Latest / What the Flux / Endeavour’s exits wineries after a big hangover | FIFA’s ticketing scandal | Oreo teams up with BTS

Transcript

Endeavour’s exits wineries after a big hangover | FIFA’s ticketing scandal | Oreo teams up with BTS · 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 Friday, the twenty
• 0:08
  Speaker 2: ninth of May.
• 0:09
  Speaker 1: We keep hearing about how expensive things are getting, but
• 0:12
  Speaker 1: turns out prices are still rising, but not as fast
• 0:14
  Speaker 1: as predicted. Get this one consumer price is actually increased
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  Speaker 1: by four point two percent in April, down from four
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  Speaker 1: point six percent March. You don't get too excited because
• 0:22
  Speaker 1: a large part of that is thanks to the government
• 0:25
  Speaker 1: cutting fuel tax. The cor inflation is still ticking up.
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  Speaker 2: No I want to hear. But a good way to
• 0:30
  Speaker 2: make some cash be man. He's a weekly gain quick
• 0:32
  Speaker 2: sticks on a Friday. Or you need to do is
• 0:34
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• 0:40
  Speaker 2: have you notications turned on, and be ready to answer quickly.
• 0:43
  Speaker 1: Three excellent stories today, Jozzy boy, let's do it for
• 0:45
  Speaker 1: our first Davor group. The owner of Dan Murphy's is
• 0:48
  Speaker 1: selling off its wineries and acting eighty percent of its
• 0:51
  Speaker 1: great production.
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  Speaker 2: Turns out, running a pub empire and a wine empire
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  Speaker 2: at the same time isn't so easy, So tell me
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  Speaker 2: all so in.
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  Speaker 1: Deavor Group is Australia's largest drinks retailer and pub operator.
• 1:00
  Speaker 2: We're talking two hundred and eighty two Dan Murphy's one,
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  Speaker 2: four hundred and fifty BWS stores and three hundred and
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  Speaker 2: fifty pubs too.
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  Speaker 1: It will spun out of Woolies in twenty twenty one
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  Speaker 1: and is valued at around five point three billion dollars.
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  Speaker 2: And they man. Endeavor's new CEO, Jane Herd Loker, formerly
• 1:13
  Speaker 2: of Virgin Airlines Turnaround Fame, held an invest today earlier
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  Speaker 2: this week.
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  Speaker 1: She's come in with all guns are blazoned.
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  Speaker 2: She said she's gonna cut three hundred million dollars in
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  Speaker 2: costs from the business.
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  Speaker 1: Slash great production by more than eighty percent, and sell
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  Speaker 1: off a bunch of wineries and Vinya and Jesse Boit.
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  Speaker 1: This is kind of needed for Endeavor, who shares have
• 1:28
  Speaker 1: suffered a major hangover, a hangover.
• 1:30
  Speaker 2: That's fallen more than fifty percent since listing in twenty
• 1:32
  Speaker 2: twenty one. The pivot is to go asset light on wine. Well,
• 1:36
  Speaker 2: doubling down or not actually makes the money for them,
• 1:38
  Speaker 2: the pubs and the retail network. Interesting, So what's the
• 1:40
  Speaker 2: key learning here Owning stuff sounds appealing until you realize
• 1:43
  Speaker 2: you also own all the problems attached to them. An
• 1:46
  Speaker 2: asset light model means a company stops owning the physical
• 1:49
  Speaker 2: infrastructure or inventory of its supply chain.
• 1:51
  Speaker 1: And instead sources what it needs from the market. Endeavor
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  Speaker 1: isn't entirely asset light. Its retail network still carries a
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  Speaker 1: heap of.
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  Speaker 2: Inventory, but it means that for their wine site, they
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  Speaker 2: can cut out a lot of the fixed costs.
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  Speaker 1: Ye Instead of growing grapes on its own vineyards and
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  Speaker 1: bottling them in its own facilities, it'll buy bulk wine
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  Speaker 1: and grapes from external producers at market rates.
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  Speaker 2: That means less capital tied up in dirt and barrels
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  Speaker 2: and waiting for the barrel to hit a particular age.
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  Speaker 1: You're star flow of fixed costs and way more flexibility
• 2:16
  Speaker 1: if demand shifts and.
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  Speaker 2: The man This story is sounding quite familiar.
