Speaker 1: This is what the flux.
Speaker 2: I'm justin and I'm harsh deep and it's Friday, the
Speaker 2: seventh of June.
Speaker 1: Block spam. If you thought fifteen hour flights to LA
Speaker 1: was already too much, Contous has another thing coming for you.
Speaker 1: Get this. Contius of CEO says it has plans to
Speaker 1: launch non stop flights to Europe and the US and
Speaker 1: they're on track for twenty twenty six. Some of these
Speaker 1: flights could be up to twenty two hours.
Speaker 2: Oh my god, that's so long.
Speaker 1: Maybe some good movies on the phote.
Speaker 2: Oh yeah, Fluxpam. We're giving away fifty dollars today in
Speaker 2: our weekly game Quick six And just for those listening
Speaker 2: to the pod, we're gonna give you a clue. The
Speaker 2: queers will be dropping between nine am and ten am today,
Speaker 2: So make sure you've got the fluxap and notifications turn
Speaker 2: on for your chance.
Speaker 1: To win three turbulent stories today HD.
Speaker 2: Let's get into it.
Speaker 1: For our first. SPC is cutting back it's canned fruit
Speaker 1: production because the cost of living is seeing customers opt
Speaker 1: for cheaper imported options.
Speaker 2: Could not forget the taste of those insanely sweet canned peaches,
Speaker 2: even if I try what's the story here.
Speaker 1: Does SPC is one of Australia's largest food processes and
Speaker 1: they started over one hundred and five years ago.
Speaker 2: Fun fact for you, it actually stands for Shepperton Preserving Company.
Speaker 1: Interesting good for trivia, and hd SPC owns a number
Speaker 1: of canned fruit brands like SPC, Golden Valley and Admona
Speaker 1: as well.
Speaker 2: Those SBC fruit saled SnackPacks were definitely a primary school staple.
Speaker 1: Well now hd SPC said it's going to be cutting
Speaker 1: some of those canned fruit productions because cost of living
Speaker 1: pressures are pushing consumers towards cheaper options.
Speaker 2: Yeah, so SBC has told its AUSSI suppliers that it'll
Speaker 2: cut peach and pair intake by almost forty percent.
Speaker 1: Turns out the cheaper alternatives in the market are actually
Speaker 1: imported from countries like China and South Africa.
Speaker 2: Where production costs are lower.
Speaker 1: And that's why Australian farmers and food processes are pushing
Speaker 1: the government to bring in another import tariff.
Speaker 2: So tell me what's the key learning here.
Speaker 1: An import tariff is a tax that's imposed by the
Speaker 1: government on goods imported from another country.
Speaker 2: Governments can levy tariffs for a range reasons, like to
Speaker 2: increase revenue, or to exert political power, or like.
Speaker 1: In this case, to protect the local economy.
Speaker 2: You see, Jazz, SPC and local fruit processors are competing
Speaker 2: against brands that use cheaper imported fruits.
Speaker 1: And therefore they're able to price themselves lower and gain
Speaker 1: market share.
Speaker 2: That leads local processes like SPC in the dust and
Speaker 2: has consequences for the entire Australian fruit processing industry. And
Speaker 2: we've seen this happen in China with the wine import tariffs. Yep.
Speaker 1: Remember when China imposed more than two hundred and eighteen
Speaker 1: percent tariffs on Australian wine after some political tension.
Speaker 2: So Jazz until there are increased tariffs on these overseas
Speaker 2: fruit producers, it looks like there's going to be less
Speaker 2: fruit salad snacks in primary school lunchboxes.
Speaker 1: For our second story, the owner of Champion, the sportswear brand,
Speaker 1: will sell the Champion business for nearly one point five
Speaker 1: billion US dollars to narrow it's focus on inner wear.
Speaker 2: I feel like Champion has really made quite the comeback recently.
Speaker 2: Tell me about this.
Speaker 1: Champion actually started back in nineteen nineteen, but was first
Speaker 1: acquired by Sarah Lee in nineteen eighty nine. Guess that
Speaker 1: Sarah Lady.
Speaker 2: But clearly it didn't quite match with their cheesecakes and
Speaker 2: sticky date puddings. So they spun out all of their
Speaker 2: apparel brands into another company called Haines Brands, and.
Speaker 1: That company owns Haines Teas, They owned Wonder Bra.
Speaker 2: And they also owned some iconic Aussie brands like Bonds, Undies,
Speaker 2: Early Bras and Sheridan Homework.
Speaker 1: But now I see Haynes Brands will sell the Champion
Speaker 1: brand to another company called Authentic Brands.
Speaker 2: And how much are we talking here?
Speaker 1: Well, it'll be one point two billion US dollars upfront,
Speaker 1: with an additional three hundred million bucks if Champion hit
Speaker 1: certain performance thresholds.
Speaker 2: I feel like Champion is really starting to hit its
Speaker 2: peak again. So why the sudden sale.
