Latest / What the Flux / Cocobella snapped up for $2 billion | Reddit monetises your opinions | WiseTech probe rocks the company

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Cocobella snapped up for $2 billion | Reddit monetises your opinions | WiseTech probe rocks the company · What the Flux

• 0:05
  Speaker 1: This is what the flux.
• 0:06
  Speaker 2: I'm Brett and I'm Justin and it's Wednesday, the twenty
• 0:09
  Speaker 2: fourth of June.
• 0:09
  Speaker 1: Does boy we know the major changes in the federal
• 0:11
  Speaker 1: budget were supposedly craved to address intergenerational equity, but a
• 0:15
  Speaker 1: new reporter has come out highlighting how young people in
• 0:18
  Speaker 1: Australia are being taxed more than older people on the
• 0:21
  Speaker 1: same income. According to the Actuaries Institute Get this One,
• 0:25
  Speaker 1: a seventy one year old Australian with a gross income
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  Speaker 1: of one hundred thousand dollars ends up with forty two
• 0:30
  Speaker 1: thousand dollars more than a thirty year old earning the
• 0:32
  Speaker 1: same grosser income, somehow largely due to benefits of putting
• 0:36
  Speaker 1: money into super that old intergenerational inequity.
• 0:40
  Speaker 2: Foxamine where they're excited to launch a new series, from
• 0:42
  Speaker 2: Savior to Investor in seven Days, a brand new YouTube
• 0:45
  Speaker 2: series built specifically for people who know they should be investing,
• 0:48
  Speaker 2: but I'm quite sure how to take the first step.
• 0:50
  Speaker 2: Make sure you check out our new series From Savior
• 0:52
  Speaker 2: to Investor in seven days on YouTube.
• 0:54
  Speaker 1: Three massive stories today, Juzzy boy, let's do it for
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  Speaker 1: our first The Ouzzi company behind Coco Bela and Rockby
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  Speaker 1: Protein Shakes has been acquired by Denone for nearly two
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  Speaker 1: billion dollars.
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  Speaker 2: So you are that Cocavella chucking milk. It's the new
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  Speaker 2: bigm chucking milk man. Tell me more so.
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  Speaker 1: Maid Group is the Australian drinks and food company behind
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  Speaker 1: some of the big health names on your supermarket shelves. Yeah.
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  Speaker 2: Back in two thousand and five, Mad Group launched its
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  Speaker 2: first vitamin water drink when vitamin and water were basically strangers.
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  Speaker 1: And today these type of functional drinks are everywhere.
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  Speaker 2: Yeah. Maid Group owns Coco Bella, Coconut Water, Rockby Protein Shakes,
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  Speaker 2: Impressed Juices, Nutrient Water and Wait.
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  Speaker 1: Over the last decade, Maid Group has done the rounds
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  Speaker 1: with its capital raises.
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  Speaker 2: Yeah. In twenty eighteen, Coca Cola took a forty five
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  Speaker 2: per cent steak in Made Group. Then in twenty twenty one,
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  Speaker 2: the private equity beast TPG Capital bought a sixty percent
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  Speaker 2: steak in Made Group, value the company between three hundred
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  Speaker 2: and three hundred and fifty milk.
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  Speaker 1: But now TPG and the founders have sold Made Group
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  Speaker 1: to Denone for nearly two billion dollars.
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  Speaker 2: The same DeNoon behind yo pro Evan and Aptial baby formula.
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  Speaker 1: And that is our big payday for TPG, who was
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  Speaker 1: five XD their investment in just five years.
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  Speaker 2: Yep, and b man, what you were denotes so keen
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  Speaker 2: that they paid such a monster price.
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  Speaker 1: Well, Denot's fastest growing region is already Asia Pacific. It's
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  Speaker 1: up six percent in Q one a loan.
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  Speaker 2: So this acquisition is basically turbocharging exactly where they want
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  Speaker 2: to grow.
