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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

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Speaker 2: You're listening to the Bloomberg Intelligence Podcast. Catch us live

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Speaker 2: weekdays at ten am Eastern on Apple Car playing Android

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Speaker 2: Auto with the Bloomberg Business App. Listen on demand wherever

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Speaker 2: you get your podcasts, or watch us live on YouTube.

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Speaker 3: Well, we are joined here in studio by Jason Kelly,

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Speaker 3: Chief corresponding for Bloomberg Originals and executive producer of a

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Speaker 3: new podcast, It's called The Deal with Alex Rodriguez and

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Speaker 3: Jason Kelly. On this week's episode of The Deal, Alex

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Speaker 3: Rodriguez and Jason Kelly speak with you as soccer legend

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Speaker 3: Brandy Chastain about private equity firm Six Streets Sports investments

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Speaker 3: and the bay FC owners.

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Speaker 4: Hope for the sports.

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Speaker 3: She also talks about if the world is ready for

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Speaker 3: women's sports, Let's take a listen.

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Speaker 5: I honestly believe that part of the equation that wasn't

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Speaker 5: in our control was the mass, general public and the

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Speaker 5: business sector not ready for women, not ready for powerful women,

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Speaker 5: not ready for women with big voices who have grand ideas.

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Speaker 5: We didn't have the deep pockets, and before coming here today,

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Speaker 5: I think that's the one thing that kept coming into

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Speaker 5: my head was I had zero dollars that I could

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Speaker 5: be an owner with all right, very.

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Speaker 3: Good stuff, Jessica che Chestain with our own Jason Kelly. Jason,

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Speaker 3: thanks for cover much for coming into the studio. Big

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Speaker 3: commute from your desk. You got a guest with you.

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Speaker 4: I know, I brought a buddy. I thought it was

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Speaker 4: bringing I thought it was bringing your former all star

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Speaker 4: friend to workday. Oh is it?

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Speaker 6: Oh?

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Speaker 4: Yeah, sorry, I've remembered. I mean I'm a good sit Yeah.

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Speaker 4: Hey Rod, my co host right here with me. Awesome,

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Speaker 4: Thanks for coming in, Alex, appreciate it. Great to be here.

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Speaker 4: Thank you guys.

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Speaker 3: You guys, I've had so many cool podcasts and episodes

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Speaker 3: here speaking to some really cool people. Jessica Chestain, I

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Speaker 3: think for Brandy chester Brand, Brandy Chestain different chestin.

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Speaker 4: Yeah, just amazing.

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Speaker 3: Yeah, kind of when you think about nineteen ninety nine,

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Speaker 3: the world ripping the jersey off and everything, just that

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Speaker 3: that's such a big image and you kind of thought

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Speaker 3: she maybe that would be the launch of right women's soccer,

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Speaker 3: at least maybe women's sport. We haven't, I'm not sure

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Speaker 3: we've seen it. What'd you guys talk.

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Speaker 4: About I mean, I thought it was so fascinating Alex

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Speaker 4: because you know, she's an icon, right. I mean when

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Speaker 4: you think about like the people who have defined sports

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Speaker 4: in our lifetimes, especially in women's sports, like nobody bigger

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Speaker 4: than Brandy Chastain. And the amazing thing was that this

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Speaker 4: moment in nineteen ninet nine, it was gonna be like

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Speaker 4: the takeoff for women's sports, and it's like womp wamp,

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Speaker 4: like it just didn't happen. It actually failed twice, and

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Speaker 4: now she's an owner of a team. I was fascinated

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Speaker 4: by just kind of her perspective on all that. I

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Speaker 4: don't know if you were.

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Speaker 7: I thought it was great. And if you see what's

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Speaker 7: happened with Caitlyn Clark, now, we thought that was gonna

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Speaker 7: happen ninety nine and it kind of stalled, as Jason said,

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Speaker 7: But for me was how she's kind of going through

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Speaker 7: her journey from sports to business as a sports owner

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Speaker 7: and all the lessons that she's learned sports, the hard times,

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Speaker 7: the good times. She shared some incredible stories. But I'm

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Speaker 7: really interested how her next decade goes because she's all in.

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Speaker 6: Can I ask it? Okay, first of all, we should know,

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Speaker 6: I know very little about sports. So I'm going to

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Speaker 6: ask this question. I have a question about energy power prisons.

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Speaker 6: You can come to me, But why is it so

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Speaker 6: hard for women's sports to take to take off in

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Speaker 6: a material of way? Is it like the type of

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Speaker 6: sports we play? What's the problem, Alex? What do you think?

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Speaker 8: Well?

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Speaker 7: I think Kaylen Clark has captured the imagination of everyone.

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Speaker 7: And I'm old enough to remember when the NBA was on.

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Speaker 7: You watch the finals on tape delay, right, it was incredible,

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Speaker 7: right to think about that and the amount of tens

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Speaker 7: of millions of people that watch today. What Kayln Clark

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Speaker 7: has done is very much what I think Magic Johnson

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Speaker 7: and Larry Bird did in nineteen seventy nine, when you

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Speaker 7: know Bird was at Indiana State, Magic was at Michigan State,

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Speaker 7: and it was like these two Midwestern guys that captured America.

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Speaker 7: I think that is now here is true the moments right.

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Speaker 7: I think post COVID de Lance, the world has changed,

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Speaker 7: and I think it's been a perfect storm and she's

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Speaker 7: been the perfect ambassador. To have almost twenty million people

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Speaker 7: watching this is incredible.

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Speaker 4: And by the way, more people watched the Women's final

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Speaker 4: this year than the men's final first time in history,

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Speaker 4: and that actually, I think is one of the biggest

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Speaker 4: points of this is that there was long this assumption

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Speaker 4: of like, people are gonna watch women's sports on TV,

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Speaker 4: and so they just didn't put it on. I mean, shockingly,

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Speaker 4: a bunch of men made a decision that people wouldn't

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Speaker 4: watch women on TV. And then what happened was they

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Speaker 4: saw and you've seen this in your investment work, Alex,

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Speaker 4: what they saw was when they did put it on

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Speaker 4: the air, people watched and then it just kept building.

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Speaker 4: And I think the other really interesting thing that we

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Speaker 4: learned from Brandy was this idea that the investment wasn't

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Speaker 4: there initially. I mean, those two leagues failed because the

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Speaker 4: two previous soccer leagues for women in the US failed

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Speaker 4: because they tried it for like a year or two

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Speaker 4: and they're like, oh, that didn't work. Instead of you know,

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Speaker 4: you think about the NBA, you think about the NFL,

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Speaker 4: those were leagues that took decades to take hold. The

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Speaker 4: MLS is in its like twenty fifth thirtieth season and

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Speaker 4: is just getting traction. So part of it is just

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Speaker 4: like putting in the time in the month. I think,

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Speaker 4: you know, it's a former Wall Street guy, What makes

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Speaker 4: me about this transaction? You got private equity, yes, coming

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Speaker 4: private acquas not in Major League Baseball are there?

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Speaker 7: Yea?

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Speaker 4: Now they are getting there. I mean this is a

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Speaker 4: big thing that you're seeing up close and personal.

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Speaker 7: Yeah, I mean sports have these franchises have gotten so expensive.

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Speaker 7: To think a guy like Jerry Reinsdorf bought in nineteen

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Speaker 7: eighty one the White Sox for about sixteen million dollars,

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Speaker 7: and three years later, in eighty four, he buys the

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Speaker 7: Bulls with a guy with the name of Michael Jordan

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Speaker 7: already there for nineteen million dollars. It's incredible, right, and

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Speaker 7: those franches are worth close to ten collectively today.

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Speaker 4: So the world has exploded.

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Speaker 7: So what's happened is individuals can't really afford to write

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Speaker 7: checks for a billion two million dollars. It's hard to

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Speaker 7: have the type of liquidity. So what that leagues have

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Speaker 7: done is they've opened up the capital markets and private

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Speaker 7: eco groups like Arctos and Dial are now big investors.

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Speaker 7: And they said as LPs while passive LPs it's been

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Speaker 7: an industry for the last thirty years, has gone up

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Speaker 7: into the right about fifteen percent a year a year

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Speaker 7: over year.

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Speaker 6: And this is why Jason you were here because you've

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Speaker 6: covered private equity for a very long time. You literally

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Speaker 6: wrote books on it, and then you kind of saw

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Speaker 6: a while ago like where the direction of travel was

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Speaker 6: really going, Yeah, what's the kind of the return? Like

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Speaker 6: what's the return like on these things? Like like what

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Speaker 6: do you think?

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Speaker 4: I mean TBD A little long pause. Well, because we

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Speaker 4: haven't really you know, we've seen a couple exits. I mean,

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Speaker 4: so Dial made some money on the Phoenix Suns when

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Speaker 4: they were sold for four billion dollars a couple of

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Speaker 4: years ago, So that's been one exit. I mean what's

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Speaker 4: interesting is so Sixth Street. Just speaking specifically about Sixth Street,

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Speaker 4: and you know this is started by Alan Waxman, former

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Speaker 4: special situation said for Goldman Sachs was in a partnership

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Speaker 4: with TPG. You know, so they've invested one hundred and

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Speaker 4: twenty five million. They led an investment for one hundred

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Speaker 4: and twenty five million dollars into BAFC. I mean that's

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Speaker 4: real money, paid a record franchise fee fifty three million

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Speaker 4: dollars just to buy the team. I mean they're looking

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Speaker 4: at a scenario where they can get a five x

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Speaker 4: ten X. I mean, this is a long hold. So

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Speaker 4: the franchise values, as Alex just demonstrated, I mean, think

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Speaker 4: about I mean, Jerry Jones bought the Dallas Cowboys for

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Speaker 4: less than two hundred million dollars in the late eighties

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Speaker 4: early nineties, which, by the way, they said he was insane.

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Speaker 4: That was a crazy amount. This is a franchise now

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Speaker 4: worth nine or ten billion dollars. Alex, let's talk about ownership.

