It’s just a game, right?
Not when it’s the Super Bowl, because it’s purposely scheduled two weeks out so that we can properly engage the hype machine. It’s all you hear about; the teams, the players, the halftime show, the stadium, etc. The official pre-game show on NBC started six and half hours before the game!
Players and coaches spend decades practicing and preparing. Advertisers spend months working on commercials and have created iconic moments over the years. Fans spend thousands of dollars to attend the game. Celebrities are everywhere. The halftime show sometimes makes bigger news than the game.
There are a lot of eyes to be caught, as the game typically attracts around 100 million viewers. This year is reported to hit 117 million, which would make it the most watched Super Bowl ever.
And then here we are, sure there is talk about the commercials and the game, but by mid-week everyone will move on. The hype builds forever, and then it’s over. It’s like Christmas as a kid.
For a few of us here at RetailWit it was a chance to see our team, that hadn’t been there in 31 years, come up just short yet again. The Bengals were the story of the playoffs, but the magic ran out. And now here we are, hungover from the hype, and maybe just a little hungover from drowning our sorrows.
So, in case you were too caught up in the hype of the Super Bowl, here are the big headlines in retail from last week…
CPG Companies Plan New Price Hikes, Fewer Promotions.
CPGs have indicated they’ll have additional price-hikes, beyond what was originally anticipated. For example, Clorox will be raising prices another 15% (from the original 70% plan to 85%). Promotions are also taking a hit, leading to less discounts because of margin concerns. Inflation is hitting hard.
Amazon moves deeper into healthcare with telehealth expansion.
Amazon is rolling out their healthcare service nationally later in 2022, growing both its physical presence (from 8 to 20 cities) and telehealth option. For a massive company like Amazon, they have to make big bets to move the revenue needle. With Retail slowing down and AWS (Cloud) booming, they’re continuing to make big bets. They recently increased base pay and added an additional leadership principle (“Strive to be Earth’s Best Employer”) as they seek to remain competitive talent-wise.
Coke and Pepsi go hard with new RTD alcoholic drinks
We are seeing continued blurring lines between traditional beverage companies and adult beverage companies With the trend of low or no alcohol beverages and the white hot trend of RTD alcoholic beverages (hello White Claw) both are moving into each other’s space and unique partnerships are also forming. If you are in the space, pay close attention to this trend – it isn’t slowing down.
Tequila could overtake vodka as America’s favorite liquor as sales boom
CNBC reports that the Distilled Spirits Council of the US (DISCUS) is out with a new report saying that “tequila could soon overtake vodka as America’s favorite liquor.
Coke and Pepsi release their earnings:
Both Coca-Cola and PepsiCo announced earnings today so let’s look at them side-by-side, and continue the rivalry. Per the Daily from Tuesday, the Super Bowl is prime time for beverages (adult and otherwise) and snacks and these two giants will be battling at the shelf (digital and physical)
Coca-Cola topped expectations for earnings and revenue
- Weaker-than-expected outlook for 2022.
- Organic revenue climbed 9% in the quarter.
- For 2022, Coke expects organic revenue growth of 7% – 8%
- Revenue: $9.46 billion vs. $8.96 billion expected
- Net income: $2.41 billion, or 56 cents per share
- Up from $1.46 billion, or 34 cents per share, a year earlier.
- Coke earned 45 cents per share, beating the 41 cents per share expected
PepsiCo topped expectations for earnings and revenue
- Weaker-than-expected outlook for 2022.
- Organic revenue rose 11.9% in the quarter.
- For 2022, Pepsi expects organic revenue growth of 6%.
- Revenue: $25.25 billion vs. $24.24 billion expected
- Net income: $1.32 billion, or 95 cents per share.
- Down from $1.85 billion, or $1.33 per share, a year earlier.
- Pepsi earned $1.53 per share, topping the $1.52 per share expected by analysts
CVS fourth-quarter earnings top expectations as Covid vaccines lift overall store sales.
CVS beat expectations in Q4 with a revenue of $76.6B (vs $75.67 expected) and EPS of $1.98 (vs $1.93 expected). Shares still fell (-5.45%) post-announcement, as the COVID-related boots taper off. Same store sales were up +13.4%. CVS has a fun future to watch: moving more into healthcare services, combining business segments (drugstores, insurance, pharmacy), and closing nearly 10% of stores to match their “new” focus.
Amazon and Nike Exploring Peloton Purchase.
Perhaps fitting into “Amazon Care” from above, rumor has it Amazon (and Nike) is exploring a Peloton purchase. Outside of this article, Apple is apparently interested as well. Peloton would fit nicely as a line expansion into any of the three brands. Maybe slightly less so for Amazon, who tends to go for value plays versus luxury. Regardless, with Amazon’s move into Healthcare, Apple’s Connected Device strategy, and Nike being Nike, it will be interesting to see who picks them up.
Molson Coors, Coca-Cola expand partnership with Simply brand
Speaking of new partnerships, a couple weeks back Molson Coors Beverage Co. expanded its exclusive agreement with The Coca-Cola Co., Atlanta, to develop and commercialize a brand of full-flavor alcohol beverages inspired by the country’s No. 1 chilled juice brand: Simply.
Bottled cocktails took off in 2021, at beer’s loss
According to the Distilled Spirits Council of the U.S., the premixed cocktails category experienced a 43+ percent spike in sales last year to reach $1.6 billion. The trend is stealing away marketshare from beer, a category that’s been on the decline for years. The trend of course has not gone unnoticed in the alcohol industry. Anheuser-Busch InBev, for example, has acquired Cutwater Spirits as part of efforts to shift its focus.
Absolut launches special bottle to champion diverse viewpoints
“Celebrating diverse and different viewpoints has always been in our spirit, and the soundwaves on our new limited edition bottle represent the powerful voices we continue to support around the globe, and also signifies the impact and progress a society can make when different minds come together. “We’re constantly inspired by the idea that the world becomes a better place when we come together, share perspectives and empower one another, because we are born to mix.
“No matter where, or with whom, you’re mixing in the world, you can connect with Absolut.” -Marnie Corrigan, brand director at Pernod Ricard:
Dogfish Head Craft Brewery launches latest Off-Centered Art Series
Celebrating the creative magic at the intersection of art and ales, Dogfish Head Craft Brewery’s Off-Centered Art Series is a yearly collection of four limited-edition beers featuring artwork by a different collaborating artist.
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