Speaker 9: the fourth quarter, is really being driven by their Wizard
10:35
Speaker 9: of the Coast digital gaming segment. That that segment has
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Speaker 9: been growing rapidly forty five percent on the year, sixty
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Speaker 9: percent I think for Magic of the Gathering in the quarter.
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Speaker 9: So just tremendous growth coming out of that brand, better
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Speaker 9: than expected, and that unit is really going to carry
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Speaker 9: the growth in twenty twenty six. The outlook for the
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Speaker 9: consumer products with their toy segment is still kind of weak,
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Speaker 9: so it's really coming out of that digital gaming segment.
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Speaker 9: But I think investors are pleased with the outlook there
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Speaker 9: just because they're lapping very difficult comps. So to see
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Speaker 9: solid growth in twenty six coming out of that, it
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Speaker 9: was a good surprise.
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Speaker 3: What's the competitive landscape out there? Hasbro Mattel others. How's
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Speaker 3: that playing out.
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Speaker 9: Yeah, So we get matel results later today and we'll
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Speaker 9: have to see how that goes. It was a very
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Speaker 9: challenging twenty twenty five, you know, with the tariffs, we
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Speaker 9: had retailers delaying the holiday orders and that really threw
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Speaker 9: a wrench into the entire year for these toymakers. Hasbro
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Speaker 9: did report, you know, a plus seven percent sales growth
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Speaker 9: in the fourth quarter for consumer products.
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Speaker 7: That was the first quarter of growth and quite some time.
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Speaker 9: They do expect toy growth in twenty twenty six, but
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Speaker 9: it could be low single digits.
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Speaker 7: You know, there's a lot of headwinds.
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Speaker 9: You know, we just saw you know, disappointing retailer sales
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Speaker 9: for December, so there's a lot of uncertainty about consumers
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Speaker 9: out there and a rebound in that category. And we
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Speaker 9: should hear more from Mattel, you know that they're the
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Speaker 9: dominant player in dolls.
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Speaker 7: So we'll heal more later today.
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Speaker 5: Lindsay, what about Tariff's Is this something that Hasbro has
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Speaker 5: figured out and it's no longer something that leaves its
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Speaker 5: earnings to be kind of unreliable and they've kind of
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Speaker 5: smoothed things out.
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Speaker 9: So it definitely affected the year, so about forty million
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Speaker 9: dollars in the fourth quarter. A headwind for margin there,
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Speaker 9: especially on that consumer products segment, so that margin did
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Speaker 9: decline year over year, which was a disappointment.
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Speaker 7: It's certainly going to be a headwind.
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Speaker 9: For profitability at least in the first half, and comps
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Speaker 9: will get easier in the second half. But Hasbro did
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Speaker 9: note that, you know, much of the cost savings program
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Speaker 9: that they're working on and other supply chain efficiencies, they
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Speaker 9: were able to offset a significant portion of that cost.
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Speaker 9: So that is a good sign, but there's still a
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Speaker 9: little bit of a headwind for the next two quarters.
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Speaker 2: I'm just looking at the FA function on the Bloomberg terminal,
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Speaker 2: gives me all the financial analysism. Boy, the operating income
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Speaker 2: profit for the Wizards of the Coast and the digital
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Speaker 2: segment is huge, whereas the profitability of their regular toy
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Speaker 2: business not so much. Is a company just throwing all
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Speaker 2: the resources into their digital stuff?
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Speaker 3: Is that the strategy?
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Speaker 9: So they have definitely been pushing for several years now
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Speaker 9: to become a bigger player in that digital world, but
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Speaker 9: also really to become known for that. So I would say,
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Speaker 9: you know, one of Hasbro's big brands, Monopoly that that's
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Speaker 9: what many people know that the company for is that
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Speaker 9: traditional Monopoly board game. But they are pushing into this
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Speaker 9: world of digital games. You know, they want to be
13:44
Speaker 9: valued as such. And I will say, you know, they
13:47
Speaker 9: do have a digital version of Monopoly Monopoly Go, and
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Speaker 9: that has done very very well over the past couple
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Speaker 9: of years. It continues to surprise, including in the fourth quarter.
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Speaker 9: So they're definitely moving in that direction. But that toy
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Speaker 9: segment consumer products, you know, still is pretty large. It
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Speaker 9: was still around fifty percent of revenue for twenty five.