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Speaker 3: You're part of an ownership group for the Minnesota Timberwolves, right,

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Speaker 3: talk to us about that experience, and I love you

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Speaker 3: to talk to you about My personal opinion is I'm

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Speaker 3: concerned about the evaluation of franchises. I'm concerned about salaries

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Speaker 3: because it's all predicated in large part.

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Speaker 4: On broadcast rights.

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Speaker 3: Yeah, and with cord cutting, I'm not sure ESPN's going

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Speaker 3: to continue to write these crazy checks. So talk to

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Speaker 3: us about kind of what you've learned about as being

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Speaker 3: an owner there.

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Speaker 7: It's funny because one of my good friends and mentors

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Speaker 7: of Magic Johnson, and of course he played basketball for

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Speaker 7: a long time and he owns a baseball team, and

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Speaker 7: I played baseball for a long time, and I'm part

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Speaker 7: of the ownership group of the Minnesota Timberwolves and the Lynks.

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Speaker 7: You know what I think is there's no question that

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Speaker 7: the giant in sports in America's NFL. Right, And to

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Speaker 7: think that, you know, almost twenty million people watch Kayln Clark.

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Speaker 7: Those are NFL numbers on Sundays. I mean that is

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Speaker 7: that's the number one driver for all sports and which

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Speaker 7: creates a lot of people to be very bullish in

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Speaker 7: women's sports. But going back to well we have the

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Speaker 7: links as well. But I do think that the NFL

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Speaker 7: and the NBA are global sports, especially the NBA.

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Speaker 4: It's growing year over year.

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Speaker 7: If you look at social media as an example. As

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Speaker 7: a metrics, we're almost ten to one to the NFL.

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Speaker 7: We're almost fifteen to one to Major League Baseball. So Lebron, James,

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Speaker 7: Michael Jordan, Steph Curry, these are global names. I think

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Speaker 7: that is going to be a different landscape. But you'll

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Speaker 7: have more contributors. Maybe you have NBC pop in Amazon.

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Speaker 4: Apples, a lot of shooters.

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Speaker 7: Is not going to be the traditional So ESPN may

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Speaker 7: not write as big as check, but is there. I'm

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Speaker 7: not speaking for the NBA. I'm just giving you my

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Speaker 7: opinion that you may have a world where NBC may

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Speaker 7: split the finals with ESPN and ABC, So I think

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Speaker 7: you'll get to a similar result, just a different way.

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Speaker 6: So you said those words, and I knew those people,

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Speaker 6: so I feel like I'm not qualified ask this question.

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Speaker 6: But then for someone like me who's a newbie who

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Speaker 6: maybe wants to watch some stuff like I'm I don't know,

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Speaker 6: I would I need like a spreadsheet to like find

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Speaker 6: out like what's playing where or when what time, like

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Speaker 6: Amazon Prime, Netflix, something like that. And I wonder if

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Speaker 6: that's going to be a hurdle. Jason, what do you think.

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Speaker 4: To like, I mean, it could be. I mean, and

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Speaker 4: Paul knows this space better than anyone. You know, there's

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Speaker 4: been sort of a fracturing, but now sort of a reconsolidation.

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Speaker 4: It feels like of how we're going to consume sports.

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Speaker 4: I mean, you've followed this for years. You know that

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Speaker 4: live sports. Alex knows it from being on tele Division

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Speaker 4: and being broadcast himself. People love live sports and that

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Speaker 4: it's one of the only things that actually keeps people

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Speaker 4: coming back to live content. I do think, though, we

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Speaker 4: are in this weird world where sometimes you don't know

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Speaker 4: where to find it, and yet when you do, it

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Speaker 4: attracts the eyeballs. My New York Yankees off to a

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Speaker 4: great start this year.

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Speaker 3: Yes, what's your scouting You could say an hour New

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Speaker 3: York games in this room. Also a great start this year,

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Speaker 3: and now what's your scouting report of them?

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Speaker 7: Well, I think the Yankees have done a bunch of

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Speaker 7: good things this year.

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Speaker 4: Excuse me.

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Speaker 7: One of them is they've introduced baseball people back. If

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Speaker 7: you think about the powerhouse of the Yankees, they've been

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Speaker 7: built by great baseball people like Geene Michael's Stick Michael

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Speaker 7: as they call them, you know, Lupenela, Billy Martin. They've

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Speaker 7: gone away from that the last four or five years,

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Speaker 7: and they've suffered tremendously. The fact they brought baseball people

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Speaker 7: back in. They brought a much more balanced lineup, meaning

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Speaker 7: Alex there's more lefties than righty's. Historically, Yankee Stadium is

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Speaker 7: better for lefties. Last year they have like nine righties

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Speaker 7: in the lineup, which just way too much. They've gone

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Speaker 7: back to a much balanced lineup and now they have

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Speaker 7: the best one two punch in the sport with Aaron

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Speaker 7: Judge and Juan Soto. The challenge is do they have

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Speaker 7: enough pitching is one and two? They have they cornered

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Speaker 7: themselves by bringing in Juan Soto and not have a

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Speaker 7: long term contract. Where now? Is he gonna want the

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Speaker 7: tiny contract for seven hundred million dollars? And is he

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Speaker 7: just a one year wonder here in New York? I

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Speaker 7: think he's gonna have a massive year.

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Speaker 2: Yep.

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Speaker 7: The question is can they keep them? Second question is

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Speaker 7: do they have enough pitching to win the title?

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Speaker 3: Well, let me ask you that question. We like to

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Speaker 3: think New York fans that New York is a selling

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Speaker 3: point everybody would love to be. If you can be

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Speaker 3: a star here, you can be a star anywhere. There's

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Speaker 3: nothing better to be a star than New York City.

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Speaker 3: A lot of players, it's that I think they find

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Speaker 3: it hard to play in New York.

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Speaker 4: What was your experience coming to New York. I know

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Speaker 4: you're a New Yorker, so you you kind of know this,

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Speaker 4: But some of the people you saw during your career.

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Speaker 7: No, Paul, You're exactly right. I mean some people, you know,

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Speaker 7: the kitchens maybe a little bit too hot for some players,

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Speaker 7: and you know right away if they're uncomfortable, it's a

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Speaker 7: different place. He's the biggest media market in the world.

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Speaker 7: As they say, the pinstripes are very very heavy and

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Speaker 7: not everyone can carry them. Juan SODA's obviously one that

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Speaker 7: is going to play and play really well. Aaron Judge.

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Speaker 4: The Jetters of the.

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Speaker 7: World, they're icons for life because they won here in

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Speaker 7: New York. But some, I mean they melt into the sun.

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Speaker 7: I mean, you've seen a couple over the last four

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Speaker 7: or five years that were a shell of themselves and

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Speaker 7: you quickly have to pivot and get them out of here.

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Speaker 2: Yep.

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Speaker 4: One interesting thing on that note. First of all, we

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Speaker 4: talked about Michael talked to Michael Strahan about that on

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Speaker 4: the previous episode of The Deal. One person we are

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Speaker 4: literally going to tape with today, it's one of the

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Speaker 4: reasons Alex is in the building is stephen A. Smith,

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Speaker 4: and he's actually talked about Soto and like the power

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Speaker 4: of the pin stripes maybe enough to lure him in

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Speaker 4: to stay. So yeah, tune into that episode of The

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Speaker 4: Deal coming up in a few weeks because stephen A

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Speaker 4: he's got literally some takes. It's a sole job, that's

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Speaker 4: what he does, and what a career.

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Speaker 6: So this is this is really cool, Like what you guys,

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Speaker 6: do is super fun. Jason comes in and he talks

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Speaker 6: about it and you can tell he's like totally digg

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Speaker 6: is what's it like to work with Jason Kelly? How

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Speaker 6: do you manage that guy? Like?

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Speaker 4: What, Alex?

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Speaker 7: We already made a deal this morning because we are

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Speaker 7: you know, he's covered private equity. He's a great writer,

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Speaker 7: so I say, he writes, and I used the bat

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Speaker 7: so I hit he writes, and.

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Speaker 4: We made a good team.

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Speaker 7: But no, Alex, in all seriousness, is really the intersection

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Speaker 7: of Jason's career, mostly here at Bloomberg, in my career

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Speaker 7: mostly with the Yankees. And the fact is what we're

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Speaker 7: talking about is exactly both. And we live in a

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Speaker 7: world where it used to be sports and media and culture.

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Speaker 7: Now all three have come together, and that's what we

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Speaker 7: try to take away. And then also a lot of

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Speaker 7: lessons learned in this world of Shark Tank where young

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Speaker 7: people want to be more entrepreneurs than athletes, right, And

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Speaker 7: that's I think we're serving up and teaching and hoping

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Speaker 7: and inspiring through storytelling.

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Speaker 3: A lot of greats and I like you guys do

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Speaker 3: kind of bringing sports, entertainment, you know, all that together

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Speaker 3: and we're seeing it actually now in college sports with

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Speaker 3: it the nil the transfer portals, a lot of these

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Speaker 3: kids are able to monetize their value totally.

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Speaker 4: But there's some downside to that. It seems like if

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Speaker 4: you talk to you know, coach j.

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Speaker 3: Right at Villanova or maybe even coach k I'm going

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Speaker 3: to see today down at Duke or some others, they're saying, boy,

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Speaker 3: I'm not sure, maybe we've gone too far. What do

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Speaker 3: you think, Alex about what's happening in the college ranks

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Speaker 3: about paying some of these athletes.

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Speaker 4: It's a very dangerous road.

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Speaker 7: It's a very dangerous and very slippery and the reason

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Speaker 7: why I love that players are getting you know, the

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Speaker 7: finances and all of that. But maybe there's a structure

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Speaker 7: where there's more parity. Maybe there's a structure where kids

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Speaker 7: don't get the money when they're not ready for it

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Speaker 7: and they get in trouble by not knowing how to

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Speaker 7: pay taxes, And is this more of a liability than

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Speaker 7: an asset. I'm all for somebody getting market value, but

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Speaker 7: is there a world that we can, you know, hold

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Speaker 7: unto their thirty or thirty five until they get the

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Speaker 7: majority of that where that money is compounding for them,

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Speaker 7: so gift from the curse. And the other part is

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Speaker 7: that I'm concerned is we want to teach Coach k

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Speaker 7: is one of my great friends and one of the

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Speaker 7: great great personalities in all of sports. You want athletes

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Speaker 7: to be around coach k for three or four years,

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Speaker 7: not just one great point. So and same thing with

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Speaker 7: Kyle Party and all of that. So we want to

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Speaker 7: teach these kids that you know the power of restriction

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Speaker 7: and to be able to wait a little bit before

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Speaker 7: they get you know, the marshmallow, as they.