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  Speaker 1: So what's the key learning here?
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  Speaker 2: The world's biggest food and drink companies are on a
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  Speaker 2: health brand shopping spree.
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  Speaker 1: Get this Jaziboite food m and A deals increased sixteen
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  Speaker 1: percent to over sixty one billion dollars last year.
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  Speaker 2: But be man, if these companies are so big and
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  Speaker 2: so powerful, why don't they just make these brands on
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  Speaker 2: their own?
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  Speaker 1: Well, it can take years to build a brand, and
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  Speaker 1: it can cost a fortune. And there are so many
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  Speaker 1: niches in the health space.
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  Speaker 2: Probiotics, probiotics, newtropics, adaptogens, collagen and then of course ten
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  Speaker 2: different types of protein just todame a few.
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  Speaker 1: So the major food and drinks brands would prefer to
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  Speaker 1: spot the winners and buy them instead of building them
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  Speaker 1: from the ground. Up.
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  Speaker 2: Coca Cola paid five point six billion USLS in cash
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  Speaker 2: for Body Armor.
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  Speaker 1: That's the coconut water based sports drink.
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  Speaker 2: Then there's Nesle Health Science, who acquired a majority stake
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  Speaker 2: in Vital Proteins in twenty twenty.
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  Speaker 1: That's the collagen supplement brand.
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  Speaker 2: Don't forget PepsiCo, who acquired the pre biotic soda brand
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  Speaker 2: Poppy for nearly two billion US dollars.
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  Speaker 1: So juzy Boy with the Mad Group brands, the brand
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  Speaker 1: trust is there, the community is already there, the distribution
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  Speaker 1: is there. All they don't has to do is not
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  Speaker 1: stuff it up. For our second story, Reddit is turning
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  Speaker 1: human opinions into a six hundred and twenty five million
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  Speaker 1: dollar ad business and is introducing new products to capitalize
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  Speaker 1: on its community.
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  Speaker 2: Watch out, AI, humans are coming for your jobs. So
• 3:24
  Speaker 2: what's going on here?
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  Speaker 1: Well, we all know Reddit. Juzzy boy, the social media
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  Speaker 1: platform and forum style or website.
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  Speaker 2: Nicknamed the front page of the Internet. Yeah, people can
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  Speaker 2: share opinions on basically everything from legal advice to restaurant recommendations.
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  Speaker 2: Is even a Reddit thread for the best Reddit threads.
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  Speaker 1: In fact, it has around one hundred thousand active communities
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  Speaker 1: and twenty five billion posts and comments.
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  Speaker 2: They appeared in twenty twenty four and are now worth
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  Speaker 2: around thirty three billion US dollars.
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  Speaker 1: Get this, one Reddit made around six hundred and twenty
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  Speaker 1: five million backs from ads in the first quarter of
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  Speaker 1: twenty twenty six.
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  Speaker 2: So now it's going harder on advertising because they're introducing
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  Speaker 2: a bunch of new ad products, but mainly focused on
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  Speaker 2: their community intelligence.
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  Speaker 1: Essentially tools to capitalize on human beings actively seeking out
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  Speaker 1: human opinions on its platform.
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  Speaker 2: It's how will it work?
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  Speaker 1: Companies can slap their ads right in the threads where
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  Speaker 1: people are already talking about these companies.
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  Speaker 2: Think a company that selling runners can put an ad
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  Speaker 2: in the thread where runners are already asking about the
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  Speaker 2: best marathon shooes and b man. This is pretty different
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  Speaker 2: to what we're seeing a lot of other social media
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  Speaker 2: companies doing when it comes to advertising. So what is
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  Speaker 2: the key learning? Jazzi Boy, The more AI takes over
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  Speaker 2: the Internet, the more valuable real human.
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  Speaker 1: Opinions we can't We've all seen the AI slop hit
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  Speaker 1: the Internet over the past couple of years.