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Speaker 9: I do think that will that mix will come down
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Speaker 9: over time, but it's still a big piece of their
14:13
Speaker 9: business that they can't ignore.
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Speaker 10: Lindsay.
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Speaker 5: I also noticed that in this latest earning support, they
14:18
Speaker 5: announced a one billion dollar stock buyback authorization. I believe
14:22
Speaker 5: this is the first by back since twenty eighteen. What
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Speaker 5: does that signal to you?
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Speaker 9: You know, I think that their Hasbro was still working
14:30
Speaker 9: through their capital allocation priorities. They're still focused on reducing leverage.
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Speaker 9: You know, their dividend has been flat for quite some time,
14:40
Speaker 9: so I think they're looking at different avenues now that
14:42
Speaker 9: they're in a much better financial position than they had been.
14:46
Speaker 7: Maybe a year or two ago.
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Speaker 9: So I think it's just a signal that that that
14:50
Speaker 9: position is solidly better and they're looking to redeploy cash
14:55
Speaker 9: in different ways that they maybe couldn't have done a
14:57
Speaker 9: year or so ago.
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Speaker 2: Again, using the PG function, you can see where the
15:01
Speaker 2: revenue comes from geographically for this companigy, and the international business,
15:05
Speaker 2: which was about forty percent of the revenue, has been
15:07
Speaker 2: declining as a percentage of total revenue. Here, is there
15:11
Speaker 2: a strategy there to focus on the US or are
15:14
Speaker 2: they pulling back from international?
15:15
Speaker 3: What's that strategy?
15:18
Speaker 9: Yeah, so I don't think that they're necessarily pulling back
15:20
Speaker 9: from international.
15:21
Speaker 7: Toys is a global business.
15:23
Speaker 9: I think a lot of that is reflecting the growth
15:25
Speaker 9: and wizards of the cost and the digital gaming. So
15:27
Speaker 9: the digital gaming, it's really picking up very quickly in
15:30
Speaker 9: the US or seeing a lot of growth there, and
15:32
Speaker 9: that's partly shifting that geographical concentration. That digital gaming business
15:38
Speaker 9: is a global business, So some of that shift might
15:43
Speaker 9: move back the reverse over time, but I think the
15:46
Speaker 9: near term shift is just part of that growth on
15:48
Speaker 9: the digital gaming side.
15:52
Speaker 3: Stay with us more from Bloomberg Intelligence coming.
15:54
Speaker 1: Up there for this, you're listening to the Bloomberg Intelligen
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Speaker 1: in the podcast Catch us Live weekdays at ten am.
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Speaker 3: He's done on.
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Speaker 5: All right, let's get back to earning season, because those
16:14
Speaker 5: are not the only companies that reported. Coca Cola also
16:17
Speaker 5: came out with its latest results and maybe perhaps a
16:20
Speaker 5: bit underwhelming given the stock price reaction down two percent
16:23
Speaker 5: at the moment. Kenshe is our consumer products analysts, our
16:26
Speaker 5: senior consumer products analysts, and he joined us now from Princeton.
16:30
Speaker 5: So what's the story from Coca Cola, Ken, What did
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Speaker 5: they tell us?
16:34
Speaker 10: Yeah, hi, Scarlett. Well, Coke in the fourth quarter, revenues
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Speaker 10: are up to EPs was up six percent, pretty much
16:41
Speaker 10: in line with expectations. But I think what maybe concerning
16:46
Speaker 10: the mark a little bit about Coke is that the
16:50
Speaker 10: mix was not as favorable as it had been well,
16:53
Speaker 10: so the company with the past couple of years had
16:54
Speaker 10: been relying heavily on price mix to boost the top line.
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Speaker 10: It was a considerable slow going in the quarter. Having
17:02
Speaker 10: said that, there's always some noise in the fourth quarter.
17:04
Speaker 10: It's hard to draw too many conclusions from the fourth quarter.
17:07
Speaker 10: But I think the market is also being spooked a
17:10
Speaker 10: little bit by the guidance for next year, which came
17:14
Speaker 10: in a bit a little bit late. The company's long
17:17
Speaker 10: term algorithm is to generate about four to six percent
17:21
Speaker 10: organic revenue and from that it can generate high comparable
17:25
Speaker 10: EPs growth, and it did that in twenty twenty five.