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Speaker 6: Say, before you let you go. And this is a

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Speaker 6: question we ask everybody, So, hey, why not you What

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Speaker 6: are you gonna buy?

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Speaker 1: Now?

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Speaker 6: What do you like?

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Speaker 4: This is a question. We have support folio matter what,

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Speaker 4: You've got a lot of investments.

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Speaker 6: Yeah, so what do you like?

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Speaker 4: You know that is a great question.

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Speaker 7: I mean, I'm so excited about the Minnesota Timbles and

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Speaker 7: the Lynx and we've done a lot of good work

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Speaker 7: over the last three years. We've been in first place

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Speaker 7: for most of the year, only two games remaining, so

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Speaker 7: we're sound to make a poison to make a good run,

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Speaker 7: hopefully in the postseason. But look, I think you wake

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Speaker 7: up every day you're prepared, you're ready for opportunities. That's

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Speaker 7: exactly how the opportunity of the timbulves came up and

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Speaker 7: the links. So the answer is, I don't know, but

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Speaker 7: we're always looking.

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Speaker 4: What are you guys going to ask steven A. I

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Speaker 4: can't imagine this thing could get heated quickly, you know.

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Speaker 4: I mean what I'm really interested in with him is

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Speaker 4: the business of stephen A. You know, I mean, because

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Speaker 4: he he's a game changer in so many ways. You know,

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Speaker 4: we both had chance to read his book ahead of this.

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Speaker 4: I mean, this is a guy who completely reshaped the

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Speaker 4: business of sports media. My sheer force of will got

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Speaker 4: knocked down a bunch. He had a great mentor in

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Speaker 4: Mark Shapiro, another upcoming guest on the deal. I'm just

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Speaker 4: telling all of our guests here, that's what I did.

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Speaker 4: Shameless plug, shamelessly, that's my middle name. But you know,

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Speaker 4: for stephen A, I think we don't know where it's

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Speaker 4: going to go. We know he doesn't like the Dallas Cowboys,

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Speaker 4: he doesn't, and he does love the Yankees.

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Speaker 7: And I just say, in conclusion, with Steven A is

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Speaker 7: really a story of rags to riches, But it hasn't

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Speaker 7: been straight up into the right. I mean to think

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Speaker 7: most people forgot this reading his book. I just remembered

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Speaker 7: he got fired from ESPN, he had to go to

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Speaker 7: Fox Radio, and then he's come back. And to think,

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Speaker 7: not only is he going to be the first guy

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Speaker 7: that makes person that makes over probably twenty to twenty

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Speaker 7: five million, but he's also could be the next Johnny Carson. Yeah,

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Speaker 7: and he's built an incredible business and I can't wait

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Speaker 7: to ask.

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Speaker 4: Them Michael Strahan talk about another mazing career coming in entertainment.

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Speaker 4: All right, guys, thanks very much.

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Speaker 3: Podcast It's called The Deal with Alex Rodriguez and Jason Kelly.

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Speaker 3: On this week's episode of The Deal, Alex Rodriguez and

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Speaker 3: Jason Kelly speak with US soccer legend Brandy Schestain about

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Speaker 3: private equity firm Sixth Street Sports Investment and the Bay

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Speaker 3: FC owners hope for the sports. She also talks about

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Speaker 3: if the world is ready.

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Speaker 4: For women's sports. So take a listen to that good stuff.

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Speaker 2: You're listening to the Bloomberg Intelligence Podcast. Catch us live

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Speaker 2: weekdays at ten am Eastern on applecard Play and Android

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Speaker 2: otto With the Bloomberg Business app. You can also listen

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Speaker 2: live on Amazon Alexa from our flagship New York station,

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Speaker 2: Just say Alexa play Bloomberg eleven thirty Caroly Paul.

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Speaker 6: Amazon had a let her out today.

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Speaker 4: Yeah, this is something to do.

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Speaker 6: Is that a thing we do?

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Speaker 1: No?

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Speaker 4: Well, I think we start doing it now with mister Jesse.

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Speaker 6: M hmm, okay, I mean do we care about Amazon letters?

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Speaker 6: Is that something that.

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Speaker 3: I mean, there's so big and its retail goes to

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Speaker 3: the consumer. It's now they're a tech behemoth. They're now

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Speaker 3: huge advertising play. So I think the answer is yes.

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Speaker 3: And so let's check in with an expert. Punam Goyle,

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Speaker 3: senior US retail analyst for Bloomberg in Intelligence. She joins

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Speaker 3: us from our Princeton offices down there in.

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Speaker 4: The swamps of New Jersey. Punam, what did you make

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Speaker 4: of this letter? I mean, I think mister Jasse is

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Speaker 4: trying to just make sure that the market doesn't take

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Speaker 4: its attention away from the fact that Amazon is in

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Speaker 4: effect an AI play.

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Speaker 1: That is part of the story. Definitely. I think the

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Speaker 1: focus on the letter goes into all its businesses, starting

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Speaker 1: with retail, where they continue to push the envelope on

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Speaker 1: value and driving that GMB higher through its logistics platform

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Speaker 1: where they're improving same day delivery and really taking costs

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Speaker 1: out of the equation as much as they can. On

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Speaker 1: the AWS side, AI is the name of the game,

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Speaker 1: and they want to make sure that they are visible

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Speaker 1: that they are playing in that space and that is

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Speaker 1: going to improve every part of their business, not just

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Speaker 1: AWS alone, but in terms of AWS.

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Speaker 6: It feels like what they were saying is that AWS

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Speaker 6: is going to be the foundation for all the AI plays.

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Speaker 6: Is that Am I reading that correctly?

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Speaker 4: Yeah?

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Speaker 1: I mean, you know, where AI is built is going

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Speaker 1: to be inside of AWS. For Amazon, They're going to

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Speaker 1: be building or you could call it, the raw materials

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Speaker 1: of the codes and really providing that as an entry

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Speaker 1: point for businesses that use AWS and even within their

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Speaker 1: own businesses to create the efficiencies and the speed that's

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Speaker 1: needed to operate in the agile environment we live in

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Speaker 1: today and compete with OpenAI.

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Speaker 3: You know what I've learned since moving down to the

438
00:19:31,000 --> 00:19:33,919
Speaker 3: Jersey Shore is Central New Jersey and southern New Jersey

439
00:19:34,320 --> 00:19:36,720
Speaker 3: is like a warehouse capital.

440
00:19:36,320 --> 00:19:38,399
Speaker 4: Of the world. It seems like everywhere you go and

441
00:19:38,640 --> 00:19:39,720
Speaker 4: Punam lives around.

442
00:19:39,520 --> 00:19:42,240
Speaker 6: There, is it all Amazon or just it's everything.

443
00:19:42,359 --> 00:19:44,480
Speaker 4: It's everything about tons and tons of Amazon because you

444
00:19:44,560 --> 00:19:47,119
Speaker 4: got and you get to part and the gardens, the

445
00:19:47,160 --> 00:19:50,480
Speaker 4: State Parkway, got the new Jersey Turnpike, Philadelphia Port, New

446
00:19:50,560 --> 00:19:53,360
Speaker 4: York Port. I think it's all there. It's just amazing.

447
00:19:53,400 --> 00:19:57,280
Speaker 4: So pun them, I mean, talk to us about do

448
00:19:57,359 --> 00:19:59,960
Speaker 4: investors that you talk to that they still want Amazon

449
00:20:00,080 --> 00:20:06,040
Speaker 4: On to invest aggressively in their retail operations? There is

450
00:20:06,040 --> 00:20:08,359
Speaker 4: there more to go there and to investors, are they

451
00:20:08,359 --> 00:20:10,440
Speaker 4: okay with that given that maybe some of those dollars

452
00:20:10,520 --> 00:20:13,480
Speaker 4: could be to the cloud, or maybe Amazon has got

453
00:20:13,520 --> 00:20:15,600
Speaker 4: so much money they can invest in anything they want.

454
00:20:15,880 --> 00:20:17,760
Speaker 1: I mean, I think they need to invest in both

455
00:20:17,840 --> 00:20:19,920
Speaker 1: the cloud and retail. I don't think you want them

456
00:20:19,920 --> 00:20:22,879
Speaker 1: to stop investing in retail because remember, Paul, as the

457
00:20:22,920 --> 00:20:25,600
Speaker 1: retail business grows, which we estimate the GMA to grow

458
00:20:25,640 --> 00:20:28,960
Speaker 1: to our trillion dollars in the next coming years, that

459
00:20:29,160 --> 00:20:32,080
Speaker 1: impacts their advertising business, right, which has grown to nearly

460
00:20:32,119 --> 00:20:35,840
Speaker 1: fifty billion dollars today. The bigger retail gets, the more

461
00:20:35,880 --> 00:20:38,639
Speaker 1: money they can get for advertising too. So there is

462
00:20:38,640 --> 00:20:41,760
Speaker 1: a connection here and that's how retail is made profitable.

463
00:20:42,480 --> 00:20:44,439
Speaker 6: What also is interesting, aside from retail is what they

464
00:20:44,440 --> 00:20:48,119
Speaker 6: said about their Amazon Prime Video. They seem to think

465
00:20:48,160 --> 00:20:50,480
Speaker 6: it could be its own standalone, like good enough to

466
00:20:50,520 --> 00:20:52,200
Speaker 6: live on its own. What did you make of that?

467
00:20:53,080 --> 00:20:55,480
Speaker 1: I thought that was interesting. You know, Amazon Prime Video.

468
00:20:55,560 --> 00:20:58,639
Speaker 1: We know that it's something that they've been investing aggressively.