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  Speaker 2: That's the low quality, high volume content that is flooding
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  Speaker 2: social media feeds. Think random fruit videos, cat singing or
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  Speaker 2: food yelling at you how to cook them.
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  Speaker 1: Get this. According to research from an AI company, cap Wing,
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  Speaker 1: twenty percent of content shown to a freshly opened YouTube
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  Speaker 1: account is now low quality AI video.
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  Speaker 2: So as the AI content fatigue kicks in, Reddit is
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  Speaker 2: betting that human intelligence might actually be the thing that
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  Speaker 2: helps them stand out.
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  Speaker 1: For our third and final story, Wise Tech, the ace
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  Speaker 1: excess to logistics software, just lost two billion dollars of
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  Speaker 1: market value because of a serious investigation into its founder.
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  Speaker 2: Criminal investigation isn't exactly the kind of cargo that investors
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  Speaker 2: like to see on the manifest so tell me we'll
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  Speaker 2: be man so.
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  Speaker 1: Wise Tech is one of Australia's most successful tech companies
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  Speaker 1: and it was founded in nineteen ninety four.
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  Speaker 2: Yeah, it's known for its cargo wise platform that helps
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  Speaker 2: freight companies move goods around the world without losing track
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  Speaker 2: of what's in the container.
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  Speaker 1: Since listening on the ASEX in twenty sixteen, its market
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  Speaker 1: value has increased over six hundred percent and is now
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  Speaker 1: worth more than twenty two bills.
• 5:32
  Speaker 2: But man It's market cap has fallen more than seventy
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  Speaker 2: one percent in the past year alone.
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  Speaker 1: Yep, there has been a fair bit of controversy around
• 5:39
  Speaker 1: wis Tech and its founder and now executive chair. There's
• 5:41
  Speaker 1: been a share trade scandal, there's been allegations of inappropriate
• 5:44
  Speaker 1: dealings with former employees, there's been a wipeout of over
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  Speaker 1: two thousand jobs from the company. But it gets worse
• 5:49
  Speaker 1: because earlier this week more than two billion bucks was
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  Speaker 1: wiped from wise Tech's value.
• 5:53
  Speaker 2: And why was that?
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  Speaker 1: Well, police are investigating the founder and exec chair for
• 5:57
  Speaker 1: more allegations of staff exploitation.
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  Speaker 2: But Wystex says this isn't an investigation.
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  Speaker 1: Into the company either way, Jazi Boy, that didn't really
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  Speaker 1: help settle investors' nerves. With shares crashing eighteen percent, that
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  Speaker 1: is a five year low.
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  Speaker 2: And despite all of this, analysts warned of wei Sex
• 6:11
  Speaker 2: value could plummet even more if the founder, Richard White,
• 6:14
  Speaker 2: was forced to leave.
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  Speaker 1: And it all comes down to Wistech's founder dependency.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: Founded dependency is when a company relies on a founder
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  Speaker 1: so much that the business can't really function effectively without them.
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  Speaker 2: Richard why has become essential to Wistech's success. The old
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  Speaker 2: can't live with him, can't live without him. But here's
• 6:32
  Speaker 2: the catch twenty two b man. If he stays, these
• 6:34
  Speaker 2: allegations could follow him and the company around like a
• 6:36
  Speaker 2: bad smell, and if he goes, investors might be rattled
• 6:39
  Speaker 2: about what that means for Wisstech's growth and leadership, which
• 6:42
  Speaker 2: we've already seen a bit of fock Sam. We're very
• 6:44
  Speaker 2: excited to launch a new series from Savior to Investor
• 6:47
  Speaker 2: in seven days, seven days, five minutes a day. That
• 6:49
  Speaker 2: is it to become an investor? To make sure you
• 6:51
  Speaker 2: check out our new series from Savior to Investor in
• 6:53
  Speaker 2: seven Days on YouTube.
• 6:54
  Speaker 1: Thanks for listening and we'll see you on Friday.