Speaker 1: Well, Haines Brand says it wants to focus on extending
Speaker 1: its innwear category like Bras and Undies. But really this
Speaker 1: might just be a case of good timing.
Speaker 2: So what's the key learning here?
Speaker 1: In the fast paced world of fashion, timing the market
Speaker 1: can define a company's trajectory.
Speaker 2: Haynes Brands knows all too well, what happens when a
Speaker 2: brand goes out of fashion?
Speaker 1: Yeah. After partnering with the NFL and college football in
Speaker 1: the late eighties, Champion became an iconic and super popular.
Speaker 2: Brandt's say, bills nearly doubled between nineteen eighty five and
Speaker 2: nineteen eighty eight to over two hundred million US dollars.
Speaker 1: Then they're required by Sarah Lee and Champion became a
Speaker 1: bit of a discount brand and they were sold in
Speaker 1: stores like Walmart in the US.
Speaker 2: And suffered a clear fall from Grace whatever.
Speaker 1: The past five years, Champion seen a major turnaround. It
Speaker 1: leaned into gen Z's love for the nineties culture.
Speaker 2: It announced a collab with Supreme, then wood would and
Speaker 2: then Vetaments.
Speaker 1: And celebs like Selena Gomere's Chance the Rapper and Hailey
Speaker 1: Bieber all started wearing the brand as well.
Speaker 2: Now, Champion generates more than two billion US dollars in
Speaker 2: sales in twenty twenty three.
Speaker 1: Actually, Champions owner knows how fickle consumer trends can be.
Speaker 2: And when you've got a good offer on the table
Speaker 2: for a consumer brand, you take it, cash it and run.
Speaker 1: For our third and final story, Zoom wants to create
Speaker 1: a digital twin to attend meetings for you, so you
Speaker 1: can go to the beach instead of being.
Speaker 2: At worse Sign me up, Sorry, no, I mean I
Speaker 2: love meetings. Tell me more.
Speaker 1: So. We all know Zoom, the video conferencing software that
Speaker 1: launched back in twenty eleven but when absolutely bananas when
Speaker 1: the the whole world went into lockdown.
Speaker 2: Although Zoom may not have wish COVID on us, it's
Speaker 2: fair to say it was one of the biggest beneficiaries.
Speaker 1: In fact, its share price jumped over seven hundred and
Speaker 1: fifty percent between January and October twenty twenty, but just.
Speaker 2: Since then it returned to its previous levels, which is
Speaker 2: why Zoom needs to think of some new innovative ways
Speaker 2: to get its users to fall in love again.
Speaker 1: Let's be honest, nobody was loving seeing their colleagues and
Speaker 1: constantly being on muses.
Speaker 2: Zoom has already attempted to become more of a productivity
Speaker 2: tool like Microsoft and Google.
Speaker 1: But now zoom CEO has announced plans to build an
Speaker 1: AI avatar that will be your digital twin in meetings.
Speaker 2: So the idea is you can clone yourself and your
Speaker 2: AI clone can make business decisions on your behalf in
Speaker 2: meetings and Zoom recons If successful, you'll only need to
Speaker 2: attend ten percent of the meetings you do today.
Speaker 1: But before you go searching to sign up the CEO
Speaker 1: warrant day are still some time away from turning this
Speaker 1: into reality.
Speaker 2: So does it's no surprise that this magical idea for
Speaker 2: years down the path didn't actually move Zoom's share price.
Speaker 1: So tell me what is the key learning here?
Speaker 2: Well, ambitious tech announcements to excite investors, they can often
Speaker 2: have the opposite effect.
Speaker 1: Yeah, tech announcements like cutting down your meetings by ninety
Speaker 1: percent are intended to capture the imagination of investors, but.
Speaker 2: When these advancements failed to materialize, they actually erode trust
Speaker 2: and enthusiasm.
Speaker 1: For example, Elon Musk had projections that Tesla would have
Speaker 1: fully self driving capabilities. Oh yeah, well repeatedly pushed back.
Speaker 2: In twenty sixteen, he said that self driving cars could
Speaker 2: be ready by twenty seventeen, and.
Speaker 1: It was going to be twenty twenty.
Speaker 2: And now we're in twenty twenty four and I ain't
Speaker 2: seen many self driving cars and taxis yet.
Speaker 1: There's a fine line between inspiring innovation and fostering investor skepticism.
Speaker 2: And given Zoom CEO warn this might be six to
Speaker 2: seven years away, it's kind of hard to get excited
Speaker 2: about it right now.
Speaker 1: Bring on the digital twins, Flux Am. If you want
Speaker 1: to win fifty bucks to start your weekend on a high,
Speaker 1: then all you've got to do is make sure you've
Speaker 1: got the Flux app downloaded, notifications turned on, because we'll
Speaker 1: be dropping the quiz between nine am and ten am today.
Speaker 2: Thanks for listening, and we'll see you on Monday.