469
00:20:59,119 --> 00:21:01,560
Speaker 1: But I think the game changer here really is going

470
00:21:01,560 --> 00:21:05,560
Speaker 1: to be advertising again. Where as they implement ads within

471
00:21:05,640 --> 00:21:08,240
Speaker 1: the Prime videos, that's what's going to take it to

472
00:21:08,280 --> 00:21:10,920
Speaker 1: be profitable. Whenever that is. We haven't run the model yet,

473
00:21:10,960 --> 00:21:13,760
Speaker 1: but we think there's still a bit of time before

474
00:21:13,800 --> 00:21:16,320
Speaker 1: you can say that Prime Video on a standalone entity

475
00:21:16,440 --> 00:21:17,520
Speaker 1: is going to be profitable.

476
00:21:17,640 --> 00:21:18,480
Speaker 6: Do you do prime video?

477
00:21:19,320 --> 00:21:20,480
Speaker 4: I'm going to just say yes.

478
00:21:21,160 --> 00:21:23,119
Speaker 3: I mean, you know, you know what I do periodic

479
00:21:23,240 --> 00:21:25,280
Speaker 3: and maybe I'll do it on the plane ride down today.

480
00:21:25,760 --> 00:21:27,280
Speaker 4: Is I just go through and I delete.

481
00:21:27,000 --> 00:21:29,320
Speaker 3: Them all, you know, just periodically go and just delete

482
00:21:29,400 --> 00:21:31,040
Speaker 3: like I don't need this right now. I mean, you know,

483
00:21:31,280 --> 00:21:33,919
Speaker 3: because it's so easy to delete. Is as opposed to

484
00:21:34,320 --> 00:21:37,399
Speaker 3: trying and disconnect from Verizon or Comcast, which takes like

485
00:21:37,440 --> 00:21:38,200
Speaker 3: a half a lifetime.

486
00:21:38,440 --> 00:21:40,160
Speaker 6: It's true at the one hundred percent, and then there's

487
00:21:40,200 --> 00:21:42,360
Speaker 6: weird fees and it doesn't work in the whole thing.

488
00:21:42,440 --> 00:21:46,200
Speaker 3: Hey, put, what's the what's the investment call on Amazon

489
00:21:46,280 --> 00:21:49,119
Speaker 3: these days? I'm looking at the stock here, it's up

490
00:21:49,119 --> 00:21:51,080
Speaker 3: twenty two percent year to date, it's up over eighty

491
00:21:51,080 --> 00:21:52,840
Speaker 3: percent or but the trailing twelve months, so it's really

492
00:21:52,880 --> 00:21:57,080
Speaker 3: performed well. We're just under two trillion dollars in market cap.

493
00:21:57,400 --> 00:21:59,600
Speaker 3: When when you talk to investors kind of why do

494
00:21:59,680 --> 00:22:01,760
Speaker 3: people own it today? Why do people buy it today?

495
00:22:02,680 --> 00:22:05,560
Speaker 1: We think it's all about profitability. For the longest time,

496
00:22:05,600 --> 00:22:08,399
Speaker 1: for over two decades, Amazon was about market share gains

497
00:22:08,400 --> 00:22:11,280
Speaker 1: and top line gains. Today we're starting the store to

498
00:22:11,320 --> 00:22:14,160
Speaker 1: see the story turn into a profit play. So as

499
00:22:14,240 --> 00:22:17,280
Speaker 1: Aws climbs to over two hundred billion dollars in revenues,

500
00:22:17,280 --> 00:22:21,359
Speaker 1: which we expect, as the GMV for its online business

501
00:22:21,400 --> 00:22:24,240
Speaker 1: climbs to over a trillion dollars, and as advertising gain

502
00:22:24,320 --> 00:22:27,600
Speaker 1: scale to over one hundred billion dollars, you're talking about

503
00:22:27,640 --> 00:22:32,480
Speaker 1: the profit ability of this company improving vastly. Just last year,

504
00:22:32,520 --> 00:22:35,439
Speaker 1: you know, the profit's improved to about over six percent

505
00:22:35,440 --> 00:22:37,600
Speaker 1: from two percent the year before that. So we're starting

506
00:22:37,640 --> 00:22:39,960
Speaker 1: to see that play out, and we think the road

507
00:22:40,000 --> 00:22:42,960
Speaker 1: ahead is still very clear in terms of how they

508
00:22:43,119 --> 00:22:45,400
Speaker 1: parse out their way to be even more profitable.

509
00:22:46,400 --> 00:22:48,800
Speaker 6: Put before we let you go. Usually the reason why

510
00:22:48,800 --> 00:22:52,000
Speaker 6: we like the Jamie Diamond letter is because we get

511
00:22:52,040 --> 00:22:55,359
Speaker 6: really great macro reads and like calls on raids and

512
00:22:55,440 --> 00:22:58,159
Speaker 6: opinions about the FED. Did we get any of that

513
00:22:58,359 --> 00:23:03,640
Speaker 6: from Anny Jassey and of like consumer outlook, how their

514
00:23:03,800 --> 00:23:06,800
Speaker 6: end user me, how I'm doing in the market.

515
00:23:07,240 --> 00:23:09,320
Speaker 1: Well, they talked a little bit about value and how

516
00:23:09,320 --> 00:23:12,080
Speaker 1: they continue to really focus on low prices, which they

517
00:23:12,080 --> 00:23:14,720
Speaker 1: had done in four Q with Prime Prime Day, and

518
00:23:14,760 --> 00:23:18,440
Speaker 1: they also launched earlier this year a Spring Day sale.

519
00:23:18,560 --> 00:23:21,000
Speaker 1: So we do see that push on value, which tells

520
00:23:21,040 --> 00:23:24,760
Speaker 1: us that the consumer cares about prices. So they are

521
00:23:24,840 --> 00:23:27,119
Speaker 1: being sensitive to that and responding to that, and we

522
00:23:27,119 --> 00:23:29,600
Speaker 1: don't expect that to change as a year unfolds.

523
00:23:29,960 --> 00:23:31,680
Speaker 3: I tell you if I were an investor here, it'd

524
00:23:31,720 --> 00:23:34,680
Speaker 3: be for this reason. Free cash flow in twenty twenty

525
00:23:34,720 --> 00:23:36,159
Speaker 3: three thirty two billion.

526
00:23:36,320 --> 00:23:36,919
Speaker 4: Nice.

527
00:23:37,080 --> 00:23:39,800
Speaker 3: How about twenty twenty four sixty three billion is the

528
00:23:39,800 --> 00:23:43,560
Speaker 3: forecast and in twenty five eighty three billion a free cashlow,

529
00:23:43,600 --> 00:23:44,439
Speaker 3: So growth and free.

530
00:23:44,359 --> 00:23:46,240
Speaker 4: Cash flow put in, what do they do with the

531
00:23:46,280 --> 00:23:46,920
Speaker 4: free cash flow?

532
00:23:47,880 --> 00:23:49,640
Speaker 1: They're going to invest it back in the business. Right

533
00:23:49,680 --> 00:23:51,879
Speaker 1: as you said it. They still need to invest in AI,

534
00:23:51,960 --> 00:23:54,000
Speaker 1: they need to invest in AWS, and they need to

535
00:23:54,000 --> 00:23:57,600
Speaker 1: invest in logistics, so that will be the primary drivers

536
00:23:57,600 --> 00:23:59,080
Speaker 1: of their cash investments.

537
00:24:01,160 --> 00:24:03,359
Speaker 6: How I guess is the question. Rightly, they can't go

538
00:24:03,480 --> 00:24:06,520
Speaker 6: buy stuff, can they? Because of all the regulatory scrutiny

539
00:24:06,560 --> 00:24:08,240
Speaker 6: over big tech in that way. I mean, they can't

540
00:24:08,280 --> 00:24:09,720
Speaker 6: just go by TikTok for example.

541
00:24:10,560 --> 00:24:12,520
Speaker 1: No, I don't. I think it'll be much harder for

542
00:24:12,560 --> 00:24:15,320
Speaker 1: them to make an acquisition. They have to grow organically,

543
00:24:15,400 --> 00:24:18,120
Speaker 1: and they have to invest in their own businesses. That said,

544
00:24:18,160 --> 00:24:21,359
Speaker 1: there's plenty of opportunity for them to invest in what

545
00:24:21,400 --> 00:24:25,600
Speaker 1: they own, whether it's across advertising, prime video, their retail business,

546
00:24:25,600 --> 00:24:28,720
Speaker 1: and AWS. There's still a long runway for them to go.

547
00:24:28,840 --> 00:24:32,760
Speaker 1: Digital commerce alone is just at twenty five percent penetration

548
00:24:32,880 --> 00:24:35,640
Speaker 1: in the US and probably a little over that globally,

549
00:24:36,160 --> 00:24:39,360
Speaker 1: So there's opportunity across all of their businesses, even their

550
00:24:39,359 --> 00:24:40,119
Speaker 1: biggest business.

551
00:24:40,240 --> 00:24:40,440
Speaker 4: Yeah.

552
00:24:40,440 --> 00:24:42,840
Speaker 3: I mean, they're spending you know, sixty billion dollars a

553
00:24:42,880 --> 00:24:46,320
Speaker 3: year in capital expenditure, so it's sound like they're you know, yeah, exactly,

554
00:24:46,359 --> 00:24:48,000
Speaker 3: all right. Put them thanks so much for joining us there.

555
00:24:48,080 --> 00:24:51,600
Speaker 3: Put them Goyle, senior US retail analysts for Bloomberg Intelligence,

556
00:24:51,800 --> 00:24:56,080
Speaker 3: Joining us from our studios down in Princeton, New Jersey.

557
00:24:56,480 --> 00:25:01,119
Speaker 2: You're listening to the Bloomberg Intelligence podcast live weekdays at

558
00:25:01,160 --> 00:25:04,040
Speaker 2: ten am Eastern on Effocarplay and Android Otto with the

559
00:25:04,080 --> 00:25:07,960
Speaker 2: Bloomberg Business App. Listen on demand wherever you get your podcasts,

560
00:25:08,200 --> 00:25:11,960
Speaker 2: or watch us live on YouTube.