17:28
Speaker 10: In twenty twenty six, other saying four to five percent
17:31
Speaker 10: top line and four to five percent EPs growth, and
17:34
Speaker 10: so that's EPs growth again, that's excluding currency effects. It's
17:40
Speaker 10: not only below their long term algorithm, but also below
17:43
Speaker 10: consensus expectations going in.
17:46
Speaker 2: What's the You know, we always talk at a lot
17:50
Speaker 2: of your companies, the contuber products companies as staples companies
17:52
Speaker 2: that you think about them as kind of GDP maybe
17:54
Speaker 2: a little bit GDP plus kind of growth here.
17:56
Speaker 3: Is there any secret.
17:57
Speaker 2: Sauce to the Coca Cola story or is that the
17:59
Speaker 2: way we should think about it?
18:01
Speaker 10: Well, there's a lot of truth to that, Paul, because
18:04
Speaker 10: Coke is in the two hundred markets around the world.
18:06
Speaker 10: You know, I guess the way for growth is lunar
18:09
Speaker 10: at this point, I mean they're everywhere. But I think
18:14
Speaker 10: there's gonna be a new CEO on March thirty first,
18:16
Speaker 10: Henry Barraun. He's a long time veteran at Coca Cola,
18:19
Speaker 10: was the COO used to head a Latin American operations.
18:22
Speaker 10: I think there's a lot of confidence in his ability
18:25
Speaker 10: to take the reins here. And I think what he's
18:29
Speaker 10: going to spell out in his vision next week at CAGNY,
18:32
Speaker 10: that's when they usually do it.
18:34
Speaker 3: That's what you'll be Yeah.
18:37
Speaker 10: Well, I think he's gonna say that they need to
18:40
Speaker 10: step up their marketing and innovation here to boost that
18:43
Speaker 10: top line growth. And I think they're going to talk
18:46
Speaker 10: a lot about functionality, something that we talked about with Pesico.
18:50
Speaker 10: What I mean by functionality, well, well, consumers want more
18:53
Speaker 10: from their beverages than just taste good and hydrate them.
18:56
Speaker 10: They want to not only have zero calies, zero sugar,
19:01
Speaker 10: but if they wants to have more electrolytes in their water,
19:04
Speaker 10: it wants to have more protein in their drinks. Particularly
19:07
Speaker 10: the JLP one crowd, they want to have fiber coke
19:12
Speaker 10: offers in its probiotics. So it is like simply pop
19:15
Speaker 10: So these are the kind of things they're going to
19:16
Speaker 10: talk about in terms of product innovation, I believe next week.
19:20
Speaker 10: In addition to that, I think the company's going to
19:22
Speaker 10: spend more in marketing, digital marketing, get the message out
19:25
Speaker 10: to new young consumers.
19:27
Speaker 5: I guess the idea is to just have your drink
19:29
Speaker 5: or place your food.
19:30
Speaker 3: I guess.
19:32
Speaker 5: Zero Sugar actually was a standout, right with Coca Cola
19:36
Speaker 5: Zero Sugar posting double digit volume growth in the quarter.
19:39
Speaker 5: When you say that they want to focus on the
19:41
Speaker 5: innovation and get the word out, what does that mean
19:43
Speaker 5: in terms of spending on marketing. What does that mean
19:46
Speaker 5: on in terms of capital expenses?
19:49
Speaker 10: Well, I think, broadly speaking, more social media advertising. I
19:52
Speaker 10: mean on a purview basis, that's a lot more cost
19:55
Speaker 10: efficient than traditional ways like television poll You would know
19:59
Speaker 10: that right analyst days. So it's more of that. It's
20:02
Speaker 10: also working more closely with their bottlers in terms of
20:05
Speaker 10: co marketing ventures. That could be a wide range of things,
20:09
Speaker 10: not only digital marketing, but perhaps coming out new packaging,
20:13
Speaker 10: whether it's multi packs to attract an economical consumer, to
20:19
Speaker 10: spending more on its fountain dispenser. You see a lot
20:23
Speaker 10: of a lot of fast food restaurants where they can
20:27
Speaker 10: make their own sodas and so on. Spread that out
20:30
Speaker 10: more to have more consumer engagement matter where they are. Yep,
20:34
Speaker 10: so I see.
20:35
Speaker 6: More of that.
20:36
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