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  Speaker 1: Marriott first executed the asset light model way back in
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  Speaker 1: nineteen ninety three.
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  Speaker 2: Instead of owning heaps of hotels, Marriott sold many of
• 2:26
  Speaker 2: them off and focused on collecting franchise and managing fees instead.
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  Speaker 1: Now Josi Boy today Marriott owns or leases few were
• 2:32
  Speaker 1: then fifty hotels outright.
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  Speaker 2: That's less than one percent of its entire global portfolio
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  Speaker 2: of over nine thousand properties.
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  Speaker 1: The awkward part for Endeavor is that one of the
• 2:40
  Speaker 1: new CEO's first action items is selling the previous CEOs
• 2:43
  Speaker 1: spending spree on wineries.
• 2:44
  Speaker 2: But given the sliding share price, it seems like it
• 2:47
  Speaker 2: might be the right move.
• 2:48
  Speaker 1: Or our second story, FIFA is being investigated for selling
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  Speaker 1: crazy expensive World Cup tickets and apparently creating fake demand
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  Speaker 1: to do it.
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  Speaker 2: Turns out charging eighteen thousand dollars for a ticket to
• 2:57
  Speaker 2: the final might be a bit shady, So tell me
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  Speaker 2: what we all know. FIFA soccer's global governing body, and
• 3:03
  Speaker 2: of course the owners are one of the best selling
• 3:04
  Speaker 2: video game franchises in the world.
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  Speaker 1: Nine are one of the greatest games of all time.
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  Speaker 2: And FIFA's been around since nineteen oh four, started out
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  Speaker 2: with just eight member nations and now has two hundred
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  Speaker 2: and eleven now.
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  Speaker 1: Fiver has hosted twenty two World Cups since then, but
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  Speaker 1: it's last two have been shrouded with a whole lot
• 3:18
  Speaker 1: of controversy.
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  Speaker 2: There were corruption scandals back in twenty fifteen.
• 3:21
  Speaker 1: And the human rights concerns and workers dying building the
• 3:23
  Speaker 1: twenty twenty two Kitar Stadium.
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  Speaker 2: And now yet another controversy is brewing because FIFA is
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  Speaker 2: under investigation for its twenty twenty six US World Cup
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  Speaker 2: ticket prices.
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  Speaker 1: Yeah, the soccer body based a whole lot of backlash
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  Speaker 1: earlier this year for selling tickets at insane price points.
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  Speaker 2: We're talking thousands of dollars. The thiefa said those prices
• 3:38
  Speaker 2: were fair because there.
• 3:39
  Speaker 1: Was huge demn Beever's president actually said it had five
• 3:42
  Speaker 1: hundred million ticket requests and just seven million tickets available,
• 3:45
  Speaker 1: but later they.
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  Speaker 2: Admitted it only sold one million tickets.
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  Speaker 1: From that druft. So the lawyer said, something's not right man.
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  Speaker 1: Now legal actually is been taken by the attorney generals
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  Speaker 1: in New York and New Jersey.
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  Speaker 2: The accusation artificially inflated ticket prices.
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  Speaker 1: So what's the key learning here?
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  Speaker 2: Artificial price inflation is when companies but prices or fake
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  Speaker 2: demand to make something seem more valuable than it actually is.
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  Speaker 1: Think of it like a pie shop that tells everyone
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  Speaker 1: there's only one slice left, there's only one pie left,
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  Speaker 1: prives up the price and pulls three more piles from
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  Speaker 1: out the back.
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  Speaker 2: Doesn't sound fair actually, it kind of sounds.
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  Speaker 1: Like they're lying, and when a company lies to its customers,
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  Speaker 1: the lawyers tend to swoop. Yeah, we've seen it before.
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  Speaker 2: Ticketmaster had to change its entire sales process after the
• 4:19
  Speaker 2: UK's competition regulator found it misled customers who were trying
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  Speaker 2: to buy Oasis reunion tickets.
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  Speaker 1: Some tickets increased by two hundred pounds above the original
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  Speaker 1: price advertised with the dynamic pricing model.
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  Speaker 2: Next minute, governing bodies stepped in and there were some
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  Speaker 2: real consequences.
• 4:33
  Speaker 1: So if it's found guilty of artificially inflating World Cup
• 4:36
  Speaker 1: ticket prices, it could be costly legal consequences coming.