561
00:25:12,000 --> 00:25:15,120
Speaker 6: We also cover Bloomberg Big Take stories, and that's when

562
00:25:15,119 --> 00:25:17,080
Speaker 6: we take a broad look at some of the major

563
00:25:17,160 --> 00:25:19,719
Speaker 6: trends in the market and we dive deep. And they

564
00:25:19,720 --> 00:25:22,840
Speaker 6: are really amazing stories and they're worth a ton of work.

565
00:25:22,880 --> 00:25:27,119
Speaker 6: And the one today blew my brain And for a

566
00:25:27,280 --> 00:25:29,879
Speaker 6: mother of a daughter who's nine and a half, I

567
00:25:29,920 --> 00:25:33,280
Speaker 6: gotta tell you, I love the story. This has to

568
00:25:33,320 --> 00:25:37,440
Speaker 6: do with basically your return on investment for Ivy League colleges,

569
00:25:37,600 --> 00:25:42,280
Speaker 6: private colleges, Mini ivys, public schools, et cetera. And it's

570
00:25:42,560 --> 00:25:45,479
Speaker 6: very different from what you may think. Joining us now

571
00:25:45,480 --> 00:25:47,800
Speaker 6: are the personal finance reporters in charge of the story,

572
00:25:47,960 --> 00:25:51,720
Speaker 6: Paulina Chiceriro and Francesca Maglioni. Joining us now live in

573
00:25:51,760 --> 00:25:54,600
Speaker 6: our inactive broker studio. Ladies, First of all, how did

574
00:25:54,600 --> 00:25:56,800
Speaker 6: you come up with this. I would never have thought

575
00:25:56,840 --> 00:25:59,439
Speaker 6: of sort of putting a bloomberg angle ROI of college

576
00:25:59,440 --> 00:26:02,240
Speaker 6: in this particular regular light. How did you guys together

577
00:26:02,280 --> 00:26:02,840
Speaker 6: come up with it?

578
00:26:03,800 --> 00:26:07,160
Speaker 9: Yeah, So we had been talking to a bunch of families,

579
00:26:07,240 --> 00:26:11,400
Speaker 9: college counselors, parents and kids that were nervous about getting

580
00:26:11,440 --> 00:26:14,000
Speaker 9: into college, thinking about the cost of college, thinking is

581
00:26:14,040 --> 00:26:16,320
Speaker 9: it even worth it? And we kind of wanted to

582
00:26:16,359 --> 00:26:20,000
Speaker 9: give people a number to answer their question, like, yes,

583
00:26:20,080 --> 00:26:23,040
Speaker 9: everyone says college is overwhelmingly worth it, but like, how

584
00:26:23,040 --> 00:26:25,040
Speaker 9: does that change depending on the school that you're looking

585
00:26:25,080 --> 00:26:28,600
Speaker 9: at and the kind of institution that you're thinking of attending.

586
00:26:28,600 --> 00:26:30,320
Speaker 9: So we kind of wanted to give people a tool

587
00:26:30,440 --> 00:26:32,680
Speaker 9: to answer that question a little bit more.

588
00:26:33,240 --> 00:26:34,320
Speaker 2: Yeah, and smart way.

589
00:26:34,480 --> 00:26:36,959
Speaker 10: Francesca has done really a lot of great reporting tracking

590
00:26:37,160 --> 00:26:41,160
Speaker 10: just how much colleges costs, especially elite institutions. She wrote

591
00:26:41,200 --> 00:26:44,280
Speaker 10: a great story about how college is today, the elite

592
00:26:44,280 --> 00:26:46,639
Speaker 10: colleges that most students want to get into, the costs

593
00:26:46,640 --> 00:26:49,200
Speaker 10: are stretching past ninety thousand dollars.

594
00:26:49,280 --> 00:26:49,760
Speaker 4: Paul knows.

595
00:26:49,800 --> 00:26:51,520
Speaker 6: Paul knows aware.

596
00:26:53,080 --> 00:26:55,280
Speaker 10: And so when you think of those costs, I think

597
00:26:55,320 --> 00:26:57,800
Speaker 10: a lot more families are being forced to consider, like

598
00:26:57,840 --> 00:27:01,200
Speaker 10: what is the ROI, and they've been doing these calculations themselves,

599
00:27:01,240 --> 00:27:03,520
Speaker 10: so we wanted to, you know, crunch the numbers for them.

600
00:27:03,960 --> 00:27:07,160
Speaker 4: Of the four kids of mine who I've paid for,

601
00:27:07,640 --> 00:27:09,359
Speaker 4: Penn State was the best value.

602
00:27:09,680 --> 00:27:12,520
Speaker 3: It was a relative by well relative to everybody else

603
00:27:12,600 --> 00:27:15,720
Speaker 3: way low, and it's got one of the best engineering schools,

604
00:27:15,760 --> 00:27:20,560
Speaker 3: and the numbnuts got a great job and aerospace engineering

605
00:27:20,880 --> 00:27:22,080
Speaker 3: doing all kinds of crazy stuff.

606
00:27:22,119 --> 00:27:24,440
Speaker 4: So it makes sense to me. I think one of the.

607
00:27:24,359 --> 00:27:28,040
Speaker 3: Parts of the story that's interesting is just generally is

608
00:27:28,720 --> 00:27:31,520
Speaker 3: college in general worth it relative to or also you

609
00:27:31,520 --> 00:27:34,280
Speaker 3: could go maybe go to a trade school and come

610
00:27:34,320 --> 00:27:37,800
Speaker 3: out with little to no debt and still get jobs, and.

611
00:27:37,640 --> 00:27:40,600
Speaker 4: That ROI looks very interesting. I mean, how do you

612
00:27:40,640 --> 00:27:41,360
Speaker 4: guys think about that?

613
00:27:42,560 --> 00:27:45,520
Speaker 10: Yeah, So we actually, like in our story, did look

614
00:27:45,520 --> 00:27:48,040
Speaker 10: at what would the ROI be of someone who graduated

615
00:27:48,040 --> 00:27:51,240
Speaker 10: from high school. So someone making ten dollars an hour

616
00:27:51,280 --> 00:27:53,880
Speaker 10: would have an ROI of about one hundred and ninety

617
00:27:53,880 --> 00:27:57,720
Speaker 10: one thousand dollars ten years after, you know, when normal

618
00:27:57,760 --> 00:28:01,480
Speaker 10: college graduates enroll. And to put that into perspective, the

619
00:28:01,600 --> 00:28:05,080
Speaker 10: average ROI for all colleges was about ninety eight thousand,

620
00:28:05,720 --> 00:28:09,880
Speaker 10: so you can see how you know, initially it might

621
00:28:09,960 --> 00:28:12,679
Speaker 10: seem like beneficial, but that's because when you're going to college,

622
00:28:12,680 --> 00:28:15,480
Speaker 10: you know, you're paying for college, you're putting in that investment.

623
00:28:15,880 --> 00:28:18,800
Speaker 10: But you know, once you graduate, college graduates do tend

624
00:28:18,800 --> 00:28:21,159
Speaker 10: to have higher earnings, so it does balance out in

625
00:28:21,200 --> 00:28:21,920
Speaker 10: the longer term.

626
00:28:22,000 --> 00:28:24,879
Speaker 6: So for ESSCA, help me understand the different buckets that

627
00:28:24,920 --> 00:28:27,240
Speaker 6: you guys looked at and sort of the data that

628
00:28:27,280 --> 00:28:27,800
Speaker 6: you found.

629
00:28:28,280 --> 00:28:31,080
Speaker 9: Yeah, so we wanted to understand what types of schools

630
00:28:31,080 --> 00:28:33,560
Speaker 9: were doing better than others, and so we grouped schools

631
00:28:33,600 --> 00:28:38,400
Speaker 9: by the ivys, which obviously overperformed as they do always,

632
00:28:39,200 --> 00:28:42,400
Speaker 9: and then we looked at private elite institutions, which were

633
00:28:42,400 --> 00:28:44,640
Speaker 9: a group of sixty three schools that are any school

634
00:28:44,640 --> 00:28:51,400
Speaker 9: that you would think of is competitive, selective, think Vasa, Oberlin,

635
00:28:52,120 --> 00:28:55,200
Speaker 9: Wake Forest, those kinds of schools. Then we looked at

636
00:28:55,240 --> 00:29:00,440
Speaker 9: public flagship institutions and other public and elite, other public

637
00:29:00,440 --> 00:29:03,600
Speaker 9: and private schools, and what we found was that after

638
00:29:03,680 --> 00:29:06,960
Speaker 9: you look at the ivys, the private elite institutions and

639
00:29:07,000 --> 00:29:09,760
Speaker 9: the public flagships kind of performed the same at the

640
00:29:09,800 --> 00:29:12,080
Speaker 9: ten year mark. And that was I think our most

641
00:29:12,120 --> 00:29:14,360
Speaker 9: surprising finding because we feel like a lot of people

642
00:29:14,760 --> 00:29:17,840
Speaker 9: put a lot of emphasis on prestige when thinking about college,

643
00:29:17,880 --> 00:29:20,680
Speaker 9: and we're kind of trying to tell them, Wait, maybe

644
00:29:20,680 --> 00:29:23,360
Speaker 9: a public college that accepts most of its applicants can

645
00:29:23,360 --> 00:29:24,560
Speaker 9: give you that same ROI.

646
00:29:25,080 --> 00:29:28,120
Speaker 3: So how about what's the impact I guess or on

647
00:29:28,200 --> 00:29:30,760
Speaker 3: your ROI calculations from what.

648
00:29:30,840 --> 00:29:31,520
Speaker 4: Major you take?

649
00:29:32,160 --> 00:29:33,640
Speaker 6: Yes, that's a good question, you know.

650
00:29:33,600 --> 00:29:37,520
Speaker 4: Engineering, good business? I would think good.

651
00:29:38,720 --> 00:29:40,320
Speaker 6: The same idea is, like, you go to Oberlin, it's

652
00:29:40,320 --> 00:29:45,000
Speaker 6: a liberal arts education, right, like that humanities and psychologip

653
00:29:45,000 --> 00:29:46,040
Speaker 6: play into the math.

654
00:29:45,880 --> 00:29:47,240
Speaker 4: I guess. Yeah.

655
00:29:47,280 --> 00:29:50,040
Speaker 10: So we did tend to find that major place a

656
00:29:50,120 --> 00:29:53,200
Speaker 10: huge role in ROI. Schools where a majority of their

657
00:29:53,240 --> 00:29:56,880
Speaker 10: graduates came from STEM fields tended to overperform well. And

658
00:29:56,960 --> 00:29:59,240
Speaker 10: there are actually some surprise winners. When you look at

659
00:29:59,240 --> 00:30:02,959
Speaker 10: our roy LIFT schools like the Colorado School of Mines,

660
00:30:03,320 --> 00:30:08,880
Speaker 10: the Saint Louis Pharmacy Academy, and many more schools that

661
00:30:09,000 --> 00:30:11,680
Speaker 10: have a STEM focus, we're doing just as well as

662
00:30:11,680 --> 00:30:13,960
Speaker 10: some ivy's, or even better than other ivs as well.

663
00:30:14,040 --> 00:30:16,120
Speaker 6: So what is it? I wonder if what this really

664
00:30:16,160 --> 00:30:19,040
Speaker 6: tells us is that if you major in humanities, your

665
00:30:19,160 --> 00:30:22,920
Speaker 6: ROI stinks, Like is this like what we're learning unless

666
00:30:22,960 --> 00:30:24,960
Speaker 6: you do that in an ivy, because then you have

667
00:30:25,000 --> 00:30:28,080
Speaker 6: the certain types of connections, et cetera, and you may

668
00:30:28,120 --> 00:30:30,080
Speaker 6: get a better job other than that. Do we just

669
00:30:31,000 --> 00:30:35,280
Speaker 6: is that the problem? Francesca's sort of laughing.

670
00:30:35,480 --> 00:30:37,200
Speaker 9: I mean, it's typ a critical of me to say

671
00:30:37,240 --> 00:30:38,760
Speaker 9: I studied visual and media.

672
00:30:38,520 --> 00:30:42,320
Speaker 6: Science, girl, I was a theater director. We're all good.

673
00:30:42,720 --> 00:30:45,800
Speaker 9: But I guess if you just look at the data

674
00:30:45,920 --> 00:30:50,760
Speaker 9: and you're paying a hefty sticker price for college, then yes,

675
00:30:50,960 --> 00:30:56,320
Speaker 9: it's strategically the strategically, the most I guess smart way

676
00:30:56,360 --> 00:30:58,480
Speaker 9: to go about it is to study STEM because these

677
00:30:59,520 --> 00:31:02,200
Speaker 9: jobs put you directly into the labor market and are

678
00:31:02,320 --> 00:31:07,200
Speaker 9: really high paying careers. If you look further down the line,

679
00:31:07,240 --> 00:31:12,320
Speaker 9: these liberal art colleges do tend to gain get better earnings,

680
00:31:12,360 --> 00:31:14,680
Speaker 9: but it's more of a long run than it would

681
00:31:14,680 --> 00:31:16,400
Speaker 9: be if you're like, really want to see those earnings

682
00:31:16,480 --> 00:31:16,840
Speaker 9: right away?

683
00:31:18,600 --> 00:31:18,840
Speaker 4: Please?

684
00:31:18,880 --> 00:31:19,360
Speaker 6: Oh sorry.

685
00:31:19,440 --> 00:31:21,240
Speaker 10: One thing I wanted to know is that with the

686
00:31:21,280 --> 00:31:23,520
Speaker 10: rise of artificial intelligence, there has been a lot of

687
00:31:23,560 --> 00:31:27,480
Speaker 10: discussion about how the critical thinking skills associated with a

688
00:31:27,520 --> 00:31:31,200
Speaker 10: liberal arts degree, you know, might actually be more advantageous

689
00:31:31,200 --> 00:31:33,120
Speaker 10: in the labor market later down the line, but we

690
00:31:33,160 --> 00:31:35,240
Speaker 10: don't know what that is. So this is a snapshot

691
00:31:35,240 --> 00:31:38,120
Speaker 10: of a point in time, probably the last ten years.

692
00:31:38,200 --> 00:31:39,600
Speaker 3: You know, I see you look at like one of

693
00:31:39,600 --> 00:31:41,760
Speaker 3: the schools, the big state schools, the University of Georgia.

694
00:31:42,000 --> 00:31:44,120
Speaker 3: You think about a big school like that, you know,

695
00:31:44,160 --> 00:31:46,360
Speaker 3: one of the events is they have a big alumni network.

696
00:31:46,520 --> 00:31:49,280
Speaker 3: But I mean the state schools in general, how did

697
00:31:49,280 --> 00:31:51,560
Speaker 3: they kind of rank in general? Because there are some

698
00:31:51,640 --> 00:31:54,200
Speaker 3: really really good state schools, whether.

699
00:31:54,040 --> 00:31:56,320
Speaker 4: It's you know, Virginia or Michigan or in those kinds

700
00:31:56,320 --> 00:31:56,640
Speaker 4: of things.

701
00:31:56,960 --> 00:31:59,240
Speaker 9: Yeah, the state schools did really well. I think what's

702
00:31:59,520 --> 00:32:02,640
Speaker 9: driving their ROI to be higher than many elite private

703
00:32:02,680 --> 00:32:06,239
Speaker 9: schools is that they're just cheaper to attend. And at

704
00:32:06,280 --> 00:32:08,960
Speaker 9: the end of the day, like Paulina mentioned at the beginning,

705
00:32:09,440 --> 00:32:11,920
Speaker 9: paying ninety thousand dollars for college is just going to

706
00:32:11,920 --> 00:32:13,920
Speaker 9: set you back in terms of ROI, You're going to

707
00:32:14,000 --> 00:32:17,040
Speaker 9: be uh just it's the earnings are going to take

708
00:32:17,080 --> 00:32:20,200
Speaker 9: longer to level out, and so public schools in this

709
00:32:20,360 --> 00:32:22,920
Speaker 9: instance tend to overperform because of that.

710
00:32:23,320 --> 00:32:25,280
Speaker 10: And one of the sources that we talked to went

711
00:32:25,360 --> 00:32:27,800
Speaker 10: to the University of Georgia and is now working as

712
00:32:27,840 --> 00:32:30,000
Speaker 10: a credit analyst at Blackstone, and one of the things

713
00:32:30,000 --> 00:32:32,520
Speaker 10: that he mentioned was he knew he was someone who

714
00:32:32,560 --> 00:32:34,520
Speaker 10: is ambitious and driven and was going to put the

715
00:32:34,560 --> 00:32:37,120
Speaker 10: work in that he think he had the same outcome

716
00:32:37,120 --> 00:32:39,560
Speaker 10: as people who did go to these elite colleges. So

717
00:32:39,920 --> 00:32:42,920
Speaker 10: sometimes it is it is very individual dependent. If you're

718
00:32:42,920 --> 00:32:45,640
Speaker 10: willing to put in the work and you're really ambitious.

719
00:32:45,360 --> 00:32:54,680
Speaker 6: Right and graduate, Yeah, I flying down. And that just

720
00:32:54,680 --> 00:32:56,560
Speaker 6: makes the point that like if you want humanities like

721
00:32:56,640 --> 00:32:59,800
Speaker 6: maybe sort of the public institutions where you can get

722
00:33:00,040 --> 00:33:04,600
Speaker 6: keeper but also get that humanity education, I'm wondering, and

723
00:33:04,720 --> 00:33:07,440
Speaker 6: you're right, it all like the drive for sure, Like

724
00:33:07,800 --> 00:33:09,760
Speaker 6: that's going to depend. That's why I keep telling my kid,

725
00:33:09,920 --> 00:33:12,600
Speaker 6: like I'm like it's okay, Like great, I know, I know,

726
00:33:12,840 --> 00:33:14,360
Speaker 6: but it's like grades are important, for sure, you got

727
00:33:14,440 --> 00:33:16,480
Speaker 6: to get into a school, but like your ability to

728
00:33:16,640 --> 00:33:19,960
Speaker 6: be a human is also more important. She did draw

729
00:33:20,040 --> 00:33:21,719
Speaker 6: the whole hey do I have to go to college

730
00:33:21,720 --> 00:33:23,360
Speaker 6: thing the other night out of like nowhere, and I

731
00:33:23,440 --> 00:33:25,920
Speaker 6: was like, oh, yeah, you do. That's how you said

732
00:33:25,920 --> 00:33:28,640
Speaker 6: it didn't matter, And I was like, not didn't it

733
00:33:28,640 --> 00:33:30,400
Speaker 6: didn't matter where you went? Are you guys going to

734
00:33:30,480 --> 00:33:32,959
Speaker 6: do this for New York City public versus private schools,

735
00:33:32,960 --> 00:33:35,600
Speaker 6: because I would really appreciate that ROI please.

736
00:33:35,760 --> 00:33:37,640
Speaker 4: Yes, exactly, they're not even they're.

737
00:33:37,480 --> 00:33:39,400
Speaker 9: Not even Dad is available?

738
00:33:40,160 --> 00:33:40,400
Speaker 8: All right?

739
00:33:40,440 --> 00:33:42,560
Speaker 4: What's the what's the biggest surprise that you guys had

740
00:33:42,600 --> 00:33:43,520
Speaker 4: from from your work here?