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  Speaker 2: But let's be honest, be man, an organization that's banked
• 4:41
  Speaker 2: around thirteen billion dollars in the past three years probably
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  Speaker 2: won't lose sleep over these legal fees.
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  Speaker 1: So the die hard fan who can't afford to watch
• 4:48
  Speaker 1: Messi on the pitch probably will yep.
• 4:50
  Speaker 2: For our third and final story, Oreo is collabing with
• 4:53
  Speaker 2: hypop supergroup BTS in the biggest part you've ever for
• 4:56
  Speaker 2: the Cookie Monster.
• 4:57
  Speaker 1: The most unexpected celebrity power couple of the year. Tell
• 5:00
  Speaker 1: me more.
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  Speaker 2: Okay, so, Oreo's parent company. Mondaleese is the company that
• 5:03
  Speaker 2: owns some of the biggest snack brands in the.
• 5:05
  Speaker 1: World, Talk and Cabri, Ritz, Sour Patch.
• 5:07
  Speaker 2: Kids, basically all the food brands you'd love to smuggle
• 5:10
  Speaker 2: into the cinema.
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  Speaker 1: Now. Mondolez bought Oreo in twenty twelve.
• 5:13
  Speaker 2: BTS, on the other hand, they're the Korean pop group
• 5:15
  Speaker 2: who absolutely skyrocketed to fame since starting in twenty thirteen.
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  Speaker 1: And now BTS and Oreo are launching a new cookie together.
• 5:21
  Speaker 2: Match Made in Heaven. The cookie has been two years
• 5:23
  Speaker 2: in the making and the flavor is hot Tok, a
• 5:25
  Speaker 2: popular Korean.
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  Speaker 1: Pancake, and is completely purple, the band's signature color.
• 5:29
  Speaker 2: Get This. The head of marketing for Mondoalez said the
• 5:31
  Speaker 2: cookies struck a balance staying true to Korean culture and
• 5:33
  Speaker 2: food or remaining consistent with Oreo's brand and flavoring. Now,
• 5:37
  Speaker 2: this partnership is a big deal for Oreo. The BTS
• 5:39
  Speaker 2: cookie will hit eighty mark and it makes it the
• 5:41
  Speaker 2: biggest partnership they've ever launched.
• 5:43
  Speaker 1: And the timing isn't an accident. It's piggybacking on a
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  Speaker 1: huge cultural moment.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: The best brand partnerships don't just sell a product, they
• 5:51
  Speaker 1: sell cultural relevance.
• 5:52
  Speaker 2: Orio didn't pick BTS randomly. It's spotted two trends colliding
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  Speaker 2: at once.
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  Speaker 1: A growing global appetite for authentic Asian food and flavors
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  Speaker 1: and the massive cultural reach of kpop.
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  Speaker 2: In fact, the food data company data Essentials found that
• 6:04
  Speaker 2: US restaurants featuring Asian and South American flavors have been
• 6:07
  Speaker 2: gaining market share since twenty nineteen.
• 6:09
  Speaker 1: Korean food specifically has gone nuts online. There are nearly
• 6:12
  Speaker 1: twelve thousand TikTok videos about hot tok, the Korean pancake.
• 6:15
  Speaker 2: And BTS sits right in the center of that cultural
• 6:17
  Speaker 2: wave too. And then man other food brands have already
• 6:19
  Speaker 2: capitalized on that.
• 6:20
  Speaker 1: Remember when BTS partnered with McDonald's in twenty twenty one,
• 6:23
  Speaker 1: I do the quarter.
• 6:24
  Speaker 2: They release the BTS meal sales at US McDonald's stores
• 6:26
  Speaker 2: that jumped to nearly twenty six percent. So Orio wants
• 6:29
  Speaker 2: in on something no marketing budget can buy an obsessed
• 6:32
  Speaker 2: fan base, which means Orio is selling more than just
• 6:34
  Speaker 2: a cookie. It is selling a cultural collectible plus aam
• 6:36
  Speaker 2: If you want to win fifty bucks today, you know
• 6:38
  Speaker 2: the place to be. It's in the Flux app with quickstick.
• 6:40
  Speaker 2: All you got to do is download the app tourny
• 6:42
  Speaker 2: notications on and as the three business or finance questions correctly,
• 6:45
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• 6:45
  Speaker 1: Thanks for listening and we'll see you on Monday.