741
00:33:44,960 --> 00:33:47,520
Speaker 10: The biggest surprise, I think that you know, there's a

742
00:33:47,560 --> 00:33:51,520
Speaker 10: lot of intangible benefits that people think of when going

743
00:33:51,520 --> 00:33:55,720
Speaker 10: to a prestigious school, this alumni network, this idea that

744
00:33:55,760 --> 00:33:58,480
Speaker 10: it'll open doors and help you, you know, climb the

745
00:33:58,640 --> 00:34:01,880
Speaker 10: economic ladder. And I think what was surprising is that

746
00:34:02,040 --> 00:34:04,640
Speaker 10: people felt, even with all that and acknowledging that they

747
00:34:04,680 --> 00:34:07,080
Speaker 10: did get those when they went to the prestigious schools,

748
00:34:07,120 --> 00:34:11,040
Speaker 10: that you know, it's still the cost of that college

749
00:34:11,120 --> 00:34:13,160
Speaker 10: kept them from achieving the things in life that they

750
00:34:13,200 --> 00:34:15,600
Speaker 10: thought really mattered, like being able to start a family,

751
00:34:16,280 --> 00:34:18,480
Speaker 10: owning a home, even being able to buy a car.

752
00:34:18,680 --> 00:34:21,319
Speaker 10: One of the people we spoke with said he his

753
00:34:21,800 --> 00:34:24,600
Speaker 10: student loan payments have been more than his rent and

754
00:34:24,719 --> 00:34:27,680
Speaker 10: have been since he graduated, So I believe it.

755
00:34:28,239 --> 00:34:30,560
Speaker 3: I'm going to have this conversation with my daughter about

756
00:34:30,600 --> 00:34:32,280
Speaker 3: helping out with a home purchase.

757
00:34:32,480 --> 00:34:33,600
Speaker 4: That's kind of Monday.

758
00:34:33,760 --> 00:34:34,200
Speaker 6: Is that coming?

759
00:34:34,200 --> 00:34:36,880
Speaker 4: I think that's money asked me to go to lunch.

760
00:34:38,480 --> 00:34:40,960
Speaker 6: Like priorities change, Like your priority that you're going to

761
00:34:41,040 --> 00:34:42,840
Speaker 6: have when you're eighteen is different when you're thirty.

762
00:34:42,960 --> 00:34:44,680
Speaker 4: Like socialistic thing.

763
00:34:44,719 --> 00:34:46,759
Speaker 6: I love the story. I'm like, all great, thank you

764
00:34:46,840 --> 00:34:47,160
Speaker 6: so much.

765
00:34:47,800 --> 00:34:50,879
Speaker 3: And Duke, so some pretty good schools there, you guys

766
00:34:50,880 --> 00:34:52,360
Speaker 3: feel like it was good worth it?

767
00:34:52,600 --> 00:34:52,799
Speaker 4: Yeah?

768
00:34:52,880 --> 00:34:57,160
Speaker 10: Yeah, yes they did pretty decent ROII so yeah.

769
00:34:57,920 --> 00:35:01,800
Speaker 6: Okay, right, frantask. Thank you very much for Tessca Maglione

770
00:35:01,880 --> 00:35:04,640
Speaker 6: and also Paulina Chicero. Thank you very much. I highly

771
00:35:04,640 --> 00:35:07,440
Speaker 6: recommend that you do private versus public in New York City.

772
00:35:07,480 --> 00:35:10,160
Speaker 6: Thank you, next assignment, good job. You can check out

773
00:35:10,160 --> 00:35:12,399
Speaker 6: that article. It's the big take. Definitely check that out.

774
00:35:12,680 --> 00:35:14,759
Speaker 6: It is definitely worth reading. If you have a kid,

775
00:35:14,840 --> 00:35:17,840
Speaker 6: or any grandkids or anything. It is worth talking about.

776
00:35:18,000 --> 00:35:19,160
Speaker 6: This is Bloomberg.

777
00:35:21,880 --> 00:35:25,800
Speaker 2: You're listening to the Bloomberg Intelligence Podcast. Catch us live

778
00:35:25,880 --> 00:35:29,400
Speaker 2: weekdays at ten am Eastern on applecar Play and Android

779
00:35:29,400 --> 00:35:32,600
Speaker 2: Auto with the Bloomberg Business. You can also listen live

780
00:35:32,680 --> 00:35:35,840
Speaker 2: on Amazon Alexa from our flagship New York station, Just

781
00:35:35,920 --> 00:35:39,520
Speaker 2: Say Alexa play Bloomberg eleven thirty.

782
00:35:40,680 --> 00:35:43,719
Speaker 3: Let's talk about the food and beverage business a little bit.

783
00:35:43,800 --> 00:35:47,840
Speaker 3: Constellation Brands, there are fifty billion dollar market cap company

784
00:35:47,880 --> 00:35:51,880
Speaker 3: based in Victor, New York, and they reported some numbers

785
00:35:51,880 --> 00:35:54,040
Speaker 3: here today. So let's break it down with Ken Shay

786
00:35:54,200 --> 00:35:59,319
Speaker 3: Bloomberg Intelligence Senior Consumer products analyst. Ken remind everybody what

787
00:35:59,520 --> 00:36:01,920
Speaker 3: constant relation brands is, what are the big brands that

788
00:36:01,960 --> 00:36:03,839
Speaker 3: they have, and how's business going?

789
00:36:04,440 --> 00:36:07,200
Speaker 8: Yeah, hi, Paul. Well, Constellation Brands is well known for

790
00:36:07,280 --> 00:36:10,840
Speaker 8: its at line of Corona Beers, Nice and increasingly Medello

791
00:36:11,160 --> 00:36:15,359
Speaker 8: part of that family. It also makes Woodbridge Wines, High

792
00:36:15,360 --> 00:36:19,800
Speaker 8: West Whiskey. Pretty much a portfolio of beer, wine and

793
00:36:19,880 --> 00:36:22,480
Speaker 8: spirits brands, but again mostly skewed towards beer.

794
00:36:23,680 --> 00:36:25,640
Speaker 6: So how they do walk us through more stuff?

795
00:36:26,640 --> 00:36:29,279
Speaker 8: So the quarter, you know, I think the backdrop, first

796
00:36:29,280 --> 00:36:32,640
Speaker 8: of all, was for a slow quarter, you know for

797
00:36:32,800 --> 00:36:37,359
Speaker 8: most wine and beer companies right now, and spirits you've

798
00:36:37,400 --> 00:36:41,920
Speaker 8: been given some recent results from Brown, Foreman and Duckcorn portfolio.

799
00:36:41,960 --> 00:36:45,560
Speaker 8: They're a producer of wines. Well they're all saying, you know,

800
00:36:45,680 --> 00:36:50,480
Speaker 8: trade inventory reductions stemming from cooling demand across all alcoholic

801
00:36:50,560 --> 00:36:53,720
Speaker 8: beverages was kind of the backdrop to this earnings report.

802
00:36:53,760 --> 00:36:56,720
Speaker 8: So when it came out, it beat expectations. Beer sales

803
00:36:56,760 --> 00:37:00,000
Speaker 8: were up eleven percent, Whine and spirits were weak. But again,

804
00:37:00,120 --> 00:37:02,560
Speaker 8: this is mostly a beer company, and so that's why

805
00:37:02,560 --> 00:37:05,239
Speaker 8: I was perceived very positively because you know, this was

806
00:37:06,000 --> 00:37:11,160
Speaker 8: a dose of good news and otherwise very cautious market.

807
00:37:11,400 --> 00:37:13,840
Speaker 8: So the company is doing basically what it said it

808
00:37:13,840 --> 00:37:16,560
Speaker 8: would do. You know, it had good results for beer,

809
00:37:17,480 --> 00:37:21,839
Speaker 8: it reduced debt some more, it's committed to expanding its

810
00:37:21,880 --> 00:37:26,320
Speaker 8: big brewery operations down in Mexico, increased the dividend thirteen percent.

811
00:37:26,840 --> 00:37:28,880
Speaker 8: So from a shareholder point of view, they're doing the

812
00:37:28,920 --> 00:37:33,120
Speaker 8: things they said they would do, and the beer results

813
00:37:33,200 --> 00:37:36,120
Speaker 8: beat expectations, and I gave the market a dosa good

814
00:37:36,200 --> 00:37:36,760
Speaker 8: news today.

815
00:37:37,760 --> 00:37:40,520
Speaker 3: Stop getting a fifty two week high today, up about

816
00:37:40,719 --> 00:37:43,839
Speaker 3: ten point six percent year to date, up about nineteen percent.

817
00:37:43,680 --> 00:37:46,239
Speaker 4: Over the past twelve months. What's the growth story here?

818
00:37:47,160 --> 00:37:49,799
Speaker 3: I guess let's go go another way. What's Constellation saying

819
00:37:49,800 --> 00:37:50,479
Speaker 3: about the.

820
00:37:50,360 --> 00:37:51,680
Speaker 4: Consumer in general?

821
00:37:52,719 --> 00:37:54,200
Speaker 3: Because you know, there's a lot of concern out there

822
00:37:54,200 --> 00:37:56,239
Speaker 3: as we look at some of the big data coming

823
00:37:56,239 --> 00:37:59,719
Speaker 3: out of Washington, DC about the consumers, is inflation and

824
00:37:59,760 --> 00:38:00,600
Speaker 3: all that type of stuff.

825
00:38:00,680 --> 00:38:04,800
Speaker 4: What do they sing, Well, they look at the paper.

826
00:38:04,800 --> 00:38:07,879
Speaker 8: Also, they understand, you know, the environment that they're in

827
00:38:07,960 --> 00:38:11,520
Speaker 8: that the consumer has definitely turned a little cautious here

828
00:38:11,960 --> 00:38:14,640
Speaker 8: towards purchases that they can differ. I guess that's the

829
00:38:14,400 --> 00:38:17,440
Speaker 8: best way to put it. You know, beer is you know,

830
00:38:17,440 --> 00:38:22,360
Speaker 8: a roughtively low price point product visa the wine and spirits.

831
00:38:22,400 --> 00:38:24,200
Speaker 8: You know, a high end bottle of wine or high

832
00:38:24,239 --> 00:38:26,120
Speaker 8: end bottle of bourbon you can maybe put off for

833
00:38:26,160 --> 00:38:28,319
Speaker 8: a while, but you know, a bottle of beer or

834
00:38:28,320 --> 00:38:31,160
Speaker 8: even a six pack whatever, you're not as prone to

835
00:38:31,160 --> 00:38:34,719
Speaker 8: do that. Even though Corona Medelic you know, command a

836
00:38:34,800 --> 00:38:38,080
Speaker 8: very premium price. It's a premium product. So they're aware

837
00:38:38,160 --> 00:38:40,279
Speaker 8: that they can't just keep you know, tacking on big

838
00:38:40,320 --> 00:38:44,399
Speaker 8: price increases. They're aware of what's going on, but they

839
00:38:44,440 --> 00:38:47,399
Speaker 8: see the consumer is resilient, particularly for beer right now.

840
00:38:47,760 --> 00:38:49,440
Speaker 6: So Ken, when we get you on, we like to

841
00:38:49,440 --> 00:38:51,000
Speaker 6: talk about all the things, and one of the things

842
00:38:51,000 --> 00:38:53,680
Speaker 6: we like talk about is weed. Because you walk on

843
00:38:53,760 --> 00:38:56,239
Speaker 6: the street in New York City you get the wafting.

844
00:38:56,680 --> 00:38:58,000
Speaker 6: I mean, I think it smells.

845
00:38:57,640 --> 00:39:01,239
Speaker 4: Good right Well, the clar fathers that Ken covers the cannabis,

846
00:39:02,160 --> 00:39:07,399
Speaker 4: it's not that he's right, I.

847
00:39:07,360 --> 00:39:10,480
Speaker 6: Did not frame this correctly. Ken. You're an analyst that

848
00:39:10,520 --> 00:39:13,040
Speaker 6: also covers the cannabis stocks. When I walk around in

849
00:39:13,080 --> 00:39:15,480
Speaker 6: New York City, I smell a lot of cannabis products.

850
00:39:16,080 --> 00:39:19,399
Speaker 6: How are these companies actually doing well?

851
00:39:19,400 --> 00:39:22,680
Speaker 8: Alex are doing pretty well from a sales point of view,

852
00:39:23,360 --> 00:39:26,640
Speaker 8: from an ibada point of view, but you know that

853
00:39:27,160 --> 00:39:31,600
Speaker 8: the taxation on cannabis companies is so onerous and a

854
00:39:31,600 --> 00:39:34,040
Speaker 8: lot of not very many are profitable from a gap

855
00:39:34,040 --> 00:39:37,160
Speaker 8: accounting point of view. So if you're if you're an

856
00:39:37,160 --> 00:39:39,800
Speaker 8: investor in this market, you certainly have to be patient.

857
00:39:40,200 --> 00:39:44,280
Speaker 8: And that's because you need some help from regulators from Washington,

858
00:39:45,080 --> 00:39:48,760
Speaker 8: whether it's a reclassification from you know, a prohibited drug

859
00:39:48,840 --> 00:39:53,799
Speaker 8: like marijuana is considered today, or it's outright legalization in

860
00:39:53,880 --> 00:39:56,480
Speaker 8: some states and so on. So you need some help

861
00:39:56,520 --> 00:39:59,560
Speaker 8: from regulators to keep this thing going. So it's going

862
00:39:59,560 --> 00:40:02,399
Speaker 8: at a mod Sales are from an industry point of view,

863
00:40:02,440 --> 00:40:07,200
Speaker 8: are moving positively. As more states legalized, you know, Florida,

864
00:40:07,200 --> 00:40:08,520
Speaker 8: it's going to be on the bal foarda as they

865
00:40:08,719 --> 00:40:11,239
Speaker 8: could be a you know, a six billion dollars legal market,

866
00:40:11,360 --> 00:40:14,400
Speaker 8: or about three times the size that it is now in

867
00:40:14,440 --> 00:40:19,680
Speaker 8: a very short order if in November voters approve, you know,

868
00:40:19,760 --> 00:40:24,360
Speaker 8: a legalization for adult use in November. So it's moving positively,

869
00:40:24,400 --> 00:40:26,759
Speaker 8: but again from an accounting point of view, you know,

870
00:40:26,840 --> 00:40:28,320
Speaker 8: it's not looking as rosy.

871
00:40:28,560 --> 00:40:29,000
Speaker 4: So what's this.

872
00:40:29,320 --> 00:40:32,479
Speaker 3: You cover a lot of the consumer companies that can

873
00:40:32,520 --> 00:40:35,520
Speaker 3: from the beverage companies to the beer companies and packaged goods.

874
00:40:35,719 --> 00:40:38,120
Speaker 3: What's the sector that's that's doing the best year? Where's

875
00:40:38,120 --> 00:40:39,960
Speaker 3: the most investor interest?

876
00:40:40,000 --> 00:40:40,520
Speaker 4: These days?

877
00:40:41,560 --> 00:40:44,759
Speaker 8: You don't go to a soft drinks, non alcoholic soft drinks,

878
00:40:44,840 --> 00:40:49,000
Speaker 8: Coca Cola, PepsiCo, you know, care Doctor Pepper, Celsius Energy.

879
00:40:50,040 --> 00:40:53,440
Speaker 8: You know, people love their soft drinks and it's a

880
00:40:53,560 --> 00:40:57,239
Speaker 8: very very resilient market. It's doing well, whether it's it's

881
00:40:57,280 --> 00:41:01,080
Speaker 8: a food service or it's you know, take home for

882
00:41:01,760 --> 00:41:06,400
Speaker 8: home consumption doing very well. And that's what the pricing

883
00:41:06,480 --> 00:41:10,720
Speaker 8: power is that you know, you're looking at categories like energy.

884
00:41:10,840 --> 00:41:13,120
Speaker 8: Energy is no longer in an upstart category. It's a

885
00:41:13,160 --> 00:41:16,120
Speaker 8: twenty billion dollar account. It's a big category, right, but

886
00:41:16,200 --> 00:41:19,959
Speaker 8: it's still growing at high single digit rates and it's

887
00:41:20,160 --> 00:41:24,680
Speaker 8: no sign of slowing down. Even the soft drink of

888
00:41:24,760 --> 00:41:28,640
Speaker 8: the carbonated beverages you know, Coke, Pepsi, the products has

889
00:41:28,680 --> 00:41:31,960
Speaker 8: been around a long time. I think they're discovering that

890
00:41:32,160 --> 00:41:35,600
Speaker 8: maybe they were underpriced for a long time because they've

891
00:41:35,600 --> 00:41:38,040
Speaker 8: been taking pricing up for a while. Consumers are not

892
00:41:38,120 --> 00:41:40,319
Speaker 8: bulking at all. As a matter of fact, those mini

893
00:41:40,400 --> 00:41:44,600
Speaker 8: cans have far higher unit prices than the regular size

894
00:41:44,719 --> 00:41:46,160
Speaker 8: and consumers love them.

895
00:41:46,400 --> 00:41:46,799
Speaker 4: I like that.

896
00:41:46,880 --> 00:41:48,879
Speaker 8: So that's an area of particular strength right now.

897
00:41:49,280 --> 00:41:51,839
Speaker 6: Yeah, cans nice and get flat if you don't drink

898
00:41:51,880 --> 00:41:55,719
Speaker 6: the whole thing before, you know, can the non alcoholic

899
00:41:56,239 --> 00:42:00,320
Speaker 6: spirit thing? Does that have real legs? John tuckerdo's anything?

900
00:42:00,440 --> 00:42:01,719
Speaker 6: Only a minute?

901
00:42:03,320 --> 00:42:07,880
Speaker 8: Uh? I think it does, you know to a small audience.

902
00:42:07,920 --> 00:42:10,840
Speaker 8: I mean this is this reminds me of the the

903
00:42:10,880 --> 00:42:14,319
Speaker 8: liquid death water. You know, it's basically spring water and

904
00:42:14,360 --> 00:42:17,279
Speaker 8: it can it's called liquid death. People like to act

905
00:42:17,360 --> 00:42:19,719
Speaker 8: like beer or not act, but they like to be

906
00:42:19,800 --> 00:42:23,560
Speaker 8: social at parties, and you know, it's a certain vibe

907
00:42:23,560 --> 00:42:25,920
Speaker 8: that's given off if you're drinking a bottle of you know,

908
00:42:26,160 --> 00:42:29,840
Speaker 8: plane bottle of water as opposed to something that looks

909
00:42:29,840 --> 00:42:33,800
Speaker 8: cool liquid death, even though it's buying largest same ingredients

910
00:42:33,800 --> 00:42:37,080
Speaker 8: inside so same. It could be suf of non alcoholic

911
00:42:37,160 --> 00:42:40,360
Speaker 8: beverages may make a little joke of this, but I

912
00:42:40,440 --> 00:42:44,759
Speaker 8: think I think younger demographics tend not to imbibe in

913
00:42:44,840 --> 00:42:49,399
Speaker 8: alcohol as much as you know, uh maybe my generation did,

914
00:42:50,080 --> 00:42:52,359
Speaker 8: and I think that's part of the attraction as well.

915
00:42:52,400 --> 00:42:53,960
Speaker 6: All Right, KEM, we gotta leave it there. Thanks a lot,

916
00:42:54,000 --> 00:42:58,240
Speaker 6: Ken Shay, Bloomberg Intelligence, Senior Consumer Products Analyst. I tried

917
00:42:58,280 --> 00:43:00,480
Speaker 6: all that stuff because I don't really drink that much anymore.

918
00:43:00,520 --> 00:43:02,120
Speaker 6: And then I'm like, why I just drink juice and

919
00:43:02,280 --> 00:43:02,840
Speaker 6: all that sugar.

920
00:43:02,880 --> 00:43:08,600
Speaker 2: Anyway, Anyway, this is the Bloomberg Intelligence podcast, available on Apples, Spotify,

921
00:43:08,800 --> 00:43:12,440
Speaker 2: and anywhere else you get your podcasts. Listen live each weekday,

922
00:43:12,560 --> 00:43:15,560
Speaker 2: ten am to noon Eastern on Bloomberg dot com, the

923
00:43:15,640 --> 00:43:19,080
Speaker 2: iHeartRadio app, tune In, and the Bloomberg Business app. You

924
00:43:19,120 --> 00:43:22,319
Speaker 2: can also watch us live every weekday on YouTube and

925
00:43:22,480 --> 00:43:24,120
Speaker 2: always on the Bloomberg terminal.